FOG Falcon Oil & Gas Ltd.

RNS Number:7371R
Fusion Oil & Gas PLC
20 February 2002


                              Fusion Oil & Gas plc
                          ("Fusion" or "the Company")

                         Mauritania Exploration Update

Fusion is pleased to announce an update to its intended operational programme in
Mauritania where it holds interests in two offshore exploration licenses (PSC A,
3%, PSCB, 6%).


In May 2001 the company announced that its first well in Mauritania was an oil
and gas discovery. The Chinguetti discovery lies approximately 80 km offshore
within PSC B.


The 2002 exploration and appraisal programme has been agreed by the PSC A and
PSC B Joint Venture partners and the Mauritanian authorities; it includes
extensive 3D seismic acquisition and the drilling of up to three offshore wells
this year.


Seismic Programme


The MV Topaz owned by seismic contractor WesternGeco has commenced operations
for acquisition of approximately 1,400 sq km of 3D seismic data. This data will
extend coverage over areas of the basin where prospectivity has been upgraded as
a result of the Chinguetti oil and gas discovery.


Drilling Programme


The drilling of two appraisal wells on the Chinguetti oil discovery, one firm
and one contingent, is planned for 2002, as well as a contingent exploration
well. The proposed order for drilling the wells is Chinguetti-2, followed by the
contingent exploration well and then Chinguetti-3.


The Joint Venture partners have approved the award of a drilling contract and
operations are due to commence by August.


Chinguetti Development Studies


Studies for the production of the Chinguetti discovery are in progress, as the
PSC B Joint Venture partners are confident that following the 2002 appraisal
drilling programme the final reserve volumes are likely to be sufficient for a
deep water stand-alone field development.


As part of its routine annual disclosure to the Australian Stock Exchange,
Woodside Energy Limited (Woodside), the operator of the PSC A and PSC B Joint
Ventures, included an estimate that the 'Scope for Recovery' for the Chinguetti
discovery is 65 million barrels of oil.


To date, only one untested exploration well has been drilled on the faulted
Chinguetti structure. Based on the available data there is considerable
uncertainty over the size of the resource. Fusion has commissioned international
consulting firm Scott Pickford Limited to assess the potential of the Chinguetti
discovery.

Scott Pickford has commented that:


Although the Chinguetti structure has been accurately defined on 3D seismic data
the appraisal of the structure is still at a very early stage with only one
well, the discovery well, having been drilled. This well was not tested for
operational reasons. At least two other structurally distinct segments of the
structure remain to be tested.


This scarcity of data has led Scott Pickford to conclude that it is premature to
attempt to calculate recoverable reserves and that oil-in-place volumes are
currently a more appropriate and reliable indicator of value. Based on the
available data, Scott Pickford have calculated a range of oil-in-place estimates
for the Chinguetti structure, covering proven, probable and possible cases
which, pending appraisal, reflect the current high level of uncertainty.


Scott Pickford consider the probable oil-in-place volumes of the Chinguetti
structure range from 106 to 247 million barrels, with a possible upside
potential of 452 million barrels.


Scott Pickford also note that there is additional upside potential in other
possible sand bodies recognised from seismic evidence and located in the
northern segment of the structure. Hydrocarbon volumes relating to these
possible sands have not yet been estimated.


Fusion's Managing Director Dr Alan Stein commented:


"While it is premature to make a statement regarding recoverable reserves in the
Chinguetti structure, the commitment of the Joint Venture to appraisal drilling
and development studies demonstrates confidence in its likely commercial
potential. The 2002 drilling campaign should define the extent of the Chinguetti
accumulation and also address the exploration potential within the structure."

                                                               20 February 2002

For further details please refer to the company's web page www.fusionoil.com.au
or contact:

Fusion Oil & Gas plc

Alan Stein, Managing Director                     Tel:   +61 89 226 3011
                                                  Fax:   +61 89 226 3022
                                                  e-mail:  fusion@fusionoil.com.au


Peter Dolan, Chairman                             Tel:    020 8891 3252
                                                  Fax:   020 8891 1555
                                                  e-mail:  peter@fusionoil.demon.co.uk


College Hill Associates

Peter Rigby                                       Tel:   020 7457 2020
James Henderson                                   Fax:   020 7248 3295
                                                  e-mail:  Peter.Rigby@collegehill.com


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