RNS Number:2422R
Fusion Oil & Gas PLC
23 October 2003

Fusion Oil & Gas plc



                          ("Fusion" or "the Company")



Fusion's Response to the Sterling Energy plc ("Sterling") Extension of Offer
Announcement



Fusion still in discussions to seek a better offer



The Fusion board notes that Sterling has received acceptances for only a further
6.04% of the issued share capital of Fusion since the beginning of the Offer
Period, in addition to the 20.4% it already owned and the 21.1% support it
stated it had at the outset of the Offer.



With the majority of Fusion Shareholders not having accepted the Offer, Sterling
has extended its Offer until 5 November.



The Fusion board remains of the opinion that the Sterling Offer is both
opportunistic and undervalues the Company, a view reinforced by the excellent
initial test results at the Chinguetti-4-5 well which were reported in a
separate announcement earlier today.  Accordingly, the Fusion Board is
continuing its discussions with other parties to secure a better deal for
shareholders.  The Company will provide an update on these discussions by the
end of next week.



As a result, the Fusion board strongly recommends Shareholders who have not
already chosen to accept Sterling's Offer to continue to take no action in order
to leave open the opportunity for any better deal to be presented to all
Shareholders.



23 October 2003



Enquiries


Fusion Oil & Gas plc
Peter Dolan, Chairman                         Tel:       020 8891 3252
                                              Email:   pdolan@fusionoil.co.uk
Alan Stein, Managing Director                 Tel:      00 61 89226 3011
                                              Email:  astein@fusionoil.com.au

College Hill Associates                       Tel:       020 7457 2020
James Henderson                               Email:  james.henderson@collegehill.com
Phil Wilson-Brown                             Email:  phil.wilson-brown@collegehill.com

Canaccord Capital (Europe) Ltd
Toby Hayward                                  Tel:     020 7518 7393
                                              Email:  toby_hayward@canaccordeurope.com





Notes to Editors:


Participants in the Chinguetti 4-5 well and PSC Area B are:




Woodside Mauritania Pty Ltd (Operator)                                              35.0%
AGIP Mauritania BV                                                                  35.0%
Hardman Resources Ltd                                                               21.6%
Fusion Mauritania B Limited                                                          6.0%
Roc Oil (Mauritania) Company                                                        2.4%"





As previously announced on 28 May 2003, Fusion has entered into an agreement
with Premier Oil plc regarding the disposal of its interests in Mauritania.
Subject to fulfilment of certain conditions, Fusion will receive cash payments
linked to future production attributable to the current Fusion interests in PSC
A and PSC B.







The Directors of Fusion (other than Mr Williams and Mr Levison, who have not
participated in these deliberations on the Offer) accept responsibility for the
information contained in this announcement and to the best of their knowledge
and belief (having taken all reasonable care to ensure that such is the case),
the information contained in this announcement is in accordance with the facts
and does not omit anything likely to affect the import of such information.



Canaccord Capital (Europe) Limited ("Canaccord"), which is regulated in the
United Kingdom by the Financial Services Authority, is acting exclusively for
Fusion and is acting for no one else in connection with the Offer and  will not
be responsible to anyone other than Fusion for providing the protections
afforded to clients of Canaccord nor for giving advice in relation to the Offer.








                      This information is provided by RNS
            The company news service from the London Stock Exchange
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