RNS Number:3946Q
Sterling Energy PLC
1 October 2003

                                  Date of Disclosure    1 OCTOBER 2003

                    DISCLOSURE UNDER RULES 8.1(a), 8.1(b)(i) and 8.3 
                       OF THE CITY CODE ON TAKEOVERS AND MERGERS

Date of dealing  30 SEPTEMBER 2003

Dealing in  FUSION OIL & GAS PLC             (name of company)

1)  Class of securities (eg ordinary shares) ORDINARY SHARES OF 1P EACH
                                             IN FUSION ("FUSION SHARES") 

2)  Amount bought                Amount sold             Price per unit

Sterling Energy plc has been granted an irrevocable undertaking by Invesco Asset
Management Limited to accept the offer to be made by Evolution Beeson Gregory on
behalf of Sterling Energy plc for Fusion Oil & Gas plc (the "Offer") in respect
of 9,400,000 Fusion Shares representing 9.57% of the current issued ordinary
share capital of Fusion. The undertaking will cease to apply if, prior to the
Offer being declared unconditional as to acceptances, any third party shall
announce a firm intention to make a higher offer.


3)  Resultant total of the same class owned or controlled (and percentage of
    class)                            

Sterling owns 20,000,211 Fusion Shares representing 20.37% of the current issued
ordinary share capital of Fusion, and 

Is deemed to control the 9,400,000 Fusion Shares pursuant to the undertaking in
paragraph 2 above representing 9.57% the current issued ordinary share capital
of Fusion.

Consequently Sterling either owns or controls 29,400,211 Fusion Shares,
representing 29.94% of Fusion's existing issued ordinary share capital.

4) Party making disclosure    STERLING ENERGY PLC


5)  EITHER (a) Name of purchaser/vendor (Note 1)  STERLING ENERGY PLC.,  
    OR     (b) if dealing for discretionary client(s), name of fund 
               management organisation

6)  Reason for disclosure (Note 2)                                     
    (a) associate of (i) offeror (Note 3)                       YES
                    (ii) offeree company                        NO

Specify which category or categories of associate (1-8 overleaf) (1) OFFEROR 

If category (8), explain

     (b)  Rule 8.3 (ie disclosure because of ownership or control of 1% 
          or more of the class of relevant securities dealt in)     NO

Signed, for and on behalf of the party named in (4) above  N/A  

(Also print name of signatory)    GRAEME THOMSON

Telephone and extension number    01582 463 141


Note 1.  Specify owner, not nominee or vehicle company.  If relevant, also 
         identify controller of owner, eg where an owner normally acts on 
         instructions of a controller

Note 2.  Disclosure might be made for more than one reason; if so, state all 
         reasons.

Note 3.  Specify which offeror if there is more than one.

Note 4.  When an arrangement exists with any offeror, with the offeree company 
         or which an associate of any offeror or of the offeree company 
         in relation to relevant securities, details of such arrangement must 
         be disclosed, as required by Note 6 on Rule 8

Note 5.  It may be necessary, particularly when disclosing derivative 
         transactions, to append a sheet to this disclosure form so that
         relevant information can be given.

Note 6.  In the case of an average price bargain, each underlying trade 
         should be disclosed.

For full details of disclosure requirements, see Rule 8 of the Code.  If in 
doubt, contact the Panel on Takeovers and Mergers, Tel No: 020 7382 9026









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