AGM Statement

Cairn Energy PLC
1 May 2001

EMBARGOED UNTIL 1230




                                                                   01 May 2001



                               CAIRN ENERGY PLC

                   Trading Statement and Operational Update

The following statement was made by Cairn's Chairman at the Company's Annual
General Meeting held today:-

'2000 was a year of excellent progress for Cairn and the Company is enjoying a
very good start to 2001. The continuing favourable product price environment
has contributed to strong Group cash flow and profitability during the first
quarter. In addition, daily offtake volume from Sangu has recently been
significantly higher. The average daily offtake for the first four months of
the current year was 145 million standard cubic feet of gas per day ('mmscfd')
and the April daily average was 171 mmscfd, compared with an average of 123
mmscfd during 2000. It is anticipated that Sangu will continue to produce at
materially higher levels than last year for at least the remainder of this
year.


Cairn has had significant exploration success already in 2001 with three
hydrocarbon discoveries offshore Western India and one offshore Eastern India.
At least five further exploration wells in India are planned for the remainder
of 2001, four offshore wells in the Krishna-Godavari Basin ('KG Basin') and
one onshore well in Rajasthan. In addition, development drilling on the
offshore Lakshmi field in Block CB-OS/2 could commence as early as October.


The second well in the Group's exploration programme in the KG Basin offshore
Eastern India, using the Energy Searcher drill ship, recommenced drilling on
prospect 'A' in Block KG-OS/6 on 26 April. The Group has contracted a second
drilling unit, the semi-submersible Marine 500, to drill an exploration well
on Block KG-DWN-98/2 in deeper water. The well, on prospect 'R', is expected
to commence operations this month. The Group's first exploration well on Block
KG-DWN-98/2 discovered gas on prospect 'N' in February 2001.'


Note:

'Cairn' as referred to above means Cairn Energy PLC and/or its subsidiaries as
appropriate.


Enquiries:-


Cairn Energy PLC:
Bill Gammell, Chief Executive                        Tel: [phone]
Dr Mike Watts, Exploration Director                  Tel: [phone]
Kevin Hart, Finance Director                         Tel: [phone]


Brunswick Group Limited:
Victoria Sabin, Melissa Miller, Mark Antelme            Tel: [phone]