AGM Statement

Cairn Energy PLC
1 May 2002



EMBARGOED UNTIL 1230

                                                                     01 May 2002

                                CAIRN ENERGY PLC

                             Annual General Meeting

                    Trading Statement and Operational Update


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

'The Group's excellent performance in 2001 was primarily driven by exploration
success, with nine hydrocarbon discoveries from eleven exploration wells drilled
throughout the year.

I am pleased to report that this success has continued into 2002, with the
recent discovery and testing of oil below the Lakshmi gas field on Block CB/OS-2
offshore Western India. This has been followed by the announcement earlier today
of a successful Lakshmi oil step-out well.

The Lakshmi gas development project is on target to commence production of
contracted gas sales in August 2002. Further drilling at Gauri is expected in
the fourth quarter of 2002 with gas from Gauri provisionally scheduled for 2004.

In addition, Cairn is active in Eastern India, where it is currently operating
an exploration well in the extreme north-east of the Ravva block. The technical
team is making significant progress in reviewing and evaluating the data
acquired in last years highly successful exploration programme in the
Krishna-Godavari Basin. Further deep water exploration and/or appraisal drilling
is expected to commence in early 2003.

The Indian Government has recently announced that Cairn is the only foreign
company to pre-qualify for petroleum marketing rights in India and we are
reviewing the opportunities that this may present for the Group.

Cairn has benefited from the strong product price environment during the first
quarter of 2002 and the Group's cash flow position and financing continue to
provide financial strength and flexibility. It is anticipated that Group net
debt will rise during the first half of 2002 as development capital expenditure
is incurred to bring Lakshmi onstream. Group gearing, on current predictions, is
expected to increase to a peak of approximately 20% at mid year.

In Bangladesh, average gross daily offtake from the offshore Sangu gas field
during the first four months of the current year was 141 mmscfd and regular
monthly payments have been received. Gross production from the Ravva oil and gas
field for the same period averaged 51,300 bopd and 69 mmscfd.

In view of the progress made so far in 2002 we look forward to the remainder of
the year with confidence.'




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:

Patrick Handley, Catherine Bertwistle, Mark Antelme           Tel: [phone]




Notes to Editors:-


 1. A presentation by the Executive Directors at today's AGM will be made
    available on the Company's website at www.cairn-energy.plc.uk as soon as
    possible after the Meeting.


 2. 'Cairn' where referred to in this release means Cairn Energy PLC and/or its
    subsidiaries, as appropriate.


 3. 'bopd' means barrels of oil per day.


 4. 'mmscfd' means million standard cubic feet of gas per day.



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