AGM Statement

Cairn Energy PLC
07 May 2003


EMBARGOED FOR RELEASE AT 1200

                                                                     07 May 2003

                                CAIRN ENERGY PLC

                             Annual General Meeting


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


'In 2002, Cairn witnessed another strong financial performance, the successful
development of the Lakshmi gas field, and a significant increase in Group
production. During the first four months of 2003, both production and cash flow
were comfortably ahead of the equivalent period last year. Operationally,
Cairn's development, appraisal and exploration activities continue at pace.


In Gujarat, the Gauri gas field development is progressing on schedule. The
installation of the offshore Gauri jacket was completed ahead of schedule in
late April and the first of four development wells is due to commence shortly.
Two or three of the Gauri gas development wells will be deepened in order to
appraise the underlying oil reservoir.


On Lakshmi, three oil appraisal wells have been drilled this year in the extreme
north and west of the field. The wells were designed to test the extent and
connectivity of individual reservoir bodies. The results to date have indicated
the presence of numerous oil reservoirs with gas caps but have highlighted the
complexity of the reservoirs. Further appraisal drilling is expected to resume
later in the year following development drilling at Gauri. Studies are underway
to assess the feasibility of producing oil and feeding it through the Lakshmi
gas gathering system using either the Gauri platform or one of the Lakshmi
platforms as a hub.


In Rajasthan, the 2003 exploration drillling campaign commenced with the
Raageshwari oil and gas discovery well in February, which was followed by a
successful oil step-out well in March. Importantly for minimizing future
appraisal costs and maximizing potential rewards at Raageshwari, the oil was
found in shallow horizons.


The Saraswati field appraisal is underway and commenced with a down dip
appraisal well, Saraswati-2, which was completed in early May. The Saraswati-1
discovery well established an 'Oil Down To' in an upper and a lower reservoir
unit. Saraswati-2 was drilled two kilometres to the south-east and was designed
to establish an oil water contact.


Saraswati-2 encountered oil and no water in the upper reservoir and has
confirmed an oil column of approximately 300 metres. The reservoir has
relatively low permeability at this location and only small quantities of oil
flowed to surface on test. The lower reservoir unit in Saraswati-2 encountered a
thickening wedge of sands not seen in Saraswati-1. Although the sands in this
interval were water bearing, they had a net thickness of 190 metres of permeable
reservoirs. This is the first time such thick, high quality sands have been
found in the basin and efforts are underway to target this additional unit in
the future exploration drilling campaign.


The rig is currently being moved five kilometres to the north-west to drill a
second appraisal well on Saraswati in a separate fault compartment. Thereafter
the rig will be moved to another exploration well location whilst additional
drilling rigs are being sought for other exploration and appraisal drilling.


Group production for the first four months of the year was 28,609 boepd, an
increase of approximately 30% on 22,154 boepd for the equivalent period in 2002.
As a result, Cairn's financial position continues to provide the foundation for
future value creation through the drilling programme and 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.  



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