Drilling Report

Cairn Energy PLC
28 June 2001


EMBARGOED FOR RELEASE AT 0700

                                                                 28 June 2001


                               CAIRN ENERGY PLC


                         Prospect 'A' - Block KG-OS/6


Cairn's first exploration well, KG-A-1, on Block KG-OS/6 offshore Eastern
India drilled to a total depth of 4,031 metres and has been plugged and
abandoned as a dry hole.


The rig will now move to Prospect '6', located in the north east of Block
KG-OS/6, approximately 55 kilometres north-east of the A-1 location.


Notes to Editors:-


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


 2. Cairn holds a 50% interest in Block KG-OS/6. The remaining 50% is held by
    Videocon Petroleum Limited.


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, Mark Antelme                         Tel: [phone]