Drilling Report

Cairn Energy PLC
29 May 2001



FOR IMMEDIATE RELEASE

                                                                   29 May 2001



                               CAIRN ENERGY PLC


            Update on Drilling Operations in India and Bangladesh

Cairn announces the following update on its drilling programme in the Indian
sub-continent:-



India



Cairn's second exploration well on Block KG-DWN-98/2 offshore Eastern India,
located on prospect 'R', has reached total depth.  Log evaluation indicates
the presence of a gas column and good quality reservoir.  Preparations are
underway to test the well and an update on the results will be given after the
test has been completed.



Cairn's first exploration well on Block KG-OS/6 offshore Eastern India,
located on prospect 'A', is currently operating.



Bangladesh



The offshore Sangu 'Deep' relief well has re-entered the South Sangu-1
exploration well. Log evaluation indicates gas in deep over-pressured
reservoirs.  The Operator is making preparations to test the well in June.









Enquiries:-



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




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








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 100% equity interest in Block KG-DWN-98/2.

3.       Cairn holds a 37.5% interest in the Sangu Field. Shell Bangladesh
         Exploration and Development B.V. holds a 37.5% interest and is         
         Operator. The remaining 25% is held by HBR Energy, Inc.