Drilling Report

Cairn Energy PLC
12 November 2001


FOR IMMEDIATE RELEASE

                                                              12 November 2001


                               CAIRN ENERGY PLC


                            Indian Drilling Update

           Rajasthan Block RJ-ON-90/1 - Prospect 'H' Oil Discovery


Cairn has made a second consecutive hydrocarbon discovery on Block RJ-ON-90/1
onshore Rajasthan in Western India with its exploration well RJ-H-1. The well
is located approximately 50 kilometres north of the Guda-2 oil discovery
drilled in 1999.


The well was directionally drilled to a total depth of 1,837 mMD and
encountered several hydrocarbon bearing units below 1,400 metres.


The first drill stem test in fractured basement produced formation water. The
second test, carried out on a sand with a gross perforated interval of 27 mMD,
produced a stabilised flow rate of 620 barrels per day of 41 degrees API oil
on a half-inch choke.


Operations will continue with a third drill stem test in a separate formation.


A further announcement will be made on completion of well testing activities.


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, Catherine Bertwistle        Tel: [phone]


Notes to Editors:-



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


 2. 'mMD' means metres measured depth.


 3. 'API' means American Petroleum Institute units as a measure of oil specific
    gravity.


 4. Cairn holds a 50% equity interest in Block RJ-ON-90/1. The remaining 50% is
    held by Shell India Production Development B.V. ('Shell'). ONGC has a
    right to 30% in the event of a commercial discovery on the block. If ONGC
    exercise this right, Cairn and Shell's equity interests in the block would
    reduce from 50% to 35%.