Drilling Report

Cairn Energy PLC
19 November 2001

FOR IMMEDIATE RELEASE


                                                              19 November 2001

                              CAIRN ENERGY PLC

                            Indian Drilling Update

  Rajasthan Block RJ-ON-1 - Prospect 'H' - Second Successful Drill Stem Test


Cairn and Shell have completed a second successful drill stem test ('DST') on
the RJ-H-1 discovery well in Block RJ-ON-90/1 onshore Rajasthan in Western
India, bringing the cumulative test rate for the well to 2,020 barrels of oil
per day.


The test was carried out on a sand unit perforated over a 26 mMD interval and
flowed at a stabilised rate of 1,400 barrels per day of 42 degrees API oil and
150,000 standard cubic feet of gas per day on a three-quarter inch choke.


This follows the first drill stem test in fractured basement, which produced
formation water and a second test in a sand which produced a stabilised flow
rate of 620 barrels per day of 41 degrees API oil on a half-inch choke from a
27 mMD interval.


The well, which is located approximately 50 kilometres north of the Guda-2 oil
discovery drilled in 1999, was directionally drilled to a total depth of 1,837
mMD and encountered a number of hydrocarbon bearing units below 1,400 metres,
not all of which were tested.


Initial combined reserves for the two successfully tested intervals are
estimated to be in the range of 20 to 40 million barrels of oil.




Bill Gammell, Chief Executive, commented:

'We are delighted with this well result which has demonstrated commercially
deliverable volumes of high quality crude. This field, some 50 kilometres from
the original Guda oil discovery, highlights the extensive potential of the
basin. We are now considering accelerating both exploration and development
activities in this block.'





Enquiries:-


Cairn Energy PLC:


Bill Gammell, Chief Executive                    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%.