Drilling Report

Cairn Energy PLC
28 November 2001


EMBARGOED UNTIL 0700
                                                              28 November 2001


                                CAIRN ENERGY PLC

                               Block KG-DWN-98/2

                           Prospect 'Q' Well Results


Cairn announces that the Prospect 'Q' exploration well on Block KG-DWN-98/2
has been plugged and abandoned after reaching a total depth of 2772 metres.

The well, which was not tested, encountered shallow reservoirs with seven
metres of net hydrocarbon pay.  Initial interpretation suggests some of these
reservoirs thicken laterally.  Other deeper and thicker reservoir sands
encountered were water bearing.

The first phase of exploration drilling on Block KG-DWN-98/2 is now complete
and the drilling rig is being released.  All of the results of the drilling
programme in the Krishna Godavari Basin, which include the 'N' and Annapurna
gas discoveries and the 'P' and 'M' oil discoveries, will now be calibrated
with the existing 3D seismic, and fully evaluated prior to any further
exploration and appraisal drilling.


Bill Gammell, Chief Executive, commented:


'The drilling of this well brings to an end a very successful initial
exploration programme. We have now established a net reserve potential of at
least 200 million barrels of oil equivalent and are proceeding with initial
conceptual development and gas marketing studies.'


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