Drilling Report

Cairn Energy PLC
9 April 2002


EMBARGOED FOR RELEASE AT 0700


                                                                    9 April 2002

                                CAIRN ENERGY PLC

                 Oil Discovery on Block CB/OS-2 - Western India

   Successful Initial Oil Test of 5,196 bopd on Lakshmi Gas Development Well


As announced today in India by the Honourable Minister of Petroleum and Natural
Gas, Shri. Ram Naik, Cairn confirms that it has completed the first of two
planned drill stem tests ('DSTs') on the LA-2 gas development well on Block CB/
OS-2 in the Gulf of Khambat offshore Western India.

The well, which is located on the southern culmination of the Lakshmi gas field,
was directionally drilled to a total depth of 1,460 metres and encountered two
oil bearing zones below the main gas bearing horizons which are the subject of
an ongoing development project.

The first DST (testing an interval from 1,411 to 1,420 metres) flowed at a
stabilised rate of 5,196 barrels per day of 44 degrees API oil at a flowing
wellhead pressure of 575 psi on a 56/64 inch choke and with a GOR of 498 scf/
stb. The flow rate was constrained by surface test equipment limitations.

Further information will be released on completion of the full testing
programme.




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:

Patrick Handley, Catherine Bertwistle, 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 50% interest in the ring-fenced Lakshmi gas discovery in Block
    CB/OS-2. The remaining interests are held by ONGC (40%) and TATA Petrodyne
    Limited (10%).


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


 4. 'bopd' means barrels of oil per day


 5. 'GOR' means gas to oil ratio


 6. 'psi' means pounds per square inch


 7. 'scf/stb' means standard cubic feet to stock tank barrels






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