Drilling Report

Cairn Energy PLC
28 May 2003


EMBARGOED FOR RELEASE AT 0700
                                                                     28 May 2003


                                CAIRN ENERGY PLC


                         Block CB/OS-2 - Western India
                     Gauri GA-1 Appraisal/Development Well


Cairn announces the successful result of GA-1, the first well in the current
Gauri development drilling programme. GA-1 is located three kilometres south
west of the Gauri discovery well CB-B-1, which was drilled in January 2001. GA-1
was a vertical well drilled from the recently installed Gauri jacket to a total
depth of 1,337 metres and will be completed as a future producer.

The well confirmed the western extension of the Babaguru and Tarkeshwar
reservoirs found in CB-B-1 as prognosed on the 3D seismic. GA-1 encountered 40
metres of net high quality gas bearing reservoir sands and two metres of net oil
bearing sands.  CB-B-1, which flowed 39.2 mmscfd and 1,039 bopd on test from
three DSTs, had previously encountered 39 metres of net gas sand and one metre
of oil sand.

The GA-1 well result is consistent with the existing plan to integrate oil
appraisal with the gas development project.

Gauri gas production is planned to commence in the first half of 2004 and gas
will be evacuated via the Lakshmi gas gathering system which has a pipeline
capacity of 225 mmscfd. The Lakshmi field is currently producing approximately
120 mmscfd.

Operations will continue with the drilling of the next Gauri development well in
the sequence.


Enquiries to:

Cairn Energy PLC:

Bill Gammell, Chief Executive                              Tel: [phone]
Mike Watts, Exploration Director                           Tel: [phone]
Kevin Hart, Finance Director                               Tel: [phone]

Brunswick Group Limited:

Patrick Handley, 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 and Gauri
development areas in Block CB/OS-2. The remaining interests are held by Oil &
Natural Gas Company Ltd. with 40% and TATA Petrodyne Limited with 10%.

3. 'mmscfd' means million standard cubic feet of gas per day.

4. 'bopd' means barrels of oil per day.

5. 'DSTs' means drill stem tests.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
   D
DRLUBANROARVUAR