Drilling Report

Cairn Energy PLC
02 February 2004



EMBARGOED FOR RELEASE AT 0700


                                CAIRN ENERGY PLC

                                                                 2 February 2004

                    SUCCESSFUL OIL TEST IN RAJASTHAN, INDIA

                    N-B-1 Exploration Well, Block RJ-ON-90/1

Cairn announces that a cumulative flow rate of 6,000 barrels of oil per day has
been achieved across three selected zones during an open hole drill stem test
programme in the N-B-1 exploration well, which is currently operating in the
northern Rajasthan Basin.

The well intersected a stacked sequence of twelve oil bearing reservoir units in
the Fatehgarh formation. Three separate sand units were tested with the
following stabilised rates:-

   • Zone 3 tested at 2,837 barrels of oil per day on a 96/64 inch choke.
   • Zone 2 tested at 1,925 barrels of oil per day on a 64/64 inch choke.
   • Zone 1 tested at 1,240 barrels of oil per day on a 68/64 inch choke.

The tested oil has a specific gravity of approximately 24 to 29 degrees API and
reservoir permeabilities are estimated to be between 500 milliDarcies and 3
Darcies.

The first appraisal well and additional seismic are planned to commence later
this month.

Additional Exploration Activity

The following exploration wells are also currently operating:-

• Well N-A-1 in Rajasthan commenced on 30 January.
• Well CB-X-1 in Gujarat commenced on 28 January.


Bill Gammell, Chief Executive, commented:

'This is a very strong test result and confirms our view that in isolation this
discovery transforms the value of our portfolio. We expect this well to produce
over 10,000 barrels of oil per day.'

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, 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 is currently involved in an extensive exploration and
appraisal programme across its 5,000 square kilometre onshore exploration block
(RJ-ON-90/1) in the Rajasthan Basin.

3.                  Cairn holds a 100% interest in Block RJ-ON-90/1. Oil &
Natural Gas Corporation Ltd ('ONGC') has a right to 30% of any development area
resulting from a commercial discovery on the block.

4.                  The main exploration play objectives encountered in the
Rajasthan Basin, commencing with the stratigraphically youngest formation, are:
Thumbli, Dharvi Dungar, Barmer Hill and Fatehgarh.

5.                  'API' where referred to in this release means American
Petroleum Institute units as a measure of oil specific gravity.

6.                  'Darcies' where referred to in this release means an
industry measure of permeability where permeability is the property of a porous
medium and a measure of the medium's capacity to transmit fluid.



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