Drilling Report

Cairn Energy PLC
29 March 2004



EMBARGOED FOR RELEASE AT 0700

                                CAIRN ENERGY PLC

                                                                   29 March 2004
                   MANGALA APPRAISAL WELL IN RAJASTHAN, INDIA

                     Operational Update - Block RJ-ON-90/1

Cairn announces the successful results of the first appraisal well on the
Mangala oil field in northern Rajasthan.

Mangala-1ST was drilled from the N-B-1 discovery well surface location and
deviated 400 metres away in an up-dip direction. The well cored 234 metres of
gross Fatehgarh section and encountered 121 metres net (equivalent to 109 metres
net true vertical) of excellent quality oil bearing Fatehgarh sands. The same
oil water contact and pressure system has been found in both wells.

A vertical reservoir interference test was conducted between N-B-1 and
Mangala-1ST to assess reservoir continuity and connectivity between the two
wells. Oil from a zone in N-B-1 was produced and the pressure disturbance
measured in sands within Mangala-1ST. The result successfully established
reservoir connectivity between the two locations. Further interference testing
on future appraisal wells will also be required to determine connectivity across
the field for development purposes.

Two sand units were also selected for an open hole drill stem test programme in
Mangala-1ST. The first zone tested (Zone 1) was from a selected interval within
a massive sand unit which was water bearing in the discovery well. The second
zone tested (Zone 2) was the structurally highest Fatehgarh sand yet encountered
in the field.

The following stabilised rates were obtained in the open hole tests:-

   • Zone 2 tested at 1,250 barrels of oil per day of 30 degrees API oil on a
    56/64 inch choke.
   • Zone 1 tested at 2,800 barrels of oil per day of 27 degrees API oil on a
    2 inch choke.

Three additional appraisal wells will be drilled from new surface locations 2.5
kilometres, 1.5 kilometres and 3 kilometres respectively from N-B-1.

Additional Exploration Activity

Operations on exploration well N-F-1 commenced on 20 March 2004. Operations on
the Saraswati-4 appraisal well have been temporarily suspended to allow the
drilling rig to be moved north to the N-C exploration prospect. The N-C-1
exploration well is expected to commence drilling in early April.

A 2D seismic programme across the northern area is also underway.

Bill Gammell, Chief Executive, commented:

'I am delighted with this excellent start to the Mangala appraisal programme
which is consistent with our views of the potential of the field.'

Enquiries to:

Cairn Energy PLC

Bill Gammell, Chief Executive                         Tel: [phone]
Mike Watts, Exploration Director                      Tel: [phone]
Phil Tracy, Engineering & Operations Director         Tel: [phone]
Kevin Hart, Finance Director Tel: [phone]

Brunswick Group Limited:

Patrick Handley, 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 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.




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