Drilling Report

Cairn Energy PLC
02 June 2004

EMBARGOED FOR RELEASE AT 0700

                                CAIRN ENERGY PLC

                                                                     2 June 2004
                            MANGALA FIELD APPRAISAL
                                RAJASTHAN, INDIA

                     Operational Update - Block RJ-ON-90/1

Cairn announces the successful result of the Mangala-4 appraisal well on the
Mangala oil field in northern Rajasthan.

Mangala-4 was drilled 1.75km up-dip from Mangala-2 and 1.5km from the Mangala-1
discovery well. The well encountered 110 net metres of excellent high quality
oil bearing Fatehgarh sands. The oil down-to in the Mangala-4 well is consistent
with the oil water contact determined from pressure readings in other Mangala
wells.

For field development planning purposes, a seven day interference test was
conducted between Mangala-1 and Mangala-4 to assess vertical reservoir
continuity and lateral connectivity between the two wells. Oil from an eleven
metre perforated interval in Mangala-1 was produced for seven days and the
pressure disturbance measured in sands over a gross 50 metre interval within
Mangala-4. The result successfully established both vertical reservoir
continuity and lateral 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.

Additional Appraisal Activity

Wells Mangala-5 and Mangala-6, which will each be drilled in crestal locations
between Mangala-1 and Mangala-3, are now expected to spud in early June.

Bill Gammell, Chief Executive, commented:

'Proof of both vertical reservoir continuity and lateral connectivity over 1.5
km reinforces our confidence for the future Mangala development.'



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.


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