Drilling Report

Cairn Energy PLC
24 March 2005


EMBARGOED FOR RELEASE AT 0700

                                                                   24 March 2005

                                CAIRN ENERGY PLC

                           Rajasthan Block RJ-ON-90/1

                            Successful N-V Appraisal

The N-V extension area of 856km(2) was awarded to Cairn by the Indian Government
in January 2005 on the basis of the N-V-1 oil discovery made in August 2004. The
N-V field lies 18 km to the west of Mangala. The first N-V appraisal well,
N-V-1ST was successfully drilled 750m from the discovery well as announced on
17 February 2005. The N-V-2 and N-V-4 wells have now confirmed further
extensions to the field.

The current oil in place volume estimates for the N-V field cover a range
between 250 and 350 mmbbls.

The N-V-1ST appraisal well tested oil from a single zone in the main Fatehgarh
producing reservoir. The well flowed 1,050 barrels per day (bopd) of 25 degree
API oil on a 48/64 inch choke. The N-V-1ST well will now be suspended as a
potential future producer.

A vertical second appraisal well, N-V-2 has been drilled from a new surface
location three km to the north of the N-V-1 discovery. This down dip well,
intersected the oil water contact (OWC) as planned and encountered 175m of net
high quality reservoir sands with 54m of net oil pay. Selective testing of
individual zones within the main reservoir section was undertaken. The first
zone close to the OWC flowed 21 degree API oil into the test string. The second
zone tested 210 bopd of 24 degree API oil. The well has now been suspended as a
potential future producer.

A deviated third appraisal well, N-V-4 has been drilled from a new surface
location five km to the north of the N-V-1 discovery. This well, designed to
define the northern limit of the accumulation, encountered 369m of net high
quality reservoir sands, which equates to 130m of true vertical pay. The well is
to be tested and then suspended as a potential future producer.

A well, N-V-3, drilled on a separate fault structure six km to the west of the
N-V field was plugged and abandoned.

Further appraisal drilling is planned and a 3D seismic survey over the N-V field
will commence shortly.

A further update will be given at the Cairn Results presentation on 19 April
2005.

Bill Gammell Chief Executive said:

'The N-V field is now defined by four wells. Whilst further appraisal is
required, these well results confirm N-V as a significant field.'

Enquiries:-

Cairn Energy PLC
Analysts/Investors
Bill Gammell Chief Executive                           Tel: [phone]
Kevin Hart, Finance Director                           Tel: [phone]
Mike Watts, Exploration Director                       Tel: [phone]


Media                                                  Tel: [phone]
David Nisbet, Head of Group Communications

Brunswick Group PPL                                    Tel: [phone]
Patrick Handley





Notes to Editors:

   •Cairn focuses its activities on the geographic region of South Asia. The
    Group holds material exploration and production positions in west India, 
    east India and Bangladesh along with new exploration rights in northern 
    India and Nepal.

   •This focus on South Asia has already resulted in a significant number of
    oil and gas discoveries. In particular, the company made a major oil
    discovery (Mangala) in Rajasthan in the north west of India at the beginning
    of 2004.

   •Cairn has received formal approval from the Government of India for a
    Declaration of Commerciality in respect of the Mangala, Aishwariya,
    Saraswati and Raageshwari discoveries. The approval secures Cairn an
    extensive Development Area of 1,858 km(2) which also incorporates the, GR-F,
    Kameshwari, N-R and Guda discoveries, which are at various stages of
    appraisal.

   •The Development Area is the equivalent in size of 12 North Sea Blocks.

   •Cairn currently estimates the production life for projects within the
    Development Area to be in excess of 25 years. Consequently, Cairn intends to
    seek an extension beyond 2020, which is the current initial development term
    
   •ONGC took up its option to acquire a 30% participating interest in the
    Mangala and Aishwariya discoveries in January 2005.

   • The current exploration term for the block is due to expire on 15 May
    2005. Cairn is seeking ways to extend activities beyond this date.

   •India currently imports 2 million bopd. It produces 650,000 bopd of which
    50,000 bopd comes from the Cairn operated Ravva field.

   •'Cairn' where referred to in this release means Cairn Energy PLC and/or
    its subsidiaries, as appropriate.

For further information on Cairn see www.cairn-energy.plc.uk

There are matters discussed in this media information that are forward looking
statements.  Such statements are only predictions and actual events or results
may differ materially.  For a discussion of important factors which could cause
actual results to differ from the forward looking statements, refer to the
Company's annual report and accounts for the year ended 2003.




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