Drilling Report

Cairn Energy PLC
13 June 2005


EMBARGOED FOR RELEASE AT 0700
                                                                    13 June 2005

                                CAIRN ENERGY PLC

             CONFIRMATION OF 18 MONTH APPRAISAL EXTENSION IN BLOCK
                          RJ-ON-90/1 RAJASTHAN, INDIA

Cairn Energy has received formal approval from the Government of India for an 18
month extension of the Exploration licence for further appraisal over 2,884 km2
of acreage in the north and west of the Rajasthan block.

This Appraisal Area incorporates the Bhagyam and Shakti oil fields as well as
several structures requiring appraisal and intervening tracts of untested
acreage. One such structure, the N-I structure, has been successfully tested by
the N-I-2 well which lies between the Bhagyam and Mangala fields.

The N-I-2 well encountered 21 metres (m) of net pay in high quality Fatehgarh
reservoirs. The estimated oil column for the structure is 150 m.

A single cased hole test was conducted and the well flowed at a stabilised rate
of 2,300 barrels of oil per day of 24 degrees API oil on a 48/64 inch choke.

Preliminary estimates for the field in-place volumes are between 35 and 70
million barrels.

Discussions with the Government of India are ongoing regarding an application
for an extension of the southern area of the Rajasthan block.

Bill Gammell, Chief Executive of Cairn said:

'We are delighted to have secured this extension in Rajasthan which allows us to
continue to carry out a comprehensive evaluation prior to agreeing a long term
development area. The strong flow rate obtained from the recent N-I discovery
continues to demonstrate the potential of this acreage.'

Enquiries to:

Cairn Energy PLC:
Bill Gammell, Chief Executive                  Tel: [phone]
Mike Watts, Exploration Director               Tel: [phone]
David Nisbet, Head of Group Communications     Tel: [phone]

Brunswick Group LLP:
Patrick Handley, Mark Antelme                  Tel: [phone]


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 for more than ten years 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.

   •In 2002, Cairn was granted a three year extension of the exploration term
    of the entire Rajasthan block comprising 6,688 km2 until 15th May 2005. In
    October 2004 part of the block was converted from an exploration term to a
    production term forming a 1,858 km2 Development Area.

   •Northern Appraisal area awarded for 18 months from May 15th 2005.

   •ONGC took up its option to acquire a 30% participating interest in the
    Mangala and Aishwariya discoveries in January 2005.

   •A 125 km2 3D survey of Bhagyam is expected to be completed early July. A
    further 320 km2 3D seismic survey is planned between Bhagyam and Mangala.

   •The total of Cairn discovered fields in Rajasthan is 12.

   •Current life of field reserve estimate of 500 million barrels based on
    secondary recovery only for Mangala, Bhagyam and Aishwariya - the three
    northern fields.

   •Independent assessment of the three northern fields, assigns 1.64 billion
    barrels of oil in place.

   •India currently imports approximately two million barrels of oil a day
    (bopd). It produces 650,000 barrels a day itself of which 50,000 bopd comes
    from the Cairn operated Ravva field.


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 2004.



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