Extension of Sangu Gas Field Discovered

Cairn Energy PLC
13 January 2000


The following release was issued by Shell Bangladesh Exploration and
Development BV today:-


Shell Discovers Extension of Sangu Gas Field

Shell Bangladesh Exploration and Development BV has discovered an extension of
the Sangu Field located in the Bay of Bengal (Block 16). During the drilling
of offshore appraisal well South Sangu-1 gas-bearing sandstone has been found.

Preliminary analysis of intermediate wireline log data indicate that South
Sangu-1 intersected 34 gross metres of gas-bearing sandstone at a depth below
3300m. The drilling of the well continues seeking deeper objectives.

South Sangu-1 is being drilled under the Block 16 Production Sharing Contract
with Petrobangla by a joint venture of Shell, Cairn Energy PLC and HBR Energy,
Inc. With their current appraisal and exploration campaign the joint venture
partners are seeking new potential, which will add to gas reserves in
Bangladesh.



Enquiries:

Cairn Energy PLC

Kevin Hart, Finance Director                     0131 475 3000