Statement re Cairn India

Cairn Energy PLC
27 April 2007



The attached release was issued today by Cairn India to the Bombay Stock
Exchange and the National Stock Exchange of India.


In accordance with its Indian reporting obligations, Cairn India has today
issued its Q107 financial results. This financial information is reported in
Indian rupees and is prepared under Indian GAAP.


Cairn Energy PLC has a 69% holding in Cairn India. Cairn Energy PLC will next
release group financial information to the UK market in its 2007 interim results
announcement. These consolidated results will be reported in US$ under IFRS and
will include the group's interest in Cairn India.


Key differences between the financials prepared under Indian GAAP to those under
IFRS are summarised in the table below:

                IGAAP                        IFRS
Accounting
policy

Exploration     Unsuccessful and other       Unsuccessful costs are written off;
write off       exploration costs (eg        other exploration costs are
(income         seismic) are expensed as     capitalised pending determination
statement)      incurred

Depletion &     Based on working interest    Based on entitlement interest
Decommissioning production and reserves      production and reserves
Disclosure

Operator fees   Included in income from      Included within other operating
                operations                   income

Interest income Included in other income     Included in finance income


The average exchange rate for Q107 was 44.14 rupees:$1


For Immediate Release 27 April 2007


         Cairn India Limited (Consolidated) First Quarter Results 2007


The following commentary is provided in respect of the unaudited financial
results and operational achievements of Cairn India Limited and its subsidiary
companies (referred to as 'Cairn India') during the first quarter of 2007.


OPERATIONAL

   • Rajasthan midstream solution progressing well with ONGC - discussions on
     going with Government of India (GoI)
   • Civil works for Rajasthan development underway
   • First oil production from Mangala on schedule for 2009
   • Field Development Plan for Bhagyam submitted to Operating Committee
   • First phase development drilling completed at Saraswati and Raageshwari
     oil fields
   • Ravva infill drilling campaign ongoing - four development wells
     completed
   • Ravva exploration well spudded April 2007
   • Two blocks awarded in NELP VI licensing round
   • 500km 2D seismic programme initiated in Bihar
   • IFC-Cairn programme agreed for Rajasthan community projects
   • Gross operated production 74,830 barrels of oil equivalent per day
     (boepd) (working interest 19,811 boepd)


FINANCIAL


For the first quarter of 2007 the consolidated revenue of Cairn India Limited
and its subsidiaries was Rs. 2,726 million (US$ 62 million). The consolidated
profit after tax (PAT) for the quarter was Rs 376 million (US$ 8.55 million).


The cash flow from operations, worked out as PAT prior to non-cash expenses
(non-cash employee cost, depreciation, depletion, amortization and deferred tax)
and exploration cost write off was Rs 1,801 million (US$ 40.96 million) for the
quarter.


  • Net Revenue from operating activities at Rs. 2,364 million (US$ 53.77
    million); Average oil price realisation US$ 61.04 per bbl, average gas price
    realisation - US$ 4.07/mscf, average price realisation US$ 42.25/boe
  • Credit facility of US$ 850 million in place
  • Cash (net of borrowings) available at the end of 31 March is Rs 24,010
    million (US$ 552.40 million)


* Amounts shown in US$ are converted based on average exchange rate for the
  first quarter - 43.967 and closing exchange rate as at 31 March 2007 - 43.465


Rahul Dhir Chief Executive Cairn India said:


'Cairn India remains focused on driving forward the Rajasthan development to
bring new production onstream, while maximising the production potential from
existing assets, enabling increased exploration activity and ensuring the
Rajasthan upstream project remains on track to produce first oil in 2009.'


BUSINESS REVIEW


Overview


It is just over three years since Cairn made the transformational discovery of
Mangala in Rajasthan. Following the successful completion of the IPO and listing
in 2007 and its establishment as an autonomous business, Cairn India is well
placed to move that discovery and others in Rajasthan forward in preparation for
first oil production in 2009.


Cairn India's oil and gas fields at Ravva and CB/OS-2 continue to be the
cornerstone of its existing production. During 2006 both of these assets
benefited from revised gas prices and improved oil production. An ongoing
drilling programme at Ravva and new developments planned on CB/OS-2 will ensure
that these assets continue to underpin Cairn's India's activities elsewhere in
India.


The step change in production is expected from 2009, when the first of the
Rajasthan developments is scheduled to come onstream. The Mangala field will be
brought on production first followed by the Bhagyam and Aishwariya fields and
the targeted gross production from these three fields is 150,000 barrels of oil
per day (bopd). Once on stream, these fields will create significant value for
the GoI, the Rajasthan State Government and for investors and other stakeholders
in both Cairn and Cairn India.


Laboratory studies have indicated that the early application of enhanced oil
recovery (EOR) techniques on the Mangala and Bhagyam fields is expected to
extend significantly the production plateau and ultimate reserves for these
fields. Further work is also planned to determine the best method of extracting
the oil from the potentially productive Barmer Hill formation.


Cairn India has recently secured two new exploration blocks in the NELP VI
licensing round and now holds interests in a total of 15 blocks in India. Cairn
India is well placed to build on this asset base and to bid for further
exploration acreage that may be offered in future licensing rounds.


Rajasthan Upstream


The upstream picture in Rajasthan is progressing well. Current estimates for the
proven and probable (2P) hydrocarbons in place for the six fields Mangala,
Bhagyam, Aishwariya, Saraswati, Raageshwari Oil and Raageshwari Deep Gas total
2.2 billion boe and the associated 2P reserves plus contingent resources are 864
million boe.


The additional smaller and/or low permeability fields and reservoirs have an
estimated 2P hydrocarbons in place volume of more than 1.4 billion boe. Over the
coming years, Cairn India's focus will be on converting as much of this
contingent resource base into 2P reserves as is economically feasible.


The first phase of development drilling on Saraswati and Raageshwari has been
completed successfully. Development drilling on Mangala is scheduled to commence
in 2008.


The GoI has approved the Declaration of Commerciality for Bhagyam, the second
largest field in Block RJ-ON-90/1, along with the Shakti field, following which
the FDP for Bhagyam was submitted to the Operating Committee in Q1 2007.


Rajasthan Midstream


A proposal to the GoI seeking approval to include within the FDP a pipeline to
transport Rajasthan crude from Mangala to a coastal terminal facility is
currently under discussion. The proposed routing of the pipeline will allow
access to the existing pipeline infrastructure and refinery network, with a
final coastal delivery point that also affords access to the majority of India's
refining capacity. It is proposed that the pipeline will fall within the
definition of the field development activities and will accordingly be funded
70% by Cairn India and 30% by ONGC. If the pipeline is included in the FDP, the
costs would be recoverable under the PSC. The conceptual engineering and route
identification for the pipeline are at an advanced stage.


OPERATIONAL REVIEW

Gross operated production in India for the first quarter of 2007 was 74,830
boepd (working interest 19,811 boepd)

Operational activity has been largely focused on the continued appraisal of
Block RJ-ON-90/1 in Rajasthan. There are now a total of 20 discoveries in this
block including the world class Mangala and Bhagyam oil fields in the northern
part of the acreage. FDPs have been approved or are pending on 6 of these 20
discoveries.

An independent report prepared by DeGolyer and McNaughton (D&M) in August 2006
estimated 3.4 billion boe in place in the combined discoveries in the Rajasthan
block. Cairn currently estimates there to be at least 3.6 billion boe
hydrocarbons in place, of which 2.2 billion are under active development
planning, with the remaining 1.4 billion identified in other fields under
review.

The Mangala, Aishwariya, Saraswati, Raageshwari Oil and Raageshwari Deep Gas
fields all have GoI development approval, while work on approvals for the
development of other discoveries, in particular Bhagyam and Shakti, is ongoing.
The remaining discoveries require further appraisal or evaluation.


RAJASTHAN BASIN - North West India


Development Area (Cairn India 70% (Operator); ONGC 30%)


Civil construction work is now underway to meet the planned first oil production
from Mangala in 2009. FDPs for the Mangala, Aishwariya, Saraswati and
Raageshwari fields have been agreed by the GoI and, in addition to the retained
IPO proceeds, bank funding has been secured for the current development.


All the permits and permissions required to begin major construction work have
been granted and Cairn India is in the process of procuring the major items of
long lead equipment required to establish the production facilities. It is
planned to contract purpose built rigs which will be used to drill the
development wells.


The GoI has approved the Declaration of Commerciality for Bhagyam, the second
largest field in Block RJ-ON-90/1, along with the Shakti field. These fields are
contained within a second development area of 430 km2. The FDP for Bhagyam was
submitted to the Operating Committee in Q1 2007. The current 2P reserves base
case for Bhagyam envisages a plateau production rate of 40,000 bopd


Two more small scale discoveries (Shakti North East and N-1-North) have been
retained within the Bhagyam/Shakti development area, together with the N-I, N-E,
N-P and Bhagyam South discoveries.


The Saraswati Crest-1 well was spudded in April 2007.


Enhanced Oil Recovery


Work is also ongoing to establish optimal EOR techniques in the Rajasthan block
with a view to extending plateau production and increasing ultimate recovery of
oil. Laboratory work is currently underway to establish the potential of these
technologies to facilitate early implementation of a field scale pilot project
at Mangala, the largest of the Rajasthan fields.


Northern Appraisal Area (Cairn India 100%)


In June 2005, Cairn was granted an 18 month extension (until 14 November 2006)
to complete its activities in the northern appraisal area to the north and west
of the Development Area. However, the work programme in this area was
interrupted by the severe flooding in Rajasthan in 2006. Cairn India has ceased
operations in this area and is in discussions with the GoI for a further
extension of part of this acreage to complete its planned work programme.


Southern Fields


In the south of the Rajasthan block, first commercial production by trucking
from the Saraswati field is ready to start and will begin as soon as an
arrangement for oil sales has been finalised with the GoI. First commercial
production from the Raageshwari oil field is expected to commence within 12
months of Saraswati. The first phase of development drilling on Saraswati and
Raageshwari has been completed successfully.


Block RJ-0NN-2003/1 (Cairn India 30%, ENI Operator)


In early January 2007, the Operator commenced acquisition of a 3D seismic survey
on this Rajasthan block, which was awarded in NELP V. The 3D programme is
nearing completion.


CAMBAY BASIN - Western India


Block CB/OS-2: Lakshmi and Gauri Gas Fields (Cairn India 40% (Operator))


Average gross production from the Lakshmi and Gauri fields for the first quarter
2007 was 16,997 boepd (comprising average oil and condensate production of 3,555
bopd and average gas production of 81 mmscfd).


The CB/OS-2 joint venture is focused on further development of the field with a
planned offshore four well infill development drilling programme and also the
conversion of three wells into oil producing wells following the continuing
success of the Gauri-3 oil producer. The infill development drilling programme
is scheduled to commence in H2 2007.


Engineering studies to upgrade the oil handling facilities at Gauri to 9,000
bopd have been completed and this upgrade is scheduled for completion in Q3
2007.


The onshore CB-X well has been completed and the pipeline installation is in
progress to deliver planned first gas in Q2 2007.


The gas sales contracts (GSCs) with the buyers (GTCL and GPEC) have been
successfully re-negotiated whereby the contractual terms for volume commitment
and price have been reset and the Gauri gas field volume committed to the
current buyers under the new pricing scheme.


Cambay Basin


CB-ONN-2001/1 (Cairn India 30%, ONGC Operator)


The fourth and final commitment well was drilled and abandoned in April.


CB-ONN-2002/1 (Cairn India 30%, ONGC Operator)


Following the acquisition of a 100 km2 3D seismic programme on this block, three
wells are scheduled to be drilled during 2007.


GS-OSN-2003/1 (Cairn India 49%, ONGC Operator)


The Operator is currently acquiring a 3D marine seismic programme on this block.
The programme is nearing completion.


KRISHNA-GODAVARI (KG) BASIN - Eastern India


Ravva (Cairn India 22.5% (Operator))


Average gross production from the Ravva field for the first quarter 2007 was
57,833 boepd (comprising average oil production of 45,929 bopd and average gas
production of 71 mmscfd).


An extensive offshore infill development and exploration drilling programme on
Ravva commenced in October 2006 and is ongoing. Production from RD-7 commenced
in December 2006 and from RD-8 in January 2007. The Ravva field has been on
plateau for a number of years and the current drilling programme is aimed at
continuing the strong production performance at Ravva.


The RC-5 well has been completed and commenced production in March 2007. A
subsequent workover well on RC-3 was also successfully carried out in March 2007
aswell as a further successful infill well (RE-4).


The Ravva exploration well RX-10 spudded in April 2007. An exploration well MM
301 is scheduled to be drilled later in Q2 2007.


The ceiling prices under each of the Ravva GSCs have been increased following
re-negotiation with the buyer (GAIL). The ceiling price for associated gas has
increased by 18% and the ceiling price for non-associated gas has increased by
30%.


KG-DWN-98/2 (Cairn India 10%, ONGC (Operator))

The UD-1 ultra-deep water exploration well, located 140 km south of Ravva, was
spudded in late September 2006 in 2,841 metres water depth after the acquisition
and interpretation of an additional 255 km 2D seismic data. The well encountered
gas in a secondary objective. Options for further appraisal are currently under
consideration with the Operator.


KG-ONN-2003/1 (Cairn India 49% ONGC (Operator))


Plans are underway to commence a seismic acquisition programme of 2D and 3D data
on this block in late 2007.


NELP VI


Cairn India has secured an interest in two new exploration blocks in India -
PR-OSN-2004/1 and KK-DWN-2004/1 - in the sixth New Exploration Licensing Policy
round (NELP VI).


HIMALAYAN FORELAND BASIN - Northern India


Ganga Valley


GV-ONN-2002/1 (Cairn India 50%)


An aeromagnetic survey commenced in January 2007 was completed in April 2007. A
500 kilometre 2D seismic acquisition programme started in April 2007.



GV-ONN-97/1 (Cairn India 15%, ONGC Operator)


The first exploration well in the Himalayan Foreland Basin in which Cairn India
participated (Tisua-1) was plugged and abandoned after encountering residual oil
shows.


GV-ONN-2003/1 (Cairn India 24%)


Subject to the receipt of the requisite approvals, a 2D seismic acquisition
programme is scheduled to commence in Q4 2007 or early 2008.


VN-ONN-2003/1 (Cairn India 24%)


Seismic reprocessing is underway and planning will commence later in 2007 for a
2D seismic acquisition programme which is expected to commence in 2008.


Corporate Appointments

In the first quarter Cairn India has made the following senior appointments:-

Indrajit Banerjee joined as Chief Financial Officer (CFO) and assumed his
responsibilities and joined the board of directors of Cairn India Limited on 1
March 2007. Indrajit replaced Jann Brown, who stood down as interim CFO of Cairn
India Limited with effect from 1 March 2007.

Ian Vann, recently retired as Group Vice President for Exploration and Business
Development at BP, has joined Cairn India as an external advisor. Ian who was at
the helm of BP's Global exploration team and spent more than 30 years at BP in a
variety of roles will work with the exploration team at Cairn India and also sit
on the Rajasthan Project Engineering Technical Advisory Board.

David Ginger will be responsible for the exploration team at Cairn India which
currently has an interest in 15 exploration blocks in India. David joined Cairn
in July 2006 from Amerada Hess where he was latterly their Exploration and
Production (E&P) Manager for South East Asia. David has 23 years E&P experience
in Asia, Africa and the North Sea. In addition to 11 years at Amerada Hess, he
worked for LASMO and BP and has been leading exploration teams for the past 8
years.

The Cairn India Corporate Advisory Board (CAB) has been set up to provide advice
and direction to the management of Cairn India Limited on matters pertaining to
stakeholder relations and CSR activities at project and corporate level.


The CAB will be chaired by Sundeep Bhandari who has had a long involvement with
Cairn. Sundeep has many years experience in the oil and gas industry in India
and overseas and has previously advised not only Cairn but other international
companies including Mobil and Marathon on E & P projects.



Rajasthan Community Overview


The International Finance Corporation (IFC) has strengthened its ties with Cairn
India by reaching agreement for a joint funding mechanism to support the
socio-economic development initiatives in the Rajasthan block.


The Financial Support Agreement for the IFC-Cairn Linkage programme has been
signed by Iyad Malas, Director, South Asia, IFC, and Rahul Dhir, CEO, Cairn
India.


The agreement entails the creation of a Trust Fund which over a three year
period will support the following:


O      Establishing and Maintaining an Enterprise Centre at Barmer for local
       development and vocational skill development;

O      A rural Dairy Development Project to create alternative income generation
       activities for rural households

O      A Child and Maternal Health Awareness project for Rural women and
       children


The implementation partners for each of the above projects have been selected
and programme details are being worked out. IFC will manage the programme and
Cairn will be the financial sponsor.  A manager for the Enterprise Centre has
been appointed and will have responsibility for delivering the programme
objectives. An Executive Committee with representation from IFC and Cairn will
oversee implementation and monitor delivery of the projects.


Enquiries to:


Analysts/Investors

Indrajit Banerjee, Chief Financial Officer      [phone]


Media

David Nisbet, Director, Communications          [phone]


About Cairn India Limited


O 'Cairn India' where referred to in the release means Cairn India Limited
  and/or its subsidiaries, as appropriate

O 'Cairn' where referred to in this release means Cairn Energy PLC and/or
  its subsidiaries (including Cairn India), as appropriate.

O Cairn India is headquartered in Gurgaon on the outskirts of Delhi, with
  operational offices in Chennai, Gujarat, Andhra Pradesh and Rajasthan.

O On 9 January 2007, Cairn successfully concluded the flotation of its
  Indian business with the commencement of trading of Cairn India Limited on the
  Bombay Stock Exchange and the National Stock Exchange of India. Cairn Energy 
  PLC currently holds a 69% shareholding in Cairn India Limited.

O Cairn India is currently focused on exploration and production in India where 
  it has a working interest in 15 blocks, two of which are producing
  hydrocarbons.  The company holds material exploration and production positions
  in west India and east India along with new exploration rights elsewhere in
  India.

O This focus on India has already resulted in a significant number of oil
  and gas discoveries.  In particular, Cairn India made a major oil discovery
  (Mangala) in Rajasthan in the north west of India at the beginning of 2004.
  Cairn India has now made 20 discoveries in Rajasthan block RJ-ON-90/1.

O In Rajasthan, Cairn India operates Block RJ-ON-90/1 under a Production
  Sharing Contract (PSC) signed on 15 May 1995. The main Development Area (1,858
  km2), which includes Mangala, Aishwariya, Saraswati and Raageshwari; is shared
  between Cairn India and ONGC, with Cairn India holding 70% and ONGC having
  exercised their back in right for 30%. A further Development Area (430 km2),
  including the Bhagyam and Shakti fields, is also shared between Cairn India 
  and ONGC in the same proportion.

O The Operating Committee for Block RJ-ON-90/1 consists of Cairn India and
  ONGC.

O India currently imports approximately 2,000,000 barrels of oil per day
  (bopd).  It produces approximately 700,000 bopd itself of which approximately
  50,000 bopd comes from the Cairn India operated Ravva field on the east coast of
  India

O For further information on Cairn India Limited see www.cairnindia.com


Glossary

Technical

2P          proven plus probable

3P          proven plus probable and possible

2D/3D       two dimensional/three dimensional

boe         barrel(s) of oil equivalent

boepd       barrels of oil equivalent per day

bopd        barrels of oil per day

bscf        billion standard cubic feet of gas

EOR         enhanced oil recovery

FDP         field development plan

mmboe       million barrels of oil equivalent

mmscfd      million standard cubic feet of gas per day

PSC         production sharing contract

The Fatehgarh is the name given to the primary reservoir rock of the Northern
Rajasthan fields of Mangala, Aishwariya  and Bhagyam.

The Barmer Hill is a lower permeability tight rock which overlies the Fatehgarh.

The Dharvi Dungar forms the secondary reservoirs in the Guda field and is the
reservoir rock encountered in the recent  Kameshwari West discoveries.

The Thumbli forms the youngest reservoirs encountered in the basin. The Thumbli
is the primary reservoir for the  Raageshwari field.

These materials contain forward-looking statements regarding Cairn India, our
corporate plans, future financial condition, future results of operations,
future business plans and strategies. All such forward-looking statements are
based on our management's assumptions and beliefs in the light of information
available to them at this time. These forward-looking statements are, by their
nature, subject to significant risks and uncertainties and actual results,
performance and achievements may be materially different from those expressed in
such statements. Factors that may cause actual results, performance or
achievements to differ from expectations include, but are not limited to,
regulatory changes, future levels of industry product supply, demand and
pricing, weather and weather related impacts, wars and acts of terrorism,
development and use of technology, acts of competitors and other changes to
business conditions. Cairn India undertakes no obligation to revise any such
forward-looking statements to reflect any changes in Cairn India's expectations
with regard thereto or any change in circumstances or events after the date
hereof. Unless otherwise stated the reserves and resource numbers within this
presentation represent the views of Cairn India and do not represent the views
of any other party, including the Government of India, the Directorate General
of Hydrocarbons or any of Cairn India's joint venture partners.

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