Visit & Operational Update

Cairn Energy PLC
10 November 2005


EMBARGOED FOR RELEASE AT 07:00                                 10 November 2005
                                
                                CAIRN ENERGY PLC

                Forthcoming Site Visit 28th - 30th November 2005
                              & Operational Update

Cairn Energy is hosting a visit to India for analysts and investors from 28th -
30th November 2005. The itinerary includes a tour of Cairn's assets in Gujarat
and Rajasthan. There will be a presentation on the Group's activities, which
will be available after the 29th November at www.cairn-energy.plc.uk in the
downloads section of the Investor Relations page. No further trading or
operational update will be given during the visit.

As part of its normal programme of communications, Cairn will provide a trading
and operational update on 17th January 2006 ahead of the full year results,
which are scheduled to be announced on 14th March 2006.

The following summary of operations since the interim results in September 2005
is provided as information prior to the analyst and investor visit to India.


Operational Update

A) Rajasthan (Block RJ-ON-90/1)

Cairn is pursuing its goal of adding to the Rajasthan resource base through its
active exploration and appraisal campaign. The company continues to evaluate and
develop its existing discoveries to bring them onto production as soon as
reasonably possible. The Field Development Plans for Mangala, Aishwariya,
Raageshwari oil and Saraswati have been completed and were submitted to the
Government of India in October 2005.

Discussions are on-going with Mangalore Refinery and Petrochemicals Limited, an
ONGC subsidiary, which is the appointed nominee to take delivery of the
Rajasthan crude, with regard to a detailed Crude Oil Sales Agreement. Studies
for the Front End Engineering Design for Mangala are complete and the tendering
process for the detailed work is almost concluded.


Rajasthan Development

Mangala, Bhagyam and Aishwariya

The evaluation of the northern fields, Mangala, Bhagyam and Aishwariya, is now
moving to a phase of detailed analysis of the potential for any additions to the
volumetric and reserve base. In particular:

i) pre-stack time migration work on the 3D seismic indicates
the potential for the main field bounding faults to be positioned further
up-dip. A dedicated well programme designed to test the crestal fault locations
in these fields is currently being planned.

ii) A re-appraisal of petrophysical parameters in these main
fields suggests that the current evaluation may have been conservative when
compared with analogous fields and crudes. A focussed special core analysis
programme, involving new core material, is planned to evaluate the water
saturation parameters to address this issue. The results of this study are
expected in Q1 2006.


Rajasthan Exploration

Greater Vijaya and Vandana area - N-R-4 Discovery

The N-R-4 discovery well, drilled six and a half kilometres (km) west of the
Vijaya and Vandana fields, was drilled to a true vertical depth of 2741 metres
(m) in pre-rift formation. The well encountered a number of oil bearing
horizons, in similar units to those seen at Vijaya and Vandana, and has a log
evaluated 38 m of oil bearing reservoir.

Oil was recovered from MDT samples at three reservoir horizons prior to three
open-hole DST tests being carried out. The middle zone flowed oil into the
tubing at an estimated rate of 40 barrels of oil per day (bopd) but did not flow
naturally to the surface. The other two zones did not flow. It is anticipated
that artificial lift, with or without stimulation will be required in future
operations.

Based on this well and an appraisal well (N-R-5) together with 3D seismic
mapping, the oil in place for the N-R-4 discovery is initially estimated at 100
- 400 million barrels (mmbbls) gross. In this type of stratigraphic trap,
recoveries are anticipated to be low.

The N-R-4 discovery further extends westwards the stratigraphic trap potential
seen at the Vijaya and Vandana fields.

GS-V-1 Gas and Condensate Discovery - Greater Saraswati area

The GS-V-1 Well was drilled to a separate structure nine km to the North West of
the Saraswati field in the East-Central area of the Rajasthan contract area. The
well reached a total depth (TD) of 2190 m in a fractured pre-rift formation
where it encountered 12 m of net gas pay. An open-hole DST conducted over a 30 m
interval of fractured sediments produced at a maximum stabilised rate of 3.2
million standard cubic feet per day and 70 bopd of 47.5 degree API condensate on
a 32/64' choke.

While appraisal drilling will be required, the initial gas in place estimates
for the GS-V-1 discovery are in the 20-30 billion cubic feet gross range.
A number of exploration prospects around the GS-V-1 discovery highlight further
gas potential which will be targeted by an exploration drilling programme.


Exploration 3D Seismic

A 300 square km exploration 3D seismic survey has been acquired over the area to
the south of Bhagyam and to the west of Mangala. Interpretation of this survey
is now underway and the first exploration well based on this data is expected to
spud before the end of the year.


Kameshwari-West-1 - North-Central area

The Kameshwari-West-1 well was drilled to a TD of 1500 m in pre-rift formation.
Strong residual oil shows were observed in good reservoir sands in the Barmer
Hill and Fatehgarh levels in this separate structure, which lies some 16 km NW
of the Kameshwari discovery.

The Kameshwari-West-1 well, although essentially a dry hole, gives positive
evidence for the presence of good reservoir and hydrocarbon migration through
the, as yet, poorly explored west-central part of the contract area.


Rajasthan Appraisal

Vijaya and Vandana appraisal well

The N-R-3 appraisal well, drilled four km south from Vijaya -1 and two km from
Vandana-1, encountered 55 m of log evaluated oil bearing reservoir.

Based on the four wells drilled to date and the 3D seismic mapping, the oil in
place for the Vijaya & Vandana discoveries is estimated at 200 - 900 mmbbls. In
this type of stratigraphic trap, recoveries are anticipated to be low.

Greater Vijaya and Vandana area appraisal of N-R-4 discovery

The N-R-5 appraisal well 8 km to the north of the N-R-4 discovery well
encountered 37 m of log evaluated oil bearing reservoir.

Raageshwari 3ST appraisal well

The Raageshwari-3ST appraisal well was drilled into a structural compartment on
the NE flank of the Raageshwari field. The well encountered 15 m of oil bearing
reservoir in the Thumbli formation.

The additional oil in place established by the Raageshwari -3ST well is
estimated to be 5-15 mmbbls gross.


Bhagyam Gas Well

Following the discovery of a gas cap in the nearby N-I accumulation, a well is
being planned at the crest of the Bhagyam field, to test the potential for
additional gas cap volumes in both the Fatehgarh and Barmer Hill formations, as
well as to gather information on the main bounding fault and the Fatehgarh oil
reservoir at the field crest.

Gas cap volumes are potentially valuable as a future fuel source to power the
energy demands of the nearby major fields as an addition to the considerable gas
volumes discovered further south in the block.


B) Cambay Basin CB/OS-2 - Gauri Oil

The G-A-3 Gauri oil well has been commissioned and has produced first oil. Oil
is evacuated through the gas system at the Suvali plant in Gujarat. The future
performance of this well under depletion will be important in assessing the
recoverable potential in similar more extensive channel reservoirs at Lakshmi.


C)Cambay Basin CB-ONN-2001/1 - Vanthvali -1

The ONGC operated Vanthvali -1 exploration well is currently operating.


D) KG Basin KG-DWN-98/2

Following the drilling of the 'D' discovery well in August 2005, drilling has
yet to recommence on this ONGC-operated, deep water block. A Padmavati appraisal
well is expected to spud before the end of the year after which an exploration
well on the 'U' prospect is planned.


Enquiries to:

Cairn Energy PLC:
Analysts/Investors
Bill Gammell                                                  Tel: [phone]
Kevin Hart
Mike Watts
Media
David Nisbet, Head of Group Communications

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 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.


   •India currently imports approximately 2 mmbbls. Domestic production is
    approximately 650,000 bopd of which approximately 50,000 bopd comes from the
    Cairn operated Ravva field.


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


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