Drilling Report

Cairn Energy PLC
20 April 2004


EMBARGOED FOR RELEASE AT 0700

                                CAIRN ENERGY PLC
                                                                   20 April 2004
                   THIRD OIL DISCOVERY IN NORTHERN RAJASTHAN

                    N-C-1 Exploration Well, Block RJ-ON-90/1


Cairn announces a potentially significant oil discovery in Rajasthan with the
N-C-1 exploration well which is located 12 kilometres north of Mangala, 70
kilometres north of Saraswati and 300 metres from the present northern boundary
of the block.

The N-C-1 well, which reached a total depth of 1,032 metres, encountered an oil
column of 18 metres gross in the Fatehgarh formation, with an estimated 5.4
metres of net oil pay. The Fatehgarh formation has a gross section of 274 metres
containing 165 metres of excellent high quality sands. On current mapping the
well is at least 250 metres down-dip from the nearest potential structural crest
which lies to the north of the present block boundary. An oil water contact has
been established in the well.

An open hole test programme has been carried out across one reservoir unit just
above the oil water contact. The well flowed at a variable rate for around six
hours and produced oil with a specific gravity of approximately 15 degrees API.
Oil flow rates were limited due to the high oil density and viscosity combined
with the shallow depth of the reservoir. This means that pumping will be
required to conduct a test representative of the true formation productivity,
which is believed to be high based on the excellent petrophysical
characteristics observed from log and wireline formation test data.

Preliminary estimates of oil in place for the N-C-1 discovery necessarily cover
a very wide range. This reflects current uncertainty on the up-dip sealing
mechanism and the need for additional seismic, which will now be immediately
acquired. Assuming a purely structural trap the preliminary mean oil in place
estimate for the field is approximately 400 million barrels. Further appraisal
up-dip of this discovery is necessary for confirmation of the oil in place
estimate and the associated recoverable reserves.

Under the terms of the PSC, agreement with the Indian Government will be
required on the shape and size of an extension area beyond the current block
boundary before appraisal drilling can commence.

Other Exploration & Appraisal Activities in Rajasthan

The N-F-1 exploration well, located 32 kilometres south-west of Mangala, was
plugged and abandoned on 16 April. The well encountered a thick sequence of
tight Fatehgarh sands with strong oil shows but with no primary porosity
preserved.

The next exploration wells are scheduled to commence in end May for the central
area and mid June for the northern area.

Further appraisal drilling on the Mangala and N-A oil fields is due to commence
before end April.

Bill Gammell, Chief Executive, commented:

'I am very pleased to announce our third exploration success in the northern
part of the Rajasthan block, where we have three active drilling rigs with a
fourth on the way. N-C-1 firmly establishes the widespread distribution of
excellent reservoirs across the north eastern area, which bodes well both for
the continued exploration programme and the impending appraisal of existing
discoveries.'

Enquiries to:

Cairn Energy PLC

Bill Gammell, Chief Executive Tel: [phone]
Mike Watts, Exploration Director Tel: [phone]

Brunswick Group Limited:

Patrick Handley, Catherine Bertwistle, Mark Antelme Tel: [phone]


Notes to Editors:

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

2.   Cairn is currently involved in an extensive exploration and appraisal 
     programme across its 5,000 square kilometre onshore exploration block
     (RJ-ON-90/1) in the Rajasthan Basin.

3.   Cairn holds a 100% interest in Block RJ-ON-90/1. Oil & Natural Gas 
     Corporation Ltd ('ONGC') has a right to 30% of any development area
     resulting from a commercial discovery on the block.

4.   The main exploration play objectives encountered in the Rajasthan Basin, 
     commencing with the stratigraphically youngest formation, are: Thumbli, 
     Dharvi Dungar, Barmer Hill and Fatehgarh.

5.   'API' where referred to in this release means American Petroleum Institute 
     units as a measure of oil specific gravity.

6.   'PSC' where referred to in this release means Production Sharing Contract.



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