Interim Results

CAIRN ENERGY PLC
24 August 1999


CAIRN ENERGY PLC ('Cairn')

INTERIM RESULTS ANNOUNCEMENT


Highlights


-    Revenue up 28% year on year to £30.1m

-    Post-tax profit from continuing operations of £7.2m

-    Average production up to record 21,265 boepd

-    Guda-2 well in Rajasthan tests at stabilised rate
     OF 2,000 bopd

-    Three bids submitted in Indias New Exploration
     Licencing Policy ('NELP')

-    Increased holding in Block CB-OS/2, Western India 
     to 75%

-    Net cash of £19m at 30 June 1999


Bill Gammell, Chief Executive of Cairn, commented:

'Cairns low cost production base has allowed the company
to emerge from the recent period of low oil prices with a
good  operating profit. This, combined with  our  healthy
balance  sheet, provides the flexibility  to  pursue  our
strategic goals.

Our  strategy of pursuing organic growth from exploration
through establishing significant interests in substantial
acreage  positions has been rewarded with the encouraging
results  of  the Guda-2 well on the 9000km2 Block  RJ-ON-
90/1 in Rajasthan, India.'

Enquiries to:

Cairn Energy PLC:
Bill Gammell, Chief Executive        Tel:  [phone]
Mike  Watts, Exploration &
 New Business Director               Tel:  [phone]
Kevin Hart, Finance Director         Tel:  [phone]
Maryth Guild, Analyst Liaison        Tel:  [phone]

Buchanan Communications:
Isabel  Petre                        Tel:  [phone]


CHAIRMANS STATEMENT

Against  a backdrop of lower average product prices,  the
first  half  of  1999  has seen significant  progress  in
Cairns activities. Encouraging exploration drilling  and
incremental acreage additions have added value to Cairns
substantial  interests  in  India;  offshore  exploration
drilling  in  Bangladesh  is about  to  recommence  using
Cairns specialist rig; increased production levels  from
the  Ravva  and Sangu fields have contributed to  Cairns
highest ever average net production, and the transfer  of
Operatorship to Shell in Bangladesh has completed a Group-
wide restructuring.

An  increase  in shareholder value can be  achieved  from
strengthening oil and gas prices, visionary  acquisitions
and   exploration  success.   Cairn  has  little  or   no
influence  on oil or gas prices and consequently  focuses
its  efforts  on strategic acquisitions or alliances  and
organic growth from exploration.  In recent months  there
has  been  a  substantial recovery in the oil  price  and
Cairns  acquisition of an increased equity  interest  in
the  Rajasthan Block in India has been rewarded with  the
encouraging results of the Guda-2 well.

RESULTS
Oil prices have recently staged a recovery from the 
depressed levels experienced during most of the first half
of 1999. Cairns contractual protections  have afforded
the  company relatively stable  returns  during this low
oil price period.  If oil prices maintain their current
levels,   this  should  benefit   second   half
profitability.   The average oil price realised  for  the
first  half  of 1999 was $12.58 per barrel compared  with
$14.96  for  the  equivalent  period  in  1998.   Average
production  from continuing operations was 21,265  boepd,
49%  higher  than  the 14,317 boepd achieved  during  the
corresponding  period  last  year,  reflecting  increased
production  at Ravva and Sangu. Turnover from  continuing
operations  rose  by  28% to £30m  (H1  1998  -  £23.5m).
Operating profits from continuing activities rose 75%  to
£9.3m (H1 1998 - £5.3m).

During  the  period, the Group received net  interest  of
£1.3m compared with net interest of £0.5m received during
the  corresponding period last year, including a  foreign
currency exchange gain of £1.2m (H1 1998 - £0.3m).  After
taxation the Group made a profit on continuing activities
of £7.2m (H1 1998 £1.5m).

The results include an exceptional provision of £1.5m  in
respect   of   Group  restructuring  and  an  exceptional
provision  release of £2m resulting from the  revaluation
to  market  of the shares of SOCO International  plc,  in
which  Cairn has a 7.4% holding.  After these items,  the
Group  made a net profit of £7.7m against a loss of £6.1m
for the same period in 1998.

The  Group currently has net cash of approximately  £20m,
and  with substantial cashflow has the financial strength
and  flexibility to pursue further opportunities  in  its
core strategic areas.

OPERATIONS

BANGLADESH
The first half of 1999 witnessed significant progress  in
all areas of Cairns Bangladesh operations.  The transfer
of  Operatorship  to Shell was completed;  agreement  was
reached  between  Cairn/Shell and Unocal  Corporation  in
respect  of  a co-operation in the South West  region  of
Bangladesh, subject to necessary Government approvals and
awards;  negotiations  commenced for  Production  Sharing
Contracts  ('PSCs') for Blocks 5 and 10, and an  offshore
drilling programme is about to commence.

The transfer of Operatorship completes the final stage of
Cairns 50/50 Bangladesh alliance with Shell. With  Sangu
on  stream  and the alliance contemplating  a  number  of
infrastructure  development schemes as  well  as  forward
exploration  programmes, it is the  ideal  time  for  the
alliance   to  utilise  Shells  skills  as  a  long-term
development  Operator.  The  transfer  also  frees  Cairn
management  time to focus on areas where  Cairn  can  add
value through its front-end exploration skills.

Negotiations continue with the Bangladeshi authorities in
respect  of  PSCs  for  Blocks 5 and  10.  Relinquishment
patterns  for  Blocks  15 and 16 have  been  agreed  (the
contracts  required  a  25% relinquishment  of  Block  15
acreage  and  a 50% relinquishment of Block 16  acreage),
with  Cairn/Shell  retaining  those  areas  the  alliance
believes are most prospective.

An  offshore  drilling programme utilising  Cairns  EEIV
drilling rig is about to commence. The first well in  the
sequence, Sangu South, will target a prospect immediately
to  the  south of the Sangu field, and will then continue
on  to  explore the deeper zones beneath the Sangu field.
The cost of the Sangu South well will be met entirely  by
Shell.

During  the  first half of 1999, Sangu production  levels
have  ranged  between  55MMscfd and  181MMscfd,  with  an
average of 96MMscfd. This compares with a minimum average
daily take or pay requirement of 128MMscfd.

INDIA
India  continues to be a core area for the Group  and  we
have  increased our equity interests in existing  acreage
positions.  In addition, Cairn has submitted applications
for  three  Blocks  offshore Eastern  India  pursuant  to
Indias New Exploration Licencing Policy.

Eastern India
Formal consent was received in the first half of 1999  to
maintain production from the Ravva field (Cairn 22.5% and
Operator)  at  the  increased  rate  of  50,000bopd.   In
addition,  the field produces approximately  30MMscfd  of
associated  and non-associated gas.  A 3D seismic  survey
will commence in the last quarter of 1999. The survey  is
designed to provide full Block coverage for future  field
development  and  also  identify  prospects  for  forward
exploration   drilling  programmes.  In   addition,   Gas
Authority  of India Limited is upgrading the pipeline  at
the  Ravva  facility, which Cairn hopes  will  facilitate
additional gas sales from the Ravva contract area.

A  1500km2 seismic acquisition programme in Block KG-OS/6
(Cairn 50% and Operator) was completed in the first  half
of  1999.  The results of the survey are currently  being
processed  prior  to  interpretation  with  a   view   to
commencing  drilling in 2000. Block KG-OS/6  lies  within
the  Krishna Godavari Basin which also contains the Ravva
field.  The  Block  offers the potential  for  structures
similar  to  those found in Ravva. Local power  producers
and  industrial consumers provide a ready market for  any
indigenous gas or oil discovery.

Cairn  recently  submitted bids  for  three  new  acreage
blocks  (two 100% and one in alliance with Gujarat  State
Petroleum Corporation Ltd.), all in the Krishna  Godavari
Basin, where the company has a substantial technical  and
commercial knowledge base.

Western India
During the first half of 1999, Cairn increased its equity
interest  in  two acreage Blocks, RJ-ON-90/1  (Rajasthan,
9,000  km2)  and  CB-OS/2, in line with its  strategy  of
gearing  its exploration through early significant  entry
to substantial acreage positions.

In  Rajasthan, Cairns interest has increased from  27.5%
to  50%  in  exchange for Cairn funding the  first  $2.1m
costs  of drilling the Guda-2 well and Operatorship  will
be  transferred from Shell to Cairn following  completion
of the well.

During  a  36  hour test the Guda-2 well  flowed  oil  to
surface at a stabilised rate of 2,000 bopd with no  water
and  will  be  completed as a potential future  producer.
Cairn   is  evaluating  the  opportunity  for  an   early
production   system  and  is  planning   an   accelerated
exploration  programme on the Block.  This is  the  first
discovery made in India by a foreign oil company  in  the
last 20 years.

Cairn  has also increased its operated interest in  Block
CB-OS/2 by acquiring an additional 30% interest from TATA
Petrodyne  Limited, subject to necessary  consents.  This
acquisition  increases Cairns interest in the  Block  to
75%.  There are a number of large oil and gas  fields  in
the  vicinity  (including  the Hazira  field  development
operated  by  Niko Resources Ltd., which lies ring-fenced
within  the Block) and an immediate market for indigenous
or  imported  gas  in the industrialised  Gujarat  state.
Cairn  plans to commence seismic acquisition on the Block
in the second half of the year.

OUTLOOK
Cairn  believes that the Groups world-class position  in
the   Indian   subcontinent  offers  substantial   upside
potential.  The  Indian market has a  substantial  energy
deficiency and  requires additional hydrocarbons,  either
from indigenous production or through imports. Cairn  has
enhanced  its early entry positions through a combination
of   equity acquisition, strategic alliances and  organic
growth.  A sound balance sheet and contractual protection
against oil price downside affords maximum flexibility in
considering   future  options.  With  the   restructuring
process   now   complete  following   the   transfer   of
Operatorship  to Shell, Cairn looks forward  to  entering
the  new  Millennium  as  a  slimmed  down  organisation,
focused  on  its  core technical and  commercial  skills,
capable  of  moving with speed, and with the  ability  to
leverage  value from material exploration and  production
interests.

YEAR 2000
A  Year 2000 project team has been active throughout 1998
and  1999  and  has  completed the first  two  phases  of
Cairns  Year  2000 project, these being  to  complete  a
review  of  potential Year 2000 risk across all areas  of
the  business and to implement an action plan to minimise
such risk.

Where  any potential exposure which is outwith the direct
control  of the business has been identified, for example
in  non-operated projects or with third parties, then all
reasonable steps are being taken to ensure that such risk
to Cairn is minimised.

The final stage of the project has commenced and involves
the  development of contingency plans to deal  with  Year
2000 exposure arising from exceptional circumstances,  as
well  as to provide a second level of protection  to  the
work already completed. Although it is expected that  the
project   will  be  completed  by  October  1999,   Cairn
management intend to continue to search for residual risk
until  the  year end and to refine contingency  plans  as
appropriate.

At  the present time, total costs of Year 2000 compliance
to Cairn are estimated to be approximately £0.9m.

WEB SITE
On  a final note, Cairn launches its new web site on  the
Internet  today,  the  address for  which  is  www.cairn-
energy.plc.uk. We hope that all users of the site find it
useful and informative.


Norman Lessels CBE
Chairman
24 August 1999



Cairn Energy PLC
Consolidated Profit and Loss Account (unaudited)
For the six months to 30 June 1999

                                 Continu-             Six   
                                     uing     Six  months    Year
                         Continu-  opera-  months   to 30   ended 
                              ing   tions   to 30    June  31 Dec
                 Notes     opera-  excep-    June    1998    1998
                            tions  tional    1999 (Resta- (Resta-  
                                    items            ted)    ted)
                            £000    £000    £000    £000    £000
                                          
                                                                      
Turnover                   30,055     -   30,055  23,498  41,040
                                                                      
Cost of sales 
Production costs          (11,030)    -  (11,030) (7,940)(17,138)
Depletion                  (5,954)    -   (5,954) (6,064)(12,212)
Decommissioning              (133)    -     (133)   (121)   (228)
                         ----------------------------------------              
                            
Gross profit               12,938     -   12,938   9,373  11,462
                                                                      
Write-down of oil            
and gas assets                  -     -        -       - (47,529)
Write-down of other       
fixed assets                    -     -        -       - (11,729)
Administrative                                           
expenses          1        (3,598) (1,458)(5,056)(6,584) (10,633)              
                                               
                         ---------------------------------------- 
Operating
 profit/(loss)              9,340  (1,458) 7,882  2,789  (58,429)
                                          
Write-back/(provision
against) value of
listed investment  2         -      1,980  1,980 (5,020) (11,651)
                        -----------------------------------------            
Profit/(loss) on
ordinary activities                                             
before interest            9,340      522  9,862 (2,231) (70,080)

Interest receivable            
and similar income   3     1,668       -   1,668    942      823       
                              
Interest payable and                                       
similar charges             (169)      -    (169)  (294)  (1,720)     
FRS 12 unwinding of
discount                    (169)      -    (169)  (158)    (321)       
                         ----------------------------------------
Profit/(loss) on
ordinary activities
before taxation           10,670     522  11,192 (1,741) (71,298)
                                                            
Taxation on profit on                                                 
ordinary activities              
-    Current                (470)     -     (470)   105   (1,388) 
-    Deferred             (3,050)     -   (3,050)(4,484)  (2,240)
                         ----------------------------------------
                          (3,520)     -  (3,520)(4,379)  (3,628)
                         ----------------------------------------              
           
Profit/(loss) for the          
period                     7,150    522   7,672  (6,120) (74,926)              
                  
                         ========================================              
                                   
Earnings/(loss) per                                       
ordinary share - basic                    4.50p  (3.60p) (44.06p)
Earnings/(loss)-per                                     
ordinary share - diluted                  4.50p  (3.60p) (44.06p)    

Notes:

1. The exceptional charge relates to the costs associated with
   the Transfer  of  Operatorship  of Bangladesh  licences
   to Shell and restructuring the Group.  This is offset by
   the release of the Sydney office closure provision.
2. The write-back relates to the increase in the Groups 
   investment in SOCO International plc to market value.
3. Interest receivable and similar income, includes £1,225,000 
   of foreign exchange gains (1998 full year - loss of £417,000,
   1998 half year - gain of £335,000).
4. A  new  accounting  standard, Financial Reporting Standard 12,
   'Provisions, Contingent Liabilities and Contingent Assets'
   (FRS12'), is  effective  for  the interim results.  FRS12
   requires the full discounted cost of decomissioning to be
   recognised as an asset and liability when the obligation 
   to rectify environmental damages arises. The  amortisation
   of the asset, calculated on a unit of production basis, and
   the unwinding of the discount are shown separately in the
   profit  and  loss  account.  Previously, the provision 
   for decommissioning was built up over the life of the field
   on a unit of production basis.  Prior period figures
   have been adjusted to conform to  the  current  periods 
   presentation.  Due  to  this  change  in accounting  policy, 
   the prior period figures have  been  restated, resulting in
   a £428,000 credit to retained profit and loss reserves.

Cairn Energy PLC
Consolidated Balance Sheet (unaudited)
As at 30 June 1999

                                 As at         As at        As at
                               30 June  30 June 1998  31 Dec 1998
                                  1999    (Restated)   (Restated)
                                  £000          £000         £000
                                                                      
Fixed Assets                                                          
Exploration assets             117,756       146,483      112,922
Development/producing assets   122,473       169,195      118,828
Other fixed assets              22,014        25,101       20,795
Investments - own shares           758             -            -
                              -----------------------------------
                               263,001       340,779      252,545
                              -----------------------------------
Current Assets                                                        
Debtors                         56,495        34,835       95,617
Investments                      3,765         8,075        1,729
Cash at bank                    19,017         5,458        5,073
                             ------------------------------------  
                                79,277        48,368      102,419
                              -----------------------------------
Creditors (including                                                  
convertible debt):                   
amounts falling due within
one year                        49,066        45,900       80,705
                             ------------------------------------              
                                
Net current assets              30,211         2,468       21,714
                             ------------------------------------              
                           
Total assets less current           
liabilities                    293,212       343,247      274,259              
                       
Provision for liabilities         
and charges                      8,355         6,748        7,302              
    
Deferred taxation               13,315        12,346       10,224
                              -----------------------------------              
                           
Net assets                     271,542       324,153      256,733
                              ===================================              
                       
Capital and reserves - equity                                         
interest                        17,055        16,998       17,054
Called-up share capital           
Share premium                  182,370       181,664      182,366       
Capital reserves - non            
distributable                   48,115        48,115       48,115         
Capital reserves -
distributable                   68,193        68,193       68,193
Profit & loss account          (44,191)        9,183      (58,995)
                              -----------------------------------              
                         
Shareholders funds            271,542       324,153      256,733
                              ===================================

5. The  disclosed figures are not statutory accounts  in  terms 
   of Section 240 of the Companies Act 1985.  Statutory accounts
   for the year ended 31 December 1998, on which the auditors 
   gave an unqualified report, have been filed with the Registrar
   of Companies.
6. No dividend has been declared.

Cairn Energy PLC
Group Statement of Total Recognised Gains and Losses (unaudited)
For the six months to 30 June 1999

                                                 Six       Year
                                      Six  months to      ended
                                months to    30 June     31 Dec
                                  30 June       1998       1998
                                     1999  (Restated) (Restated)
                                     £000       £000       £000

Profit/(Loss) for the period        7,672     (6,120)   (74,926)
                                                                      
Unrealised foreign exchange                
differences                         7,132     (3,309)    (2,681)
                                   -----------------------------               
                      
Total recognised gains and losses         
for the period                     14,804     (9,429)   (77,607)    
                                         =======================               
                 
Prior year adjustment                 428
                                   -------                                     
Total recognised gains and losses               
recognised since last annual       15,232
report                             =======


Reconciliation of Movements in Shareholders Funds (unaudited)
For the six months to 30 June 1999
                                                                      
                                      Six        Six       Year
                                months to  months to      ended
                                  30 June    30 June     31 Dec
                                     1999       1998       1998
                                          (Restated) (Restated)
                                     £000       £000       £000
                                                                      
Total recognised gains and losses       
for the period                     14,804     (9,429)   (77,607)               
                     
                                               
New shares issued in respect of                
employee share options                  5          -        253
New shares issued in respect of HSSH
Warrants and Debentures                 -          5        510
                                   ----------------------------                
                   
Net additions/(deductions) to            
shareholders funds                14,809    (9,424)   (76,844)                
                  
                                                                      
Opening shareholders funds (after       
prior year adjustment)*           256,733   333,577    333,577
                                  -----------------------------                
                    
Closing shareholders funds       271,542   324,153    256,733
                                  =============================                
                  

* The prior year adjustment reflects the change in accounting
policy arising from the implementation of FRS 12. 
The opening shareholders funds at 1 January 1999, prior to the
adjustment, were £256,305,000 (1998: £333,544,000).


Cairn Energy PLC
Group Statement of Cash Flows (unaudited)
For the six months to 30 June 1999
                                                            Year
                                        Six       Six      ended
                                  months to months to     31 Dec
                                    30 June   30 June       1998
                                       1999      1998       £000
                                       £000      £000           
Net cash inflow from operating             
activities                            9,151    10,384      9,349               
                            
                                                                      
Returns on investments and servicing     
of finance                                
Interest received                       454       689        916
Interest paid                          (168)     (146)    (1,303)
                                     ----------------------------
                                        286       543       (387)

Taxation                             (1,020)     (805)    (1,004)

Capital expenditure and financial
investment 
Purchase of exploration assets       (7,275)  (23,648)   (45,874)       
Purchase of development/producing        
assets                                 (454)  (23,704)   (33,167)
Purchase of other fixed assets             
(including Energy Explorer IV)       (1,898)  (18,524)   (27,438)    
Purchase of fixed asset investments    (802)        -          -  
Sale of exploration assets                -         -      5,449     
Sale of development/producing assets      -         -     12,046
Sale of other fixed assets              183         -        304
Cash receipts from Shell  (note 1)   52,763         -          -
                                     ----------------------------
                                     42,517   (65,876)   (88,680)
                                     ----------------------------              
             
Equity dividends paid                   -         -          -
                                     ----------------------------              
                              
Net cash inflow/(outflow) before use                                  
of liquid resources and financing    50,934   (55,754)   (80,722)
                                                                      
Management of liquid resources*
Cash on short term deposit          (16,944)   28,411     28,568

Financing                                                             
Issue of shares                          5          5        763
Debt drawdowns                           -     13,091     36,915
Repayment of debt                  (36,995)      (521)      (521)
                                   -----------------------------
                                   (36,990)    12,575     37,157
                                   -----------------------------
(Decrease)/increase in cash in the       
period                              (3,000)   (14,768)   (14,997)
                                   -------------------------------
*  Short term deposits of less than one year are disclosed as
   liquid resources

Note:

1.  During 1998, the Group sold part of its interest in
    Bangladesh to Shell for consideration of $65m, plus recovery
    of back costs.  The proceeds were included with debtors at 
    31 December 1998.