Netherlands Natural Gas Discovery

Cairn Energy PLC
4 April 2000
                      
                          CAIRN ENERGY PLC ('Cairn')                          
                                                                            
                                                                          
                      Netherlands Natural Gas Discovery                       


The following edited press release was issued by Gulf Canada Resources Limited
yesterday, 3 April 2000:-

'Gulf Canada Resources Limited announced today a natural gas discovery at the
P6-9 exploration well on the P6 Block located offshore in the Dutch sector of
the North Sea.  Gulf Canada Resources Limited, through its wholly owned
subsidiary Clyde Petroleum Exploratie BV holds a 29.40 per cent interest in
the discovery and is operator of the well.

The P6-9 well is 4.5 kilometers northwest of the P6-8 producing gasfield on
the P6 block.  The well tested at a facility constrained rate of 45mmcf/d from
one reservoir and an additional 9 mmcf/d from a second reservoir.

Gulf, on behalf of the P6-9 group, is currently reviewing early development
options.  Start of production is targeted for year 2001, pending appropriate
approvals.

Other Co-venturers in the P6-9 discoveries are Dyas Nederland BV with a 20.85
per cent interest, Energie Beheer Nederland BV with a 40.00 per cent interest
and Holland Sea Search B.V., a wholly owned subsidiary of Cairn Energy PLC,
with a 9.75 per cent interest.'


Bill Gammell, Chief Executive of Cairn, commented:

'This discovery represents a significant increase in the value of our Dutch
portfolio and has the potential to have a material impact on the Group's
production and reserves in the Dutch North Sea.'


Enquiries:-

Cairn Energy PLC                     Telephone  [phone]

Bill Gammell, Chief Executive
Kevin Hart, Finance Director