Re. Operational Update

Cairn Energy PLC
04 November 2002


EMBARGOED FOR RELEASE AT 0700
                                                                 4 November 2002



                                CAIRN ENERGY PLC

                              Western India Update
                 Lakshmi First Gas & Rajasthan Exploration Well

Block CB/OS-2 - Gujarat

Cairn announces today that first gas sales from the Lakshmi gas field
development commenced on 1 November 2002. The field is currently undergoing a
brief commissioning period. Contractual plateau volumes are 120 mmscfd.

Block RJ-ON-90/1 - Rajasthan

Drilling of the RJ-E-1 exploration well onshore Rajasthan commenced on 30
October 2002 and is anticipated to reach total depth prior to the year end.

Bill Gammell, Chief Executive, commented:

'I am delighted that we are now selling gas from Lakshmi. The joint venture has
achieved production within two and a half years of the initial gas discovery in
May 2000.

I am also pleased that we have commenced a multi-well exploration and appraisal
drilling programme in Western India with the well on Prospect E. This is the
first exploration well to be drilled on the Rajasthan block since Cairn's
acquisition of an additional 50% interest from Shell.'



Enquiries:-

Cairn Energy PLC:
Bill Gammell, Chief Executive                           Tel: [phone]
Dr Mike Watts, Exploration Director                     Tel: [phone]
Kevin Hart, Finance 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 holds a 50% interest in the ring-fenced Lakshmi development area in 
   Block CB/OS-2. The remaining interests are held by Oil & Natural Gas Company
   Ltd. ('ONGC') with 40% and TATA Petrodyne Limited with 10%. The joint venture
   has two Gas Sales Contracts for Lakshmi gas - one with Gujarat Gas Company
   Limited and the other with Gujarat Powergen Energy Corporation Limited.

3. 'mmscfd' means million standard cubic feet of gas per day.

4. Cairn holds a 100% interest in Block RJ-ON-90/1. ONGC has a right to
   30% in the event of a commercial discovery on the block.

5. 'Shell' where referred to in this release means Shell India Production
   and Development B.V.


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