Trading Statement at AGM

Cairn Energy PLC
2 May 2000
                                                                              
                                                                              
                    Trading Statement and Operational Update                  


The following statement was made by Cairn's Chairman at the Company's Annual
General Meeting held today:-

'1999 saw a strong recovery for Cairn and the Company has had a promising
start to 2000. The favourable oil price environment has contributed to strong
Group cash flow and profitability during the first quarter. 

In India, the Group has strengthened its position with the recent signing of a
fourth exploration licence, namely Block KG-DWN-98/2 in the Krishna-Godavari
Basin offshore Eastern India. A seismic programme has already commenced on the
new Block. Cairn has also recently commenced its drilling programme in India,
with the spudding of CB-A-1 on Block CB-OS/2 in the Cambay Basin offshore
Western India. 

During the first quarter of 2000, the Group's reserves have also been
supplemented following discoveries at South Sangu-1 in Bangladesh and P6-9 in
The Netherlands. The Shell operated South Sangu-1 well is still operating as a
consequence of unforseen technical difficulties.'  


Note:  'Cairn' as referred to above means Cairn Energy PLC and/or its
subsidiaries as appropriate.

Enquiries:-

Cairn Energy PLC                            Telephone: [phone]

Bill Gammell, Chief Executive
Dr Mike Watts, Exploration Director
Kevin Hart, Finance Director