Drilling Report

Cairn Energy PLC
21 May 2002



EMBARGOED FOR RELEASE AT 0700
                                                                     21 May 2002


                                CAIRN ENERGY PLC


                          Block PKGM-1 - Eastern India
                             RX-7 Exploration Well


Cairn has completed the RX-7 exploration well in the extreme north-east of Block
PKGM-1 (Ravva) offshore Eastern India. The well encountered oil shows in the
Early Miocene section whilst drilling and a drill stem test was conducted. The
test established that the formations were tight, being of low permeability, and
no flow of formation fluids was achieved.

The RX-7 well has been plugged and abandoned. This completes the present Ravva
drilling campaign and the Aban II jack-up drilling rig is being released.

The data acquired from RX-7 will be integrated with the ongoing 3D seismic
interpretation over the Ravva block. Following completion of the seismic
interpretation further exploration drilling is expected to commence in 2003.


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 22.5% equity interest in Block PKGM-1 (Ravva). The remaining 
     interests are held by ONGC (40%), Videocon Petroleum Limited (25%) and
     Ravva Oil (Singapore) Pte Limited (12.5%).


                      This information is provided by RNS
            The company news service from the London Stock Exchange