Drilling Report

Cairn Energy PLC
11 April 2002

FOR IMMEDIATE RELEASE



                                                                   11 April 2002



                              CAIRN ENERGY PLC

                 Oil Discovery on Block CB/OS-2 - Western India


              Second Successful Oil Test of 5,250 bopd on Lakshmi
                 Well flows cumulative oil rates of 10446 bopd


Further to our press release of 9th April 2002, Cairn announces that it has
completed the second of two planned oil Drill Stem Tests ('DST's') on the LA-2
gas development well on Block CB-OS/2 in the Gulf of Khambat, offshore Western
India.



The second DST (testing an interval from 1382 to 1388 metres) flowed at a
stabilized rate of 5250 barrels per day (bopd), 44.5 degrees API oil at a
flowing wellhead pressure of 511 psi on a 64/64' choke and with a gas oil ratio
(GOR) of 397 scf/stg.  This flow rate was constrained by the surface test
limitations.  As previously reported, the first DST (testing an interval from
1411 to 1420 metres) flowed at a stabilized rate of 5196 bopd.



The Lakshmi gas development project is on schedule to produce first gas in
August 2002.





Bill Gammell, Chief Executive, commented:



'We are delighted to have discovered oil below the main gas reservoirs which are
the subject of a separate development.  These extremely encouraging oil flow
rates demonstrate the high potential reservoir deliverability, although further
appraisal is required to determine the reserve potential.



We are currently reviewing an accelerated appraisal program for this discovery,
which follows the previous three oil discoveries made by Cairn on the same block
last year. In light of this result, we are reassessing the total oil potential
on the block.'





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 gas discovery in
Block CB/OS-2. The remaining interests are held by ONGC (40%) and TATA Petrodyne
Limited (10%).



3.       'API' means American Petroleum Institute units as a measure of oil
specific gravity.



4.       'bopd' means barrels of oil per day



5.       'GOR' means gas to oil ratio.



6.       'psi' means pounds per square inch



7.       'scf/stb' means standard cubic feet to stock tank barrels







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