Drilling Report

Cairn Energy PLC
04 February 2003



EMBARGOED UNTIL 0700                                          4 February 2003


                                CAIRN ENERGY PLC



        Cairn Announces Successful Testing of Rajasthan Exploration Well





Cairn today announces the successful testing of its exploration well RJ-E-1 in
block RJ-ON-90/1, Rajasthan.  The well which was drilled to a total depth of
3,476 metres encountered four potentially hydrocarbon bearing intervals of which
three were subsequently tested;



Interval 1



Test 1 produced gas from a gross volcanic interval between 2,870 and 3,050
metres. The zone flowed gas at a rate of 2.2 million standard cubic feet of gas
per day.



Interval 2



Test 2 and Test 3 perforated a series of interpreted hydrocarbon bearing
intervals between 2,408 and 2,634 metres.  The tested zones failed to flow
hydrocarbons to surface and the interval has been evaluated as tight.



Interval 3



Test 4 and Test 5 produced hydrocarbons at a combined rate of approximately 200
barrels of oil per day and 7.3 million standard cubic feet of gas per day.  The
tests were carried out over a gross interval between 1,241 and 1,338 metres and
encountered reservoirs not previously seen in the basin.



Whilst further evaluation and appraisal of this discovery is required to
determine commerciality, preliminary estimates indicate that this interval
contains oil initially in place of 30-370 million barrels with a small gas cap.
The preliminary estimate of mean oil initially in place is 155 million barrels.
No oil-water contact was encountered over this interval.




Interval 4



Unfortunately due to operational difficulties the well had to be completed at a
depth above one of the main objectives.  As a consequence, it was not possible
to evaluate a potentially encouraging oil bearing interval which was encountered
in the volcanics at the base of this well.



The well also encountered shallow water bearing reservoirs which could
potentially be used as a mechanism for secondary recovery.  Water injection
could significantly enhance recovery factors on accumulations within the block.



The rig is now preparing to move to the Saraswati discovery where it will
commence a two well appraisal programme.



Bill Gammell, Chief Executive, commented:



'We are delighted with this new discovery which is our third in a row on this
Rajasthan block.  Following these successes and our recent acquisition of an
additional 50% interest from Shell, we are confident that further exploration
and appraisal drilling will confirm this acreage has the potential to become a
material new core area for the Group.'







Enquiries:-



Cairn Energy PLC


Simon Thomson, Commercial Manager                   Tel:   [phone]
Kevin Hart, Finance Director                        Tel:   [phone]
Mike Watts, Exploration Director                    Tel:   [phone]
Bill Gammell, Chief Executive                       Tel:   [phone]





Brunswick Group Limited
Patrick Handley, Catherine Bertwistle               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 100% interest in Block RJ-ON-90/1. ONGC has a right to 30%
of any development area resulting from a commercial discovery on the block.


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