Drilling Report

Cairn Energy PLC
09 July 2003


EMBARGOED FOR RELEASE AT 0700


                                                                     9 July 2003



                                CAIRN ENERGY PLC


                       Western India - Operations Update


Gujurat - Block CB/OS-2


Cairn announces the successful result of GA-2, the second well in the ongoing
Gauri development drilling programme.  The well result was slightly better than
prognosis encountering approximately 43 metres of high quality gas bearing
reservoir sands and approximately six metres of net oil bearing sands.  GA-2 is
a deviated well drilled from the Gauri jacket and will be completed as a future
producer.


Operations have started on GA-3, the third well in the planned four well Gauri
development drilling programme.  It is planned to test the best quality oil
bearing sands encountered in the development wells at the end of the programme.


Gauri gas production is planned to commence in the first half of 2004 and gas
will be evacuated via the Lakshmi gas-gathering system.


Rajasthan - Block RJ-ON-90/1


Cairn announces that the RJ-D-1 wildcat exploration well, located on the eastern
flank of the basin, has been plugged and abandoned as a dry hole.  The well,
which was located approximately 33 kilometres south-east of the Saraswati field,
reached a total depth of 2,540 metres.


This well is part of an extensive multi-well exploration and appraisal drilling
programme on the block.  To assist with this programme Cairn plans to have two
additional medium depth drilling rigs operating from September.


The deep drilling rig will now be moved to exploration prospect 'Q', which is
located in the centre of the basin approximately 20 kilometres north of
Raageshwari and 11 kilometres west of Saraswati. Prospect 'Q' has multiple
objectives and is expected to TD at around 3,500 metres.


A work-over rig is now on location at Saraswati beginning a testing programme.


Enquiries to:


Cairn Energy PLC:

Bill Gammell, Chief Executive
Tel: [phone]

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 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.


3.       Cairn holds a 75% exploration interest in Block CB/OS-2, with the
remaining exploration interests being held by Oil & Natural Gas Company Ltd.
('ONCG') with 10% and TATA Petrodyne Limited ('TATA') with 15%. ONGC has a right
to increase its interest by 30% in the event of a commercial discovery on the
block and has exercised this right in respect of Lakshmi and Gauri (Cairn 50%,
ONGC 40% and TATA 10%).






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