Drilling Report

Cairn Energy PLC
13 October 2003



EMBARGOED FOR RELEASE AT 0700


                                CAIRN ENERGY PLC

                                                                 13 October 2003

                Rajasthan Block RJ-ON-90/1 - Operational Update

               
Q Gas Condensate Discovery

Cairn announces that the RJ-Q-1 exploration well has reached a total depth of
3,544 metres using a deep drilling rig. The well is located on the Central Basin
High approximately 20 kilometres north of Raageshwari and 11 kilometres west of
Saraswati. The well encountered hydrocarbons in both the shallow (Thumbli) and
deep (Barmer Hill/ Fatehgarh) sections.

A short drill stem test conducted on an interval from 3,112 to 3,174 metres in
the Fatehgarh section flowed gas and condensate to surface prior to mechanical
failure. The condensate tested was 52 degrees API gravity.  The RJ-Q-1 well is
being suspended for additional testing of this deep section using a service rig.

The shallow Thumbli section, which encountered a log-evaluated gross hydrocarbon
interval of 250 metres in RJ-Q-1, will now be tested in a second dedicated well.

The deep drilling rig is now moving to drill an exploration well on the GR-F
prospect which is also located on the Central Basin High approximately 40
kilometres south of RJ-Q-1.

Saraswati -  Second Successful Extended Well Test

The Saraswati discovery well and two subsequent appraisal wells identified two
separate reservoirs, the Barmer Hill and Fatehgarh. Cairn commenced extended
well testing on the Saraswati-1 discovery well in August. The Fatehgarh was the
first interval to be tested and was flowed for 13 days at an average rate of 470
bopd with no water. Subsequent testing of the Barmer Hill interval for 14 days
during September achieved an average rate of 1,000 bopd with no water.

Raageshwari Extended Well Test

An extended well test has recently commenced on the shallow Thumbli section in
the Raageshwari discovery well. It is currently anticipated that this test
programme will be completed during November.

Medium Depth Drilling Programme

The first of the two medium depth drilling rigs contracted to accelerate the
multi-well drilling programme underway on the block is now on location. This rig
will drill the GR-A exploration prospect at the southern end of the Central
Basin High approximately 30 kilometres south of the Guda discovery. This well is
currently expected to be followed by an appraisal well on Raageshwari.

The second rig is due to arrive in November/December following which it is
expected to commence drilling on the N-A exploration prospect in the north of
the block, approximately 50 kilometres from the RJ-Q-1 discovery. This well is
currently expected to be followed by an exploration well on prospect N-B,
located 10 kilometres to the north of N-A.

Bill Gammell, Chief Executive, commented:

'I am delighted with our fourth exploration discovery in Rajasthan which further
confirms the extensive distribution of hydrocarbons across the basin. Over the
coming months we will be commencing exploration wells more than 120 kilometres
apart and we are confident of the potential for Rajasthan to become a new core
producing area for Cairn.'


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. Oil & Natural Gas 
     Corporation Ltd ('ONGC') has a right to 30% of any development area 
     resulting from a commercial discovery on the block.
     
3.   'Central Basin High' where referred to in this release means the structural 
     high located along the axis of the Rajasthan Basin on which the Guda, 
     Raageshwari and RJ-Q-1 discoveries are located.
     
4.   'mmscfd' where referred to in this release means million standard cubic 
     feet of gas per day.
     
5.   'bopd' where referred to in this release means barrels of oil or condensate 
     per day.
     
6.   'API' where referred to in this release means American Petroleum Institute 
     units as a measure of oil specific gravity.
     
7.   'mmbbls' where referred to in this release means million barrels of oil or 
     condensate.


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