Drilling Report

Cairn Energy PLC
09 March 2004



EMBARGOED FOR RELEASE AT 0700


                                CAIRN ENERGY PLC
                                                                    9 March 2004

                     SIGNIFICANT OIL DISCOVERY IN RAJASTHAN

                    N-A-1 Exploration Well, Block RJ-ON-90/1

Cairn today announces a second significant oil discovery in Rajasthan with the
N-A-1 exploration well. N-A-1 reached a total depth of 1,634 metres and is
located 8 kilometres south-east of N-B-1 and 52 kilometres north-north-west of
Saraswati.

The well encountered a gross oil column of 120 metres and 15 metres of net pay
in excellent quality sands of the Fatehgarh formation. The number of Fatehgarh
sands encountered is significantly less than in the N-B-1 (Mangala) discovery.

An open hole test programme in the Fatehgarh section has commenced. The first of
two zones to be tested has flowed 1,225 barrels of oil per day on 64/64 inch
choke. The tested oil has a specific gravity of approximately 31 degrees API.

The preliminary estimates of oil in place for the N-A-1 discovery range from 130
to 470 million barrels, with preliminary recoverable reserves estimated to be in
the 20 to 80 million barrels range.

The N-A-1 well also encountered a log evaluated oil bearing column of 60 to 150
metres in an apparently tight, silty Barmer Hill formation. The Barmer Hill
section is a possible future candidate for further evaluation and fracture
stimulation.

The current drilling programme is now being reviewed to allow early appraisal
drilling of the N-A-1 discovery to assess reservoir distribution.

Bill Gammell, Chief Executive, commented:

'Whilst additional evaluation and appraisal is required I am confident that this
discovery will add further material value to Cairn's portfolio.'



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 is currently involved in an extensive exploration and
      appraisal programme across its 5,000 square kilometre onshore 
      exploration block (RJ-ON-90/1) in the Rajasthan Basin.

3.    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.

4.    The main exploration play objectives encountered in the
      Rajasthan Basin, commencing with the stratigraphically youngest 
      formation, are: Thumbli, Dharvi Dungar, Barmer Hill and Fatehgarh.

5.    'API' where referred to in this release means American
      Petroleum Institute units as a measure of oil specific gravity.



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