Drilling Report

Cairn Energy PLC
09 February 2007


For Immediate Release


                                CAIRN ENERGY PLC

9th February 2007



The following release was issued today by Cairn India to the Bombay Stock
Exchange and the National Stock Exchange of India:



            'Further exploration acreage for Cairn India in NELP VI





The Government of India (GoI) has announced that Cairn India has secured an
interest in two new exploration blocks in India - PR-OSN-2004/1 and 
KK-DWN-2004/1. The blocks were awarded to Cairn India under the sixth New 
Exploration Licensing Policy round (NELP VI).



O      The GoI had offered 55 exploration blocks - the highest ever offering
under the NELP process

O      165 bids were submitted for 52 blocks with a total of 68 companies
bidding

O      32 Indian companies and 36 foreign companies took part, with 20 of the
foreign firms participating in the Indian bid round for the first time

O      Cairn India and Cairn through Capricorn Energy submitted 12 joint venture
bids along with ONGC, Videocon, Tata Petrodyne, British Gas and Total


Details of the two offshore blocks awarded to Cairn India are as follows:


O      PR-OSN-2004/1 (Palar Basin) Cairn Energy India Pty Limited 10%
(Operator), Cairn India Limited 25%, ONGC 35% and Tata Petrodyne 30%. The block
area is 9,400 km2.


O      KK-DWN-2004/1 (Kerala Konkan Basin) Cairn India Limited 40%, ONGC 45%
(Operator) and Tata Petrodyne 15%. The block area is approximately 12,324km2.


Rahul Dhir, Chief Executive of Cairn India said:



'We're delighted to have secured further important acreage in India to add to
our substantial portfolio. The wider Petroleum Industry is now looking keenly at
India as a result of the significant discoveries made in recent years by a
number of companies including Cairn. The significant industry interest
substantiates our belief that India is an extremely attractive place to look for
oil and gas.' '






Enquiries to:


Analysts/Investors
Sir Bill Gammell, Chief Executive
Dr Mike Watts, Director of Exploration
Jann Brown, Finance Director                            Tel: [phone]

Media
Brunswick Group LLP
Patrick Handley, Mark Antelme, Phoebe Buckland          Tel: [phone]

Cairn India Media Enquiries
David Nisbet                                            Tel: [phone]

Note to editors:

'Cairn' where referred to in this release means Cairn Energy PLC and/or 
its subsidiaries (including Cairn India), as appropriate.



These materials contain forward-looking statements regarding Cairn, our
corporate plans, future financial condition, future results of operations,
future business plans and strategies. All such forward-looking statements are
based on our management's assumptions and beliefs in the light of information
available to them at this time. These forward-looking statements are, by their
nature, subject to significant risks and uncertainties and actual results,
performance and achievements may be materially different from those expressed in
such statements. Factors that may cause actual results, performance or
achievements to differ from expectations include, but are not limited to,
regulatory changes, future levels of industry product supply, demand and
pricing, weather and weather related impacts, wars and acts of terrorism,
development and use of technology, acts of competitors and other changes to
business conditions. Cairn undertakes no obligation to revise any such
forward-looking statements to reflect any changes in Cairn's expectations with
regard thereto or any change in circumstances or events after the date hereof.




                      This information is provided by RNS
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