Indian Oil Discovery

CAIRN ENERGY PLC
16 August 1999


Cairn Indian Oil Discovery - Rajasthan Well Test

Cairn Energy PLC, together with its co-venturer Shell India Production
Development BV, announce that following preliminary tests, its exploration
well Guda - 2 has flowed oil to surface, on a restricted choke, at a
stabilised rate of 2,000 bopd with no water.  Testing commenced on August 15th
and is ongoing.

The well is situated in Block RJ-ON-90/1 in Rajasthan, India.  This is the
first discovery made in India by a foreign company since the commencement of
licensing rounds.

Enquiries to :-

CAIRN ENERGY PLC

Bill Gammell                         0131 475 3000
Mike Watts
Kevin Hart