Update of Cairn activity in India (September, 2001)

Vol 5, PW 15 (12 Sep 01) Exploration & Production

Below is an up-to-date breakdown of Cairn Energy's all-India activity correct to September 2001.

Concession Area Date of PSC Activity/Description Partners 'Ravva' (Offshore Krishna Godavari) 333-sq km 28 Oct 1994 Average Production in 2000: 48,800b/d and 24.5m cf/d. Envisages extra 31m cf/d gas from satellite fields by 2002 sold to GAIL at $2.2-3.3mcf.

Development drilling to commence as soon as weather permits. Rig waiting to move on to platform.

Cairn(Operator) 22.5% Videocon Petroleum 25% Ravva Oil Private 12.5% ONGC 40% KG-OS/6 (Offshore Krishna Godavari; Ravva ring-fenced inside) 7,000-sq km 30 June 1998 1st well in 2-well programme was a dry hole. Drilling operations at prospect '6' terminated following several failed attempts to continue drilling after encountering a shallow gas reservoir at 600 metres and water flows from sands just below seabed.

Exploration drilling will recommence in the 'panhandle' area, to reach target depth of 2,800 metres, in 2002 with a special top-hole casing design and a more specialised rig. Also, 760-sq km 3D in 2000 to supplement 1,500 sq km 2D in 1999.

Processing and reprocessing of data currently on. Cairn(Operator) 50% Videocon Petroleum 50% CB-OS/2 (Cambay Basin) 3,590-sq km 30 June 1998 4 oil and gas discoveries in past 10 months.

Drilling of development wells scheduled in October. First gas anticipated mid-2002.

Reserves estimate 550-750bn cf. Cairn(Operator) 75% Tata Petrodyne 15% ONGC (can increase to 40% on commercial) 10% RJ-ON-90/1 (Rajasthan desert) 11,400-sq km 15th May 1995 (Shell) Sept 1998: Cairn farm-in as operator 15th Aug 99: flows 2,000 b/d.

Capped as producer. 450-sq km 3D over Guda completed Feb 2001.

Exploration drilling to commence late September. Rig being mobilised to site.

Cairn(Operator) 50% Shell 50% KG-DWN-98/2 (Deepwater Krishna Godavari) 9,800-sq km 12 April 2000 Gas discovery Feb 2001. Oil discovery in Aug 2001 at prospect 'P' following gas discovery at prospect 'R' (Annapurna - initial estimates of 1,000bn cubic feet gas).

Well logs under interpretation. Three more wells planned this year.

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