Cairn Energy Logs Pay with GA-3 Well

Cairn has successfully drilled the GA-3 well in Block CB/OS-2 offshore Gujurat, the third well in the ongoing Gauri development drilling program. The well encountered approximately 44 meters of gas bearing reservoir sands and better than prognosed net oil bearing sands of approximately 9 meters. The well was drilled using Ensco's jackup, Ensco 54. It is planned to test this oil zone at the end of the development drilling program.

Operations have started on GA-4, the fourth well in the Gauri development drilling program.

Gauri gas production is planned to commence in the first half of 2004 and gas will be evacuated via the Lakshmi gas-gathering system. Oil development options will be considered after the testing of the GA-3 well.

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