Cairn Provides Update On Indian Drilling Operations

Cairn has made a fourth consecutive hydrocarbon discovery on Block KG-DWN-98/2 offshore Andhra Pradesh in Eastern India with its exploration well DWN-M-1ST.

The well is located on a large anticline approximately 10 kilometers north-west of the Annapurna gas field and approximately 11 kilometers north-east of and on trend with the Cairn DWN-P-1 oil discovery, which flowed 3,648 barrels of oil per day. The well was drilled in water depths of around 500 meters and reached a total depth of 2,722 meters and encountered two hydrocarbon bearing units. The first unit comprised thin gas bearing sands. The deeper second unit contained a 46 meter gross hydrocarbon bearing interval including a 40 meter oil column between a defined gas oil contact and an oil water contact. Preparations for a test on the oil-bearing reservoir have commenced, the results of which will be announced in due course.

Exploration well RJ-H-1 on Block RJ-ON-90/1 onshore Rajasthan is currently operating at around 1,800 meters and has not yet reached total depth. The expected shallow targets were absent in the well. At deeper levels, below 1,400 meters, several low porosity hydrocarbon reservoirs have been encountered, for which a testing program is being planned. Test results will be announced separately.

The Trident 12 jack-up drilling rig has cleared Indian customs and has commenced a six well development drilling program from two previously installed jackets as part of the Lakshmi gas field development project. Each of the development wells is planned to drill into the previously untested oil leg across the structure.

The first of three development wells in the Ravva development drilling program, RF-5, encountered reservoirs as expected and is currently being completed as an oil producer. The program, which also comprises two workovers and the tie-back and completion of a prior discovery well, is expected to be completed in Q1 2001.