Cairn Updates Western India Operations

Cairn reports that first gas sales from the Lakshmi gas field development in Block CB/OS-2 commenced on November 1, 2002. The field is currently undergoing a brief commissioning period. Contractual plateau volumes are 120 mmscf/d.

Drilling of the RJ-E-1 exploration well onshore Rajasthan commenced on October 30, 2002 and is anticipated to reach total depth prior to the year end.

Bill Gammell, Chief Executive, commented: 'I am delighted that we are now selling gas from Lakshmi. The joint venture has achieved production within two and a half years of the initial gas discovery in May 2000.

I am also pleased that we have commenced a multi-well exploration and appraisal drilling program in Western India with the well on Prospect E. This is the first exploration well to be drilled on the Rajasthan block since Cairn's acquisition of an additional 50% interest from Shell.'