Cairn Sees Success with first Gauri Development Wel

Cairn announces the successful result of GA-1, the first well in the current Gauri development drilling program. GA-1 is located three kilometers south west of the Gauri discovery well CB-B-1, which was drilled in January 2001. GA-1 was a vertical well drilled from the recently installed Gauri jacket to a total depth of 1,337 meters and will be completed as a future producer.

The well confirmed the western extension of the Babaguru and Tarkeshwar reservoirs found in CB-B-1 as prognosed on the 3D seismic. GA-1 encountered 40 meters of net high quality gas bearing reservoir sands and two meters of net oil bearing sands. CB-B-1, which flowed 39.2 mmscfd and 1,039 bopd on test from three DSTs, had previously encountered 39 meters of net gas sand and one meter of oil sand.

The GA-1 well result is consistent with the existing plan to integrate oil appraisal with the gas development project.

Gauri gas production is planned to commence in the first half of 2004 and gas will be evacuated via the Lakshmi gas gathering system which has a pipeline capacity of 225 mmscfd. The Lakshmi field is currently producing approximately 120 mmscfd.

Operations will continue with the drilling of the next Gauri development well in the sequence.