Cairn Energy Drilling Update

Cairn's second exploration well on Block KG-DWN-98/2 offshore Eastern India, located on prospect 'R', has reached total depth. Log evaluation indicates the presence of a gas column and good quality reservoir. Preparations are underway to test the well and an update on the results will be given after the test has been completed. Cairn's first exploration well on Block KG-OS/6 offshore Eastern India, located on prospect 'A', is currently operating.

Offshore Bangladesh, the offshore Sangu 'Deep' relief well has re-entered the South Sangu-1 exploration well. Log evaluation indicates gas in deep over-pressured reservoirs. The operator is making preparations to test the well in June.