Cairn India updates on business activities

Cairn India Ltd announced that the Company will announce its preliminary results for the year to December 31, 2006 on March 27, 2007. In advance of these results, the Company is providing information on recent operations since the last update on September 05, 2006 and guidance in respect of the Group's trading performance in 2006. This information is unaudited and is subject to further review.

Highlights

Corporate:

- Initial Public Offering (IPO) of the Company successfully completed - trading commenced in January 2007.

- Return of cash to Cairn Energy PLC shareholders scheduled for Q2 2007.

India:

- The Company and ONGC progressing discussions with the Government of India (GoI) on midstream solution - resolution anticipated in H1 2007.

- Ravva in fill drilling campaign underway with positive results on first two wells.

- Non-operated ultra-deep water well on KG-DWN-98/2 has encountered hydrocarbons and is currently operating.

- New oil discovery in Rajasthan (Shakti North East).

Bangladesh:

- Sangu gross booked reserves reduction of 187 billion cubic feet (Bcf).

- Three well drilling campaign, including the potential high impact Hatia exploration well, commenced offshore Bangladesh in January 2007.

- Onshore seismic campaign ongoing on Blocks 5 and 10.

Nepal:

- Agreement reached to acquire 100% interest in Blocks 3 and 5, subject to required consents.

Sir Bill Cammell, Chief Executive said:

"The successful completion of the IPO has created an autonomous business and management team for our world class assets in India as well as realising significant value for our existing shareholders.

I am pleased to be able to report that good progress has been made by Cairn India in determining offtake arrangements for Rajasthan crude and remain confident that the first oil target of 2009 from Mangala can be achieved.

The combination of future Rajasthan production and active drilling programmes in both India and Bangladesh provides the potential for continued growth in the respective asset portfolios and Cairn India is poised to play an integral part in meeting India's growing energy demand."

Source : Equity Bulls

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