Mannar Basin, Sri Lanka

SL 2007-01-001 (Cairn Lanka is the operator with 100% participating interest)

Cairn Lanka (Private) Limited, a wholly owned subsidiary of Cairn India, has successfully completed the first phase of the exploration campaign in the Sri Lanka Block SL 2007-01-001. The exploration programme involved the acquisition, processing and interpretation of 1,753 square km of 3D seismic data and a three well deep water drilling programme. The seismic programme exceeded the Phase- I commitment by 20% and the drilling programme exceeded the drilling depth commitment by 50%. The exploration programme resulted in two successive gas and condensate discoveries: the CLPL-Dorado- 91H/1z well and, the CLPL-Barracuda-1G/1 well. The third well, CLPL-Dorado North 1- 82K/1 was plugged and abandoned as a dry hole on 14 December, 2011. The potential commercial interest notification has been submitted for the Dorado Discovery, as per the terms of the Petroleum Resources Agreement (PRA). Thus, Cairn Lanka’s successful drilling programme — the first for Sri Lanka in 30 years has established a working petroleum system in the frontier Mannar Basin. All these operations were conducted safely, in accordance with the highest global standards; and within the schedule, the budget and in compliance with the Sri Lankan regulations.

Following this success, Cairn Lanka has entered the second phase of exploration with the approval of the Government of Sri Lanka. An additional 600 km2 3D seismic data has been acquired which will firm up several promising leads. This will prepare Cairn Lanka for further exploration drilling in mid CY2013.