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Cairn Energy USA, Inc. Makes Announcement

DALLAS, Nov. 25 /PRNewswire/ -- Cairn Energy USA, Inc. (Nasdaq-NNM: CEUS) announces the results of five recent exploration wells.

The company, as operator of South Timbalier Block 290 (CEUS 40 percent WI), has discovered over 150 net feet of true vertical thickness oil and natural gas pay in multiple sands in its OCS-G 16454 No. 1 exploratory well. This well, which was directionally drilled to 15,830 feet, is located approximately 50 miles offshore Louisiana in 395 feet of water. The company is currently setting production casing in the well which will then be temporarily abandoned for a future completion. Development plans including a production platform and facilities are pending while the company reviews future development and exploration opportunities on the total four block complex South Timbalier Blocks 290, 291, Ewing Bank blocks 782, 783. Working interest owners in these four blocks include Norcen Explorer Inc. (35 percent WI), a wholly owned subsidiary of Norcen Energy Resources Limited (TSE: NCN), and Coastal Oil & Gas Corporation (NYSE: CGP) (25 percent WI).

The Main Pass Block 262 No. 3 (CEUS 33 percent WI) exploratory well has been drilled to a total depth of 3,990 feet and encountered 48 feet of net gas pay in a single sand. CXY Energy Offshore Inc., the operator, will now subsea complete and tie-back the well to the existing production facility on the block. Production is scheduled to commence from this well by early in the first quarter of next year. Main Pass Block 262 is equally owned by Box Energy Corporation, Cairn Energy USA, Inc., and CXY Energy Offshore Inc., a wholly owned subsidiary of Canadian Occidental Petroleum Ltd., (AMEX: CXY).

On West Cameron Block 588 No. 2, the company participated (CEUS 25 percent WI) in the drilling of a 8,104 feet exploration well. Electric log analysis proved the target sands to be non-productive and the well was plugged and abandoned.

Two minor working interest exploratory wells, in each of which the company owns less than five percent working interest, also found commercial quantities of oil and natural gas. Both wells were drilled from existing platforms.

Certain of the information contained in this press release, including information relating to the timing of production and the amount and classification of reserves, constitutes forward-looking information that involves a number of uncertainties and risks, certain of which are set forth under the caption "Risk Factors" in the company's prospectus, dated Sept. 14, 1995, and under the caption "Oil and Gas Reserves" in the company's Annual Report on Form 10-K for the year ended Dec. 31, 1995. Therefore, the actual results that are achieved may differ materially from any such forward-looking information.

SOURCE Cairn Energy USA, Inc.
 -0- 11/25/96


/CONTACT: Michael Gilbert of Cairn Energy USA, Inc., 214-369-0316/

(CEUS)

CO: Cairn Energy USA, Inc. ST: Texas IN: OIL SU:

DC -- NYM044 -- 3477 11/25/96 08:17 EST http://www.prnewswire.com
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Date:Nov 25, 1996
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