Director/PDMR Shareholding

Cairn Energy PLC
26 April 2006



FOR IMMEDIATE RELEASE

                                                                   26 April 2006


                  CAIRN ENERGY PLC ('Cairn' or 'the Company')

 Interests of Directors/Persons Discharging Managerial Responsibility ('PDMRs')
                            in the Company's Shares

          Awards under the Company's Long Term Incentive Plan ('LTIP')


Cairn announces that on 20 April 2006, a total of 889,214 Ordinary Shares of 10p
each in the Company vested in favour of the Executive Directors and PDMRs under
the LTIP. Under the LTIP Rules, 50% of the shares are to be released within 30
days of vesting by the Company's Employees' Share Trust ('the Trust') to the
Executive Directors/PDMRs. The balance of the shares is withheld by the Trust
and released to the individuals after one year.


Cairn also announces that it has today been notified by the Trustee of the Trust
that a total of 817,024 Ordinary Shares were released by the Trust on 24 April
2006 to the Executive Directors and certain PDMRs of the Company under the LTIP.
The shares comprise (i) 444,605 of the 889,214 Ordinary Shares which vested on
20 April 2006 and (ii) 372,419 Ordinary Shares which were released to certain
Executive Directors/PDMRs following the expiry of the one year withholding
period in respect of an LTIP award which vested on 19 April 2005. Details of the
shares vesting and the shares released from the Trust are as follows:-

Director/   Shares       Shares released       Shares released        Total
PDMR        vesting on   pursuant to vesting   pursuant to expiry of  shares
            20 April     on 20 April 2006      withholding period     released
            2006

Sir Bill
Gammell,       193,775                96,887                 88,358    185,245
Chief
Executive

Mike Watts,    161,775                80,887                 79,687    160,574
Exploration
Director

Kevin Hart,    144,775                72,387                 79,687    152,074
Finance
Director

Malcolm        144,775                72,387                 74,687    147,074
Thoms,
Chief
Operating
Officer

Phil Tracy,     73,038                36,519                      -     36,519
Engineering
&
Operations
Director

Jann Brown,     73,038                36,519                 25,000     61,519
Group
Financial
Controller

Richard         25,000                12,500                      -     12,500
Heaton,
Head of
Exploration
-
India

Simon           73,038                36,519                 25,000     61,519
Thomson,
Group
Commercial
Manager


Following the release of shares from the Trust, the Executive Directors/PDMRs
sold a total of 830,559 shares at a price of £24.0824 per share on 25 April
2006. Details of the share sales and the resulting effect on the Directors'/
PDMRs' shareholdings are set out below:-

         Shareholding before     Shareholding after      Shares     New
         vesting on 20 April     vesting on 20 April                Shareholding
         2006                    2006
Director                                                 Sold*
/PDMR

Sir Bill
Gammell                800,000                 993,775    188,775      805,000

Mike                   275,000                 436,775    136,775      300,000
Watts

Kevin                  100,593                 245,368    145,368      100,000
Hart

Malcolm                126,736                 271,511    197,074       74,437
Thoms

Phil                    25,000                  98,038     36,519       61,519
Tracy

Jann                    25,000                  93,038     58,519       39,519
Brown

Richard                 65,510                  90,510      9,010       81,500
Heaton

Simon                   25,000                  93,038     58,519       39,519
Thomson


* includes (i) 3,530 and 50,000 shares being sold by Sir Bill Gammell and
  Malcolm Thoms respectively in addition to shares being released from the Trust
  and (ii) shares sold to cover income tax and national insurance liabilities.


Cairn also announces that Hamish Grossart, Deputy Chairman and Ed Story,
non-executive director sold 10,000 and 45,000 shares respectively on 25 April
2006 at a price of £24.0824 per share.


Cairn also announces that on 24 April 2006 the following awards were made under
the LTIP to Directors/PDMRs of the Company at a price of £23.99 per share (being
the mid-market closing price on 21 April 2006):-

Director     Number of Ordinary Shares under   Number of Notional Shares under
             Tier One                          Tier Two

Sir Bill
Gammell                               30,000                            26,400

Mike Watts                            21,800                            28,100

Kevin Hart                            18,700                            22,400

Malcolm                               18,700                            22,400
Thoms

Phil Tracy                            18,700                            17,500

Jann Brown                            11,800                             9,600

Richard                               11,800                             4,600
Heaton

Simon                                 12,500                            11,200
Thomson


Following this announcement, the relevant Directors'/PDMRs' beneficial interests
in the Ordinary shares of the Company are as follows:-


          Number of      Percentage of       Number of     Outstanding
          Ordinary       Issued Share        Share Options
          Shares         Capital
                                                           Awards under LTIP
Director
                                                           Tier One   Tier Two
Sir Bill
Gammell        805,000               0.503             -    146,500    147,800

Mike           300,000               0.187             -     96,300     89,000
Watts

Kevin          100,000               0.062             -     90,100     78,000
Hart

Malcolm         74,437               0.047             -     90,100     78,000
Thoms

Phil            61,519               0.038             -     82,200     91,500
Tracy

Hamish          40,000               0.025             -          -          -
Grossart

Ed Story         5,000               0.003             -          -          -

Jann            39,519               0.025             -     54,900     63,300
Brown

Richard         81,500               0.051             -     54,900     68,600
Heaton

Simon           39,519               0.025             -     55,600     64,900
Thomson



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