Director Shareholding

Cairn Energy PLC
21 June 2004



FOR IMMEDIATE RELEASE

                                                                    21 June 2004


                  Cairn Energy PLC ('Cairn' or 'the Company')

                         Director's Interests in Shares

Cairn was notified on 18 June 2004 by Mike Watts, Exploration Director, that he
has purchased 16,543 Ordinary Shares of 10 pence each in the Company. Details of
the purchase are as follows:-

Date of Purchase      Number of Shares Purchased           Purchase Price
                                                           per Share

18 June 2004                   16,543                        £12.00

Following this announcement, Mr Watts' beneficial interest in Cairn's issued
ordinary share capital is as follows:-

Previous Shareholding    Shares Purchased    New Shareholding    % of Issued
                                                                 Share Capital

        232,000               16,543             248,543           0.164



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