Director Shareholding

Cairn Energy PLC
08 September 2004



FOR IMMEDIATE RELEASE

                                                                8 September 2004


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

                         Director's Interests in Shares



Cairn was notified today by Norman Murray, Chairman, that he has purchased
20,000 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

8 September 2004                  20,000                      £14.43

Mr Murray's beneficial interest in Cairn's issued ordinary share capital is as
follows:-

Previous Shareholding    Shares Purchased    New Shareholding    % of Issued
                                                                 Share Capital

        80,000                20,000             100,000           0.063

Cairn was also notified today that a Trust of which Norman Murray is a Trustee
today purchased 3,500 Ordinary Shares of 10 pence each in the Company at a price
of £14.43 per share. The resultant holding of the Trust is 3,500 shares,
representing 0.002% of Cairn's issued ordinary share capital. Mr Murray has no
direct beneficial interest in the shares held in the Trust.






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