Filing of Indian DRHP

Cairn Energy PLC
12 October 2006


NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, OR INTO, THE UNITED STATES,
CANADA, AUSTRALIA OR JAPAN


EMBARGOED FOR RELEASE AT 12:00                                   12 October 2006



                                CAIRN ENERGY PLC
          Filing of Cairn India Limited's Draft Red Herring Prospectus


On 5 September 2006, Cairn Energy PLC (the 'Company' or 'Cairn') announced that
significant progress had been made in connection with the preparations for the
flotation of its Indian business, Cairn India Limited ('Cairn India') on the
Bombay Stock Exchange Limited ('BSE') and National Stock Exchange of India
Limited ('NSE'). As stated in that announcement, preparations are on track for
the initial public offer in December 2006, assuming receipt of the required
approvals, satisfaction of the listing requirements in India and favourable
market conditions.

The Company announces that, as part of these preparations, Cairn India has today
filed with the Securities and Exchange Board of India ('SEBI') a draft offering
document (the 'Draft Red Herring Prospectus') in relation to the proposed
flotation, in accordance with regulatory requirements. The Draft Red Herring
Prospectus will also be filed with the BSE and NSE today.

In line with regulatory requirements and market practice in India, the Draft Red
Herring Prospectus includes details concerning Cairn India and the offer of new
shares in Cairn India, but does not include pricing information and other
information which has not yet been finalised.

Cairn expects that the flotation will involve an offer of 538.47 million Cairn
India shares. Cairn India may also grant an over-allotment option in accordance
with SEBI guidelines. The Company will own a 69.5% holding in Cairn India
following the flotation (excluding any exercise of the over-allotment option).

The offer price for the flotation will be determined following a book building
exercise, based on an offering document which will include a price range (the
'Red Herring Prospectus'). It is expected that the Red Herring Prospectus will
be filed with the Registrar of Companies, Mumbai in November 2006 after, and
subject to, the Extraordinary General Meeting ('EGM') of Cairn referred to
below.

Due to the potential significance to the Company of the proposed flotation the
Company will seek prior approval of its shareholders at an EGM. The Company
expects to send a formal notice of the meeting and the resolutions to be
proposed, together with a circular setting out details of Cairn India, its
business and assets, the proposed flotation and the relationship post flotation
between Cairn India and Cairn to Cairn's shareholders around the end of October
2006 and to hold the EGM in November 2006.

Further announcements confirming each of these events will be made, in each
case, when appropriate.


Enquiries to:
Analysts/Investors
Bill Gammell Chief Executive                                  Tel: [phone]
Kevin Hart Finance Director
Mike Watts Exploration Director

Media
David Nisbet, Head of Group Communications

Brunswick Group LLP:
Patrick Handley, Mark Antelme                                 Tel: [phone]


This announcement is not an offer for sale, or a solicitation of offers to
purchase, the shares in Cairn India to be offered in the offering (the 'Shares')
in any jurisdiction. No action will be taken to permit the Shares to be sold in
a public offer in any jurisdiction outside India. In particular, no offer to the
public will be made in any Member State of the European Economic Area or in the
United States. The Shares have not been and will not be registered under the US
Securities Act of 1933, as amended. This announcement and the information
contained herein are not for publication, distribution or release in, or into,
the United States, Canada, Australia or Japan.



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