Filing of Prospectus

Cairn Energy PLC
22 December 2006


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


FOR IMMEDIATE RELEASE                                           19 December 2006


                                CAIRN ENERGY PLC

                   Filing of Cairn India Limited's Prospectus


Cairn Energy PLC ('Cairn') announces that, in preparation for the flotation of
its Indian business on the Bombay Stock Exchange Limited and the National Stock
Exchange of India Limited, its Indian subsidiary, Cairn India Limited ('Cairn
India') has today filed with the Registrar of Companies ('RoC'), an offering
document (the 'Prospectus') in relation to the proposed flotation, in accordance
with regulatory requirements.

The Prospectus reflects, among other things, the final issue price of Rs. 160
per  share for the 328,799,675 Cairn India shares being publicly offered in the 
flotation and over-allotments by DSP Merrill Lynch Limited as stabilising agent
of  33 million further Cairn India shares at this price.  In connection with the
issue, the stabilising agent may undertake stabilising transactions with a view 
to supporting the market price of Cairn India shares in the period commencing on
the obtaining of trading permission from the stock exchanges referred to above 
and ending 30 calendar days thereafter, unless terminated earlier.  The 
stabilising agent has been granted an option to acquire further shares from 
Cairn India to cover over-allotments that are not covered by stabilising 
transactions.  There is no assurance that stabilisation will be undertaken and, 
if commenced, it may be discontinued at any time.

Allotment of Cairn India shares is expected to take place on 29 December 2006 
with trading expected to commence in early January 2007.  Further announcements 
relating to the allotment and commencement of trading of Cairn India shares 
will be made in due course.

ABN AMRO Rothschild and Merrill Lynch are acting as joint global coordinators 
and bookrunners and Morgan Stanley as bookrunner in relation to the flotation.


Enquiries to:
Analysts/Investors
Bill Gammell Chief Executive                            Tel: [phone]
Jann BrownFinance Director
Mike Watts Exploration Director

Media
David Nisbet, Head of Group Communications

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



Cairn India Limited ('Cairn India') is undertaking a public issue in India and
has filed a Prospectus with the Securities and Exchange Board of India.  This
announcement is not an offer for sale, or a solicitation of offers to purchase,
the shares in Cairn India 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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