Statement re pre-IPO placing

Cairn Energy PLC
23 November 2006



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

EMBARGOED FOR RELEASE AT 0700

23 November 2006


                                CAIRN ENERGY PLC

      US$ 822 million pre-flotation private placing of Cairn India shares


Cairn Energy PLC (the 'Company' or 'Cairn') announces that another key milestone
has been reached 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').

The pre-flotation private placing (the 'placing') closed on Wednesday 22
November 2006 and 209.67 million Cairn India  shares have been placed at a price
of Rs 176.48 per share, raising a total of Rs 37.0 billion (US$ 822.47
million*). If  the flotation price per share is lower than Rs 176.48, the
placing price will be reduced accordingly.

The placing is equivalent to 11.88 per cent. of the issued share capital of
Cairn India and, at the placing price,  implies a Cairn India market
capitalisation of approximately Rs 311.54 billion (or approximately US$ 6.92
billion*)  following successful completion of the flotation  and excluding any
exercise of the over-allotment option. The  consequent implied valuation for the
Company's current interest in Cairn India is US$ 6.32 billion after taking into 
account the proportion of the gross proceeds to be retained by Cairn India
(expected to be approximately US$ 600  million).

The placing is conditional upon, inter alia, the allotment of shares in the
flotation occurring prior to 10 February  2007. Preparations remain on track to
complete the flotation in December 2006.

The largest investor in the placing is a wholly owned subsidiary of Petroliam
Nasional Berhad (PETRONAS), which has  subscribed for 176.53 million shares
(representing approximately 10% of the post-flotation share capital). The
balance  of 33.14 million shares are being subscribed for by a combination of
Indian and international institutional investors.

As a result of the placing the net offer to the public of shares in Cairn India 
will be reduced from 538.47 million shares to 328.80 million shares.

Merrill Lynch and ABN AMRO Rothschild have acted as joint co-ordinators in 
relation to the placing.


Sir Bill Gammell, Chief Executive of Cairn Energy PLC, commented:-

'We are delighted to have gained such substantial backing for our pre-flotation
placing. The positive response confirms our belief that this is the best
strategy for Cairn to develop and grow our world class business in India.'

* Based on a US dollar to Rupee exchange rate of 1:44.99 (source: Financial
Times closing mid rate of exchange on 21 November 2006).

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

Media                                                   Tel: [phone]
David Nisbet, Head of Group Communications

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




Cairn India Limited ('Cairn India') proposes to undertake a public issue in
India and has filed a Draft Red Herring 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 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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