Transaction in Own Shares

Cairn Energy PLC
11 April 2007


EMBARGOED FOR RELEASE AT 0700



                                                                   11 April 2007


                           CAIRN ENERGY PLC ('Cairn')


           Transaction in Own Shares - Purchase of Retained B Shares



The terms of the Return of Cash approved by Shareholders on 22 March 2007
enabled Shareholders to sell some or all of their B Shares at £3.00 per B Share,
free of all dealing expenses and commissions, through the Future Purchase Offer
made by Hoare Govett Limited as agent for ABN AMRO Bank N.V., London Branch
('ABN AMRO'). Elections to accept the Future Purchase Offer were received in
respect of 2,874,153 B Shares, representing approximately 1.8 per cent. of the B
Shares. These B Shares were purchased by the Company from ABN AMRO yesterday for
an amount equal to £3.00 per B Share plus the total stamp duty and stamp duty
reserve tax payable by ABN AMRO in respect of its purchase of B Shares and were
cancelled by the Company after purchase.


Terms defined in the Circular to Shareholders dated 27 February 2007 have the
same meaning when used in this announcement.




                      This information is provided by RNS
            The company news service from the London Stock Exchange