Vesting of awards

Cairn Energy PLC
29 March 2007



FOR IMMEDIATE RELEASE


                                                                   29 March 2007





                  CAIRN ENERGY PLC ('Cairn' or 'the Company')


 Interests of Directors/Persons Discharging Managerial Responsibility ('PDMRs')

                            in the Company's Shares


 Vesting of awards under the Company's Long Term Incentive Plan 2002 ('the 2002
                                     LTIP')


   Awards under the Company's Long Term Incentive Plan 2006 ('the 2006 LTIP')


Cairn announces that on 28 March 2007, a total of 93,600 Ordinary Shares of 6 2/
13 pence each vested in favour of Executive Directors and PDMRs under the 2002
LTIP. Under the 2002 LTIP Rules, 50% of the shares are to be released by the
Company's Employees' Share Trust to the Executive Directors/PDMRs within 30 days
of vesting. The balance of the shares is withheld by the Trust and released to
the individuals after one year. Details of the shares that vested are as
follows:-

Director/PMDR                                  Shares Vesting on 28 March 2007
Sir Bill Gammell                                                        25,200
Chief Executive
Mike Watts                                                              15,200
Exploration Director
Malcolm Thoms                                                           15,200
Chief Operating Officer
Phil Tracy                                                              12,800
Engineering and Operations Director
Jann Brown                                                               8,400
Finance Director
Simon Thomson                                                            8,400
Legal and Commercial Director
Richard Heaton                                                           8,400
Head of Exploration


Cairn also announces that today the following awards were made under the 2006
LTIP to Directors/PDMRs of the Company:-

Director          Number of Cairn India Units      Number of Capricorn Units
Sir Bill Gammell                         515,118                       897,196
Mike Watts                               187,803                       981,308
Malcolm Thoms                            482,923                       280,374
Phil Tracy                               321,949                       560,748
Jann Brown                               268,291                       467,290
Simon Thomson                            134,145                       700,935
Richard Heaton                           134,145                       700,935






Under the 2006 LTIP, Cairn India Units and Capricorn Units are notional units of
value relating to the Company's holding in Cairn India and Capricorn Energy
respectively.


All Cairn India Units were awarded at £1.86 per Unit (the flotation price of a
Cairn India share) and all Capricorn Energy Units at £1.07 per Unit (being the
value of such a Unit as at the date of flotation of Cairn India, calculated in
accordance with the provisions of the 2006 LTIP).


Each of the above awards will ordinarily vest on or around the third anniversary
of grant, but only to the extent that specified performance conditions are
satisfied over a period of three years commencing on the date of flotation of
Cairn India. The value of a participant's vested Units will then be settled in
the form of Ordinary Shares of the Company.


Following this announcement, the Directors'/PDMRs' beneficial interests in the
Ordinary Shares of the Company are as follows:-

Director      *Number of Percentage Number  Outstanding Awards  Outstanding Outstanding
              Ordinary   of Issued  of      under 2002 LTIP     Awards      Awards
              Shares     Share      Share                       under 2006  under 2006
                         Capital    Options                     LTIP        LTIP
                                            Tier One  Tier Two  Cairn India Capricorn
                                                                Units       Units
Sir Bill
Gammell        697,426      0.535       0    83,500    97,800     515,118     897,196
Mike Watts     274,115       0.21       0    58,300    89,000     187,803     981,308
Malcolm Thoms   89,252      0.068       0    52,100    78,000     482,923     280,374
Phil Tracy      74,319      0.057       0    50,200    59,500     321,949     560,748
Jann Brown      48,981      0.038       0    33,900    31,300     268,291     467,290
Simon Thomson   47,356      0.036       0    34,600    32,900     134,145     700,935
Richard         74,618      0.057       0    33,900    37,800     134,145     700,935
Heaton
Norman Murray   81,250      0.062       0         0         0           0           0
Hamish          32,500      0.025       0         0         0           0           0
Grossart
Deputy
Chairman
Ed Story         4,062      0.003       0         0         0           0           0
Non-Executive
Director
Todd Hunt
Non-Executive
Director        28,436      0.021       0         0         0           0           0
Mark Tyndall
Non-Executive
Director         4,062      0.003       0         0         0           0           0
Andrew
Shilston
Non-Executive
Director         4,062      0.003       0         0         0           0           0

* These numbers reflect the new shareholdings of the Directors/PDMRs following
the share capital consolidation that became effective as at close of business on
23 March 2007 and the shares vesting on 28 March 2007.



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