Allotment of Shares

Cairn Energy PLC
02 January 2007



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



EMBARGOED FOR RELEASE AT 0700

                                                                  2 January 2007



                                CAIRN ENERGY PLC

                    Allotment of Cairn India Limited Shares


Cairn Energy PLC ('Cairn') announces that further progress has been made in
implementing the flotation of its Indian subsidiary, Cairn India Limited ('Cairn
India') on the Bombay Stock Exchange Limited ('BSE') and the National Stock
Exchange of India Limited ('NSE').

A total of 538.5 million shares in Cairn India were allotted on 29 December 
2006, comprising 209.7 million shares in the pre-flotation private placing and
328.8 million shares in the public issue. The basis of allotment for Cairn India
shares in the public issue was finalised in consultation with the BSE and NSE.
These numbers of shares do not include over-allotments of 33 million shares made
by DSP Merrill Lynch Limited as stabilising agent in connection with the over-
allotment option.

Trading in Cairn India shares is expected to commence early next week.  A 
further announcement relating to the commencement of trading of Cairn India 
shares will be made at that time.

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 Brown Finance 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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