Director/PDMR Shareholding

Cairn Energy PLC
03 October 2005


FOR IMMEDIATE RELEASE

                                                                  3 October 2005


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

                         Directors' Interests in Shares
          Awards under the Company's Long Term Incentive Plan ('LTIP')

Cairn announces that on 30 September 2005, a total of 50,000 Ordinary shares of
10 pence each in the Company vested in favour of Phil Tracy, Engineering &
Operations Director. Under the LTIP Rules, 50% of the shares are to be released
within 30 days of vesting by the Company's Employees' Share Trust ('the Trust')
to Mr Tracy. The balance of the shares is withheld by the Trust and released to
Mr Tracy after one year.

Cairn also announces that it has today been notified by the Trustee of the Trust
that a total of 25,000 Ordinary shares were released by the Trust on 3 October
2005 to Mr Tracy under the LTIP.

Following the release of shares from the Trust, Mr Tracy sold a total of 30,000
shares on 3 October 2005 at a price of £19.49 per share. Details of the share
sale and the resulting effect on Mr Tracy's shareholding in the Company are set
out below:-

Director   Shareholding   Shareholding   Shares   New            Percentage of
           before vesting after vesting  Sold     Shareholding   Issued Share
           on 30/08/05    on 30/09/05                            Capital
                  
Phil              5,000       55,000     30,000   25,000         0.016
Tracy





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