Director Shareholding

Cairn Energy PLC
18 June 2004

FOR IMMEDIATE RELEASE

                                                                    18 June 2004


                  Cairn Energy PLC ('Cairn' or 'the Company')

                         Directors' Interests in Shares

Cairn was notified on 17 June 2004 by Norman Murray, Chairman, that he has
purchased 10,000 Ordinary Shares of 10 pence each in the Company. Details of the
purchase are as follows:-

Date of Purchase      Number of Shares Purchased           Purchase Price
                                                             per Share

17 June 2004                    10,000                        £11.85

Following this announcement, Mr Murray's beneficial interest in Cairn's issued
ordinary share capital is as follows:-

Previous Shareholding    Shares Purchased    New Shareholding    % of Issued
                                                                 Share Capital

         70,000              10,000              80,000            0.053



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