Director Shareholding

Cairn Energy PLC
22 December 2004

FOR IMMEDIATE RELEASE

                                                              22 December 2004


                  Cairn Energy PLC ('Cairn' or 'the Company')
                         Director's Interests in Shares

Cairn was notified today by Andrew Shilston, non-Executive Director, that he has
purchased 5,000 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

22 December 2004               5,000                           £11.10

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

Previous Shareholding    Shares Purchased    New Shareholding    % of Issued
                                                                 Share Capital

       0                       5,000               5,000           0.003




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