Purchase of Own Securities

Cairn Energy PLC
7 July 2000


                          Cairn Energy PLC ('Cairn')                          
                                                                              
                            Purchase of Own Shares                            

Cairn announces that in accordance with the authority conferred at its Annual
General Meeting held on 2 May 2000, it purchased today in the market 750,000
of its own Ordinary Shares of 10 pence each (being approximately 0.5% of its
issued share capital) at a price of 170 pence per share.




Enquiries:

Cairn Energy PLC                     Tel:  [phone]
Bill Gammell
Kevin Hart