Return of Cash

Cairn Energy PLC
04 April 2007



FOR IMMEDIATE RELEASE

                                                                    4 April 2007


                           CAIRN ENERGY PLC ('Cairn')

             Return of Cash and Results of B Share Scheme Elections

The Return of Cash, which was approved by Shareholders on 22 March 2007,
provided Shareholders with three choices in  relation to their B Shares. As at
the close of the Election Period, being 11.00 a.m. on 3 April 2007, the results
of  elections were as follows:

Choice 1: Single B Share Dividend - valid and deemed elections to accept Choice
1 were received in respect of 86,908,764 B shares, representing 54.2% of the B
shares in issue;

Choice 2: Initial Purchase Offer - valid and deemed elections to accept Choice 2
were received in respect of 70,685,003  B shares, representing 44.0% of the B
shares in issue; and

Choice 3: Future Purchase Offer - valid and deemed elections to accept Choice 3
were received in respect of 2,874,153 B  shares, representing 1.8% of the B
shares in issue.

It is expected that Hoare Govett Limited, acting as agent on behalf of ABN AMRO
Bank N.V., London Branch (acting as  principal), will make on 4 April 2007 the
Initial Purchase Offer to purchase the 70,685,003 B Shares in respect of  which
valid elections have been received from Shareholders.

Cairn will declare the Single B Share Dividend of £3.00 per B Share payable to
those Shareholders who have, or who are  deemed to have, elected to receive the
Single B Share Dividend on 4 April 2007.

Settlement of the Initial Purchase Offer and Single B Share Dividend for
Shareholders is expected to be made on 11  April 2007.

Full details of the return of cash by way of the B share scheme and associated
share capital consolidation are  contained in the circular to shareholders dated
27 February 2007.







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