Further re Placing

Cairn Energy PLC
02 July 2004


FOR IMMEDIATE RELEASE

TO BE RELEASED OUTSIDE THE UNITED STATES ONLY. NOT FOR DISTRIBUTION IN OR INTO
CANADA, JAPAN, AUSTRALIA OR THE REPUBLIC OF IRELAND.

                                                                     2 July 2004
                  Cairn Energy PLC ('Cairn' or the 'Company')

                    Result of Placing of New Ordinary Shares

Cairn is pleased to announce the successful completion of the placing (the
'Placing') announced earlier today. A total of 7,512,850 new ordinary shares of
10 pence each (the 'Placing Shares') have been placed by Hoare Govett Limited
('Hoare Govett') and Canaccord Capital (Europe) Limited ('Canaccord') with
institutions at a price of £13.70 per share, raising approximately £102.9
million before expenses.

The Placing Shares will be issued credited as fully paid and will rank pari
passu in all respects with Cairn's existing ordinary shares, including the right
to receive all dividends and other distributions declared, made or paid after
the date of issue.

The Placing is conditional upon, inter alia, the admission of the Placing Shares
to the Official List of the UK Listing Authority (the 'Official List') and to
trading on the London Stock Exchange's market for listed securities (together
'Admission'). It is expected that settlement will occur, Admission will become
effective and dealings in the Placing Shares will commence on 7 July 2004.

Application has been made to the UK Listing Authority for the admission of the
Placing Shares to the Official List and to the London Stock Exchange for the
admission of the Placing Shares to trading on the London Stock Exchange's market
for listed securities.

Enquiries to:

Cairn Energy PLC
Bill Gammell, Chief Executive                        Tel: [phone]
Mike Watts, Exploration Director                     Tel: [phone]
Kevin Hart, Finance Director                         Tel: [phone]

Hoare Govett Limited
Andrew Foster                                        Tel: [phone]
John MacGowan                                        Tel: [phone]

Canaccord Capital (Europe) Limited
Neil Johnson                                         Tel: [phone]
Toby Hayward                                         Tel: [phone]

Brunswick Group Limited
Patrick Handley, Catherine Bertwistle, Mark Antelme  Tel: [phone]


This announcement is not an offer of securities for sale in the United States.
Securities may not be offered or sold in the United States absent registration
or an exemption from registration under the US Securities Act of 1933, as
amended (the 'US Securities Act'). The Company does not intend to register any
securities under the US Securities Act and does not intend to offer any
securities to the public in the United States. No money, securities or other
consideration from any person inside the United States is being solicited and,
if sent in response to the information contained in this announcement, will not
be accepted.

This announcement is not an offer for sale of securities in or into Canada,
Japan, Australia or the Republic of Ireland or in any other jurisdiction.

Hoare Govett is acting exclusively for Cairn in connection with the Placing and
no one else and will not be responsible to anyone other than the Company for
providing the protections afforded to clients of Hoare Govett nor for providing
advice in relation to the Placing or any transaction or arrangement referred to
herein. Hoare Govett can be contacted at 250 Bishopsgate, London EC2M 4AA.

Canaccord is acting exclusively for Cairn in connection with the Placing and no
one else and will not be responsible to anyone other than the Company for
providing the protections afforded to clients of Canaccord nor for providing
advice in relation to the Placing or any transaction or arrangement referred to
herein. Canaccord can be contacted at 27 Upper Brook Street, London W1K 7QF.



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