Statement re Flotation

Cairn Energy PLC
27 November 2006



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, OR INTO, THE UNITED STATES,
CANADA, AUSTRALIA OR JAPAN


FOR IMMEDIATE RELEASE
                                                                27 November 2006

                                CAIRN ENERGY PLC


Flotation Price Range and Filing of Cairn India Limited's Red Herring Prospectus


Cairn Energy PLC ('Cairn') announces that, in preparation for the flotation of
its Indian business on the Bombay Stock Exchange Limited and the National Stock
Exchange of India Limited, its Indian subsidiary, Cairn India Limited ('Cairn
India') expects to file shortly with The Registrar of Companies in Maharashtra,
India, an offering document (the 'Red Herring Prospectus') in relation to the
proposed flotation, in accordance with regulatory requirements.

In line with regulatory requirements and market practice in India, the Red
Herring Prospectus includes a price range. Cairn has agreed and Cairn India has
set a price range of Rs 160 - Rs 190 per Cairn India share. This implies a Cairn
India market capitalisation of approximately Rs 282.45 billion - Rs 335.41
billion (or approximately US$ 6.32 billion - US$7.50 billion*) excluding any
exercise of an over-allotment option. The consequent implied valuation for
Cairn's current interest in Cairn India is US$5.72 billion at the bottom of the
range and US$6.90 billion at the top of the range, in each case after taking
into account the proportion of the gross proceeds to be retained by Cairn India
(expected to be approximately US$ 600 million).

The flotation will involve the issue of approximately 538.47 million Cairn India
shares, excluding any exercise of the  over-allotment option. Approximately
209.67 million Cairn India shares have been placed in the pre-flotation private 
placing announced by Cairn on 23 November 2006 resulting in a net offer to the
public of approximately 328.80 million  Cairn India shares.  Cairn India may
also grant an over-allotment option in accordance with The Securities Exchange 
Board of India guidelines. Cairn will own a 69.5% holding in Cairn India
following the flotation (excluding any  exercise of the over-allotment option).

Based on the price range above, illustrative gross proceeds of the flotation
(including the proceeds of the pre-IPO  private placing but excluding any
exercise of the over-allotment option) would be Rs 86.16 billion (US$ 1.93
billion*)  at the bottom of the range and Rs 99.47 billion (US$ 2.23 billion*)
at the top of the range.  After taking into account  the proportion of the gross
proceeds to be retained by Cairn India, expected to be approximately Rs 26.82
billion (US$  600 million*), the gross proceeds expected to be received by Cairn
(excluding any exercise of the over-allotment  option) would be approximately Rs
59.34 billion (US$ 1.33 billion*) at the bottom of the range and Rs 72.65
billion  (US$ 1.63 billion*) at the top of the range.

The final offer price for the flotation will be determined following a book
building exercise expected to complete in  mid December 2006. A further
announcement confirming the final offer price will be made as soon as possible
thereafter.

ABN AMRO Rothschild, Merrill Lynch and Morgan Stanley are acting as book running
lead managers in relation to the  initial public offering.


*(Based on a US dollar to Rupee exchange rate of 1:44.70 (source: Financial
Times closing mid rate of exchange on 24 November 2006)


Sir Bill Gammell, Chief Executive of Cairn Energy PLC, commented:

'Following last week's successful private placing we are now commencing the next
stage of the proposed flotation of the Cairn India business. The price range for
the flotation reflects not only the current Cairn share price, but also our
belief in the long term potential value of the Indian business which we have now
seen positively supported by our private placing.'


Enquiries to:
Analysts/Investors
Bill Gammell Chief Executive                            Tel: [phone]
Jann BrownFinance Director
Mike Watts Exploration Director

Media
David Nisbet, Head of Group Communications

Brunswick Group LLP:
Patrick Handley, Mark Antelme                           Tel: [phone]


Cairn India Limited ('Cairn India') proposes to undertake a public issue in
India and has filed a Red Herring Prospectus with the Securities and Exchange
Board of India.  This announcement is not an offer for sale, or a solicitation
of offers to purchase, the shares in Cairn India to be offered in the offering
(the 'Shares') in any jurisdiction. No action will be taken to permit the Shares
to be sold in a public offer in any jurisdiction outside India. In particular,
no offer to the public will be made in any Member State of the European Economic
Area or in the United States. The Shares have not been and will not be
registered under the US Securities Act of 1933, as amended. This announcement
and the information contained herein are not for publication, distribution or
release in, or into, the United States, Canada, Australia or Japan.



                      This information is provided by RNS
            The company news service from the London Stock Exchange