Cairn Energy has issued its Interim Management Statement in conjunction with its Annual General Meeting.

Overview of Operations

India Phased Mangala, Bhagyam and Aishwariya (MBA) development project continues to make good progress • Mangala Processing Terminal (MPT) Train one (30,000 bopd capacity) mechanically complete, ready to commission and start production with initial evacuation by truck mid-year 2009 • Train two (50,000 bopd capacity) targeted completion Q4 2009 • The 600 kilometre main oil export pipeline from Barmer (Rajasthan) to Salaya (Gujarat) targeted completion Q4 2009 • Train three (50,000 bopd capacity) targeted completion H1 2010 • Development drilling on schedule to meet production targets • Crude oil sales negotiations ongoing

Greenland • Processing of 10,000 km of 2008 2D seismic data nearing completion • Seismic interpretation underway and initial prospects and leads inventory for the Disko West area expected in Q3 2009 • Infill 2D seismic in south Greenland and well site surveys in Disko blocks planned for summer 2009 • Prospecting licence awarded by the Government for East Greenland with reconnaissance 2D seismic planned for Q3 2009

Iraq • Government of Iraq announcement that Cairn has pre-qualified to participate in the second bid round (greenfield) and hence subsequent bid rounds in Iraq

Group Production The figures below show group production for Q1 2009 (including 100% of Cairn India’s production).

Cairn is ready to start production with initial evacuation by trucking in mid-year 2009 from the Rajasthan fields. The facilities to handle a capacity of 30,000 bopd of crude through the first train have been completed at both the MPT in Rajasthan and at the port of Kandla in Gujarat.

Construction on the second and third trains with a combined capacity of 100,000 bopd is ongoing as is the construction of the insulated pipeline from the MPT to the Gujarat coast.

Two drilling and one completion rig are carrying out drilling and completion of the Mangala development wells. The drilling is on schedule to meet production targets.

Processing of 2008 2D seismic from Greenland is nearing completion, interpretation is underway and an initial inventory of leads and prospects from the Disko west acreage is being prepared. Planning for a potential multi-well drilling campaign commencing in 2011 is underway.

In Iraq, Cairn is one of 43 companies to have pre-qualified for the second bid round which includes 11 greenfield projects. The expertise and knowledge the company has acquired in developing oil fields in the Rajasthan desert is potentially transferable and applicable to developing fields in Iraq.

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