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Nunavut Conference – Frontier Exploration

Nunavut Conference – Frontier Exploration. Cairn Energy PLC October 2010. Disclaimer.

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Nunavut Conference – Frontier Exploration

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  1. Nunavut Conference – Frontier Exploration Cairn Energy PLC October 2010

  2. Disclaimer These materials contain forward-looking statements regarding Cairn, our corporate plans, future financial condition, future results of operations, future business plans and strategies. All such forward-looking statements are based on our management's assumptions and beliefs in the light of information available to them at this time. These forward-looking statements are, by their nature, subject to significant risks and uncertainties and actual results, performance and achievements may be materially different from those expressed in such statements. Factors that may cause actual results, performance or achievements to differ from expectations include, but are not limited to, regulatory changes, future levels of industry product supply, demand and pricing, weather and weather related impacts, wars and acts of terrorism, development and use of technology, acts of competitors and other changes to business conditions. Cairn undertakes no obligation to revise any such forward-looking statements to reflect any changes in Cairn's expectations with regard thereto or any change in circumstances or events after the date hereof. Nunavut Conference October 2010

  3. CAIRNOverview • Corporate • London listed since 1988 • FTSE 100 company with subsidiary listed on Indian exchanges • Current market cap ~$10 billion • Early entry positions • South Asia:Bangladesh, India and Nepal • Greenland • Focus on materiality • Geological potential • Commercial terms • Operational and financial flexibility Nunavut Conference October 2010

  4. Risk Mapping Political Risk Rajasthan KG Basin Greenland Basins Commercial Risk Technical Risk Nunavut Conference October 2010

  5. CAIRNExploration In South Asia • Major long term player • Successful exploration: • ~40 discoveries • 3 of 7 landmark discoveries in India since 2000 • Drilling success ratio ~40% • Large proprietary database • Experienced team NEPAL Rajasthan BANGLADESH Cambay Sangu INDIA Ravva Deepwater SRI LANKA Landmark Discoveries Nunavut Conference October 2010

  6. RAJASTHANOverview • Total Rajasthan acreage 3,111 km2 • Cairn India (70%) and ONGC (30%) • 25 Discoveries with initial development focused on three MBA fields • Multi billion $ project,~$3 billion spent to date • Discovery to production 5 years • Project of national importance: • Currently approved peak plateau production 175,000 bopd • More than 20% of India’s domesticcrude oil production • Significant benefits to the state of Rajasthan Nunavut Conference October 2010

  7. RAJASTHANDelivery Drilling • Four rigs, more than 70 development wells drilled • Horizontal wells tested ~12,000 bopd • Wells confirm excellent reservoir quality • Ten well EOR programme underway Development • Mangala Processing Terminal (MPT)Trains 1, 2 and 3 operational • Four Trains, capacity 205,000 bopd Delivery • 600km Pipeline complete and commissioned • Mangala production currently around125,000 bopd Nunavut Conference October 2010 7

  8. RAJASTHANMangala Processing Terminal Nunavut Conference October 2010

  9. RAJASTHANVision For Growth 210,000 bopd FDP Approved Production 175,000 bopd Target Potential Production> 240,000 bopd Mangala 150,000 bopd Mangala 125,000 bopd Bhagyam 40,000 bopd Bhagyam 40,000 bopd Aishwariya 10,000 bopd Aishwariya 20,000 bopd Nunavut Conference October 2010

  10. GREENLANDIn Context • USGS places Greenland in the top ten “yet to find” hydrocarbon destinations of the world • Several offshore basins only one of which was drilled prior to Cairn’s activities • Cairn is planning a multi-year exploration campaign • Further exploration opportunities through bid rounds Cairn Blocks Cairn Prospecting Licence Wells Baffin Bay Bid Round 2010 North East Bid Round 2012 5 wells in the 1970s, 1 well 2000 Nunavut Conference October 2010 10

  11. GREENLANDA multi-year programme with more explorationopportunities created through future bidding rounds Baffin Bay Bid Round 2010 Applied for 6 blocks Sigguk Cairn Blocks Cairn Prospecting Licence Wells Three exploration wells planned 2010 Alpha-1S1 and T4-1 currently operatingT8-1 well complete [Post this programme, all well commitments will be fulfilled* to 31 Dec 2017] Eqqua 2,500km 2D Infill Seismic 2010 All work obligations fulfilled* to 31 Dec 2011 Lady Franklin and Atammik East Greenland Prospecting Licence Processing of 2009 Seismic Complete Interpretation ongoing Southern Application Area 2010 Southern Blocks 7,500km 2D Infill Seismic 2010 3 Well Site Surveys All work obligations fulfilled* to 31 Dec 2011 Nunavut Conference October 2010 11 * subject to final approval from Greenlandic authorities

  12. GREENLANDWest Disko Operations Stena Forth 6th Generation DP Drillship • Understand and manage risks • Highly experienced operational team • Best contractors and best equipment • Two “state of the art” drilling rigs • Extensive support fleet including ice management capability • Logistics are complex but manageable • Extensive redundancy and contingency plans Viking Ice Breaker Drilling window Nunavut Conference October 2010 12

  13. GREENLANDStringent Regulations • Based on the Norwegian North Sea regulations • Specifics include: • Fully testing of the blow out preventer equipment, including mechanical testing by independent authorities, prior to and during operations • Drilling schedules designed to ensure that only one rig will enter a hydrocarbon-bearing section at any given time • Two rigs • Comprehensive oil spill response plan Nunavut Conference October 2010

  14. GREENLANDIce Management - Icebergs Iceberg Track DrillingRig Downtime Initiated Reaction Zone 2 Monitoring Zone 3 ‘T’ time Commence well suspension > 100km Radar and Ariel monitoring Dedication vessels Drill ship = 6 hrs Semi – 24hrs Alert Zone 1 • Threat Assessment by C-Core • Detection and Measurement • Marine / Satellite / HF Radar • Aerial & Vessel Reconnaissance • Physical Intervention • Towing, Water Cannon • Ice management plan for drilling • To date 120 icebergs have been tracked over a 12 week period. Nunavut Conference October 2010

  15. SUMMARY INDIA • Cairn has acted as a catalyst and taken its position in India from frontier to substantial business in 15 years • Major subsequent discoveries by new domestic players emphasize the exploration potential is real Cairn retains the financial and operational flexibility to continue to offer stakeholderslong term growth potential GREENLAND Cairn has secured an early entry into what it and others believe to be a world class frontier exploration country Nunavut Conference October 2010

  16. COMMERCIAL AND LEGAL CONTACTS Paul Mayland • Director - Business Development paul.mayland@cairnenergy.com Tom Morris • Commercial Manager tom.morris@cairnenergy.com Duncan Holland • Deputy Head of Legal duncan.holland@cairnenergy.com Cairn Energy PLC 50 Lothian Road, Edinburgh, EH3 9BY +44 (0)131 475 3000 www.cairnenergy.com Nunavut Conference October 2010

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