Nunavut Conference – Frontier Exploration

Cairn Energy PLC October 2010

Discovering hidden value through entrepreneurial exploration

Discovering hidden value through entrepreneurial exploration

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

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CAIRN Overview

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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

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Risk Mapping

Rajasthan KG Basin Greenland Basins Nunavut Conference October 2010

Political Risk Technical Risk

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Commercial Risk

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CAIRN Exploration In South Asia

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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

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Rajasthan

BANGLADESH

Cambay INDIA Ravva Deepwater Sangu Discovering hidden value Landmark Discoveries

SRI LANKA

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RAJASTHAN Overview

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Total Rajasthan acreage 3,111 km 2 Cairn India (70%) and ONGC (30%)

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25 Discoveries with initial development focused on three MBA fields

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Multi billion $ project, ~$3 billion spent to date

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Discovery to production 5 years

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Project of national importance:

■ Currently approved peak plateau production 175,000 bopd ■ More than 20% of India’s domestic crude oil production ■ Significant benefits to the state of Rajasthan Discovering hidden value 6

RAJASTHAN Delivery Drilling

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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

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Mangala Processing Terminal (MPT) Trains 1, 2 and 3 operational

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Four Trains, capacity 205,000 bopd Delivery

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600km Pipeline complete and commissioned Mangala production currently around 125,000 bopd

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RAJASTHAN Mangala Processing Terminal

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RAJASTHAN Vision For Growth FDP Approved Production 175,000 bopd Mangala 125,000 bopd 210,000 bopd Mangala 150,000 bopd Aishwariya 10,000 bopd

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Bhagyam 40,000 bopd Bhagyam 40,000 bopd Aishwariya 20,000 bopd

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Target Potential Production > 240,000 bopd

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GREENLAND In Context

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USGS places Greenland in the top ten “yet to find” hydrocarbon destinations of the world

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Several offshore basins only one of which was drilled prior to Cairn’s activities

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Cairn is planning a multi-year exploration campaign

5 wells in the 1970s, 1 well 2000 ■

Further exploration opportunities through bid rounds

Baffin Bay

Bid Round 2010 Nunavut Conference October 2010

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North East

Bid Round 2012 Cairn Blocks Cairn Prospecting Licence Wells

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GREENLAND A multi-year programme with more exploration opportunities created through future bidding rounds

Baffin Bay Bid Round 2010 Applied for 6 blocks

Sigguk

Three exploration wells planned 2010

Alpha-1S1 and T4-1 currently operating T8-1 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 *

subject to final approval from Greenlandic authorities Discovering hidden value

Cairn Blocks Cairn Prospecting Licence Wells

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GREENLAND West Disko Operations

■ 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

Drilling window MAY JUN

Mobilisation

JUL AUG

Drilling

SEP OCT NOV DEC

Relief Well Capability

Viking Ice Breaker Nunavut Conference October 2010

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Stena Forth 6th Generation DP Drillship

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GREENLAND Stringent Regulations

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Based on the Norwegian North Sea regulations

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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

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GREENLAND Ice Management - Icebergs

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Threat Assessment by C-Core

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Detection and Measurement

■ Marine / Satellite / HF Radar ■ Aerial & Vessel Reconnaissance ■

Physical Intervention

■ Towing, Water Cannon ■

Ice management plan for drilling

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To date 120 icebergs have been tracked over a 12 week period. Monitoring Zone 3

■ > 100km ■ Radar and Ariel monitoring ■ Dedication vessels

Reaction Zone 2

■ ‘T’ time ■ Commence well suspension

Iceberg Track Downtime Initiated

Drilling Rig

Alert Zone 1

■ Drill ship = 6 hrs ■ Semi – 24hrs

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SUMMARY

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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

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GREENLAND Cairn has secured an early entry into what it and others believe to be a world class frontier exploration country

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Cairn retains the financial and operational flexibility to continue to offer stakeholders long term growth potential

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COMMERCIAL AND LEGAL CONTACTS Paul Mayland

■ Director - Business Development [email protected]

Tom Morris

■ Commercial Manager [email protected]

Duncan Holland

■ Deputy Head of Legal

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[email protected]

Cairn Energy PLC

50 Lothian Road, Edinburgh, EH3 9BY +44 (0)131 475 3000 www.cairnenergy.com

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