MDL Medoil

RNS Number:4681D
Cairn Energy PLC
07 September 2007


EMBARGOED FOR RELEASE AT 0700

                                                                7 September 2007


                           Cairn Energy PLC ("Cairn")

          Three Transactions by Capricorn Energy Limited ("Capricorn")

Cairn announces today that its exploration focused subsidiary Capricorn has
entered into three separate transactions as summarised below. Separate
announcements containing greater detail are also being made today in respect of
each transaction.

Recommended Cash Offer for Plectrum Petroleum PLC ("Plectrum")

Agreement has been reached with the Board of Plectrum on the terms of a
recommended cash offer by Capricorn for the whole of the issued share capital of
Plectrum. The terms of the offer values the entire existing issued share capital
of Plectrum at approximately #23.4m. Plectrum holds a 50% equity interest in the
Nabeul permit offshore Tunisia and in addition has interests in Australia, Peru
and the UK (West of Shetlands).

Recommended Cash Offer for MedOil plc ("MedOil")

Agreement has been reached with the Board of MedOil on the terms of a
recommended cash offer by Capricorn for the whole of the issued share capital of
MedOil. The terms of the offer values the entire existing issued share capital
of MedOil at approximately #12.4m. MedOil holds a 100% interest in the Louza
permit offshore Tunisia and in addition has pending licences offshore Albania,
Spain and Sicily.

The combined acreage of Plectrum and MedOil provides Capricorn with a
potentially material oil exploration position in Tunisia. These transactions are
not however inter-conditional. Appendix 1 to this announcement contains a map
providing a summary of the Tunisian acreage positions.

Dyas Investment

Dyas BV, an active investor in oil and gas joint ventures, has agreed, pre the
above offers, to acquire a 10% shareholding in Capricorn for a total
consideration of approximately US$90m. Appendix 2 to this announcement
summarises the equity structure of the Cairn Group post the Dyas transaction.

Dr Mike Watts, Exploration and New Business director of Cairn, and Chief
Executive of Capricorn, commented:

"I am delighted to announce, through these recommended cash offers, the first
steps towards building a portfolio of assets with material positions offering
high impact exploration potential. At the same time, I am pleased that Dyas has
demonstrated its confidence in Capricorn's future by investing directly for a
10% shareholding."

There will be a conference call in respect of these transactions for analysts
and investors today at 8.30 am.


Enquiries to:

Analysts/Investors
Capricorn Management Team:
Mike Watts, Exploration & New Business Director of Cairn and      Tel: 0131 475 3000
Chief Executive of Capricorn                                      

Jann Brown, Finance Director of Cairn and Capricorn

Simon Thomson, Legal and Commercial Director of Cairn and
Capricorn

Media                                                             Tel: 0207 404 5959
                                                                
Brunswick Group LLP:
Patrick Handley, Mark Antelme, Phoebe Buckland






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

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