Biliton Farm-out Agreement

Serica Energy plc
15 March 2007

For immediate release: Thursday 15 March 2007

               SERICA ENERGY ANNOUNCES BILITON FARM-OUT AGREEMENT

London, 15 March, 2007 - Serica Energy plc (AIM and TSX Venture: SQZ) is pleased
to announce the farm-out of a percentage of the Company's interest in the
Biliton PSC, Indonesia, whilst retaining the role of Operator.



In line with its strategy to spread exploration risk and manage costs, Serica
has signed an agreement with Nations Petroleum, a subsidiary of the privately
owned oil exploration and production company Nations Energy Company Ltd., to
farm-out a 45% interest in the Biliton PSC, subject to required regulatory
approval. In return Nations Petroleum will bear the majority of the costs of the
two well drilling programme scheduled to commence in Q2 2007.



Serica will remain as operator and retain a 45% interest in the Biliton PSC. A
number of potentially significant prospects have been identified within the PSC,
which is located in a virtually unexplored basin, and the Seadrill-5 drilling
rig is contracted from Q2 2007 to drill the two exploration wells back-to-back.



Paul Ellis, Chief Executive, said:

'We are extremely pleased to announce the farm-out of a 45% interest in the
Biliton PSC, whilst retaining operatorship and a 45% interest for Serica.



In line with the strategy announced at the time of our UK fundraising in
December 2005, this allows Serica and its shareholders significant exposure to
high impact exploration drilling whilst managing the cost to the Company.'



Enquiries:


Serica Energy plc
Paul Ellis,                         [e-mail]                       [phone]

Chief Executive Officer
Chris Hearne, Finance Director      [e-mail]                      [phone]



Pelham Public Relations -UK
James Henderson                     [e-mail]                   [phone]
Alisdair Haythornthwaite            [e-mail]          [phone]

CHF Investor Relations - Canada
Jan Moir                            [e-mail]                                  [phone]
Heather Colpitts                    [e-mail]                              [phone]

JPMorgan Cazenove
Steve Baldwin                                                                      [phone]



Background Notes


Serica Energy plc is an international oil and gas exploration company with
operations in the UK North Sea, Norway, Ireland, Spain, Indonesia and Vietnam.
The Company's ordinary shares are listed in London on AIM and on the Canadian
TSX Venture Exchange under the symbol 'SQZ'. The 2005 Annual Report and Accounts
can be obtained from the Company's web-site www.serica-energy.com and at
www.sedar.com.



Forward Looking Statements



This disclosure contains certain forward looking statements that involve
substantial known and unknown risks and uncertainties, some of which are beyond
Serica Energy plc's control, including: the impact of general economic
conditions where Serica Energy plc operates, industry conditions, changes in
laws and regulations including the adoption of new environmental laws and
regulations and changes in how they are interpreted and enforced, increased
competition, the lack of availability of qualified personnel or management,
fluctuations in foreign exchange or interest rates, stock market volatility and
market valuations of companies with respect to announced transactions and the
final valuations thereof, and obtaining required approvals of regulatory
authorities.  Serica Energy plc's actual results, performance or achievement
could differ materially from those expressed in, or implied by, these forward
looking statements and, accordingly, no assurances can be given that any of the
events anticipated by the forward looking statements will transpire or occur, or
if any of them do so, what benefits, including the amount of proceeds, that
Serica Energy plc will derive there from.



The TSX Venture Exchange has not reviewed and does not accept responsibility for
                   the adequacy or accuracy of this release.



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