Directors Holdings

Serica Energy plc
09 January 2007




FOR IMMEDIATE RELEASE: 9 January 2007


   SERICA ENERGY PLC ANNOUNCES EXERCISE OF SHARE OPTIONS BY DIRECTORS AND AN
                        INCREASE IN DIRECTORS' HOLDINGS
                          OF 360,000 ORDINARY SHARES


London, January 9, 2007 - Serica Energy plc (TSX Venture: SQZ; AIM: SQZ) 
('Serica' or the 'Company') announces that on 8 January 2007 Antony Craven Walker
(Chairman), Paul Ellis (Chief Executive), Neil Pike and Jim Steel (non-Executive
Directors) increased their beneficial shareholdings in the Company by a total of
360,000 ordinary shares.

On 8 January 2007 Antony Craven Walker exercised 200,000 share options and Neil
Pike and Jim Steel each exercised 100,000 share options. All options were
exercised at the exercise price of Cdn$1.11 per share. In order to meet the
cost of the options Antony Craven Walker sold 43,698 of the resultant ordinary
shares at £1.04 per share (Cdn$2.376) to his pension fund and Jim Steel sold
25,000 of the resultant ordinary shares at £1.04 per share (Cdn$2.376).  These
ordinary shares were acquired by the pension fund of Paul Ellis.  Neil Pike has
transferred the legal and beneficial interest in 40,000 ordinary shares to other
members of his family for no consideration.

As a result of these transactions the total beneficial shareholdings of the
Directors of the Company has increased by 360,000 ordinary shares and the
increased beneficial interests of the Directors in the Company are:


Director                                  Previous No. of       Increased No. of       % Change No. of
                                          Ordinary Shares        Ordinary Shares       Ordinary Shares

Antony Craven Walker (Chairman)                 4,565,626              4,765,626                 +4.4%
Paul Ellis (Chief Executive)                      250,000                275,000                +10.0%
Neil Pike (Director)                              290,000                350,000                +20.7%
James Steel (Director)                             45,950                120,950               +163.2%


Consequently the total number of issued shares in the Company has increased to
150,937,955 ordinary shares.  All of these shares have voting rights and none
are held in Treasury.  Therefore, the total number of voting shares in the
Company is 150,937,955 ordinary shares and this figure may be used by
shareholders as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a change to their
interest in, Serica under the FSA's Disclosure and Transparency Rules.

Application has been made to AIM for the admission to trading of the 400,000
ordinary shares of US$0.10 each in the Company resulting from the exercise of
the options.  These new ordinary shares issued rank equally with the existing
ordinary shares of 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]


Background Notes

Serica Energy plc is an international oil and gas exploration company with
operations in Indonesia, the UK North Sea, Spain, Ireland 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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