Drilling Update

Serica Energy plc
27 November 2006

For immediate release: Monday, November 27, 2006



                          SERICA ENERGY PLC TESTS GAS

                     IN TWO UK NORTH SEA EXPLORATION WELLS



London, November 27, 2006 - Serica Energy plc (AIM and TSX Venture: SQZ)
announces that it has completed testing gas discovered in the Oak well 54/1b-6
and is today preparing to test gas discovered in the Columbus Well 23/16f-11.
Serica is Operator of both Blocks.



Well 54/1b-6 (Oak)

Well 54/1b-6, drilled to evaluate the Oak prospect in the UK Southern Gas Basin,
reached its final depth of 8,318 feet subsea on 10th November after 27 days
drilling.  The well encountered a gas-bearing Leman sandstone reservoir with a
gross gas column of 113 feet.  A production test was carried out on an 80 foot
interval and a stabilised gas flow rate of approximately 10 million standard
cubic feet per day was recorded on a 44/64' choke.  However, preliminary on-site
analysis of the gas indicates that it contains material quantities of carbon
dioxide and further study will be required before it can be determined whether
or not it will be practical to develop the Oak discovery.  The well is currently
being plugged prior to the rig leaving the location.



Partners in Block 54/1b are Serica and Centrica Resources Limited ('Centrica')
each with a 50% interest. Under the terms of the farm-out agreement by which
Centrica acquired its interest in the Block from Serica the costs of drilling
the well have been met largely by Centrica with both companies contributing to
the testing costs.



Well 23/16f-11 (Columbus)

Well 23/16f-11, drilled on the Columbus prospect in the UK Central North Sea,
reached its final depth of 10,116 feet subsea on 21st November after 24 days
drilling and has encountered an encouraging gross gas column of at least 125
feet in the Paleocene Forties sands.  Preparations for flow testing the well
have now commenced with results of these tests expected by mid December.  In
this area of the North Sea it is not anticipated that any significant quantities
of carbon dioxide will be found in the gas.



Serica believes that the Columbus structure encountered by the well extends from
Block 23/16f into part of the adjacent Block 23/21 ('Part Block 23/21') in which
BG Group plc ('BG') has an equity holding.  Under an agreement announced in
November 2006, Serica will exchange with BG a 25% interest in Block 23/16f for a
25% interest in the post-Cretaceous section of Part Block 23/21 (excluding the
Lomond field).  In addition to this exchange of equity interests the agreement
also provides that BG will contribute approximately half of Serica's 50% share
of the costs of drilling and testing the Columbus well, 23/16f-11.



Following this agreement, and subject to regulatory and partner approvals, the
interests held in Block 23/16f, in which the Columbus well has been drilled,
will be Serica 25% (Operator), BG (25%), Endeavour Energy UK Limited (25%) and
EOG Resources United Kingdom Limited (25%).



Paul Ellis, Chief Executive of Serica said that 'It is very encouraging that
both of the first two exploration wells drilled by Serica as a North Sea
operator have discovered gas and have borne out the evaluations of our technical
team. The presence of carbon dioxide in the gas produced during the Oak well
test is disappointing and further evaluation will be required before the
commercial potential of Oak can be established.



We are now starting testing operations on the second of the two discoveries, the
Central North Sea Columbus well.  We are encouraged by the presence of
gas-bearing sand and are looking forward to a successful test.'



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 are
available at www.serica-energy.com and www.sedar.com.



Enquiries:


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

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

Finance Director

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

CHF Investor Relations - Canada
Jan Moir                             [e-mail]                                 [phone] x237
Heather Colpitts                     [e-mail]                             [phone] x223



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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