Exercise of Warrants

Serica Energy plc
22 August 2006



                SERICA ENERGY PLC ANNOUNCES EXERCISE OF WARRANTS


London, 22 August 2006 - Serica Energy plc (AIM and TSX Venture: SQZ) announces
the issue of 5,739,425 new ordinary shares following the exercise of warrants.

The exercise of these warrants represents a 100% take-up of the original
6,875,000 warrants issued at a price of Cdn$1.20, expiring 6 August 2006.
1,135,575 of the warrants had been exercised prior to 30 June 2006.  The
proceeds will be directed primarily towards the Company's extensive exploration
and appraisal drilling programme in the UK North Sea and Indonesia and on its
development projects in Indonesia.


Paul Ellis (Chief Executive Officer) commented:

'I am pleased that all warrant holders chose to exercise their warrants, showing
support for the Company's progress and excitement about the upcoming exploration
and appraisal drilling programmes in the UK North Sea and Indonesia.'



Background Notes


The warrants were issued in connection with a financing by Serica in November
2004.  The Company now has 150,537,956 issued shares and 157,181,456 on a fully
diluted basis.  The Company has no further warrants outstanding.

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