Gas Sales Agreement

Serica Energy plc
16 January 2008

                               Serica Energy plc
                          ('Serica' or the 'Company')



                          KAMBUNA GAS SALES AGREEMENT


London, 16 January 2008 - Serica Energy plc (AIM & TSX-V: SQZ) announces that
the terms of a sale of gas from the Kambuna Field offshore North Sumatra,
Indonesia, have been agreed.

The majority of the gas from the Kambuna Field will be sold to the Indonesian
State electricity company Perusahan Listrik Negara ('PLN') at an initial price
of US$4.50 per million Btu escalating at 3% per annum.  The gas will be
delivered to Pangkalan Brandan and will transported to PLN's Belawan power
station near the city of Medan, via the existing gas transmission network.
Medan, in North Sumatra, is the third largest city in Indonesia .  The remainder
of the gas will be sold at an equal or higher price to an industrial customer
through an auction process, with bids due in early February.

Kambuna gas has a high calorific value, and the Company expects an initial
realisation of over US$5.00 per thousand standard cubic feet.  In addition to
the gas, Serica will initially be marketing 4,000-5,000 barrels per day of
condensate at a price close to that of crude oil.

The Kambuna Field is currently under development.  A production platform will be
installed later this month and three development wells will then be drilled and
completed.  Onshore and offshore facilities and a 14-inch offshore pipeline will
be installed later this year, with production targeted to commence by the end of
2008.

Serica is the operator of the Kambuna Field and holds an interest of 65% in the
project.

Paul Ellis, Serica Chief Executive said: 'We are delighted to have achieved
excellent terms for the sale of gas from Kambuna.  The city of Medan has been
short of power for some years and we are pleased that we shall be able to make
this new supply of gas available for power generation and industrial uses. '



Enquiries:


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

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

Finance Director

JPMorgan Cazenove
Steve Baldwin                         [e-mail]                  [phone]

Tristone Capital Limited
Majid Shafiq                          [e-mail]                         [phone]

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

CHF - Canada
Sarah Gingerich                       [e-mail]                                     [phone]



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