Kambuna Development Update

Serica Energy plc
12 February 2008

                               Serica Energy plc

                          ('Serica' or the 'Company')


                        KAMBUNA FIELD DEVELOPMENT UPDATE


London, 12 February 2008 - Serica Energy plc (AIM & TSX-V: SQZ) provides an
update on development activities in the Kambuna field, offshore Northeast
Sumatra, Indonesia.

Offshore development works are now underway.  The production platform has been
positioned over the Kambuna #2 well and piled to the seabed and the GSF136
jack-up drilling rig is now drilling the Kambuna development wells #3 and #4 and
will then complete all three wells for production.

Following the previously reported agreement for the sale of gas to the
Indonesian State electricity generation company Perusahan Listrik Negara 
('PLN'), at an initial price of US$4.50 per million Btu (approximately $5.40 per
million cubic feet) escalating at 3% per annum, tenders for a further quantity
of gas have now been received at considerably higher prices and an agreement
will shortly be completed.

Being sales to the domestic market, the gas has been contracted under procedures
determined by BPMigas, the Indonesian petroleum industry regulator.  The
contract with PLN will account for 28 million cubic feet per day ('mmscfd') and
the new tenders are for a further 12 mmscfd.  The Kambuna development wells are
expected to produce at a total rate of 50 mmscfd, leaving 10 mmscfd of gas
currently uncontracted.  Serica expects that this future sale of gas will also
attract a much higher price than that agreed with PLN.

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 Company
anticipates that production from the field will commence in December 2008.

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

Paul Ellis MA (Oxon) Engineering and Serica's Chief Executive, who has over 35
years' experience in the upstream oil and gas industry, has reviewed and
approved the technical information contained in this announcement.


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            mailto:[e-mail]                 [phone]



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