Kutai PSC Update

Serica Energy plc
12 February 2008


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


                ACQUISITION OF ADDITIONAL INTEREST IN KUTAI PSC

London, 12 February 2008 - Serica Energy plc (AIM & TSX-V: SQZ) announces that
it has acquired an additional 25.5% working interest in the Kutai Production
Sharing Contract ('PSC') in East Kalimantan, Indonesia from its partner, Ephindo
Kutai Limited ('Ephindo').

Serica, the operator of the Kutai PSC, now holds a 78% interest and Ephindo
holds a 22% interest.  The Kutai PSC was awarded to Serica and Ephindo in
January 2007 and covers an area of around 4700 square kilometres in the Mahakam
Delta, mainly offshore.

The Kutai PSC is adjacent to the Mahakam PSC operated by Total and which
contains some of Indonesia's largest gas and condensate fields, with total daily
production of around 2.5 billion cubic feet of gas and 90,000 barrels of oil and
condensate.  Total has an active exploration programme and in October 2007
announced two new discoveries in the southern part of the Mahakam block, a few
kilometres from the Kutai PSC.

Paul Ellis, Serica Chief Executive said: 'The Kutai block lies in the heart of a
proven and prolific petroleum producing province and we are delighted to have
increased our stake.  There is a large amount of existing modern 3D seismic data
on the block and we are currently analysing, reprocessing and interpreting the
data in order to determine drilling locations for our first exploration campaign
in the Mahakam Delta'.

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]



The TSX Venture Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release.

To receive Company news releases via email, please contact mailto:
[e-mail] and specify 'Serica press releases' in the subject line.


                      This information is provided by RNS
            The company news service from the London Stock Exchange