Operations Update

Serica Energy plc
14 January 2008

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

                           BILITON OPERATIONS UPDATE


London, 14 January 2008 - Serica Energy plc (AIM & TSX-V: SQZ) announces that
the GSF 136 drilling rig, on location in the Biliton Block in the Java Sea,
Indonesia, is preparing to complete operations on the Batara Indra prospect, the
second prospect drilled in the two well programme in the Biliton PSC.

Batara Indra North #1 was drilled to a total depth of 2,285 feet and encountered
a sequence of tertiary sandstones that did not contain hydrocarbons.  The well
will be plugged and abandoned.

The drilling rig will now move to Serica's Kambuna field, offshore North
Sumatra, where it will install the production platform and drill the Kambuna
field development wells.  First production from the field is expected in late
2008.

Serica has a 45% interest in the Biliton PSC and is the operator.  The majority
of the cost of the two Biliton wells is being carried by a farminee.

Paul Ellis, Serica Chief Executive said: 'We are naturally disappointed that the
Ismaya and Indra North wells did not encounter hydrocarbons but we have always
recognised that the high potential of Biliton came with a significant
exploration risk, since the Block is around 200 kilometres away from the
established oil and gas fields of East Java.

'We are now looking forward to carrying out the development works on our Kambuna
field, where we are targeting to have gas and condensate production by the end
of this year.'

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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