Indonesian Field Development

Serica Energy plc
10 October 2006



                               SERICA ENERGY PLC
                      INDONESIAN FIELD DEVELOPMENT UPDATE


London, October 10, 2006 - Serica Energy plc (AIM and TSX Venture: SQZ) provides
the following update regarding its gas field developments in Indonesia.


Kambuna Field Development

In the Glagah-Kambuna Technical Assistance Contract (TAC) area, Serica is
developing the Kambuna Field on behalf of its partners and the Indonesian state
oil and gas company, PT Pertamina Persero ('Pertamina').  The first production
from the field remains targeted for 2008 at initial rates of approximately 50
million cubic feet per day of gas and 5,000 barrels per day of condensate.

Engineering design studies for the gas export pipeline are being carried out by
Wood Group and the project schedule is being finalized with a view to full
project sanction being given prior to the year end.  Serica is working with
Pertamina to determine the optimal route for the pipeline for gas and LPG sales
into the Medan area in north Sumatra.  Condensate (very light hydrocarbon
liquids separated from the gas and sold as oil) will be stored in a Floating
Production, Storage and Offtake vessel (FPSO) and loaded into shuttle tankers
offshore for sale to international markets.


Tanjung Perling Field Development

In the adjacent Asahan Offshore Production Sharing Contract (PSC), the
Indonesian oil industry regulatory authority ('BPMigas') has requested further
technical information with respect to the marginal Tanjung Perling Field, which
Serica proposed to develop as an incremental project to the Kambuna Field.
There may be insufficient time to satisfy the request of the regulatory
authority prior to 16th December 2006, when the exploration period of the PSC
would otherwise expire.  Serica and its partners are holding constructive
discussions with BPMigas to agree a mutually satisfactory means to bring gas
from the Asahan Offshore PSC to market and ensure continuing operations on the
block.


Background Notes

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