Kambuna Development Update

Serica Energy plc
01 April 2008



                               Serica Energy plc

                          ('Serica' or the 'Company')



           KAMBUNA FIELD DEVELOPMENT DRILLING PROGRESSING ON SCHEDULE



London, 1 April 2008 - Serica Energy plc (AIM & TSX-V: SQZ) provides an update
on development activities in the Kambuna field, offshore North Sumatra,
Indonesia.



The Kambuna #3 and #4 deviated development wells are being batch drilled from
the Kambuna production platform, installed earlier this year at the location of
the Kambuna #2 well, the first of the three planned development wells.  Kambuna
#3 has been drilled to a total depth of 7,483 ft true vertical depth below mean
sea level ('TVDSS').  The well entered the target Belumai reservoir at a depth
of 7,166 ft TVDSS and encountered gas-bearing sands over an interval of 107 ft
with a net pay of 77 ft (67 vertical ft) and, as expected, there was no
indication of a gas-water contact.



A seven inch production liner has been set in Kambuna #3 and the well will now
be suspended while the remaining section of Kambuna #4 is drilled.  Later in
April all three development wells will be completed for production and short
production tests will be carried out.



As previously reported in the Company's Full Year Results, an independent
reserves report prepared by RPS Energy estimated that, at a 10% discount factor,
the post-tax net present value to Serica of the Proved plus Probable Kambuna
Reserves at forecast prices and costs was US$131.5 million at 31 December 2007
and that at constant prices and costs the net present value was US$144.7
million.  Total 2P reserves, on a 100% basis, were estimated to be 29.7 million
barrels of oil equivalent, representing a 15% year on year increase.



Since the report was prepared, terms were agreed for a second tranche of gas and
Serica ultimately expects to achieve an average gas price close to US$6.00 per
thousand cubic feet, about 10% higher than that assumed in the reserves report.
A summary of the reserves report on Form 51-101F1 was filed on 28 March 2008 on
SEDAR at www.sedar.com.



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.



Serica CEO Paul Elis said: 'We are very pleased with the positive outcome of the
gas sales negotiations and the excellent contract terms which have been
achieved.  With the first two Kambuna development wells successfully drilled and
the third already underway, our development plan is progressing on schedule, and
we anticipate achieving first production in December 2008.'



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                       [e-mail]                                     [phone]



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