UK Operations Update

Serica Energy plc
10 October 2006




                               SERICA ENERGY PLC
               FARM-OUT OF UK BLOCK 54/1b & UK DRILLING PROGRAMME


London, October 10, 2006 - Serica Energy plc (AIM and TSX Venture: SQZ)
announces that it has concluded a farm-out of part of its interest in UK North
Sea Block 54/1b, where it expects to commence drilling the Oak prospect later
this month.  Serica will also commence drilling of an exploration well on the
Columbus prospect in Block 23/16f during the fourth quarter of 2006.

In the Southern Gas Basin, the ENSCO 92 jack-up rig will drill the Oak prospect
in Block 54/1b, targeting the Permian-aged Leman sandstone reservoir at a depth
of around 7,500 feet.  Drilling operations are scheduled to take about 30 days.
Serica is the operator of the Block and the well will be drilled under a
contract with Peak Well Management Limited

As part of its strategy to spread exploration risk and manage costs, Serica will
reduce its interest in Block 54/1b from 100% to 50% through the farm out of a
50% interest to Centrica Resources Limited ('Centrica'), a wholly-owned
subsidiary of Centrica plc, in consideration for Centrica bearing 100% of the
costs of drilling the Oak well up to the point where the total costs have
reached £8.5 million or a decision to test the well has been made, whichever
occurs first.

In the Central North Sea, the semi-submersible GlobalSantaFe Rig 140 will drill
the Columbus prospect in Block 23/16f, in which Serica has a 50% interest,
targeting the Paleocene-aged Forties Sandstone  reservoir at a depth of around
9750 feet.  Drilling operations are scheduled to take about 30 days.  The well
will be drilled by Applied Drilling Technology Inc. (ADTI), a division of
GlobalSantaFe Corporation, under a contract with Serica's partner in Block 23/
16f, Endeavour Energy UK Limited.


Chris Atkinson, Chief Operating Officer, commented:

'The next 12 months will be an exciting period for Serica with intensive
drilling across our assets targeting a range of prospects in terms of risk and
reward. This includes exploration wells on Block 54/1b and Block 23/16f in the
North Sea this year and exploration and development wells in Indonesia in 2007.'

'The farm out in Block 54/1b reduces drilling costs and exploration risk to the
Company ahead of the drilling of the Oak prospect, and we welcome Centrica as
our new partner in 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.



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