Commencement of Drilling

Serica Energy plc
16 October 2006


For immediate release: Monday, October 16, 2006


                               SERICA ENERGY PLC
                      DRILLING STARTS ON THE OAK PROSPECT


London, October 16, 2006 - Serica Energy plc (AIM and TSX Venture: SQZ)
announces that it has commenced drilling the Oak prospect in UK Block 54/1b.

Located in the Southern Gas Basin of the UK North Sea, well 54/1b-6 was spudded
on 15th October and drilling operations are scheduled to take about 30 days.
Serica is the operator of the Block and has a 50% interest. Its partner Centrica
Resources Limited also has a 50% interest and will be bearing the majority of
the drilling costs under the terms of the farm-in agreement announced on Tuesday
October 10 2006.

Later this month the Company will also drill the Columbus prospect in Block 23/
16f, located in the Central North Sea. Serica has an interest of 50% 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.

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

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