Operations Update

Serica Energy plc
31 December 2007

                               Serica Energy plc

                          ('Serica' or the 'Company')



                           BILITON OPERATIONS UPDATE



London, 31 December 2007 - 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, has completed operations on the Batara Ismaya prospect, the first
prospect to be drilled in a planned two well programme in the Bilton PSC, and is
preparing to move to drill the second well of the programme on the separate
Batara Indra prospect.



The first well, Batara Ismaya #1, was drilled to a total depth of 3,392 feet and
encountered a sequence of tertiary sandstones between 2,484 and 3,192 feet..
The total net reservoir sand thickness in this interval was approximately 325
feet, twice as much as predicted prior to drilling, and the average porosity was
approximately 35%.  Although these sands did not contain hydrocarbons, this
evidence of improved reservoir thickness may increase the potential of other
prospects in the Biliton Block.  The lack of hydrocarbons at Batara Ismaya may
be due to failure of the anticipated stratigraphic trapping mechanism or to a
barrier to the migration of hydrocarbons from the source rocks that lie to the
west of the well.



The rig will shortly move approximately 24 kilometres to the south-east to drill
the second well in the programme, Batara Indra North #1, on a separate four-way
dip closed structure located in an area in which seabed oil seeps were detected
in a survey carried out in 1999.



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



Paul Ellis, Serica Chief Executive said: 'Whilst the first well in the Biliton
programme has not encountered hydrocarbons, we are encouraged by the thickness
and quality of the reservoir sands discovered in the well.  The Biliton Block
covers a very large area with a number of significant and separate prospects
identified on seismic and will require several wells to explore fully.  The
evidence of seabed oil seeps at the next prospect to be drilled, Batara Indra,
is an encouraging sign that hydrocarbons may have migrated into this area.'





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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