Serica Directors Exercise Options, Increase Holdings

Serica Energy plc said that on 8 January 2007 Antony Craven Walker (Chairman), Paul Ellis (Chief Executive), Neil Pike and Jim Steel (non-Executive Directors) increased their beneficial shareholdings in the Company by a total of 360,000 ordinary shares.

On 8 January 2007 Antony Craven Walker exercised 200,000 share options and Neil Pike and Jim Steel each exercised 100,000 share options. All options were exercised at the exercise price of Cdn$1.11 per share. In order to meet the cost of the options Antony Craven Walker sold 43,698 of the resultant ordinary shares at GBP 1.04 per share (Cdn$2.376) to his pension fund and Jim Steel sold 25,000 of the resultant ordinary shares at GBP 1.04 per share (Cdn$2.376). These ordinary shares were acquired by the pension fund of Paul Ellis. Neil Pike has transferred the legal and beneficial interest in 40,000 ordinary shares to other members of his family for no consideration.

As a result of these transactions the total beneficial shareholdings of the Directors of the Company has increased by 360,000 ordinary shares and the increased beneficial interests of the Directors in the Company are:

	    Director              Previous No. of  Increased No. of  % Change No. of
	                          Ordinary Shares   Ordinary Shares  Ordinary Shares
	    Antony Craven Walker
	     (Chairman)                 4,565,626         4,765,626            +4.4%
	    Paul Ellis
	     (Chief Executive)            250,000           275,000           +10.0%
	    Neil Pike (Director)          290,000           350,000           +20.7%
	    James Steel (Director)         45,950           120,950          +163.2%

Consequently the total number of issued shares in the Company has increased to 150,937,955 ordinary shares. All of these shares have voting rights and none are held in Treasury. Therefore, the total number of voting shares in the Company is 150,937,955 ordinary shares and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Serica under the FSA's Disclosure and Transparency Rules.

Application has been made to AIM for the admission to trading of the 400,000 ordinary shares of US$0.10 each in the Company resulting from the exercise of the options. These new ordinary shares issued rank equally with the existing ordinary shares of the Company.

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