London - Serica Energy plc (AIM: SQZ), a British independent upstream oil and gas company with operations centred on the UK North Sea and over 80% gas production, today announces its financial results for the year ended 31 December 2019.

The results are included below and copies are available at www.serica-energy.com and www.sedar.com.

Corporate Highlights

Successful first full year of Bruce, Keith and Rhum ('BKR') operatorship with production volumes increased and costs reduced

2019 Group average production over 30,000 boe per day net to Serica compared to 25,450 boe per day for 2018 including BKR volumes for the full year

Combined field operating costs per boe reduced by 30% to US$12.60 per boe

Gross profit, operating profit and cash flow from operations all increased by substantial margins

Healthy cash balances, low operating costs, gas hedging and the flexible structure of the BKR net cash flow sharing arrangements put Serica in a strong position to weather current market turbulence

In light of the strong financial position of the Company, the Board is recommending the payment of a maiden dividend of 3 pence per share to be proposed at this year's AGM

Financial

Gross profit increased more than four-fold to GBP85.8 million (2018: GBP20.0 million) and operating profit increased eleven-fold to GBP87.7 million (2018: GBP8.0 million)

Average realised sales price of US$30 per boe (80% gas) before hedging gains (2018: US$45 per boe incl. BKR revenues) and average operating cost of US$12.60 per boe for 2019 (2018: US$18 per boe incl. BKR costs)

Cash flow from operations of GBP136.9 million compared to a net out flow of GBP9.9 million for 2018 leaving closing cash and term deposits of GBP101.8 million (2018: GBP43.1 million) after payment of GBP61.7 million of BKR liabilities

Group profit after tax of GBP64.0 million (2018: GBP51.5 million) showed a 24% increase.

Operational

The Bruce, Keith and Rhum fields in their first full year of Serica operatorship produced 27,300 boe per day compared to 23,800 for full year 2018

The Erskine field has continued its strong performance since completion of the export line bypass in late 2018 averaging 2,700 boe per day during 2019 compared to 650 boe per day for 2018

Combined field operating costs per boe reduced by 30% compared to previous year - reflects both higher production volumes and a lower cost base

Work continues on preparations for the Rhum R3 intervention project and the timing is under review

The Columbus development programme is underway with a drilling rig contracted and first gas now expected in late 2021. This represents an approximate six-month delay to match the deferred commissioning of the Arran to Shearwater pipeline

An updated independent audit of Serica's field reserves has reported Serica's share of estimated remaining 2P reserves to 62.3 million boe as at 1 January 2020, an 8% increase over the 68.8 million boe reported at 1 January 2019 after adjustment for 2019 production

Commenting on the results, Mitch Flegg, Serica's CEO stated: '2019 was a year of exceptionally strong performance in an increasingly challenging environment. We have established Serica as one of the leading UKCS operating companies, as clearly demonstrated by increased production levels and reduced operating costs. This is a major credit to our talented and motivated staff.

We entered 2020 in an extremely robust financial position with no borrowings, a decreasing cost profile, an increasing cash position and limited decommissioning obligations. This provides the flexibility to meet the challenges the industry faces in the short term and pursue growth opportunities.

Adding further comment, Tony Craven Walker, Serica Chairman stated: 'Serica has had an extremely good year. Although the oil and gas industry is currently facing unprecedented challenges, Serica is very well placed to build on its strong technical, operational and financial performance. Our debt-free balance sheet results from the cautious approach which we took during the past year and gives us a strong position from which to identify new opportunities for value growth as the industry enters a period of transition.'

Contact:

Tel: +44 (0)20 7457 2020

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 therefrom.

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 therefrom.