PRESS RELEASE: Kyrgoil and PDA complete merger

TORONTO, Feb. 2 - Kyrgoil Holding Corporation ("Kyrgoil") and Petroleum Development Associates (Oil and Gas) Limited ("PDA") announce that they have completed the previously announced merger of the two companies. The merged company is now named Serica Energy Corporation ("Serica"). The TSX Venture Exchange has conditionally approved the listing of the Serica common shares on Tier 2 of the exchange under the symbol "SQZ" upon completion of the filing of the remaining transaction documents and such shares will thereafter be suspended from trading on the Toronto Stock Exchange. The number of Serica common shares outstanding is 43,131,037 (56,117,545 on a fully diluted basis).

The merger was completed following the previously announced disposition by Kyrgoil of its principal asset, a 50 percent interest in an oil refinery in the Kyrgyz Republic and the completion by PDA of a private placement raising approximately Cdn$7.7 million in gross proceeds.

"We are extremely pleased with the results of our private placement and look forward to growing the business of PDA in the new company", said Christopher Rivett-Carnac, the President and Chief Executive Officer of Serica.

Serica will continue PDA's business of oil and natural gas exploration and extraction in Indonesia, Spain and the United Kingdom, including a 10 percent working interest in Lematang PSC in Sumatra, Indonesia. (end of release)

Source: Serica Energy Corporation; KYRGOIL HOLDING CORPORATION