KARACHI - PPL's oil (crude oil/condensate/NGL) revenues in FY08 registered a phenomenal increase of 143 per cent Year-on-Year as the company's oil production rose by an impressive 43 per cent Year-on-Year in FY08. The main contributors to the increase in oil production were the Adhi (+1.6% YoY), Makori (+49% YoY) and Mela (+477% YoY) fields, which had respective contributions of 48pc, 14 percent and 30pc to PPL's oil production. The high growth rate of the Mela field was due the low base effect as it commenced production in late 3rd Quarter of FY07. PPL's gas production remained stagnant as a fall in production from the Sui field was offset by production augmentation from the Kandhkot (+10% Year-on-Year), Sawan (+6% Year-on-Year) and Qadirpur (+5% Year-on-Year) fields. Although a modest fall of 3% Year-on-Year in gas production from the Sui field was witnessed, its overwhelming weight of 63 percent in the company's total gas production offset the increases from other fields. Analyst said FY08 was an extraordinary year for international oil prices as oil prices set consecutive new highs. Arab Light averaged USD92/bbl, a 51% increase over the avg. of USD61/bbl in FY07. The phenomenal increase in international oil prices propelled oil and gas net realized prices by 73% YoY and 7 percent YoY respectively to USD85/bbl and Rs102/Mcf. The increase in net realized oil prices coupled with augmented production increased the share of oil (crude oil/condensate/NGL) revenues in the revenue mix of the company to 16% (+839bps) while the share of gas revenues declined to 82% (-884bps). PPL's field expenditures rose by a significant 15 percent Year-on-Year mainly on the back of higher exploration (seismic) activities carried out by the company in FY08. However, on the drilling front, the company remained relatively inactive, as it spud a total of 3 development wells in FY08. Field expenditures per boe also rose in sync with the total figure registering an increase of 14.6% YoY to Rs163/boe. Analyst said although PPL did not follow up on its earlier drilling plan, it has reiterated its intention of drilling 100 wells in the next ten years with increased emphasis in overseas joint ventures. Other income (+26% YoY) provided support to the bottomline (contributing 10% to PBT) on the back of gain on remeasurement of investments and forex gain. However, a higher effective tax rate of 35.3% (+411bps - due to deferred tax) dampened earnings.