The country’s search for new hydrocarbon reservoirs continues to remain muted in first half of the current fiscal year (1HFY12) as only six exploratory wells have been spudded, similar to that of last year, said the analysts. “The circular debt and challenged security situation particularly in KPK and Balochistan continue to bode ill on the sector’s exploration program while some carry-over wells were also completed,” viewed Nauman Khan, an analyst at Topline Securities. During this period, the analyst said, the E&P companies continued to focus on maximum utilisation of their existing reservoirs, spudding 15 development wells, a notch above 13 wells drilled in comparable period last year. Pakistan Oilfields (POL) and Oil and Gas Development (OGDC), during 1HFY12, drilled one exploratory well each while Pakistan Petroleum (PPL) has yet to spud for new reserves. Despite sluggish E&D activities; the sector is expected to optimise production from existing reservoirs and show attractive valuation, he said. During 1HFY12, Khan said, sector spudded a total of 22 E&D wells accomplishing only 29 per cent of the full year target of 76 wells. In the same period last year, the sector drilled 23 per cent of its target of 80 wells. “The activity continue to be skewed towards development activities, with 15 development wells as against full year target of 45, while only seven exploratory wells were drilled versus FY12 target of 31 wells,” Khan said. The listed sector, he said, remained muted in their own operating lease with major dependency on their JV partners. POL spudded one exploratory well and no development well, while PPL was on the other end of spectrum, with company drilling one development well and no exploratory well. OGDC has recently started working on their first exploratory well of the year, while have spudded six development wells. Among the last year carried over wells, majority of them have concluded with not so encouraging results. It yielded only one discovery in the Zin block, with that also falling short of industry’s expectation. The major excitement of the year has come from discovery of augment reservoir size from Tal and Naspha block, with PPL and POL standing at prime beneficiaries.