LAHORE (PPI) - The recent surge in international oil prices is expected to create a positive variance in the upcoming Pakistans Oilfields Limited (POL) 3Q results. Overall, it is expected the company to post earnings of Rs13.1 per share in 3QFY11, translating into 9MFY11 EPS of Rs34.8. In line with the historical trend, analysts do not expect any dividend announcement to accompany corporate result. Based on firm oil prices we have also revised upward our 4Q oil price assumption and have pushed up our full year earnings forecast. We maintain our 'Buy stance on POL at current levels. During 3QFY11, companys top-line is expected to depict a massive growth of 35 percent to Rs7.0bn on account of favorable price as well as volumetric variance. As per our estimates, companys net realized oil prices are expected to stand at US$92 per barrel (up 32 percent YoY) on account of surge in international crude oil prices, while surge in Tal block oil and gas production is expected to push up companys oil and gas production by 10 percent and 20 percent, respectively. During 9MFY11, companys topline is expected to post a growth of 45 percent to stand at Rs18.6bn verse Rs12.8bn in same period last year. Further support to the companys profitability is expected to come from reduced exploration expenditure by 14 percent to stand at Rs250mn on account of muted exploration program. and no dry-well in the period under review. Companys Domail-I is in testing phase and therefore, we downplay the chance of the well to be declared dry. The company is rich in short-term triggers which could enhance its profitability such as 1) Maramzai gas field which is temporarily suspended due to terrorist attacks, 2) 1,500bpd oil flows from Makori- east while its deeper horizon is still being tested which could further boost oil production to 315bpd. Moreover, with rising oil prices amid MENA concerns we have also revised our 4QFY11 oil price assumption from US$85 per barrel to US$98 per barrel. Thus our full year FY11 earnings have been revised upwards by 7 percent to Rs47 per share. We recommend 'Buy on the scrip with our target price of Rs396 per share.