Looks as though we may be seeing a more positive sentiment...

Looks as though we may be seeing a more positive sentiment emerging for the embattled s/p of WPL with LNG / gas / oil as preferred energy sources evolving in the wake of the horrific nuclear catastrophe that appears to be unfolding.

Pluto may well become WPL's much coveted "golden goose", despite its slow emergence from the "ugly gosling" phase.

"SYDNEY (Dow Jones)--Woodside Petroleum Ltd. (WPL.AU) said Thursday it discovered gas at a key exploration well offshore Western Australia state, boosting its chances of formally approving an expansion of its Pluto project this year.

Woodside said the Martin-1 well, drilled to a depth of 4,778 meters, intersected a gross gas column of about 100 meters within the target geological formation.

Australia's second biggest oil and gas producer behind BHP Billiton Ltd. (BHP.AU) is trying to find enough gas to expand its A$14 billion Pluto liquefied natural gas project beyond the first LNG processing unit currently under construction.

The discovery comes as Australian energy companies find favor as a worsening atomic crisis in Japan heightens expectations that LNG will be sourced by the fuel-strapped nation as a safer alternative to nuclear power.

At 0027 GMT, Woodside shares were up 0.8%, Santos Ltd. (STO.AU) up 1.0% and Oil Search Ltd. (OSH.AU) up 1.2% in an overall market down 0.5%.

Santos doesn't produce much LNG now, but it has stakes in three planned projects including a coal seam gas venture in Queensland, a traditional natural gas venture in Papua New Guinea with Oil Search, and a floating LNG proposal offshore northwestern Australia.

Woodside said last month that success at Martin-1 and another well, Xeres-1, would likely provide it with enough confidence to order long-lead items for a second train at Pluto.

A Woodside spokeswoman declined to comment on the progress of Xeres-1.

Perth-based Woodside is also engaged in discussions with potential third-party gas suppliers to Pluto, which could underpin construction of third and fourth LNG processing units."

-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692; [email protected]

http://online.wsj.com/article/BT-CO-20110316-716603.html