It is understood that managing director John Akehurst yesterday presented the case for a $1.6 billion US acquisition and $1 billion equity issue to the board in Perth. Assuming board approval, speculation is rife in the market that confirmation of a US move will be made over the next few days,

The most likely target for Woodside would be Denver-based Westport Resources, which is an independent oil and gas player with activities in the Gulf of Mexico, Rocky Mountains, Permian Basin/Mid-Continent and the Gulf Coast.

No doubt any move overseas would need to take account the view of Shell, which has 34% stake in the Perth-based energy player. Many commentators believe it was Shell's concern about Woodside's ambitions to expand overseas that precipitated a Shell takeover bid last year, which was rejected by the Federal Government on the grounds of "national interest".