The test was conducted over a restricted 10.5 metre interval, within a 65.5 metre thick gas sand. Following continued testing of this interval, a second interval in a different stratigraphic zone will be prepared for additional testing.

The ‘Atwood Eagle’ semi-submersible rig is drilling the well. Woodside Energy Ltd. has a 100% interest in WA-350-P.

Meanwhile, Hardman Resources Ltd has launched proceedings in the Supreme Court of Western Australia to establish its entitlement to cost recovery in the Mauritania oil joint venture.

Hardman said its joint operating and farm-in agreements with project operator Woodside Petroleum Ltd had been the subject of "considerable discussion and correspondence" since late 2003.

The partners have been unable to reach agreement, despite both parties proposing different terms for resolution by arbitration, Hardman said.

Hardman maintains the entitlement of all joint venture parties to recover costs should be calculated according to their participating interest in the venture.

But Woodside asserts that it should be entitled to recover 100% of its share of the farm-in costs for cost recovery purposes, according to Hardman.

“Other joint venture parties have indicated support for Hardman’s position [and] Hardman also has an opinion form a Queen’s counsel which supports its position,” the company said.

If the court makes the declarations Hardman is seeking, the company would receive about $US18m ($A23.5m) in additional cost recovery and reimbursement payments.

The proceedings will not impact on the development of the Chinguetti oil fields, which remains on track to produce oil in the first quarter of 2006, Hardman said.

"This is a one-off situation and will not impact upon the good working relationship Hardman has enjoyed and will continue to enjoy with Woodside in several joint ventures in Mauritania," said Hardman chief executive Simon Potter.

“The parties have agreed to disagree and it is necessary to obtain an independent determination of the issues involved.”