Despite the fact that revenue would have been higher if two crude oil cargoes had been sold in the quarter, analysts said the feared profit slump due to the decline in production from the Laminaria field has come into sharp focus.

Revenue from the Laminaria field fell from $261 million to $91 million as production from the field fell from 5.8 million to 3.8 million barrels in the March quarter. Woodside said the Laminaria Phase 2 project was 55% complete and on schedule for a mid-year start-up, despite some difficulties with development drilling.

Not helping Woodside's cause was the drop in the oil price to an average of $US21.70 from $US28.80 a barrel in the March quarter last year.

North West Shelf LNG production of 21,345 tonnes per day was better than expected due to an extra spot cargo loaded to Japan in February. Woodside's share was 26,596 barrels per day (bpd).

Staying in the NWS, domestic gas production was to plan despite problems at BHP Billiton's DRI plant. Condensate production was also to plan at 109,814 bpd, with LPG at 2,211 tonnes per day. Production from the Cossack Pioneer Oil was above plan at 123,365 bpd.

Woodside also recorded its first full quarter of production from the Legendre oil field, which generated 1.49 million barrels of crude. Of that, 1.46 million barrels were sold generating $53.6 million of new revenue. Production is currently constrained by injection well performance, with a re-perforation planned for next month.

Despite the fall in revenue being in line with market expectations, Woodside's shares dropped 19 cents to $13.90 yesterday.