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Woodside: Shares slammed, but long-term story remains on track

Woodside Petroleum Ltd. (ASX: WPL) announced in their Annual Investor Update that they would achieve a target production at the higher end of their original estimation.

Woodside are on target to produce 63 to 64 million barrels of oil equivalent. This is up from their original target of 62 to 64 million barrels of oil equivalent.

It didn’t do much for their shares however, falling 6 per cent back down to around $33, a long way off their 2011 peak of $48 back in April.

Looking ahead to 2012, Woodside are predicting a full year production of 73 to 81 million barrels of oil equivalent.  This is comprised of a range of 56 to 60 million barrels of oil equivalent for the underlying business (excluding Pluto) and 17 to 21 million barrels of oil equivalent for Pluto Train 1.

Woodside’s expects first LNG cargo from the Pluto foundation project by March 2012.

Despite the share price fall, the long-term story with Woodside remains largely unchanged, and attractive.

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