Would the Woodside interest be conveyed in the form of a deed, or just a recorded assignment?
If by deed, I think the TYPE of deed would have impact on their culpability and by extension, liability.
Not really sure how it works, but for example, I think I could legally sell you "my interest" in the Golden Gate Bridge, even if that interest is zero, if we had a valid contract.
It would certainly be unethical, but not necessarily illegal.