Lost or not lost ball

[tigger12]

In a match play event.
Player A hits his ball into the woods. It is red staked.
He looks briefly for it but can't find it. So he drops a ball and is about to play.
Then he realizes his tee shot had kicked out onto the fairway!
He has not hit the dropped ball.
He asks if he can hit his original ball.
All the other competitors agree he gets to use his original ball, with no penalty.
Was this the right call?

[AAA]

Assuming he knew or was virtually certain that his ball was in the LWH, when he dropped another ball, that ball became the ball in play. His original is dead.

http://www.usga.org/rules/rules-and-...n-26,d26-1-3.5

Otherwise

http://www.usga.org/rules/rules-and-...n-26,d26-1-3.7


applies

[tigger12]

Here is that ruling AAA referred to.
Thanks AAA

Ball Dropped Under Water Hazard Rule with Knowledge or Virtual Certainty; Original Ball Then Found
Q.A player's ball is struck towards a water hazard. It is known or virtually certain that the player's ball is in the water hazard, and he drops a ball under Rule 26-1b. Before he plays the dropped ball, his original ball is found within the five-minute search period. What is the ruling?

A.As it was known or virtually certain that the ball was in the water hazard when the player put the substituted ball into play, that ball was correctly substituted and he may not play the original ball.

If the original ball was found in the water hazard and this discovery affects the reference point for proceeding under Rule 26-1b, resulting in the substituted ball having been dropped in a wrong place, the player must correct the error under Rule 20-6. The player must proceed in accordance with any of the applicable options under Rule 26-1 with respect to the correct reference point (see Decisions 20-6/2 and 26-1/16). Otherwise, Rule 20-6 does not apply and the player must continue play with the dropped ball. In either case, the player incurs a penalty of one stroke under Rule 26-1.

In the unlikely event that the original ball was found outside the water hazard, the player must continue with the dropped ball under penalty of one stroke (Rule 26-1).