Ann: Change of Director's Interest Notice , page-7

Hi Speccy

Good post. I would add that it would appear that Reg will need approximately $7 million in cash to exercise the 5.2 million options which expire November 2013, should he choose to do so.

On the other hand, the exercise price of these options is $1.406, so the price he sells at would have to be significantly above this to make it worthwhile when you take into account the CGT he will be paying on the sale of the FPOs.

So, it seems to me that Reg is managing the sales to try to lock in a profit. I expect we will see more sales over the next few months.

My feeling is that Reg is a very astute timer of the market (look at the Bodalla acquisition and the Dehli acquisition-brilliant timing IMHO), so I would not be surprised if he thinks the SP may fall a bit from here. Of course, he may just be hedging his bets, hoping to buy back in at a lower price on any dip-much the same as the rest of us might do. The flip side is that if the price hits say $2 by November, he will be cashed up in order to exercise the options.

To me it looks like he is just protecting his investment, and attempting to maximize his holding. I very much doubt he has any inside knowledge which indicates the SP will decline in the near term. I would be very surprised if his holding was not back near last year's level come November.

Everything, apart from the oppies (see below), I have seen of Reg's management gives me faith in the company. Beach is going from strength to strength IMHO, and is 1 of the 2 long term investments I hold.

I have to disagree with the options and performance rights mechanism for remuneration. I am yet to see any evidence that shareholders are not left worse off using this method of remuneration. Glad to hear from anyone with an alternate view. Note that Reg will receive payment for his 2.5 million performance rights in Dec at no cost. I haven't looked into the parameters associated with these as yet, but if the SP is anywhere near $2 in Dec I expect it will be quite a windfall for Reg.

Phil