chart anyone, page-26

Dear Carringbush56 et.al.

This is my understanding of it all. Others on the thread please correct me if I am wrong.

To convert your options into fully paid ordinaries you will need to fill out the appropriate paper work that BPT sent you a few weeks back with a cheque that would equate to $2 a share.

For example if you have 1000 option shares that will cost you $2000

Normally I am not one for telling others what to do with their hard earned money but mathematically and financially it is not a good time to convert / exercise with current prices. With BPTO trading around 3.5c you would be sacrificing significant future leverage at significant and detrimental costs to you. As you can buy the ordinaries off the open market now for 75c why would you "buy" (or convert / exercise) for $2? Remember with an option you just have a RIGHT to buy at a set price in the future.

Lets see for example (lets take brokerage costs out for convenience)....

you have $2000 to convert your 1000 into ordinaries. After you exercise the option share into an ordinary you obviously would have 2000 ordinary Beach Petroleum shares.

On the other hand if you went to the open market with $2000 that would buy you 2665 shares (based on 75c a share). Plus you could sell your 1000 options and get $40 (WOW).


More shares for you.

If you don't want your options you can sell them in their own right at 3.5 -4 c on current prices. Either that or just put them in your bottom draw for a while and see what happens. Just remember though Option shares have a shelf life. In this case August 2010. To start thinking about exercising the options the ordinary sp will need to be much much higher. At the end of the day though do what makes you happy.

regards

Capt. Goodvibes

Disclosure:- Don't take this as financial advice. I am a washed up surfer who lives in a 30 year old house and still wear the cloths I wore to university in the 1980's. Seek out extra help from a sharper and better dressed person than me. I hold BPT and BPTO.