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Thank you for this information regarding ELK Petroleum Limited in respect of possible Market Manipulation. ASX Ltd appreciates information that is gathered from the public as it assists us in our role of maintaining market integrity by requiring compliance with the obligations set out in the ASX Operating Rules.

Surveillance notes that there are trades of small parcels in ELK - this is due to algorithmic trading or program trading which is executed via ASX's Direct Market Access systems (DMA).

Typically, program trading systems execute a large number of small orders instead of one large order in order to get an average price. There is further information at our web site: http://www.asx.com.au/professionals/institutional/direct_market_access.htm.

Program traders have to abide by the same rules as all other traders and if we were to see any indications of manipulation by such traders then we will take further action.

Please refer to this link for more information on the ASX Market Surveillance function:

http://www.asx.com.au/supervision/participants/surveillance.htm

Thank you once again for raising your concerns with ASX.



Yours sincerely,