OIL ALLOCATION MANAGEMENT LIMITED

TRADING RULES

We accept buy and sell orders only from registered clients. To be accepted and qualify for our Internet brokerage rates, online orders must comply with these Trading Rules.

When an order is received that does not comply with these Trading Rules, we will endeavour to contact you. However, you are ultimately responsible for revising your order. We will not be held responsible for any loss that may arise when an order is not accepted.

These Trading Rules apply to all dealings between you as a client and us. We reserve the right to vary these Trading Rules at any time. Any such variation shall apply to any dealing by you after it takes effect.

Trading Unit

Each unit is an entitlement to one (1) barrel of crude oil per month for a period of twenty (20) years supplied from the oil leases owned by Moonshine Oil & Gas Llc in the Caddo Pine Island field in Louisiana, USA.

Market / Limit Order

All orders must be submitted either ‘At Market’ or ‘At Limit’.

‘At Market’ orders cannot be accepted outside of market hours or when trading is halted/suspended.

An ‘At Limit’ order will not be accepted, without any advice to you, if we consider the limit price to be too far away from the prevailing market price of Oil Allocations on that day.

Limit orders can be amended or cancelled provided the order has not already been executed. However, market orders cannot be amended or cancelled during market hours.

Buy Orders

Buy Orders can be placed for Oil Allocations. In some circumstances, a deposit may be required before your order is sent to market.

Unless otherwise advised, we provide each account with a credit limit.

If your order exceeds the credit limit, then a deposit may be required. The notional deposit amount is calculated by reference to:

  • whether you are buying a large order;
  • the market value of the order; and
  • other open or unsettled buy orders.

Where a deposit is required, we will automatically offset the notional deposit amount with the market value of your Participant Sponsored Holdings and any cleared funds held in your Oil Allocation Management Account (OAMA). In many cases, no actual deposit will be needed and your order will be automatically sent to market.

Sell Orders

Sell orders will only be accepted when selling owned Oil Allocations, if the number of units available is sufficient for settlement of the trade.

Sell orders may not be accepted if:

  • there are insufficient units available for settlement in your Oil Allocation Management account or
  • an invalid Password or Certificate number for owned stock is supplied; or
  • more than one valid Certificate Number is supplied; or
  • stock is Participant Sponsored by a broker other than us.

Amending Orders

If you wish to amend the price of an order to a new price that is further away from the prevailing market price, the change in the total value must be at least $20. Smaller limit price amendments will only be accepted if the new price is closer to the prevailing market price for the stock.

Orders not accepted online

Orders involving any of the following do not qualify for our Internet brokerage rates and can only be placed over the telephone:

  • limit price amendments away from the prevailing market price where the change in total value is less than $20; or
  • registration details which are different from your Oil Allocation Management account details; or
  • payment in the name of a person or entity other than the account holder; or
  • request for early settlement; or
  • payment instructions which are different from the standing instructions for your Oil Allocation Management account; or
  • multiple Certificate numbers

General

Except as provided for in Clause 19 of our General Conditions of Trade, a limit order if not cancelled or executed earlier is valid for:

  • day only orders – for that business day only;
  • orders involving settlement through a margin lender, if accepted – a further 5 Business Days (order day +5) after the date your order is placed in the market;
  • Oil Allocation limit orders - 20 Business Days (order day +20) after the date your order is placed in the market.

Usually, an order received after market closing time is treated as an order received on the next trading Business Day.

In the event of a change in the basis of quotation of an Oil Allocation (eg the Allocation going ex-dividend), your outstanding order will be purged by the trading platform prior to the expiry date.

We reserve the right to take such steps as we consider necessary to check the bona fides of any client, order or instruction before acting on that order or instruction.