I normally wouldn't waste my time with willysam and dondon posts, but I have too much respect for the other posters to let this insanity continue.

ALL transactions from CLL are transacted in CDN$$ (period).

The two mitigating risks for CLL are Crude Oil Prices (mitigated with a hedge, on an American Exchange, thus quoted in U$ dollars), and the U$ dollar itself (mitigated with U$ forex instruments).

When a hedge for oil is put in place, it states that CLL SOLD, say at U$49/bbl, an equivalent production amount, say 2500 bbl, for a certain timeframe on an American Exchange. Why? To protect a MINIMUM value for 2500 bbl. It basically SELLS, or shorts the market. If prices decline, CLL will make a profit on the hedge BUT LOSE money when bringing their product to market (because prices have dropped). If the reverse happens, and prices go up, CLL will LOSE money on the hedge, but will GAIN on the open market for their product. Financial Statements and News release must state these in U$ dollars because the hedge is made in U$ dollars - no relevance to the actually sale to OPTI, which is in CDN$ dollars.

Forex instruments are required for two reasons: 1) World Oil prices (and the exchange s where traded) are quoted in U$ dollars - so CLL oil is risk adverse to any fluctiations in the U$ greenback, and 2) CLL debt is in U$ dollars, significantly risking costs if the U$ increases substantially over the CDN$. Again, the forex instruments are traded in U$ dollars and are quoted in U$ dollars. This hedge works in the same fashion as the oil hedge, except we get a little more fancy and create "collars". This type of hedge creates a "floor" and "ceiling" range that CLL believes they can tolerate for the company. There are many different types of hedges, and CLL management believes this type to works best.

Forex and Hedges are used to minimize , not eliminate risk. And don't confuse the instruments's currency, as being CLL's currency - two totally different monsters.

Hope this helps.

Booster