Can anyone explain this in simplified terms? We're paying 10.795% interest, but receiving 10.25% interest? A change (decrsease US?) of 0.01 cents in the exchange rate is worth $1,000,000 net earnings through Q3?

"In order to mitigate half of the foreign exchange exposure on the Senior Notes, the company entered into cross currency and interest rate swaps to fix one half of the Senior Notes’ principal and interest payments in Canadian dollars. The swaps provide for a fixed payment of C$304.8 million in exchange for receipt of US $300 million on December 15, 2015. The swaps also provide for semiannual interest payments commencing June 15, 2009 until December 15, 2015 at a fixed rate of 10.795 percent based on a notional C$304.8 million of debt in exchange for receipt of semi-annual interest payments until December 15, 2015 at a fixed rate of 10.25 percent based on a notional US $300 million of debt.

Relative to the company’s crude oil and bitumen revenue receivables, Senior Notes and currency swap, a $0.01 change in the Canadian dollar exchange rate would have resulted in a $400,000 change in net earnings for the three months ended September 30, 2008 and a $1 million change in net earnings for the first nine months of 2008."