I decided to look through Connacher's past reports on SEDAR which I haven't done for about a year and I came across an Alternative Report posted on November 10, 2010 which states in item #5, that Fidelity Management and Research

"holds 56,110,722 common shares, or 12.51% of the outstanding common shares of Connacher Oil and Gas Limited. Fidelity's holdings include 1,980,000 common shares resulting from the assumed conversion of $9,900,000 principal amount of Senior Unsecured Convertible Debentures. Fidelity holds no related financial instruments."

There appear to be a couple of interesting things that we can deduce from this revelation. First, that Fidelity Management and Research is Connacher's largest single shareholder. Second, that Fidelity increased it's holdings in October 2010, to over 56 million common shares for investment purposes. This appears at face value to be good as Fidelity is a long term institutional investor that has held Connacher common shares over many years however, with one company holding so many common shares if they decided to unload them over a short period of time this could present a problem. Third, that Fidelity appears to have converted $9,900.000 worth of Senior Unsecured Convertible Debentures into 1,980,000 common shares. This must be part of the reason why the total amount of Connacher's outstanding Debentures went down from $100 million dollars to to $91,688,000 (at 4.75 %, due June 30, 2012 as stated on page 20 of the Q-3 Report).

On another note I agree with Sharky that the price of Connacher's shares are in line to run up to around $1.85 and maybe higher looking forward to the end of April 2011. There appear to be a number of catalysts at work here to boost the share price. Connacher's continued unhindered ramp up of production at both POD 1 and Algar continues to send a positive message to the market. The sale of the Battrum heavy oil project continues to send a positive message to the market. The results of the two unconventional oil wells that Connacher has drilled in central Alberta will be released around the end of February it has been reported which will send a positive message to the market if they are good wells, as Connacher has 100 possible wells to drill in inventory (as stated in the latest presentation). The first quarter report will show an increased cash flow which will send a positive message to the market when it comes out. As for the MRC refinery, the presentation stated that Connacher has contracts for the summer of 2011 to sell 500,000 bbls of asphalt at over $100 dollars US a barrel. This continues to send a positive message to the market. The announced sale of Petrolifera and Connacher's conversion of it's PDP shares into 3,000,000 Gran Tierra shares will send a positive message to the market as would the outright sale of these shares for cash to pay down debt. So there are many good things happening right now with Connacher to move the share price higher.

Cheers; Scott