They also stated some optimism about the 100 well + at Pekisko and debt refinancing etc..

So their target of 1.5 can be reviewed based on happenings from below and other conditions.Smaal cap stocks can jump up on extra news in the positive way .They talk also about the "Blue Sky " upside.

What to Watch
■ Possible debt refinancing this summer. The company's US$200M First Lien Senior Notes,
11.75%, due July 15, 2014 can be redeemed by Connacher under certain conditions. After
July 15, 2011 the company may redeem the notes at a price of 105.875 percent.
■ Three Pekisko light oil wells drilled, 100+ locations. The company announced that its
much anticipated light oil resource play is targeting the Pekisko formation in Alberta.
Connacher has drilled three wells to date, with one on production, the second awaiting tie-in,
and the third awaiting completion (fracing). However, aside from divulging it has amassed
30+ sections in the play and over 100 locations, Connacher remained tight lipped about the
prospectivity choosing to wait until it acquires additional data.
■ Although the opportunity is exciting, additional results and disclosure are needed
before attributing any value. From our analysis of oil and gas resource plays last fall, we
concluded the Pekisko light oil is among some of the most attractive plays in North America.
Our analysis shows the Pekisko's profit investment ratio (PIR) above 2.0x, with mid-cycle
NPV/well around $2.3M ($85 WTI, $6/mcf Henry Hub, horizontal with no fracs, after-tax).
Until additional information is available, we view the opportunity as "Blue Sky" upside to
Connacher, and consequently have not included any value in our NAV.
■ Expansion decision to unfold in... 2011? 2012? Connacher anticipates regulatory approval
for its Expansion Project at Algar later this year, or early 2012. Should the approval be
granted earlier this year, the company may still decide on sanction and development strategy
late 2011/early 2012. Development options include a one-phase approach with production of
24 Mbbl/d, or splitting development into two phases of 12 Mbbl/d each. Capital intensity is
expected at $25,000 per bbl/d, or $600M for the one-phase approach.