That level is well into nutritional ketosis, as defined by Stephen Phinney and Jeff Volek. They set the lower limit at 0.5 mmol/dL, because that was where they generally began to see the benefits of circulating ketones, but as Dr. Phinney admitted at Ketofest this year, that limit is somewhat nebulous. People have been known to be fat-adapted at lower levels than that (mostly elite fat-adapted athletes). Higher levels of 1.2 don’t necessarily mean that you are “more in ketosis,” because the measurement is of how much β-hydroxybutyrate is circulating in your blood, not how much is being produced, or how much your brain, heart, and other organs are using.
The simplest way to determine whether you are producing ketone bodies or not, is to ask yourself two questions: (1) am I eating less than 20 g/day of carbohydrate? (2) am I breathing in and out? If the answer to both questions is Yes, then you are in ketosis.
The matter of fat adaptation is different. Whereas we enter ketosis as soon as our blood sugar level drops sufficiently, fat adaptations takes around two months, and for some people much longer. This is because of the need for healing and re-adaptation at the cellular level, process with take time. During the adaptation phase, you should experience a drop in energy, since your muscles prefer to burn fatty acids but have to make do with ketones until they finish adapting.
If you experience flu-like symptoms, however, that is caused by a lack of sodium and can be cured by increasing your salt intake. The kidneys excrete sodium more readily on the proper human diet, whereas carbohydrate and the resulting high insulin level impede their ability to excrete sodium. The return to a normal excretion rate needs to be compensated for.