Shares in Wenzel Downhole Tools jumped nearly 30 per cent Wednesday on word of a takeover move by High Arctic Energy Services Trust.

The Alberta-based trust disclosed late Tuesday that it has agreements with Wenzel shareholders owning about 40 per cent of the company to tender their stock if high Arctic offers $2.30 or more per share, at least half in cash.

Shares in Wenzel Ð which invents, makes, sells and rents oil and gas drilling tools in Alberta, Texas, Wyoming and Oklahoma Ð rose 60 cents, or 29.27 per cent, to close at $2.65 in Wednesday trading of 2.3 million shares. The stock traded as high as $2.73 in the morning.

The stock had ranged between $2.70 and $1.35 since trading resumed in late January after a halt imposed by regulators in the spring of 2004.

The High Arctic move, in concert with major stockholder Douglas Wenzel, "is clearly not solicited" by the company, said Wenzel Downhole chief executive Harvie Andre.

Andre, a former federal Conservative cabinet minister who took over as CEO in January 2005, noted in an interview that Douglas Wenzel remains under a cease-trade order from the Alberta Securities Commission and is barred for involvements in the company.

"There's quite a few unanswered questions before we take any other step," Andre said, observing that High Arctic has not presented an offer.

Andre, who had been a Wenzel Downhole director since 1994, "was the last guy standing" amid the company's entanglement in allegations of financial irregularities, and as CEO "recruited a new board, changed all the management, and now we've got a sweet little company," he said.

"I just wish we could get rid of some of this residual leftover."

High Arctic, which provides oilfield equipment and services in Western Canada, the Middle East and former Soviet republics, stated that an acquisition of the restructured Wenzel "would be expected to be accretive to the trust and allow the combined entity to realize increased margins, synergies from operations and expand its international presence."