The CEO of a Red Deer company that recently converted into an income trust says he is pleased with the initial public offering and that the capital raised will be used to expand production and markets.

Jed Wood said High Arctic Energy Services Trust (TSX: HWO.UN) will be able to accelerate production of its new combination drilling rig that can underbalance drill, workover, complete and snub new and existing wellbores. The highly portable and automated rig is expected to be in high demand in Canadian and foreign oilfields.

High Arctic's IPO resulted in the issuance of 8.4 million trust units at a price of $10 each. They began trading on the Toronto Stock Exchange July 21, entering the market at a price of $11.50. They closed Friday at $12.00.

In addition to providing capital for expansion, Wood said the money raised will be used to repay existing debt. He added that by operating as an income trust, High Arctic is able to give members of its management team an equity interest in the business. That's an important perk when it comes to attracting and keeping skilled people.

Trust units have already been added to the compensation package for some long-term employees at High Arctic, said Wood. He believes this has given them an increased sense of ownership in and commitment to the company.

Transformation from a private company into a public trust will impact the way High Arctic operates, acknowledged Wood. For instance, disclosure requirements will make it easier for competitors to learn about new projects.

While participating in High Arctic's IPO, Wood was struck by the broad appeal of Western Canadian oilpatch companies to the investment community. In addition to other parts of Canada, there was strong interest in places like New York and London, England.

High Arctic's new board of directors consists of Alan Archibald, John Zaozirny, Christopher Warren, Michael Binnion, Ian Mallory and Wood.

The trust has announced that the initial cash distribution to unitholders for the period July 21 to Aug. 31 will be 11.85 cents per unit. Monthly distributions thereafter are expected to be about 8.75 cents.

Founded by Wood in 1993, it operates in Alberta, British Columbia and the Northwest Territories, and it is also active in Argentina, Iran, Pakistan, Saudi Arabia, Tanzania, Thailand, Turkmenistan, United Arab Emirates and Yemen.