Woitas countersues Husky over Sask. suit

Renaissance was acquired by Husky in August 2000, in a $4.3-billion reverse takeover that also transformed the Canadian integrated oil and gas company, controlled by Hong Kong tycoon Li Ka-shing, into a publicly traded firm.

In April of this year, Husky took Woitas and his company to a Saskatchewan court for allegedly breaching fiduciary duties by operating in the Shackleton/Lacadena area of southwestern Saskatchewan -- a region Husky claims was a major part of Renaissance's business plan, known as "gas mega-vision."

But in a statement of defence and counterclaim filed with the Queen's Bench Judicial Centre of Regina, the petroleum engineer said he grew his new company using publicly available information and his skills and knowledge.

He says even though Profico was a small startup company, it succeeded where Husky apparently failed, and now Husky is attempting to appropriate Profico's interests at less than fair market value.

None of the allegations made by either side has been proven in court.

Woitas also says his fiduciary duties to Renaissance, which he headed for 10 years, came to an end when the company's chairman fired him as president and chief executive in December 1999, "without notice, compensation or cause." That was before the company was sold to Husky.

Renaissance was one of the Canadian industry's strongest companies in the 1990s, but its stock plummeted by 2000 as its growth stalled.

Woitas claims Husky was well aware of his new activities at Profico and indeed the two companies worked as partners until the surprise lawsuit.

He alleges that Husky could have taken advantage of opportunities seized by Profico, but didn't appear to show any interest until Profico's efforts paid off.

"The claims made by Husky were only made after Profico had expended tens of millions of dollars of risk capital which led to the discovery and the development of valuable interests, far more valuable than anyone might reasonably have anticipated," the statement of defence says.

"Husky deliberately and consciously refrained from advancing a claim to any of Profico's interests in the Shackleton area until the risk had been removed. Once the risk had been removed and the value established, solely at the cost of Profico, Husky advanced its claims."

Profico says Husky's widely published allegations have been so disparaging it has been unable to carry on ordinary business and is seeking at least $335 million in general and specific damages and an additional $2 million in punitive damages.

Husky has alleged that Profico is only involved in the Shackleton play based on information that Woitas acquired while at Renaissance and has asked the court to transfer all of Profico's oil and gas interests to Husky. Husky has also asked for the disgorgement of all profit that were realized by Woitas and Profico from the Shackleton area, since the defendants have been "unjustly enriched" through operating in the Saskatchewan play.