Arrow Energy Ltd., jointly owned by Royal Dutch Shell Plc and PetroChina Co., has made a preliminary offer to buy Australian coal seam gas explorer Bow Energy Ltd. for A$520 million, Bow announced Monday.

Brisbane-based Bow said Monday it received an initial cash offer of A$1.48 a share from Arrow Energy, which wants more resources for a proposed liquefied natural gas project in Australia.

Bow shares rose 60 percent on news of the bid to close at A$1.42 Monday afternoon.

Arrow Energy was acquired for A$3.4 billion last August by subsidiaries of PetroChina Co. and Royal Dutch Shell Plc.

China's business press carried the story above on Tuesday.