Arrow Energy Ltd. on Monday revealed that a company jointly owned by Royal Dutch Shell and PetroChina has sent it a takeover bid worth $3.3 billion Australian dollars ($3 billion).

Shell Energy Holdings Australia Ltd. extended a formal confirmation that it was considering to take over the Australian firm.

Brisbane-based Arrow posted in a statement to the stock exchange to receive a nonbinding indicative proposal of AU$4.45 per share along with a share in a new form comprised of Arrow's international business.

Arrow had recommended shareholders to take no action at the moment, and quoted that the company had appointed financial and legal advisers to ponder over the proposal.

Arrow Energy is an integrated energy company that supplies coal seam gas to eastern Australia and Asia. Moreover, it claims to have the biggest coal seam gas reserves in the state of Queensland.

The company shares registered a rise of more than 40 percent touching AU$4.98.