A second company has made a takeover bid for AWE Limited, sending the oil and gas producer’s shares soaring.

In afternoon trading they were up 15.75 per cent to 84.5c.

Shares in the latest bidder, Mineral Resources Limited (ASX:MIN), dropped 5.5 per cent to $16.87.

Mineral Resources has proposed an all script scheme of arrangement at 80c a share, structured as one share for each 22.325 AWE shares held (ASX:AWE).

The Beijing-headquartered global player China Energy Reserve and Chemicals Group (CERCG) last week announced an all cash bid at 73c.

AWE says its board is evaluating both proposals.

“Shareholders should take no action in relation to the MRL proposal or the proposed offer from CERCG Australia,” the board said.

AWE posted a loss of $217.5 million in 2017, driven by impairments and writedowns of $224.2 million.

This article first appeared on Business Insider Australia, Australia’s most popular business news website. Follow Business Insider on Facebook or Twitter.

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