South Australian-based Beach Energy has launched a $94 million take-over offer for Adelaide Energy.

Beach Energy already holds 19.95 per cent of Adelaide Energy shares.

It has offered 20 cents for each remaining Adelaide Energy share, 43 per cent higher than their trading value of 14 cents when the market closed on Friday.

News of the offer sent Adelaide Energy shares up 43 per cent to 20 cents by 1114 AEDT on Monday.

“The take-over offer for Adelaide Energy represents a logical next step for Beach and will remove ongoing funding concerns relating to Adelaide Energy for the Nappamerri Trough unconventional gas work program,” Beach Energy managing director Reg Nelson said in a statement on Monday.

“It will consolidate Beach’s landholding in the heart of the Cooper Basin where we are focusing our efforts on what is a significant shale and basin centred gas play.”

Adelaide Energy holds exploration assets around the Otway and Cooper Basins in South Australia.

Its board has recommended shareholders take no action at present, pending a full evaluation of the options available to them.

The on-market offer, to be funded by Beach Energy’s cash reserves, is due to close on December 22.