Amidst circulating reports that giant oil firm Royal Dutch Shell may be eyeing Nexus Energy Ltd (ASX: NXS) as a takeover target, the energy company's shares saw a steep climb on Tuesday.

Nexus shares soared by almost 30 percent by Tuesday opening before steadying a bit and as of 1024 AEST, company shares were trading at 36.5 cents, gaining traction of up to six cents or 20 percent by the day's early morning trade.

Investors started showing further interest on Nexus following reports by The Australian that the company's shareholders were informed that a $480 million takeover bid has been put forward to the board.

Although the paper did not specify the specific suitor, industry sources said that Shell has been emerging as a prime suspect in buying out Nexus, which currently maintains holdings on offshore oil and gas projects in Victoria and Western Australia.

Shell, however, declined to clear the air on its alleged proposal to acquire the company as a spokeswoman stressed that "the company doesn't comment on market speculation,"

Analysts said that Nexus' present market capitalisation amounts to an estimated $292 million and considering a mooted takeover price, the company's stock could easily fetch a price of 50 cents per share should the acquisition pushes through.