West Australian gas player Strike Energy has launched a sweetened all-scrip takeover offer for in-demand target Warrego Energy as it goes head-to-head with Gina Rinehart’s Hancock Prospecting’s cash bid for control of the Perth Basin producer.

Shares in Warrego jumped as much as 15 per cent on Monday morning after Strike, chaired by WA businessman John Poynton, said it was bypassing the Warrego board with a direct offer of one of its shares for each share in the target.