The energy sector jumped 2% at midday Friday, leading a broad-based rally on the Australian bourse. Brent crude climbed 3.4% to settle at $61.99 per barrel on Thursday.

NuEnergy Gas (ASX:NGY), which rose over 6%, signed a collaboration agreement on Thursday with PT Beijing Energy Linking for the development of its coalbed methane production sharing contracts in South Sumatra, Indonesia. NuEnergy shall appoint PT Beijing Energy Linking as the lead engineering, procurement, construction, and commissioning contractor for the development of the Tanjung Enim production sharing contract and Muralim production sharing contract.

On the flip side, the materials sector was the only one trading in the red, inching down just 0.1%.

Rio Tinto Group (ASX:RIO), whose shares fell over 6%, confirmed that it is in preliminary talks with Glencore for a possible merger of some or all of its businesses. Under the proposed deal, the company would acquire Glencore via a court-sanctioned scheme of arrangement, the filing said. The company has until Feb. 5 to announce a firm intention to make an offer for Glencore