E.On has signed an agreement to sell its UK exploration and production subsidiaries to Premier Oil for $120 million (£83 million).

The portfolio includes stakes in 40 licenses, including a 5.2 per cent interest in the Elgin-Franklin field, a 47 per cent interest in the Babbage field and a 50 per cent stake in the Tolmount discovery. The deal is expected to be close in the first half of 2016, subject to regulatory and shareholder approval.

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