E.On has signed an agreement to sell its UK exploration and production subsidiaries to Premier Oil for $120 million (£84 million).

The portfolio includes stakes in 40 licences, including a 5.2% interest in the Elgin-Franklin field, a 47% interest in the Babbage field and a 50% stake in the Tolmount discovery.

The deal is expected to be closed in the first half of 2016, subject to regulatory and shareholder approvals.