Canadian oil and gas producer Pengrowth Energy Corp (PGF.TO) said Friday it has agreed to be acquired by privately held oil company Cona Resources in a deal valued at $740 million.

Cona Resources, which is a portfolio company of Waterous Energy Fund, will pay five cents per share and a potential contingent value payment for each Pengrowth share.

Pengrowth, based in Calgary, says the oil price decline, lack of access to capital and what it calls "an uncertain political and regulatory environment" has prevented the company from finding a solution to its funding challenges.

"Despite the discount this transaction represents to Pengrowth's recent trading price, we strongly recommend our stakeholders support the arrangement agreement as it represents the most attractive alternative for all stakeholders given the current environment where there is essentially no access to capital for the company or participants in the Canadian oil and gas industry, in general," said Pete Sametz, president and CEO of Pengrowth, in a news release.

This follows news of Encana announcing it's moving its headquarters from Calgary to the United States, citing better access to capital south of the border.