Pioneer Natural Resources Co. (NYSE: PXD) will sell 40% of its interest in about 207,000 net acres in the Spraberry Trend to a subsidiary of Sinochem Group for $1.7 billion in cash and carry.

The leased acreage is in a highly prospective horizontal Wolfcamp shale in the southern portion of the Spraberry Trend area field. At closing, Sinochem will pay $500 million in cash and will fund an additional $1.2 billion in future drilling costs. Analysts applauded the price tag for the deal, saying it was above Wall Street expectations ...