SM Energy Co. (NYSE: SM) announced July 29 it's adding 61,000 net acres to its Bakken/Three Forks holdings for $330 million.

The deal with Calgary's Baytex Energy Corp. (NYSE, TO: BTE.TO) will boost SM's total acreage in the Williston Basin to 225,000 net acres, though analysts say the company’s overall position is outside of the Bakken’s core.

The deal gives SM an average 3,200 barrels of oil equivalent per day (boe/d), 91% of which is oil. The acreage is estimated to have proved plus probable reserves of 53.5 million boe, 81% of which is oil and NGL, as of Dec. 31, 2013.

SM will also gain interests in 126 drilling spacing units, 81 of which will be operated by the company. Working interest for operated spacing units is expected to range between 37.5% and 50%. Properties are 90% operated and about 70% HBP.

The position is directly adjacent to the Denver company’s Gooseneck area in Divide and Williams counties, N.D., where it holds 36,000 net acres.

The company has recently seen improvements in the area due to faster drilling times and improved completions, said Gabriele Sorbara, vice president of E&P/energy research at Topeka Capital Markets, in a report.

“SM has seen a 33% increase in the peak boe/d rate from its Three Forks wells in the Gooseneck area, which increase rates of return by 25% per well and NPV-15 increase by $2 million per well,” Sorbara said.

The company's Bakken acreage is less than "core” though, said Daniel Katzenberg, senior analyst, Baird Equity Research, in a report.

Despite a significant acreage holding in the Williston, much of the acreage sits on the northern part of the play where thinner economics have tended to prevail, Katzenberg said.

"We believe SM Energy's returns in the Bakken will be lower than its industry peers, that are in the core of the play."

Despite the acreage’s location in the play, SM Energy paid an adjusted $1,500 per acre or $103,000 per boe/d, Katzenberg said. The company essentially paid for the proved developed producing (PDP) value from development, he said.

Baytex sold off the land after a review of its assets was initiated in preparation for the completion of the $2.8 billion acquisition of Eagle Ford-focused Aurora Oil & Gas Ltd. (OTC: AAGLF, ASX: AUT.AX) The North Dakota assets were unlikely to command a large portion of the company’s budget going forward.

Nevertheless, Baytex walks away with $111,600 per flowing boe based on second-quarter 2014 production and $20.09 per boe of proved plus probable reserves, including future development costs of $718 million.

The transaction is effective July 1 and is expected to close by the end of the third quarter of 2014.