The Agreement provides that we purchase Voyager's remaining properties, consisting of 2,457 gross acres, in two separate closings for total consideration of $32.8 million. Management estimates that these properties contain proved reserves totaling 29.9 BCFE plus probable reserves totaling 16.1 BCFE, for a total of 46 BCFE, representing an acquisition cost of $1.09 per MCFE for proved reserves and $0.71 per MCFE for proved plus probable reserves.
On October 10, 2006, Dune purchased an initial $7.0 million of Voyager's remaining properties. The new Agreement provides that the balance of Voyager's assets, totaling $25.8 million, be acquired by Dune on or before January 19, 2007. Dune's obligation to purchase such remaining assets is subject to financing.
The assets purchased on October 10, 2006 consist of 857 gross acres, two producing wells thereon, and two wells drilled and scheduled for fracture stimulation prior to year end. There are also a total of 18 additional drilling locations, three of which management presently anticipates will be drilled horizontally. The two producing wells that Dune acquired in this closing are the Underwood and Smith-East wells, which Dune placed on production August 30, 2006 and September 7, 2006, respectively. Management has estimated proved reserves totaling 11.9 BCFE and probable reserves totaling 3.5 BCFE were acquired at a cost of $0.59 per MCFE for proved reserves and $0.45 per MCFE for proved plus probable reserves. Dune drew down $4.0 million from its Senior Credit Facility in connection with this purchase.
The remaining Voyager assets totaling $25.8 million consist of 1,600 gross acres, with 29 additional drilling locations identified. Up to one third of this acreage is expected to be drilled horizontally. Management has estimated that these properties contain proved reserves totaling 18 BCFE and probable reserves of 12.6 BCFE, representing a potential acquisition cost of $1.43 per MCFE of proved reserves and $0.84 per MCFE for proved plus probable reserves.
Dune expects to shortly enter into a definitive contract for the construction of and subsequent long term contract for a drilling rig for the Company's exclusive use on its Barnett Shale properties. This rig, which will be the second such dedicated rig for Dune, will be capable of drilling deviated and horizontal wells. Pending execution of the definitive agreement, management expects the second rig to be delivered during the first quarter of 2007. Consistent with the terms of the contract for our existing rig, the initial term of the contract for this second rig will be two years with an extension clause. The day rate will be fixed, with a price renegotiation clause at the end of the initial twelve months of operation. Dune will retain the right to sublease the rig if needed.
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