**UNITED STATESSECURITIES AND EXCHANGE COMMISSION**

**Washington,D.C. 20549**

 

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**FORM 10-Q**

 

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**QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OFTHE SECURITIES EXCHANGE ACT OF 1934**

 

**For thequarterly period ended March 31, 2003**

 

**CommissionFile Number: 333-93399-01**

 

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**REEF GLOBAL ENERGY I, L.P.**

(Exact name of registrant as specified in its charter)

 

| **Nevada**                                                          |   | **41-2064521**                                            |
|---------------------------------------------------------------------|--------|-----------------------------------------------------------|
| (State or other jurisdiction of  incorporation or organization)     |   | (I.R.S. employer  identification no.)                     |
|                                                                |   |                                                      |
| **1901  N. Central Expressway, Suite 300  Richardson, Texas 75080** |   | **(972)  437-6792**                                       |
| (Address of principal executive offices,  including zip code)       |   | (Registrant’s telephone number,  including area code |

 

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Indicate by check markwhether the registrant (1) has filed all reports required to be filed bySection 13 or 15(d) of the Securities Exchange Act of 1934 during thepreceding 12 months (or for such shorter period that the registrant wasrequired to file such reports), and (2) has been subject to such filingrequirements for the past 90 days. Yes  ý   No  o

 

Indicateby check mark whether the registrant is an accelerated filer (as defined inRule 12b-2 of the Exchange Act).

Yes  o   No  ý

 

 

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**ReefGlobal Energy I, L.P.**

**Index**

 
| **PART I –   FINANCIAL INFORMATION** |
|------------------------------------------------|
|                                           |   |   |
|                                           | **ITEM 1. FINANCIAL STATEMENTS** |   |
|                                           |   | *Condensed Balance Sheets* |
|                                           |   | *Condensed Statement  of Operations* |
|                                           |   | *Condensed Statement  of Cash Flows* |
|                                           |   | *Notes to Condensed Financial Statements* |
|                                           |   |   |
|                                           | **ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF  FINANCIAL CONDITIONAND RESULTS OF  OPERATIONS** |
|                                           |   |   |
|                                           | **ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES  ABOUT MARKET RISK** |
|                                           |   |   |
|                                           | **ITEM 4. CONTROLS AND PROCEDURES** |
|                                           |   |   |
| **PART II – OTHER INFORMATION**           |   |
|                                           |   |   |
|                                           | **ITEM 1. LEGAL PROCEEDINGS** |   |
|                                           |   |   |
|                                           | **ITEM  2. CHANGES IN SECURITIES AND THE USE OF PROCEEDS** |
|                                           |   |   |
|                                           | **ITEM 3.  DEFAULTS UPON SENIOR SECURITIES** |   |
|                                           |   |   |
|                                           | **ITEM  4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS** |
|                                           |   |   |
|                                           | **ITEM 5. OTHER INFORMATION** |   |
|                                           |   |   |
|                                           | **ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K** |   |
|                                           |   |   |
|                                           | **SIGNATURES** |   |
|                                           |   |   |
|                                           | **CERTIFICATION  BY CHIEF EXECUTIVE OFFICER** |   |
|                                           |   |   |
|                                           | **CERTIFICATION  BY CHIEF FINANCIAL OFFICER** |   |
|                                                |  |  |  |

 

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# **PART I** FINANCIAL INFORMATION

# ** **

## **Item 1**. Financial Statements

 

**Reef Global Energy I, L.P.**

### **Condensed Balance Sheets**

 
|                                                    |   | **March 31,  2003** |          | **December  31,  2002** |       |
|---------------------------------------------------------|--------|---------------------|---------------|-------------------------|------------|
|                                                    |   | **(Unaudited)**     |          |                    |       |
| **Assets**                                              |   |                |          |                    |       |
| **Current  assets:**                                    |   |                |          |                    |       |
| Cash  and cash equivalents                              |   | $                   | 1,227,528     |                    | $          | 1,703,041 |   |
| Accounts  receivable from affiliates                    |   | 37,665              |          | 83,986                  |       |
| Accrued  interest receivable                            |   | —              |          | 94                      |       |
| Prepaid  drilling costs                                 |   | 273,375             |          | —                  |       |
| **Total  current assets**                               |   | **1,538,568**       | ** **    | **1,787,121**           | ** ** |
|                                                    |   |                |          |                    |       |
| **Property  and equipment:**                            |   |                |          |                    |       |
| Oil  and gas properties, full cost method of accounting |   | 439,473             |          | —                  |       |
| Accumulated  depreciation and depletion                 |   | —              |          | —                  |       |
| **Net  property and equipment**                         |   | **439,473**         | ** **    | **—**              | ** ** |
|                                                    |   |                | ** **    |                    | ** ** |
| **Total  assets**                                       |   | **$**               | **1,978,041** | ** **              | **$**      | **1,787,121** | ** ** |
|                                                    |   |                |          |                    |       |
| **Liabilities  and partners’ equity**              |   |                |          |                    |       |
| **Current  liabilities:**                               |   |                |          |                    |       |
| Accounts  payable                                       |   | $                   | 178,404       |                    | $          | — |   |
| Accounts  payable to affiliates                         |   | 165,039             |          | 105,075                 |       |
| **Total  current liabilities**                          |   | **343,443**         | ** **    | **105,075**             | ** ** |
|                                                    |   |                |          |                    |       |
| **Partners’  equity:**                             |   |                |          |                    |       |
| General  partners                                       |   | 925,225             |          | 952,657                 |       |
| Limited  partners                                       |   | 709,373             |          | 729,389                 |       |
| **Total  partners’ equity**                        |   | **1,634,598**       | ** **    | **1,682,046**           | ** ** |
|                                                    |   |                | ** **    |                    | ** ** |
| **Total  liabilities and partners’ equity**        |   | **$**               | **1,978,041** | ** **              | **$**      | **1,787,121** | ** ** |

 

*Seeaccompanying notes*

 

1

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**ReefGlobal Energy I, L.P.**

### **Condensed Statement of Operations**

 
|                                          |   | **March 31,  2003** |        |
|-----------------------------------------------|--------|---------------------|-------------|
|                                          |   | **(Unaudited)**     |        |
| **Revenues:**                                 |   |                |        |
| Oil  and gas sales                            |   | $                   | —      |   |
| Interest  income                              |   | 22                  |        |
| **Total****revenues**                         |   | **22**              | ** **  |
|                                          |   |                |        |
| **Costs  and expenses:**                      |   |                |        |
| Lease  operating expenses                     |   | —              |        |
| Depreciation  and depletion                   |   | —              |        |
| General  and administrative                   |   | 51,865              |        |
| **Total  costs and expenses**                 |   | **51,865**          | ** **  |
|                                          |   |                |        |
| **Partnership  net loss**                     |   | **$**               | **(51,843** | **)** |
|                                          |   |                |        |
| Net  loss per managing general partner unit   |   | $                   | (1,622      | ) |
| Net  loss per additional general partner unit |   | $                   | (467        | ) |
| Net  loss per limited partner unit            |   | $                   | (467        | ) |

 

*See accompanying notes*

 

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**ReefGlobal Energy I, L.P.**

### **Condensed Statement of Cash Flows**

 
|                                                                        |   | **March 31,  2003** |          |
|-----------------------------------------------------------------------------|--------|---------------------|---------------|
|                                                                        |   | **(Unaudited)**     |          |
| **Operating  Activities**                                                   |   |                |          |
| **Net  loss**                                                               |   | **$**               | **(51,843**   | **)** |
| Adjustments  to reconcile net loss to net cash used in operating activities |   |                |          |
| **Changes  in operating assets and liabilities**                            |   |                |          |
| Accounts  receivable from affiliates                                        |   | 46,321              |          |
| Accounts  receivable                                                        |   | 94                  |          |
| Prepaid  drilling costs                                                     |   | (273,375            | )             |
| Accounts  payable                                                           |   | 147,232             |          |
| Accounts  payable to affiliates                                             |   | 59,964              |          |
| **Net  cash used in operating activities**                                  |   | **(71,607**         | **)**         |
|                                                                        |   |                | ** **    |
| **Investing  Activities**                                                   |   |                |          |
| Property  acquisition and development                                       |   | (408,301            | )             |
| **Net  cash used in investing activities**                                  |   | **(408,301**        | **)**         |
|                                                                        |   |                |          |
| **Financing  Activities**                                                   |   |                |          |
| Partner  capital contributions, net of syndication costs                    |   | 4,395               |          |
| **Net  cash provided by financing activities**                              |   | **4,395**           | ** **    |
|                                                                        |   |                | ** **    |
| **Net  increase (decrease) in cash and cash equivalents**                   |   | **(475,513**        | **)**         |
| Cash  and cash equivalents at beginning of period                           |   | 1,703,041           |          |
| **Cash  and cash equivalents at end of period**                             |   | **$**               | **1,227,528** | ** ** |

 

*See accompanying notes*

 

3

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**Note****1.Accounting Policies and Basis of Presentation**

 

Reef Global Energy I,L.P. (the “Partnership”) is the first in a series of up to ten Nevada limitedpartnerships to be formed comprising a program called Reef Global EnergyVentures (the “Program”), pursuant to an S-1 Registration Statement declaredeffective May 31, 2001. Reef Global Energy I, L.P. is a Nevada limitedpartnership formed under the Nevada Revised Limited Partnership Act. ReefPartners LLC (“Reef Partners”) serves as managing general partner. ThePartnership interests are held by the managing general partner and investorpartners who are general and limited partners (“investor partners”). ThePartnership primarily intends to acquire offshore and onshore interests in oiland gas properties in the United States in which major or independent oilcompanies also have interests. The Partnership will generally purchase lessthan a majority interest in the properties acquired and be a non-operatorworking interest owner. The Partnership expects to purchase interests in bothexploratory and developmental drilling projects.  The Partnership did not engage in any oil and gas activity untilafter the offering period closed on December 31, 2002.

 

The financial statementshave been prepared in accordance with the instructions to Form 10-Q and do notinclude all disclosures required by generally accepted accounting principles.However, we have recorded all transactions and adjustments necessary to fairlypresent the financial statements included in this Form 10-Q. The adjustments arenormal and recurring. The following notes describe only the material changes inaccounting policies, account details, or financial statement notes during thefirst three months of 2003. Therefore, please read these financial statementsand notes to the financial statements together with the audited financialstatements and notes to financial statements in the Partnership’s 2002 Form10-K. The Partnership began oil and gas activities in January 2003. Because thefuture results of the Partnership are dependent upon drilling operations whichcommenced in January 2003 and are expected to continue during most of thecalendar year, the results for the first quarter cannot necessarily be used toproject results for the full year.

 

**Note 2.  NewAccounting Policies**

 

The Partnership hasadopted Statement of Financial Accounting Standards No. 143 “*Accountingfor Asset Retirement**Obligations*” effective January 1, 2003.The statement requires the Partnership to estimate the fair value of assetretirement obligations (dismantlement and abandonment of oil and gas wells andoffshore platforms) in the period in which the asset is first placed inservice. The Partnership then adjusts the current estimated obligation forestimated inflation and market risk contingencies to the projected settlementdate of the obligations. The result is then discounted to a present value fromthe projected settlement date to the date the asset was first placed inservice. The Partnership will record the present value of the asset retirement obligationas additional property cost and as an asset retirement liability. A combinationof the amortization of the additional property cost (using the unit ofproduction method) and the accretion of the discounted liability will berecorded as expense in the income statement.

 

There is no cumulativeeffect of this change on the Partnership’s previously reported statements,since the Partnership had no oil and gas assets placed in service at December31, 2002. As of March 31, 2003, this statement has no impact since none of thePartnership’s drilling projects have been placed into service.

 

**Note 3. Prepaid Drilling Costs**

 

During March 2003, thePartnership prepaid certain drilling costs associated with the Scherer B#3 welland the Matthew J Guidry et al #1 well. The Matthew J Guidry et al #1 well wasengaged in drilling operations as of March 31, 2003.

 

4

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The Scherer B#3 wellcommenced drilling operations on April 28, 2003.

 

**Note 4. Commitments and Contingencies**

 

The Partnership is notcurrently involved in any legal proceedings.

 

Reef Partners, themanaging general partner of the Partnership, has entered into an agreement withChallenger Minerals, Inc., (“CMI”) a subsidiary of GlobalSantaFe Corporationand a screener of oil and gas prospects in the Gulf of Mexico region. Underthis agreement, during the period between January 31, 2002 and January 31,2005, CMI will screen and present to Reef Partners a minimum of 50 prospectsper year in the Gulf of Mexico region. Reef Partners will have the right topurchase up to 12.5% of the interest made available to CMI in any of theseprojects. Reef Partners is under no obligation to acquire any interest in anyproject reviewed by CMI and presented to Reef Partners as a viable project.Reef Partners will pay a fee of $1,125,000 ($375,000 per year) (the “Fee”) forthe geological and geophysical services provided by CMI under the agreement.Projects approved for acquisition by Reef Partners will be assigned to ReefGlobal Energy I, L.P. as well as other partnerships formed as part of theProgram. Based upon initial estimates prepared by Reef Partners, each of thepartnerships formed under the Program will reimburse Reef Partners an amountequal to 5% of the gross capital contributions made to each partnership. Theamount of the Fee to be reimbursed to Reef Partners by Reef Global Energy I,L.P. is $98,066.  During the firstquarter of 2003, the fee has been capitalized as geological and geophysicalcosts in accordance with the full cost method of accounting for oil and gasproperties, and as a payable to Reef Partners.

 

**Note 5. Drilling Activity**

 

ThePartnership began oil and gas activities effective January 1, 2003.****The Partnership has currentlycommitted funds to six projects. A summary of these projects as of May 6, 2003is set forth below. The estimated costs shown are estimated third party costsbased upon the AFE (authority for expenditure) amounts and do not include anallocation of the Challenger fee nor any direct costs of Reef Explorationpersonnel.

 
| **Well Name**                   |   | **Location**        |   | **Working  Interest** |   | **Revenue  Interest** |   | **Estimated  Cost** |        | **Status** |
|---------------------------------|--------|---------------------|--------|-----------------------|--------|-----------------------|--------|---------------------|-------------|------------|
| **Main  Pass 57**               |   | **Gulf  of Mexico** |   | **4.69**              | **%**  | **3.69**              | **%**  | **$**               | **254,000** |       | **Productive,  waiting on permit approvals to build sales pipeline** |
| **Grand  Isle 27**              |   | **Gulf  of Mexico** |   | **1.50**              | **%**  | **1.23**              | **%**  | **$**               | **115,000** |       | **Dry  hole, well plugged and abandoned** |
| **Eugene  Island 268**          |   | **Gulf  of Mexico** |   | **5.00**              | **%**  | **3.75**              | **%**  | **$**               | **353,000** |       | **To  be drilled** |
| **Eugene  Island 190**          |   | **Gulf  of Mexico** |   | **3.75**              | **%**  | **2.67**              | **%**  | **$**               | **254,000** |       | **Drilling** |
| **Scherer  B#3**                |   | **Oklahoma**        |   | **13.36**             | **%**  | **8.98**              | **%**  | **$**               | **184,000** |       | **Drilling** |
| **Matthew  J  Guidry et al #1** |   | **Louisiana**       |   | **4.00**              | **%**  | **3.12**              | **%**  | **$**               | **201,000** |       | **Productive,  completing** |

 

5

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**Note 6.Partnership Equity**

 

During the offeringperiod ended December 31, 2002, the Partnership sold 98.807348 units.Information regarding the number of units outstanding and the net loss per typeof Partnership unit for the quarter ending March 31, 2003 is detailed below.

 
| **Type of Unit**                  |   | **# of Units** | ** ** | **Net loss** | ** ** | **Net loss per unit** | ** ** |
|-----------------------------------|--------|----------------|------------|--------------|------------|-----------------------|------------|
| Managing general partner  units   |   | 4.940367       |       | (8,013       | )          | $                     | (1,622     | ) |
| Additional general  partner units |   | 51.000000      |       | (23,814      | )          | $                     | (467       | ) |
| Limited partner units             |   | 42.866981      |       | (20,016      | )          | $                     | (467       | ) |
| Total Units                       |   | 98.807348      |       | (51,843      | )          |                  |       |

 

6

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**Item 2****.**           **Management’s Discussion and Analysis of Financial Conditionand Results of Operations.**

 

The following discussion will assist you in understanding thePartnership’s financial position and results of operations. The informationbelow should be read in conjunction with the financial statements, the relatednotes to financial statements, and the Partnership’s Form 10-K for the yearended December 31, 2002 (the “2002 10-K”).

 

This discussion contains both historical and forward-lookinginformation. We assess risks and uncertainties about our business, strategy,and financial condition before we make any forward-looking statements, but wecannot guarantee that our assessment is accurate or that our goals andprojections can or will be met. Statements concerning our strategy foracquiring prospects, estimating the number, type, and percentage interest inprospects we may acquire, estimated drilling and completion costs for prospectsacquired, future uses of Partnership funds, and the state of the oil and gasindustry are all forward-looking statements.

 

This discussion is primarily an update to the Management’sDiscussion and Analysis of Financial Condition and Results of Operationsincluded in our 2002 10-K. We recommend that you read this discussion in conjunctionwith the 2002 10-K.

 

**Liquidity and Capital Resources**

 

The Partnership wasfunded with initial contributions totaling $1,961,326. Reef Partnerscontributed $83,986, the additional general partners contributed $1,020,000,and the limited partners contributed $857,340. Syndication costs of $231,601and organization costs of $50,000 were incurred leaving available cash of$1,679,725 for Partnership activities. The Partnership offering was closed onDecember 31, 2002. The Partnership did not engage in any oil and gas activityuntil after December 31, 2002.

 

During the first quarter,the Partnership identified and committed funds to six drilling projects. Fiveof these projects are identified as developmental, and one is an explorationproject. All six projects are located in the United States. Projected thirdparty costs, based upon initial expenditure estimates, are $1,361,000 for thesesix projects (see Note 5 to condensed financial statements). The Partnershiphas also committed $98,066 to be paid to Reef Partners as reimbursement of itsportion of the Challenger fee (see Note 4 to condensed financial statements).The Partnership has also expended $49,503 for general and administrative costsand $43,493 as payment for direct and administrative costs provided by ReefExploration. These committed and expended funds total approximately $1,552,000.The partnership agreement prohibits bank borrowings during the Partnership’sdrilling phase of operations. The remaining Partnership funds are currentlybeing held to pay additional general and administrative costs to third parties,direct and administrative costs to Reef Exploration, and as a contingency forany additional costs on the six projects with commitments.

 

As of May 6, 2003, thePartnership has one project on which drilling operations have not yet begun,two projects on which drilling operations are currently in progress, and threeprojects for which the drilling phase of operations has been completed. TheGrand Isle 27 well, which is the Partnership’s sole exploration project, didnot discover commercial reserves and has been plugged and abandoned. The MainPass 57 well and the Matthew J Guidry et al #1 well have discovered commercialreserves and will be completed. Completion has begun on the Guidry well, andthe Main Pass 57 well is awaiting permit approvals in order to build a salespipeline to an adjacent platform in the Gulf of Mexico.

 

7

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**Results of Operations**

 

The Partnership wasformed on October 23, 2002, therefore there is no comparable information forthe three month period dated March 31, 2002.

 

The Partnership incurreda net loss of $51,843 during the first quarter. Neither of the two successfulwells has been placed in service as of March 31, 2003. Primary components ofthe net loss are legal and accounting fees totaling approximately $43,000incurred in connection with the Partnership’s 2002 10-K, and $2,396 inadministrative charges for accounting services from Reef Exploration. Legal andaccounting fees incurred during the remaining three quarters of 2003 areexpected to be significantly less than those incurred during the first quarter.General and administrative charges incurred by the Partnership from ReefExploration, Inc. are expected to increase as Partnership activity levelsincrease and successful wells are placed in service.

 

**Item 3****.**           **Quantitative and Qualitative Disclosuresabout Market Risk.**

 

*InterestRate Risk*

 

The Partnership agreementprohibits bank borrowings during the Partnership’s drilling phase ofoperations. However, to the extent that changes in interest rates affectgeneral economic conditions, the Partnership will be affected by such changes.

 

*CommodityPrice Risk*

 

The Partnership will notengage in commodity futures trading or hedging activities and will not enterinto derivative financial instrument transactions for trading or otherspeculative purposes.  The Partnershipexpects to sell a vast majority of its production from successful oil and gaswells on a month-to-month basis at current spot market prices. Accordingly, thePartnership will be at risk for the volatility in commodity prices inherent inthe oil and gas industry, and the level of commodity prices will have asignificant impact on the Partnership’s results of operations.

 

**Item 4****.**           **Controls and Procedures**

 

Within the 90 day periodprior to the filing of this report, the principal executive officer, principalfinancial officer and principal accounting officer of the managing generalpartner of the Partnership have evaluated the Partnership’s disclosure controlsand procedures. Based on that evaluation, these officers have concluded thatthe Partnership’s disclosure controls and procedures were effective as of thedate the evaluation was concluded. There have been no significant changes inthe Partnership’s internal controls or in other factors that couldsignificantly affect these controls since that date.

 

**PART II****– OTHERINFORMATION**

 

**Item1.**           **Legal Proceedings**

 

None

 

**Item2.**           **Changes in Securities and the use of Proceeds**

 

None

 

8

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**Item3.**           **Defaults Upon Senior Securities**

 

None

 

**Item4.**           **Submission of Matters to a Vote ofSecurity Holders**

 

None

 

**Item5.**           **Other Information**

 

None

 

**Item6.**           **Exhibits and Reports on Form 8-K.**

 

(a)                                  Exhibits

 
| 10.1   |   | Letter Agreement dated  January 14, 2003, between Samson Offshore Company, Challenger Minerals Inc.  and Reef Global Energy I, L.P.                                                                                                                                   |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                  |
| 10.2   |   | Letter Agreement dated  March 15, 2003, by and between Challenger Minerals Inc., Reef Global Energy  I, L.P., Bright & Company I, L.P., Palace Exploration Company,  Continental Resources, Inc., Cheyenne Petroleum Company and Millennium  Offshore Group, Inc. |
|   |   |                                                                                                                                                                                                                                                                  |
| 10.3   |   | Letter Agreement dated  March 21, 2003, among Triumph Energy, Inc., Reef Global Energy Ventures I,  L.P., and Stock & Spiehler, Inc.                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                  |
| 99.1   |   | Certification of Chief  Executive Officer and Chief Financial Officer pursuant to 18 U.S.C.  Section 1350 as adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of 2002.                                                                            |

 

**SIGNATURES**

 

Pursuant to therequirements of the Securities Exchange Act of 1934, the registrant has dulycaused this report to be signed on its behalf by the undersigned thereunto dulyauthorized.

 
|   |         | REEF GLOBAL ENERGY I,  L.P. |
|--------|--------------|-----------------------------|
|   |         |                        |
|   |         | By:                         | Reef Partners LLC, |
|   |         |                        | Managing General Partner |
|   |         |                        |   |
|   |         |                        |   |
| Dated: | May 15, 2003 | By:                         | /s/ Michael J. Mauceli |
|   |         |                        | **Michael J. Mauceli**Manager and Member  (*Principal  Executive Officer)* |
|   |         |                        |   |
|   |         |                        |   |
| Dated: | May 15, 2002 | By:                         | /s/ Daniel C. Sibley |
|   |         |                        | **Daniel C. Sibley**General Counsel and Chief Financial Officer  (*Principal  Financial and Accounting Officer)* |

 

9

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CERTIFICATION BY CHIEFEXECUTIVE OFFICER

PURSUANT TO 18U.S.C. SECTION 1350,AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Michael J. Mauceli,Chief Executive Officer of Reef Partners LLC, the managing general partner ofReef Global Energy I, L.P., certify that:

 

1.               I have reviewedthis quarterly report on Form 10-Q of Reef Global Energy I, L.P.;

 

2.               Based on myknowledge, this quarterly report does not contain any untrue statement of amaterial fact or omit to state a material fact necessary to make the statementmade, in light of the circumstances under which such statements were made, notmisleading with respect to the period covered by this quarterly report;

 

3.               Based on myknowledge, the financial statements, and other financial information includedin this quarterly report, fairly present in all material respects the financialcondition, results of operations and cash flows of the registrant as of, andfor, the periods presented in this quarterly report;

 

4.               The registrant’sother certifying officer and I are responsible for establishing and maintainingdisclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and15d-14) for the registrant and we have:

 

a)              designedsuch disclosure controls and procedures to ensure that material informationrelating to the registrant, including its consolidated subsidiaries, is madeknown to us by others within those entities, particularly during the period inwhich this quarterly report is being prepared;

 

b)             evaluatedthe effectiveness of the registrant’s disclosure controls and procedures as ofa date within 90 days prior to the filling date of this quarterly report (the“Evaluation Date”); and

 

c)              presentedin this quarterly report our conclusions about the effectiveness of thedisclosure controls and procedures based on our evaluation as of the EvaluationDate;

 

5.               The registrant’sother certifying officer and I have disclosed, based on our most recentevaluation, to the registrant’s auditors and the audit committee ofregistrant’s board of directors (or persons performing the equivalentfunction):

 

a)              allsignificant deficiencies in the design or operation of internal controls whichcould adversely affect the registrant’s ability to record, process, summarizeand report financial data and have identified for the registrant’s auditors anymaterial weaknesses in internal controls; and

 

b)             anyfraud, whether or not material, that involves management or other employees whohave a significant role in the registrant’s internal controls; and

 

6.               The registrant’sother certifying officer and I have indicated in this quarterly report whetheror not there were significant changes in internal controls or in other factorsthat could significantly affect internal controls subsequent to the date of ourmost recent evaluation, including any corrective actions with regard tosignificant deficiencies and material weaknesses.

 

 
| Date: May 15, 2003 | /s/ Michael J. Mauceli                                          |
|--------------------|-----------------------------------------------------------------|
|               | Michael J. Mauceli,  Chief Executive Officer  Reef Partners LLC |

 

10

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CERTIFICATION BY CHIEFFINANCIAL OFFICER

PURSUANT TO 18U.S.C. SECTION 1350,AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Daniel C. Sibley,Chief Financial Officer of Reef Partners, LLC, the managing general partner ofReef Global Energy I, L.P., certify that:

 

1.                                       Ihave reviewed this quarterly report on Form 10-Q of Reef Global Energy I, L.P.;

 

2.                                       Basedon my knowledge, this quarterly report does not contain any untrue statement ofa material fact or omit to state a material fact necessary to make thestatement made, in light of the circumstances under which such statements weremade, not misleading with respect to the period covered by this quarterlyreport;

 

3.                                       Basedon my knowledge, the financial statements, and other financial informationincluded in this quarterly report, fairly present in all material respects thefinancial condition, results of operations and cash flows of the registrant asof, and for, the periods presented in this quarterly report;

 

4.                                       Theregistrant’s other certifying officer and I are responsible for establishingand maintaining disclosure controls and procedures (as defined in Exchange ActRules 13a-14 and 15d-14) for the registrant and we have:

 

a)              designedsuch disclosure controls and procedures to ensure that material informationrelating to the registrant, including its consolidated subsidiaries, is made knownto us by others within those entities, particularly during the period in whichthis quarterly report is being prepared;

 

b)             evaluatedthe effectiveness of the registrant’s disclosure controls and procedures as ofa date within 90 days prior to the filling date of this quarterly report (the“Evaluation Date”); and

 

c)              presentedin this quarterly report our conclusions about the effectiveness of thedisclosure controls and procedures based on our evaluation as of the EvaluationDate;

 

5.                                       Theregistrant’s other certifying officer and I have disclosed, based on our mostrecent evaluation, to the registrant’s auditors and the audit committee ofregistrant’s board of directors (or persons performing the equivalentfunction):

 

d)             allsignificant deficiencies in the design or operation of internal controls whichcould adversely affect the registrant’s ability to record, process, summarizeand report financial data and have identified for the registrant’s auditors anymaterial weaknesses in internal controls; and

 

e)              anyfraud, whether or not material, that involves management or other employees whohave a significant role in the registrant’s internal controls; and

 

6.                                       Theregistrant’s other certifying officer and I have indicated in this quarterlyreport whether or not there were significant changes in internal controls or inother factors that could significantly affect internal controls subsequent tothe date of our most recent evaluation, including any corrective actions withregard to significant deficiencies and material weaknesses.

 

 
| Date: May 15, 2003 | /s/ Daniel C. Sibley                                                              |
|--------------------|-----------------------------------------------------------------------------------|
|               | Daniel C. Sibley,  Chief Financial Officer and General Counsel  Reef Partners LLC |

 

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