**UNITED STATESSECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C.20549**

 

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**FORM 10-Q**

 

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

** **

**For the quarterly period ended June 30, 2003**

** **

**Commission File Number:  333-93399-01**

** **

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

(Exact name of registrant asspecified 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 300Richardson, 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 mark whether the registrant(1) has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months (orfor such shorter period that the registrant was required to file such reports),and (2) has been subject to such filing requirements for the past90 days. Yes ý    No o

 

Indicate by check mark whether the registrant is an accelerated filer(as defined in Rule 12b-2 of the Exchange Act).

Yes o        No ý

 

 

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

**Index**

 
| **PART I — FINANCIAL INFORMATION**                                                                 |
|---------------------------------------------------------------------------------------------------------|
|                                                                                                    |
| **ITEM 1. FINANCIAL STATEMENTS**                                                                        |
| *Condensed Balance Sheets*                                                                              |
| *Condensed Statements of Operations*                                                                    |
| *Condensed Statements of Cash Flows*                                                                    |
| *Notes to Condensed Financial Statements*                                                               |
|                                                                                                    |
| **ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION  AND 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**                                                                                          |

 

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**PART I FINANCIAL INFORMATION**

 

**Item 1. FinancialStatements**

 

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

**CondensedBalance Sheets**

 
|                                                    |   | **June 30,  2003** |          | **December  31,  2002** |       |
|---------------------------------------------------------|--------|--------------------|---------------|-------------------------|------------|
|                                                    |   | **(Unaudited)**    |          |                    |       |
| **Assets**                                              |   |               |          |                    |       |
| **Current assets:**                                     |   |               |          |                    |       |
| Cash and cash equivalents                               |   | $                  | 496,405       |                    | $          | 1,703,041 |   |
| Accounts receivable                                     |   | 4,153              |          | —                  |       |
| Accounts receivable from affiliates                     |   | 43,908             |          | 83,986                  |       |
| Accrued interest receivable                             |   | —             |          | 94                      |       |
| Prepaid drilling costs                                  |   | 240,135            |          | —                  |       |
| **Total current assets**                                |   | **784,601**        | ** **    | **1,787,121**           | ** ** |
|                                                    |   |               |          |                    |       |
| **Property and equipment:**                             |   |               |          |                    |       |
| Oil and gas properties, full cost method of  accounting |   | 1,065,093          |          | —                  |       |
| Accumulated depreciation and depletion                  |   | (1,038             | )             | —                  |       |
| **Net property and equipment**                          |   | **1,064,055**      | ** **    | **—**              | ** ** |
|                                                    |   |               | ** **    |                    | ** ** |
| **Total assets**                                        |   | **$**              | **1,848,656** | ** **              | **$**      | **1,787,121** | ** ** |
|                                                    |   |               |          |                    |       |
| **Liabilities and partners’ equity**               |   |               |          |                    |       |
| **Current liabilities:**                                |   |               |          |                    |       |
| Accounts payable                                        |   | $                  | 94,049        |                    | $          | — |   |
| Accounts payable to affiliates                          |   | 136,201            |          | 105,075                 |       |
| **Total current liabilities**                           |   | **230,250**        | ** **    | **105,075**             | ** ** |
|                                                    |   |               |          |                    |       |
| **Noncurrent liabilities:**                             |   |               |          |                    |       |
| Asset retirement obligation                             |   | 1,309              |          | —                  |       |
| **Total noncurrent liabilities**                        |   | 1,309              |          | —                  |       |
|                                                    |   |               |          |                    |       |
| **Partners’ equity:**                              |   |               |          |                    |       |
| General partners                                        |   | 916,892            |          | 952,657                 |       |
| Limited partners                                        |   | 700,205            |          | 729,389                 |       |
| **Total partners’ equity**                         |   | **1,617,097**      | ** **    | **1,682,046**           | ** ** |
|                                                    |   |               | ** **    |                    | ** ** |
| **Total liabilities and partners’ equity**         |   | **$**              | **1,848,656** | ** **              | **$**      | **1,787,121** | ** ** |

 

*See accompanying notes*

 

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*** ***

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

**CondensedStatements of Operations**

**(Unaudited)**

 
|                                          |   | **Three months  ended  June 30, 2003** |        | **Six months  ended  June 30, 2003** |       |
|-----------------------------------------------|--------|----------------------------------------|-------------|--------------------------------------|------------|
| **Revenues:**                                 |   |                                   |        |                                 |       |
| Oil and gas sales                             |   | $                                      | 4,475       |                                 | $          | 4,475 |   |
| Interest income                               |   | —                                 |        | 22                                   |       |
| **Total****revenues**                         |   | **4,475**                              | ** **  | **4,497**                            | ** ** |
|                                          |   |                                   |        |                                 |       |
| **Costs and expenses:**                       |   |                                   |        |                                 |       |
| Lease operating expenses                      |   | 1,142                                  |        | 1,142                                |       |
| Production taxes                              |   | 322                                    |        | 322                                  |       |
| Depreciation and depletion                    |   | 1,038                                  |        | 1,038                                |       |
| General and administrative                    |   | 25,717                                 |        | 77,582                               |       |
| **Total costs and expenses**                  |   | **28,219**                             | ** **  | **80,084**                           | ** ** |
|                                          |   |                                   |        |                                 |       |
| **Partnership net loss**                      |   | **$**                                  | **(23,744** | **)**                                | **$**      | **(75,587** | **)** |
|                                          |   |                                   |        |                                 |       |
| Net loss per managing general partner unit    |   | $                                      | (743        | )                                    | $          | (2,365 | ) |
| Net loss per additional general partner  unit |   | $                                      | (214        | )                                    | $          | (681 | ) |
| Net loss per limited partner unit             |   | $                                      | (214        | )                                    | $          | (681 | ) |

 

*See accompanyingnotes*

 

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

**Condensed Statement of Cash Flows**

(Unaudited)

 
|                                                                        |   | **Six months  ended  June 30, 2003** |        |
|-----------------------------------------------------------------------------|--------|--------------------------------------|-------------|
| **Operating Activities**                                                    |   |                                 |        |
| **Net loss**                                                                |   | **$**                                | **(75,587** | **)** |
| Adjustments for non-cash transactions                                       |   |                                 |        |
| Depreciation and depletion                                                  |   | 1,038                                |        |
| Adjustments to reconcile net loss to net  cash used in operating activities |   |                                 |        |
| **Changes in operating assets and liabilities**                             |   |                                 |        |
| Accounts receivable from affiliates                                         |   | 40,078                               |        |
| Accounts receivable                                                         |   | (4,059                               | )           |
| Prepaid drilling costs                                                      |   | (240,135                             | )           |
| Accounts payable                                                            |   | 62,475                               |        |
| Accounts payable to affiliates                                              |   | (78,331                              | )           |
| **Net cash used in operating activities**                                   |   | **(294,521**                         | **)**       |
|                                                                        |   |                                 | ** **  |
| **Investing Activities**                                                    |   |                                 |        |
| Property acquisition and development                                        |   | (922,753                             | )           |
| **Net cash used in investing activities**                                   |   | **(922,753**                         | **)**       |
|                                                                        |   |                                 |        |
| **Financing Activities**                                                    |   |                                 |        |
| Partner capital contributions, net of  syndication costs                    |   | 10,638                               |        |
| **Net cash provided by financing activities**                               |   | **10,638**                           | ** **  |
|                                                                        |   |                                 | ** **  |
| **Net increase (decrease) in cash and cash  equivalents**                   |   | **(1,206,636**                       | **)**       |
| Cash and cash equivalents at beginning of  period                           |   | 1,703,041                            |        |
| **Cash and cash equivalents at end of period**                              |   | **$**                                | **496,405** | ** ** |

 

*See accompanyingnotes*

 

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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 seriesof up to ten Nevada limited partnerships to be formed comprising a programcalled Reef Global Energy Ventures (the “Program”), pursuant to an S-1Registration Statement declared effective May 31, 2001. Reef Global Energy I,L.P. is a Nevada limited partnership formed under the Nevada Revised LimitedPartnership Act. Reef Partners LLC (“Reef Partners”) serves as managing generalpartner. The Partnership interests are held by the managing general partner andinvestor partners who are general and limited partners (“investor partners”).The Partnership primarily intends to acquire offshore and onshore interests inoil and 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 statements have been prepared in accordance with theinstructions to Form 10-Q and do not include all disclosures required bygenerally accepted accounting principles. However, we have recorded alltransactions and adjustments necessary to fairly present the financialstatements included in this Form 10-Q. The adjustments are normal andrecurring. The following notes describe only the material changes in accountingpolicies, account details, or financial statement notes during the first sixmonths of 2003. Therefore, please read these financial statements and notes tothe financial statements together with the audited financial statements andnotes to financial statements in the Partnership’s 2002 Form 10-K. ThePartnership began oil and gas activities in January 2003. Because the futureresults 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 half of 2003 cannot necessarily beused to project results for the full year.

 

**Note 2.  New Accounting Policies**

 

The Partnership has adopted Statement of FinancialAccounting Standards No. 143 “*Accounting for Asset Retirement**Obligations*”effective January 1, 2003. The statement requires the Partnership to estimatethe fair value of asset retirement obligations (dismantlement and abandonmentof oil and gas wells and offshore platforms) in the period in which the assetis first placed in service. The Partnership then adjusts the current estimatedobligation for estimated inflation and market risk contingencies to theprojected settlement date of the obligations. The result is then discounted toa present value from the projected settlement date to the date the asset wasfirst placed in service. The Partnership will record the present value of theasset retirement obligation as additional property cost and as an assetretirement liability. A combination of the amortization of the additionalproperty cost (using the unit of production method) and the accretion of thediscounted liability will be recorded as expense in the income statement.

 

There is no cumulative effect of this change on thePartnership’s previously reported statements, since the Partnership had no oiland gas assets placed in service at December 31, 2002. As of June 30, 2003 thePartnership recorded a liability for asset retirement obligation of $1,309associated with the Partnership’s interest in the Scherer B#3 well. ThePartnership will record additional asset retirement obligations during theremainder of 2003 as wells are placed in service.

 

**Note 3.  Prepaid Drilling Costs**

 

The Partnership generally prepays drilling and completion costs to thevarious operators of the drilling projects. As of

 

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June 30, 2003, prepaid costsconsisted primarily of the re-entry and completion costs on the Eugene Island268 project, and production facilities installation costs on the Main Pass #57project.

 

**Note 4.  Commitments and Contingencies**

 

The Partnership is not currently involved in anylegal proceedings.

 

Reef Partners, the managing general partner of thePartnership, has entered into an agreement with Challenger Minerals, Inc.,(“CMI”) a subsidiary of GlobalSantaFe Corporation and a screener of oil and gasprospects in the Gulf of Mexico region. Under this agreement, during the periodbetween January 31, 2002 and January 31, 2005, CMI will screen and present toReef Partners a minimum of 50 prospects per year in the Gulf of Mexico region.Reef Partners will have the right to purchase up to 12.5% of the interest madeavailable to CMI in any of these projects. Reef Partners is under no obligationto acquire any interest in any project reviewed by CMI and presented to ReefPartners as a viable project. Reef Partners will pay a fee of $1,125,000($375,000 per year) (the “Fee”) for the geological and geophysical servicesprovided by CMI under the agreement. Projects approved for acquisition by ReefPartners will be assigned to Reef Global Energy I, L.P. as well as otherpartnerships formed as part of the Program. Based upon initial estimatesprepared by Reef Partners, each of the partnerships formed under the Programwill reimburse Reef Partners an amount equal to 5% of the gross capitalcontributions made to each partnership. The amount of the Fee to be reimbursedto Reef Partners by Reef Global Energy I, L.P. is $98,066.  The fee has been capitalized as geologicaland geophysical costs in accordance with the full cost method of accounting foroil and gas properties, and as a payable to Reef Partners. The fee wasreimbursed to Reef Partners on August 1, 2003.

 

**Note 5.  Drilling Activity**

 

The Partnership began oil and gas activitieseffective January 1, 2003.****ThePartnership has committed funds to six projects. The Partnership expects to commitfunds to one additional project during the third quarter of 2003. A summary ofthese projects as of August 4, 2003 is set forth below. The estimated costsshown are estimated third party costs based upon the AFE (authority forexpenditure) amounts and do not include an allocation of the Challenger fee norany direct costs of Reef Exploration personnel.

** **
| **Well Name**                 |   | **Location**       |       | **Working  Interest** |   | **Revenue  Interest** |   | **Estimated  Cost** |        | **Status** |                                                                                                                 |
|-------------------------------|--------|--------------------|------------|-----------------------|--------|-----------------------|--------|---------------------|-------------|------------|----------------------------------------------------------------------------------------------------------------------|
| **Main Pass 57**              |   | **Gulf of Mexico** | ** ** | **4.69**              | **%**  | **3.69**              | **%**  | **$**               | **251,000** | ** ** | **Productive. Facilities installation to  begin in August. Still awaiting permit approvals to build sales pipeline** | ** ** |
| **Grand Isle 27**             |   | **Gulf of Mexico** | ** ** | **1.50**              | **%**  | **1.23**              | **%**  | **$**               | **115,000** | ** ** | **Dry hole, well plugged and abandoned**                                                                             | ** ** |
| **Eugene Island 268**         |   | **Gulf of Mexico** | ** ** | **5.00**              | **%**  | **3.75**              | **%**  | **$**               | **339,000** | ** ** | **Productive. Working on tie in to production  platform on Block 267.**                                              | ** ** |
| **Eugene Island 190**         |   | **Gulf of Mexico** | ** ** | **3.75**              | **%**  | **2.67**              | **%**  | **$**               | **162,000** | ** ** | **Mechanical failure, pipe stuck prior to  reaching target zone. Well abandoned**                                    | ** ** |
| **Scherer B#3**               |   | **Oklahoma**       | ** ** | **13.36**             | **%**  | **8.98**              | **%**  | **$**               | **182,000** | ** ** | **Productive. Well placed on sales line June  13, 2003**                                                             | ** ** |
| **Matthew J Guidry et al #1** |   | **Louisiana**      | ** ** | **4.00**              | **%**  | **3.12**              | **%**  | **$**               | **201,000** | ** ** | **Productive, well placed on sales line July  16, 2003.**                                                            | ** ** |

 

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**Note 6. Partnership Equity**

 

During the offering period ended December 31, 2002, the Partnershipsold 98.807348 units. Information regarding the number of units outstanding andthe net loss per type of Partnership unit for the quarter ending June 30, 2003and the six months ending June 30, 2003 is detailed below.

 
| **Type of Unit**                 |   | **# of Units** |   | **Net loss  for  3 months  ended June  30, 2003** |   | **Net loss  per  unit for 3  months  ended June  30, 2003** |   | **Net loss  for  6 months  ended June  30, 2003** |   | **Net loss  per  unit for 6  months  ended June  30, 2003** |    |
|----------------------------------|--------|----------------|--------|---------------------------------------------------|--------|-------------------------------------------------------------|--------|---------------------------------------------------|--------|-------------------------------------------------------------|---------|
| Managing general partner units   |   | 4.940367       |   | $                                                 | (3,668 | )                                                           | $      | (743                                              | )      | $                                                           | (11,681 | ) | $ | (2,365 | ) |
| Additional general partner units |   | 51.000000      |   | (10,908                                           | )      | (214                                                        | )      | (34,722                                           | )      | (681                                                        | )       |
| Limited partner units            |   | 42.866981      |   | (9,168                                            | )      | (214                                                        | )      | (29,184                                           | )      | (681                                                        | )       |
| Total                            |   | 98.807348      |   | (23,744                                           |   |                                                        |   | (75,587                                           | )      |                                                        |    |
|                                  |        |                |        |                                                   |        |                                                             |        |                                                   |        |                                                             |         |  |  |  |  |

 

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**Item 2.****    Management’sDiscussion and Analysis of Financial Condition and Results of Operations.**

 

The following discussion will assist youin understanding the Partnership’s financial position and results ofoperations. The information below should be read in conjunction with thefinancial statements, the related notes to financial statements, and thePartnership’s Form 10-K for the year ended December 31, 2002 (the “2002 10-K”).

 

This discussion contains both historicaland forward-looking information. We assess risks and uncertainties about ourbusiness, strategy, and financial condition before we make any forward-lookingstatements, but we cannot guarantee that our assessment is accurate or that ourgoals and projections can or will be met. Statements concerning our strategyfor acquiring prospects, estimating the number, type, and percentage interestin prospects 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 tothe Management’s Discussion and Analysis of Financial Condition and Results ofOperations included in our 2002 10-K. We recommend that you read thisdiscussion in conjunction with the 2002 10-K.

 

**Liquidity and CapitalResources**

 

The Partnership was funded with initial contributions totaling$1,961,326. Reef Partners contributed $83,986, the additional general partnerscontributed $1,020,000, and the limited partners contributed $857,340.Syndication costs of $231,601 and organization costs of $50,000 were incurredleaving available cash of $1,679,725 for Partnership activities. The Partnershipoffering was closed on December 31, 2002. The Partnership did not engage in anyoil and gas activity until after December 31, 2002.

 

During the first six months of 2003, the Partnership identified andcommitted funds to six drilling projects. Five of these projects are identifiedas developmental, and one is an exploration project. All six projects arelocated in the United States. The projected third party costs, based uponauthority for expenditure (AFE) estimates, are $1,250,000 for these six projects(see Note 5 to condensed financial statements). The Partnership also paid$98,066 to Reef Partners as reimbursement of its portion of the Challenger fee(see Note 4 to condensed financial statements). Through June 30, 2003, thePartnership has expended $74,116 for general and administrative costs and$56,947 as payment for direct and administrative costs provided by ReefExploration. These committed and expended funds total approximately $1,479,000.The partnership agreement prohibits bank borrowings during the Partnership’sdrilling phase of operations. The Partnership expects to commit funds to oneadditional project during the third quarter, and hold back a small contingencyfor project cost overruns. Third party general and administrative costs, directand administrative costs paid to Reef Exploration, and lease operating costsare expected to be covered by revenues generated from the Partnership’s foursuccessful projects during the third quarter, with net revenues in excess ofcosts being distributed to partners. The Partnership expects initialdistributions to partners to begin in September 2003.

 

As of August 4, 2003, drilling operations on all six of thePartnership’s commited projects has been completed. The Partnership has pluggedand abandoned wells on the Grand Isle 27 and Eugene Island 190. The Scherer B#3well was placed on production in June 2003 and the Matthew J Guidry #1 well wasplaced on production during July 2003. Completion operations are ongoing on theEugene Island 268 and the Main Pass #57. The Eugene Island 268 is expected tobegin production during August 2003. The Main Pass #57 well is awaiting permitapprovals to build a sales pipeline.

 

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**Results of Operations**

 

The Partnership was formed on October 23, 2002, therefore there is nocomparable information for the three month period ending March 31, 2002 and thesix month period ending June 30, 2002.

 

The Partnership incurred a net loss of $23,744 during the secondquarter, resulting in a cumulative net loss of $75,587 as of June 30, 2003. TheScherer B#3 well, which was placed into production on June 13, 2003, was theonly one of the Partnership’s four successful wells in production during thesecond quarter. The Matthew J Guidry #1 well has begun production during Julyand the Eugene Island 268 is expected to begin production during August.Primary components of the net loss are legal and accounting fees totalingapproximately $43,000 and $26,000 during the first and second quarter,respectively, which were incurred in connection with the Partnership’s filingand auditing requirements, and administrative charges for accounting servicesfrom Reef Exploration totaling approximately $2,400 and $1,100 during the firstand second quarter of 2003, respectively. Legal and accounting fees incurredduring the remaining two quarters of 2003 are expected to be comparable tothose incurred during the second quarter. General and administrative chargesincurred by the Partnership from Reef Exploration, Inc. are expected toincrease as Partnership activity levels increase and successful wells areplaced in service.

 

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

 

Interest Rate Risk

 

The Partnership agreement prohibits bank borrowings during thePartnership’s drilling phase of operations. However, to the extent that changesin interest rates affect general economic conditions, the Partnership will beaffected by such changes.

 

Commodity Price Risk

 

The Partnership will not engage in commodity futures trading or hedgingactivities and will not enter into derivative financial instrument transactionsfor trading or other speculative purposes. The Partnership expects to sell a vast majority of its production fromsuccessful oil and gas wells on a month-to-month basis at current spot marketprices. Accordingly, the Partnership will be at risk for the volatility incommodity prices inherent in the oil and gas industry, and the level ofcommodity prices will have a significant impact on the Partnership’s results ofoperations.

 

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

 

Based upon their evaluation as of the end of the period covered by thisQuarterly Report on Form 10-Q, the principal executive officer, principalfinancial officer and principal accounting officer of the managing generalpartner of the Partnership have concluded that the Partnership’s disclosurecontrols and procedures (as defined in Rule 13a-15(e) under the SecuritiesExchange Act of 1934) are effective. During our fiscal quarter ended June 30, 2003, no change occurred in ourinternal control over financial reporting that has materially affected, or isreasonably likely to materially affect, our internal control over financialreporting.

 

**PARTII****– OTHER INFORMATION**

 

**Item1. Legal Proceedings**

 

None

 

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**Item2. Changes in Securities and the use ofProceeds**

 

None

 

**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   |   | Farmout agreement dated February 6, 2003 by and between Reef Partners  2001-A Income Fund L.P., Reef Partners 2001-B Income Fund L.P., and Reef  Exploration Inc., as farmors, and Reef Global Energy I, L.P., farmee.                                |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                  |
| 10.2   |   | Letter Agreement dated December 16, 2002, by and between Challenger  Minerals Inc., Reef Global Energy I, L.P., Samson Offshore Company, Bright  & Company I, Ltd., Palace Exploration Company, and Fidelity Exploration  and Production Company. |
|   |   |                                                                                                                                                                                                                                                  |
| 31.1   |   | Certification of Chief Executive Officer pursuant to 18 U.S.C.  Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of  2002.                                                                                                  |
|   |   |                                                                                                                                                                                                                                                  |
| 31.2   |   | Certification of Chief Financial Officer pursuant to 18 U.S.C.  Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of  2002.                                                                                                  |
|   |   |                                                                                                                                                                                                                                                  |
| 32     |   | 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.                                                                       |

 

(b)  Reports on Form 8-K

 

The Partnership filed a Form8-K on August 12, 2003 reporting Item 5 with respect to a participationarrangement between it and other parties regarding a certain oil and gasproperty described as Block 268, Eugene Island Area, South Addition, OffshoreLouisiana.

 

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**SIGNATURES**

 

Pursuant to the requirements of the Securities Exchange Act of 1934,the registrant has duly caused this report to be signed on its behalf by theundersigned thereunto duly authorized.

 
|   |            | REEF GLOBAL ENERGY I, L.P. |
|--------|-----------------|----------------------------|
|   |            |                       |   |
|   |            | By:                        | Reef Partners LLC, |
|   |            |                       | Managing General Partner |
|   |            |                       |   |
| Dated: | August 14, 2003 | By:                        | /s/ Michael J. Mauceli |   |
|   |            |                       | **Michael J. Mauceli** |
|   |            |                       | Manager and Member |
|   |            |                       | (*Principal  Executive Officer)* |
|   |            |                       |   |
| Dated: | August 14, 2003 | By:                        | /s/ Daniel C. Sibley |   |
|   |            |                       | **Daniel C. Sibley** |
|   |            |                       | General Counsel and Chief Financial Officer |
|   |            |                       | (*Principal  Financial and Accounting Officer)* |

 

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