##### Table of Contents



United States
Securities and Exchange Commission
 Washington, D.C. 20549
 Form 10-K
  þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2010
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission file number 0-51271
 ATLAS AMERICA SERIES 25-2004 (B) L.P.
  Delaware
    
    34-1980376(State or other jurisdiction of
    
    (I.R.S. EmployerIncorporation or organization)
    
    Identification No.)Westpointe Corporate Center One1550 Coraopolis Heights Road, 2nd FloorMoon Township, PA
    
    15108(Address of principal executive offices)
    
    (Zip Code)
 (412) 262-2830
  Title of each class
    
    Name of each exchange on which registeredNone
    
    None
   o þ
 o þ
 þ o
 þ
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ
 o þ




---



##### 



ATLAS AMERICA SERIES 25-2004 (B) L.P.
(A DELAWARE LIMITED PARTNERSHIP)
INDEX TO ANNUAL REPORT
 ON FORM 10-K
 PAGEPART IItem 1: Business
    
    
    35Item 2: Properties
    
    
    5-9Item 3: Legal Proceedings
    
    
    10Item 4: (Removed and Reserved)
    
    
    10PART IIItem 5: Market for Registrants Common Equity and Related Security Holder Matters
    
    
    1011Item 7: Managements Discussion and Analysis of Financial Condition or Plan of Operations
    
    
    11-14Item 8: Financial Statements
    
    
    15-35Item 9: Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
    
    
    35Item 9A: Controls and Procedures
    
    
    35-36Item 9B: Other Information
    
    
    36PART IIIItem 10: Directors and Executive Officers of the Registrant
    
    
    3638Item 11: Executive Compensation
    
    
    38Item 12: Security Ownership of Certain Beneficial Owners and Management
    
    
    38Item 13: Certain Relationships and Related Party Transactions
    
    
    39Item 14: Principal Accountant Fees and Services
    
    
    39PART IVItem 15: Exhibits
    
    
    40SIGNATURES
    
    
    41Exhibit 23.1Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2Exhibit 99.1
   2




---



##### Table of Contents



The matters discussed within this report include forward-looking statements. These statements
may be identified by the use of forward-looking terminology such as anticipate, believe,
continue, could, estimate, expect, intend, may, might, plan, potential,
predict, should, or will, or the negative thereof or other variations thereon or comparable
terminology. In particular, statements about our expectations, beliefs, plans, objectives,
assumptions or future events or performance contained in this report are forward-looking
statements. We have based these forward-looking statements on our current expectations,
assumptions, estimates and projections. While we believe these expectations, assumptions, estimates
and projections are reasonable, such forward-looking statements are only predictions and involve
known and unknown risks and uncertainties, many of which are beyond our control. These and other
important factors may cause our actual results, performance or achievements to differ materially
from any future results, performance or achievements expressed or implied by these forward-looking
statements.
 
 PART I
 
 ITEM 1.
    
    BUSINESS
 General.
      3




---



##### Table of Contents




    
    well tending, routine maintenance and adjustment;
    
    reading meters, recording production, pumping, maintaining appropriate books and
records; and
    
    preparation of reports for us and government agencies.
   Markets and Competition.
  Governmental Regulation.
 Regulation of oil and gas producing activities.
  4




---



##### Table of Contents




    
    new well permit and well registration requirements, procedures and fees;
 
    
    minimum well spacing requirements;
 
    
    restriction on well locations and underground gas storage;
 
    
    certain well site restoration, groundwater protection and safety measures;
 
    
    landowner notification requirements;
 
    
    certain bonding or other security measures;
 
    
    various reporting requirements;
 
    
    well plugging standards and procedures; and
 
    
    broad enforcement powers;
 Environmental and Safety Regulation .
  Where can you find more information.
  
 
 ITEM 2.
    
    PROPERTIES
 Drilling Activity .
 Summary of Producing Wells .
 Number of Producing WellsGross
    
    
    NetGas
    
    
    165
    
    
    
    141.05Oil
    
    
    6
    
    
    
    6.00Total
    
    
    171
    
    
    
    147.05
  5




---



##### Table of Contents



Production.
 AverageYear
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Production CostEnded
    
    Production
    
    
    Average Sales Price
    
    
    (Lifting Cost)December 31,
    
    Oil (bbls)(1)
    
    
    Gas (mcf)(1)
    
    
    per bbl(1) (3) (5)
    
    
    per mcf(1) (3) (4)
    
    
    per mcfe(1) (2)2010
    
    
    2,600
    
    
    
    286,300
    
    
    $
    76.83
    
    
    $
    6.93
    
    
    $
    3.462009
    
    
    2,500
    
    
    
    308,800
    
    
    $
    61.83
    
    
    $
    8.07
    
    
    $
    3.19
 
 (1)
    
    Mcf represents one thousand cubic feet of natural gas. Mcfe represents a thousand
cubic feet equivalent. Oil production is converted to mcfe at the rate of six mcf per
barrel (bbl).(2)
    
    Lifting costs include labor to operate the wells and related equipment, repairs
and maintenance, materials and supplies, property taxes, insurance and gathering
charges.(3)
    
    Average sales prices represent accrual basis pricing after reversing the effect
of previously recognized gains resulting from prior period impairment charges.(4)
    
    Average gas prices are calculated by including in total revenue derivative gains
previously recognized into income and dividing by the total volume for the period.
Previously recognized derivative gains were $68,200 and $366,500 for the years ended
December 31, 2010 and 2009, respectively. The derivative gains are included in other
comprehensive loss and resulted from prior period impairment charges.(5)
    
    Average oil prices are calculated by including in total revenue derivative gains
previously recognized into income and dividing by the total volume for the period.
Previously recognized derivative gains were $2,200 and $3,600 for the years ended
December 31, 2010 and 2009. The derivative gains are included in other comprehensive
loss and resulted from prior period impairment charges. Natural Gas and Oil Reserve Information .
 
    
    Introduce a new definition of oil and gas producing activities. This new definition
allows companies to include in their reserve base volumes from unconventional resources.
Such unconventional resources include bitumen extracted from oil sands and oil and gas
extracted from coal beds and shale formations.
    
    Report oil and gas reserves using an unweighted average price using the prior 12-month
period, based on the closing prices on the first day of each month, rather than year-end
pricing. This should maximize the comparability of reserve estimates among companies and
mitigate the distortion of the estimates that arises when using a single pricing date.
    
    Permit companies to disclose their probable and possible reserves on a voluntary basis.
Current rules limit disclosure to only proved reserves.
    
    Update and revise reserve definitions to reflect changes in the oil and gas industry and
new technologies. New updated definitions include by geographic area and reasonable
certainty.
    
    Permit the use of new technologies to determine proved reserves if those technologies
have been demonstrated empirically to lead to reliable conclusions about reserves volumes.
    
    Require additional disclosures regarding the qualifications of the chief technical
person who oversees the companys overall reserve estimation process. Additionally,
disclosures are required related to internal controls over reserve estimation, as well as a
report addressing the independence and qualifications of a companys reserves preparer or
auditor based on Society of Petroleum Engineers criteria.
   6




---



##### Table of Contents



December 31,2010
    
    
    2009Natural gas (per mcf)
    
    $
    4.38
    
    
    $
    3.87Oil ( per bbl)
    
    
    79.43
    
    
    
    61.18
   7




---



##### Table of Contents



At December 31,2010
    
    
    2009Natural gas reserves  Proved developed reserves (1) (2)
(4)
    
    
    1,966,400
    
    
    
    2,625,000Oil reserves  Proved developed reserves (1)(4)
    
    
    8,900
    
    
    
    7,200Total proved reserves (Mcfe)
    
    
    2,019,800
    
    
    
    2,668,200PV-10 estimate of cash flows of proved reserves (3)(4):
    
    $
    2,638,900
    
    
    $
    3,226,200PV-10 estimate per limited partner unit (5)
    
    $
    1,356
    
    
    $
    1,657Undiscounted estimate per limited partner unit (5)
    
    $
    2,197
    
    
    $
    2,739
 
 (1)
    
    Proved reserves generally refers to the estimated quantities of crude oil and
natural gas, which geological and engineering data demonstrate with reasonable certainty
to be recoverable in future years from known reservoirs under existing economic and
operating conditions, i.e., prices and costs as of the date the estimate is made. Prices
include consideration of changes in existing prices provided only by contractual
arrangements, but not on escalations based upon future conditions. Reservoirs are
considered proved if economic production is supported by either actual production or
conclusive formation test. The area of a reservoir considered proved includes: that
portion delineated by drilling and defined by gas-oil and/or oil-water contacts, if any;
and the immediately adjoining portions not yet drilled, but which can be reasonably
judged as economically productive on the basis of available geological and engineering
data.(2)
    
    Proved developed oil and gas reserves generally refers to reserves that can be
expected to be recovered through existing wells with existing equipment and operating
methods.(3)
    
    The present value of estimated future net cash flows is calculated by discounting
estimated future net cash flows by 10% annually.(4)
    
    Please see Regulation S-X rule 4-10 for complete definitions of each reserve
category.(5)
    
    This value per $25,000 unit is determined by following the methodology used for
determining our proved reserves using the data discussed above. However, this value does
not necessarily reflect the fair market value of a unit, and each unit is illiquid.
Also, the value of a unit for purposes of presentment of the unit to our MGP for
purchase is different, because it is calculated under a formula set forth in the
partnership agreement.  Title to Properties
  8




---



##### Table of Contents



Acreage.
 Developed AcreageLocation
    
    Gross(1)
    
    
    Net(2)Pennsylvania
    
    
    2,745
    
    
    
    2,475West Virginia
    
    
    400
    
    
    
    248Tennessee
    
    
    240
    
    
    
    240Total
    
    
    3,385
    
    
    
    2,963
 
 (1)
    
    A gross acre is an acre in which we own a working interest.(2)
    
    A net acre represents the actual working interest we own in one gross acre
divided by one hundred. For example, a 50% working interest in an acre is one gross
acre, but a .50 net acre. Delivery Commitments
     9




---



##### Table of Contents



ITEM 3.
    
    LEGAL PROCEEDINGS
   
 ITEM 4.
    
    (REMOVED AND RESERVED)
  
 PART II
 
 ITEM 5.
    
    MARKET FOR REGISTRANTS COMMON EQUITY AND RELATED SECURITY HOLDER MATTERS
 Market Information.
 
    
    our managing general partner consent;
 
    
    the transfer not result in materially adverse tax consequences to us; and
 
    
    the transfer not violate federal or state securities laws.
  
    
    the assignor gives the assignee the right;
 
    
    our managing general partner consents to the substitution;
 
    
    the assignee pays to us all costs and expenses incurred in connection with the
substitution; and
 
    
    the assignee executes and delivers the instruments, which our managing general
partner requires to effect the substitution and to confirm his or her agreement to be
bound by the terms of our partnership agreement.
  Holders.
 Distributions.
   10




---



##### Table of Contents




    
    $686,000 and $1,374,500 to our limited partners; and
    
    $338,100 and $710,000 to our managing general partner, respectively.
 
 ITEM 7.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATIONS
    Results of Operations.
 Years EndedDecember 31,2010
    
    
    2009Production revenues (in thousands):Gas
    
    $
    1,917
    
    
    $
    2,125Oil
    
    
    195
    
    
    
    153Total
    
    $
    2,112
    
    
    $
    2,278Production volumes:Gas (mcf/day) (1)
    
    
    784
    
    
    
    846Oil (bbls/day) (1)
    
    
    7
    
    
    
    7Total (mcfe/day) (1)
    
    
    826
    
    
    
    888Average sales price: (2)Gas (per mcf) (1) (3)
    
    $
    6.93
    
    
    $
    8.07Oil (per bbl) (1) (4)
    
    $
    76.83
    
    
    $
    61.83Average production costs:As a percent of revenues
    
    
    49
    %
    
    
    45
    %Per mcfe (1)
    
    $
    3.46
    
    
    $
    3.19Depletion per mcfe
    
    $
    3.48
    
    
    $
    3.06
 
 (1)
    
    Mcf represents thousand cubic feet, mcfe represents thousand cubic feet
equivalent and bbls represents barrels. Bbls are converted to mcfe using the ratio of
six mcfs to one bbl.(2)
    
    Average sales prices represent accrual basis pricing after reversing the effect
of previously recognized gains resulting from prior period impairment charges.  11




---



##### Table of Contents



(3)
    
    Average gas prices are calculated by including in total revenue derivative gains
previously recognized into income and dividing by the total volume for the period.
Previously recognized derivative gains were $68,200 and $366,500 for the years ended
December 31, 2010 and 2009, respectively. The derivative gains are included in other
comprehensive loss and resulted from prior period impairment charges.(4)
    
    Average oil prices are calculated by including in total revenue derivative gains
previously recognized into income and dividing by the total volume for the period.
Previously recognized derivative gains were $2,200 and $3,600 for the years ended
December 31, 2010 and 2009. The derivative gains are included in other comprehensive
loss and resulted from prior period impairment charges. Natural Gas Revenues.
  Oil Revenues
 Expenses.
     12




---



##### Table of Contents



Liquidity and Capital Resources.
    Critical Accounting Policies
 Use of estimates.
 Impairment of Long-Lived Assets.
  13




---



##### Table of Contents



Fair Value of Financial Instruments
  Level 1 
 Level 2 
 Level 3
   Reserve Estimates .
 Asset Retirement Obligations
 Working Interest.
  14




---



##### Table of Contents



ITEM 8.
    
    FINANCIAL STATEMENTS
 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
     
  15




---



##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
BALANCE SHEETS
DECEMBER 31,
 2010
    
    
    2009ASSETSCurrent assets:Cash and cash equivalents
    
    $
    69,400
    
    
    $
    116,400Accounts receivable-affiliate
    
    
    401,800
    
    
    
    438,400Short-term hedge receivable due from affiliate
    
    
    323,400
    
    
    
    375,200Total current assets
    
    
    794,600
    
    
    
    930,000Oil and gas properties, net
    
    
    6,281,700
    
    
    
    11,240,000Long-term hedge receivable due from affiliate
    
    
    316,100
    
    
    
    308,500$
    7,392,400
    
    
    $
    12,478,500LIABILITIES AND PARTNERS CAPITALCurrent liabilities:Accrued liabilities
    
    $
    11,900
    
    
    $
    36,100Short-term hedge liability due to affiliate
    
    
    3,400
    
    
    
    4,500Total current liabilities
    
    
    15,300
    
    
    
    40,600Asset retirement obligation
    
    
    2,249,700
    
    
    
    1,721,100Long-term hedge liability due to affiliate
    
    
    56,200
    
    
    
    47,300Partners capital:Managing general partner
    
    
    2,253,200
    
    
    
    3,343,600Limited partners (1,265.38 units)
    
    
    2,716,700
    
    
    
    6,811,100Accumulated other comprehensive income
    
    
    101,300
    
    
    
    514,800Total partners capital
    
    
    5,071,200
    
    
    
    10,669,500$
    7,392,400
    
    
    $
    12,478,500
   16




---



##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 2010 AND 2009
 2010
    
    
    2009REVENUESNatural gas and oil
    
    $
    2,112,200
    
    
    $
    2,277,800Total revenues
    
    
    2,112,200
    
    
    
    2,277,800COST AND EXPENSESProduction
    
    
    1,044,600
    
    
    
    1,031,800Depletion
    
    
    1,050,600
    
    
    
    990,600Impairment of oil and gas properties
    
    
    3,902,300
    
    
    
    626,900Accretion of asset retirement obligation
    
    
    103,300
    
    
    
    91,000General and administrative
    
    
    173,300
    
    
    
    161,500Total expenses
    
    
    6,274,100
    
    
    
    2,901,800Net loss
    
    $
    (4,161,900
    )
    
    $
    (624,000
    )Allocation of net (loss) earnings:Managing general partner
    
    $
    (753,500
    )
    
    $
    20,800Limited partners
    
    $
    (3,408,400
    )
    
    $
    (644,800
    )Net loss per limited partnership unit
    
    $
    (2,694
    )
    
    $
    (510
    )
   17




---



##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
STATEMENTS OF COMPREHENSIVE LOSS
YEARS ENDED DECEMBER 31, 2010 AND 2009
 December 31,2010
    
    
    2009Net loss
    
    $
    (4,161,900
    )
    
    $
    (624,000
    )Other comprehensive loss:Unrealized holding gain on hedging contracts
    
    
    65,000
    
    
    
    334,000Less: reclassification adjustment for gainsrealized in net loss
    
    
    (478,500
    )
    
    
    (556,000
    )Total other comprehensive loss
    
    
    (413,500
    )
    
    
    (222,000
    )Comprehensive loss
    
    $
    (4,575,400
    )
    
    $
    (846,000
    )
   18




---



##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
STATEMENTS OF CHANGES IN PARTNERS CAPITAL
YEARS ENDED DECEMBER 31, 2010 AND 2009
 AccumulatedManaging
    
    
    
    
    
    
    OtherGeneral
    
    
    Limited
    
    
    ComprehensivePartner
    
    
    Partners
    
    
    Income (Loss)
    
    
    TotalBalance at December 31, 2008
    
    $
    4,072,800
    
    
    $
    8,790,400
    
    
    $
    736,800
    
    
    $
    13,600,000Participation in revenue and expensesNet production revenues
    
    
    436,100
    
    
    
    809,900
    
    
    
    
    
    
    
    1,246,000Depletion
    
    
    (200,300
    )
    
    
    (790,300
    )
    
    
    
    
    
    
    (990,600
    )Impairment of oil and gas properties
    
    
    (126,700
    )
    
    
    (500,200
    )
    
    
    
    
    
    
    (626,900
    )Accretion of asset retirement obligations
    
    
    (31,800
    )
    
    
    (59,200
    )
    
    
    
    
    
    
    (91,000
    )General and administrative
    
    
    (56,500
    )
    
    
    (105,000
    )
    
    
    
    
    
    
    (161,500
    )Net earnings (loss)
    
    
    20,800
    
    
    
    (644,800
    )
    
    
    
    
    
    
    (624,000
    )Other comprehensive loss
    
    
    
    
    
    
    
    
    
    
    (222,000
    )
    
    
    (222,000
    )Subordination
    
    
    (40,000
    )
    
    
    40,000
    
    
    
    
    
    
    
    Distributions to partners
    
    
    (710,000
    )
    
    
    (1,374,500
    )
    
    
    
    
    
    
    (2,084,500
    )Balance at December 31, 2009
    
    $
    3,343,600
    
    
    $
    6,811,100
    
    
    $
    514,800
    
    
    $
    10,669,500Participation in revenue and expensesNet production revenues
    
    
    373,700
    
    
    
    693,900
    
    
    
    
    
    
    
    1,067,600Depletion
    
    
    (218,500
    )
    
    
    (832,100
    )
    
    
    
    
    
    
    (1,050,600
    )Impairment of oil and gas properties
    
    
    (811,800
    )
    
    
    (3,090,500
    )
    
    
    
    
    
    
    (3,902,300
    )Accretion of asset retirement obligations
    
    
    (36,200
    )
    
    
    (67,100
    )
    
    
    
    
    
    
    (103,300
    )General and administrative
    
    
    (60,700
    )
    
    
    (112,600
    )
    
    
    
    
    
    
    (173,300
    )Net loss
    
    
    (753,500
    )
    
    
    (3,408,400
    )
    
    
    
    
    
    
    (4,161,900
    )Other comprehensive loss
    
    
    
    
    
    
    
    
    
    
    (413,500
    )
    
    
    (413,500
    )Asset contributions
    
    
    1,200
    
    
    
    
    
    
    
    
    
    
    
    1,200Distributions to partners
    
    
    (338,100
    )
    
    
    (686,000
    )
    
    
    
    
    
    
    (1,024,100
    )Balance at December 31, 2010
    
    $
    2,253,200
    
    
    $
    2,716,700
    
    
    $
    101,300
    
    
    $
    5,071,200
   19




---



##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2010 AND 2009
 2010
    
    
    2009Cash flows from operating activities:Net loss
    
    $
    (4,161,900
    )
    
    $
    (624,000
    )Adjustments to reconcile net loss to net cash provided by operating
activities:Depletion
    
    
    1,050,600
    
    
    
    990,600Non-cash (gain) loss on derivative
    
    
    (361,500
    )
    
    
    352,100Impairment of oil and gas properties
    
    
    4,334,200
    
    
    
    644,900Accretion of asset retirement obligation
    
    
    103,300
    
    
    
    91,000Decrease in accounts receivable-affiliate
    
    
    36,600
    
    
    
    467,300(Decrease) increase in accrued liabilities
    
    
    (24,200
    )
    
    
    13,900Net cash provided by operating activities
    
    
    977,100
    
    
    
    1,935,800Cash flows from financing activities:Distributions to partners
    
    
    (1,024,100
    )
    
    
    (2,084,500
    )Net cash used in financing activities
    
    
    (1,024,100
    )
    
    
    (2,084,500
    )Net decrease in cash and cash equivalents
    
    
    (47,000
    )
    
    
    (148,700
    )Cash and cash equivalents at beginning of period
    
    
    116,400
    
    
    
    265,100Cash and cash equivalents at end of period
    
    $
    69,400
    
    
    $
    116,400Supplemental Schedule of non-cash investing and financing activities:Asset retirement obligation revision
    
    $
    425,300
    
    
    $
    113,900Assets contributed by managing general partner:Tangible equipment
    
    $
    1,200
    
    
    $
    $
    1,200
    
    
    $
    
   20




---



##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
 NOTE 1  DESCRIPTION OF BUSINESS
   NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  Use of Estimates
   Accounts Receivable and Allowance for Possible Losses
   21




---



##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2010 AND 2009
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Fair Value of Financial Instruments
  Supplemental Cash Flow Information
  Concentration of Credit Risk
  Oil and Gas Properties
   Impairment of Long-Lived Assets
   22




---



##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2010 AND 2009
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Impairment of Long-Lived Assets (Continued)
    Working Interest
  Revenue Recognition
   23




---



##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2010 AND 2009
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Revenue Recognition (Continued)
  Asset Retirement Obligation
  Environmental Matters
   Comprehensive Loss
   24




---



##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2010 AND 2009
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Recently Adopted Accounting Standards
     25




---



##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2010 AND 2009
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Major Customers
  Income Taxes
  NOTE 3  PARTICIPATION IN REVENUES AND COSTS
  ManagingGeneral
    
    
    LimitedPartner
    
    
    PartnersOrganization and offering costs
    
    
    100
    %
    
    
    0
    %Lease costs
    
    
    100
    %
    
    
    0
    %Revenues (1)
    
    
    35
    %
    
    
    65
    %Operating costs, administrative costs, direct and all other costs (2)
    
    
    35
    %
    
    
    65
    %Intangible drilling costs
    
    
    0.83
    %
    
    
    99.17
    %Tangible equipment costs
    
    
    72.18
    %
    
    
    27.82
    %
 
 (1)
    
    Subject to the MGPs subordination obligation, substantially all partnership revenues
will be shared in the same percentage as capital contributions are to the total
partnership capital contributions, except that the MGP will receive an additional 7% of
the partnership revenues and the MGP revenue percentage may not exceed 35%.(2)
    
    These costs will be charged to the partners in the same ratio as the related
production revenues are credited.  26




---



##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2010 AND 2009
 NOTE 4  OIL AND GAS PROPERTIES
  December 31,
    
    
    December 31,2010
    
    
    2009Natural gas and oil properties:Proved properties:Leasehold interests
    
    $
    898,600
    
    
    $
    898,600Wells and related equipment
    
    
    40,865,500
    
    
    
    40,439,00041,764,100
    
    
    
    41,337,600Accumulated depletion
    
    
    (35,482,400
    )
    
    
    (30,097,600
    )$
    6,281,700
    
    
    $
    11,240,000
 NOTE 5  ASSET RETIREMENT OBLIGATION
    Years EndedDecember 31,2010
    
    
    2009Asset retirement obligation at beginning of year
    
    $
    1,721,100
    
    
    $
    1,516,200Revision in estimates
    
    
    425,300
    
    
    
    113,900Accretion expense
    
    
    103,300
    
    
    
    91,000Asset retirement obligations at end of year
    
    $
    2,249,700
    
    
    $
    1,721,100
  27




---



##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2010 AND 2009
 NOTE 6  DERIVATIVE INSTRUMENTS
     Fair Value of Derivative Instruments:
 Asset Derivatives
    
    
    
    
    Liability DerivativesDerivatives in
    
    
    
    Fair Value
    
    
    
    
    Fair ValueCash Flow
    
    Balance Sheet
    
    December 31,
    
    
    December 31,
    
    
    Balance sheet
    
    December 31,
    
    
    December 31,Hedging Relationships
    
    Location
    
    2010
    
    
    2009
    
    
    Location
    
    2010
    
    
    2009Commodity Contracts
    
    Current Assets
    
    $
    323,400
    
    
    $
    375,200
    
    
    Current liabilities
    
    $
    (3,400
    )
    
    $
    (4,500
    )Long-Term Assets
    
    
    316,100
    
    
    
    308,500
    
    
    Long-term liabilities
    
    
    (56,200
    )
    
    
    (47,300
    )Total Derivatives
    
    
    
    $
    639,500
    
    
    $
    683,700
    
    
    
    
    $
    (59,600
    )
    
    $
    (51,800
    )
  28




---



##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2010 AND 2009
 NOTE 6  DERIVATIVE INSTRUMENTS (Continued)
 Effects of Derivative Instruments on Statement of Operations:
 Gain
    
    
    
    
    GainRecognized in OCI on Derivative
    
    
    
    
    Reclassified from OCI into Net Loss(Effective Portion)
    
    
    Location of Gain
    
    (Effective Portion)Derivatives in
    
    Twelve Months Ended
    
    
    Reclassified from Accumulated
    
    Twelve Months EndedCash Flow
    
    December 31,
    
    
    December 31,
    
    
    OCI into Loss
    
    December 31,
    
    
    December 31,Hedging Relationships
    
    2010
    
    
    2009
    
    
    (Effective Portion)
    
    2010
    
    
    2009Commodity Contracts
    
    $
    65,000
    
    
    $
    334,000
    
    
    Natural Gas and Oil Revenue
    
    $
    478,500
    
    
    $
    556,000
    Natural Gas Fixed Price Swaps
 Production
    
    
    
    
    
    AveragePeriod Ending
    
    Volumes
    
    
    Fixed Price
    
    
    Fair ValueDecember 31,
    
    (MMbtu)(1)
    
    
    (per MMbtu)(1)
    
    
    Asset(2)2011
    
    
    93,000
    
    
    $
    6.964
    
    
    $
    227,8002012
    
    
    52,300
    
    
    
    7.485
    
    
    
    125,0002013
    
    
    33,900
    
    
    
    6.803
    
    
    
    47,1002014
    
    
    15,900
    
    
    
    5.942
    
    
    
    6,300$
    406,200
  29




---



##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2010 AND 2009
 NOTE 6  DERIVATIVE INSTRUMENTS (Continued)
 Natural Gas Costless Collars
 Production
    
    
    
    
    
    
    
    AveragePeriod Ending
    
    Option
    
    Volumes
    
    
    Floor & Cap
    
    
    Fair ValueDecember 31,
    
    Type
    
    (MMbtu)(1)
    
    
    (per MMbtu)(1)
    
    
    Asset/(Liability)(2)2011
    
    Puts purchased
    
    
    45,500
    
    
    $
    6.535
    
    
    $
    94,9002011
    
    Calls sold
    
    
    45,500
    
    
    
    7.653
    
    
    
    (1,200
    )2012
    
    Puts purchased
    
    
    28,100
    
    
    
    6.102
    
    
    
    42,2002012
    
    Calls sold
    
    
    28,100
    
    
    
    7.328
    
    
    
    (7,100
    )2013
    
    Puts purchased
    
    
    47,600
    
    
    
    5.862
    
    
    
    68,7002013
    
    Calls sold
    
    
    47,600
    
    
    
    7.043
    
    
    
    (30,300
    )2014
    
    Puts purchased
    
    
    16,500
    
    
    
    5.705
    
    
    
    23,4002014
    
    Calls sold
    
    
    16,500
    
    
    
    6.811
    
    
    
    (15,500
    )$
    175,100
 Crude Oil Fixed Price Swaps
 Production
    
    
    
    
    
    AveragePeriod Ending
    
    Volumes
    
    
    Fixed Price
    
    
    Fair ValueDecember 31,
    
    (Bbl)(1)
    
    
    (per Bbl)(1)
    
    
    Liability(3)2011
    
    
    200
    
    
    $
    87.703
    
    
    $
    (1,100
    )2012
    
    
    100
    
    
    
    87.299
    
    
    
    (900
    )2013
    
    
    50
    
    
    
    87.632
    
    
    
    (200
    )2014
    
    
    
    
    
    
    
    
    
    
    $
    (2,200
    )
  30




---



##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2010 AND 2009
 NOTE 6  DERIVATIVE INSTRUMENTS (Continued)
 Crude Oil Costless Collars
 Production
    
    
    
    
    
    
    
    AveragePeriod Ending
    
    Option
    
    Volumes
    
    
    Floor & Cap
    
    
    Fair ValueDecember 31,
    
    Type
    
    (Bbl)(1)
    
    
    (per Bbl)(1)
    
    
    Asset/(Liability)(3)2011
    
    Puts purchased
    
    
    100
    
    
    $
    76.818
    
    
    $
    2002011
    
    Calls sold
    
    
    100
    
    
    
    100.965
    
    
    
    (700
    )2012
    
    Puts purchased
    
    
    100
    
    
    
    76.143
    
    
    
    5002012
    
    Calls sold
    
    
    100
    
    
    
    101.596
    
    
    
    (900
    )2013
    
    Puts purchased
    
    
    50
    
    
    
    76.148
    
    
    
    2002013
    
    Calls sold
    
    
    50
    
    
    
    102.587
    
    
    
    (300
    )2014
    
    Puts purchased
    
    
    
    
    
    
    
    
    
    
    2014
    
    Calls sold
    
    
    
    
    
    
    
    
    
    
    $
    (1,000
    )Total Net Asset
    
    $
    578,100
 
 (1)
    
    MMBTU represents million British Thermal Units. Bbl represents barrels.(2)
    
    Fair value based on forward NYMEX natural gas prices, as applicable.(3)
    
    Fair value based on forward WTI crude oil prices, as applicable. NOTE 7  FAIR VALUE OF FINANCIAL INSTRUMENTS
  Level 1 
    
    Unadjusted quoted prices in active markets for identical unrestricted assets
and liabilities that the reporting entity has the ability to access at the measurement
date.Level 2 
    
    Inputs other than quoted prices included within Level 1 that are observable
for the asset and liability or can be corroborated with observable market data for
substantially the entire contractual term of the asset or liability.Level 3 
    
    Unobservable inputs that reflect the entitys own assumptions about the
assumption market participants would use in the pricing of the asset or liability and are
consequently not based on market activity but rather through particular valuation
techniques.
  31




---



##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2010 AND 2009
 NOTE 7  FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
 Assets and Liabilities Measured at Fair Value on a Recurring Basis
  Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
  NOTE 8  CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
  
    
    Administrative costs which are included in general and administrative expenses in the
Partnerships statements of operations are payable at $75 per well, per month.
Administrative costs incurred for the years ended December 31, 2010 and 2009 were
$123,300 and $107,300, respectively.
    
    Monthly well supervision fees which are included in production expenses in the
Partnerships statements of operations are payable at $313 per well, per month in 2010
and 2009, for operating and maintaining the wells. Well supervision fees incurred for
the years ended December 31, 2010 and 2009 were $507,200 and $441,400, respectively.
    
    Transportation fees which are included in production expenses in the Partnerships
statements of operations are generally payable at 13% of natural gas sales price.
Transportation fees incurred for the years ended December 31, 2010 and 2009 were
$221,300 and $287,100, respectively.
    
    Direct costs which are included in production and general administrative expenses in
the Partnerships statements of operations are payable to the MGP and its affiliates as
reimbursement for all costs expended on the Partnerships behalf. Direct costs incurred
for the years ended December 31, 2010 and 2009 were $366,100 and $357,500, respectively.
    
    Assets contributed by the MGP, which are disclosed in the Partnerships Statement of
Cash Flows as a non-cash activity for the year ended December 31, 2010, were $1,200.
   32




---



##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2010 AND 2009
 NOTE 8  CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS (Continued)
 Subordination by Managing General Partner
  NOTE 9  COMMITMENTS AND CONTINGENCIES
   Legal Proceedings
   NOTE 10  NATURAL GAS AND OIL PRODUCING ACTIVITIES (UNAUDITED)
 (1) Capitalized Costs Related to Oil and Gas Producing Activities
  December 31,2010
    
    
    2009Leasehold interest:
    
    $
    898,600
    
    
    $
    898,600Wells and related equipment
    
    
    40,865,500
    
    
    
    40,439,000Accumulated depletion
    
    
    (35,482,400
    )
    
    
    (30,097,600
    )Net capitalized cost
    
    $
    6,281,700
    
    
    $
    11,240,000
  33




---



##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2010 AND 2009
 NOTE 10  NATURAL GAS AND OIL PRODUCING ACTIVITIES (UNAUDITED) (Continued)
 (2) Oil and Gas Reserve Information
    Natural Gas
    
    
    Oil(Mcf)
    
    
    (Bbls)Proved developed reserves:Balance at December 31, 2008
    
    
    3,609,500
    
    
    
    10,300Production
    
    
    (308,800
    )
    
    
    (2,500
    )Revisions to previous estimates
    
    
    (675,700
    )
    
    
    (600
    )Balance at December 31, 2009
    
    
    2,625,000
    
    
    
    7,200Production
    
    
    (286,300
    )
    
    
    (2,600
    )Revisions to previous estimates
    
    
    (372,300
    )
    
    
    4,300Balance at December 31, 2010
    
    
    1,966,400
    
    
    
    8,900
  34




---



##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2010 AND 2009
 NOTE 11  SUBSEQUENT EVENTS
 Atlas Energy, Inc. Asset Acquisition
  Laurel Mountain Sale
  Hedge Monetization
  
 ITEM 9.
    
    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE:
  
 ITEM 9A.
    
    CONTROLS AND PROCEDURES
 Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
    35




---



##### Table of Contents



Managements Report on Internal Control over Financial Reporting
 Internal Control  Integrated
Framework
    
 ITEM 9B.
    
    OTHER INFORMATION
  
 PART III
 
 ITEM 10.
    
    DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
 nd
 Executive Officers and Directors.
 NAME
    
    AGE
    
    POSITION OR OFFICEFreddie M. Kotek
    
    55
    
    Chairman of the Board of Directors, Chief Executive Officer and PresidentJeffrey C. Simmons
    
    52
    
    Executive Vice President  Operations and a DirectorJack L. Hollander
    
    54
    
    Senior Vice President  Direct Participation ProgramsSean P. McGrath
    
    39
    
    Chief Financial Officer
  36




---



##### Table of Contents




    
    the approximate amount of an individuals professional time devoted to the business
and affairs of our MGP and Atlas Energy have been aggregated because there is no
reasonable method for them to distinguish their activities between the two companies;
and
    
    for those individuals who also hold senior positions with other affiliates of our
MGP, if it is stated that they devote approximately 100% of their professional time to
our MGP and Atlas Energy, it is because either the other affiliates are not currently
active in drilling new wells, such as Viking Resources or Resource Energy, and the
individuals are not required to devote a material amount of their professional time to
the affiliates, or there is no reasonable method to distinguish their activities between
our MGP and Atlas Energy as compared with the other affiliates of our MGP, such as
Viking Resources or Resource Energy.
 Freddie M. Kotek
 Jeffrey C. Simmons.
 Jack L. Hollander.
  37




---



##### Table of Contents



Sean P. McGrath
 Audit Committee Financial Expert.
 Remuneration of Officers and Directors.
 Code of Business Conduct and Ethics.
 
 ITEM 11.
    
    EXECUTIVE COMPENSATION
 Certain Relationships and Related Party Transactions
 
 ITEM 12.
    
    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
   38




---



##### Table of Contents



ITEM 13.
    
    CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
 Oil and Gas Revenues.
 Administrative Costs.
 Direct Costs.
 Well Charges.
 Transportation Fees.
 Other Compensation.
 
 ITEM 14.
    
    PRINCIPAL ACCOUNTANT FEES AND SERVICES
 Audit Fees.
 Procedures for Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services of
Independent Auditor.
  39




---



##### Table of Contents



PART IV
 
 ITEM 15.
    
    EXHIBITS
 
 EXHIBIT INDEX
 Description
    
    Location4
    (a)
    
    Certificate of Limited Partnership for
Series 25-2004 (B) L.P.
    
    Previously filed in our Form S-1 on
June 30, 2004.4
    (b)
    
    Amended and Restated Certificate and Agreement of
Limited Partnership for Series 25-2004 (B) L.P.
    
    Previously filed in our Form S-1 on
June 30, 2004.4
    (c)
    
    Drilling and Operating Agreement for
Series 25-2004 (B) L.P.
    
    Previously filed in our Form S-1 on
June 30, 2004.23.1
    
    
    Consent of Wright and Company, Inc.31.1
    
    
    Rule 13a-14(a)/15(d)  14 (a) Certification31.2
    
    
    Rule 13a-14(a)/15(d)  14 (a) Certification.32.1
    
    
    Section 1350 Certification.32.2
    
    
    Section 1350 Certification.99.1
    
    
    Summary Reserve Report
 (1)
    
    Filed on April 29, 2005 in the Form S-1 Registration Statement dated April 29, 2005, File No. 0-51271  40




---



##### Table of Contents



SIGNATURES
   Atlas Resources, LLC, Managing General PartnerDate:  March 30, 2011
    By:
    /s/ Freddie M. KotekFreddie M. Kotek, Chairman of the Board of Directors,
Chief Executive Officer 
and President  Date:  March 30, 2011
    By:
    /s/ Freddie M. KotekFreddie M. Kotek, Chairman of the Board of Directors,
Chief Executive
Officer and PresidentDate:  March 30, 2011
    By:
    /s/ Jeffrey C. SimmonsJeffrey C. Simmons, Executive Vice President  OperationsDate:  March 30, 2011
    By:
    /s/ Sean P. McGrathSean P. McGrath, Chief Financial Officer Supplemental information to be furnished with reports filed pursuant to Section 15(d) of the
Exchange Act by Non-reporting Issuers
   41