##### 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, 2009
 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
(State or other jurisdiction of 
Incorporation or organization)
    
    34-1980376
(I.R.S. Employer
Identification No.)Westpointe Corporate Center One 
1550 Coraopolis Heights Road, 2nd Floor 
Moon Township, PA
(Address of principal executive offices)
    
    15108
(Zip Code)
 (412) 262-2830
  Title of each class 
None
    
    Name of each exchange on which registered
None
   Yes o No þ
 Yes o No 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
    
    
    5-10Item 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
    
    
    11-15Item 8: Financial Statements
    
    
    16-35Item 9: Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
    
    
    35Item 9A: Controls and Procedures
    
    
    36Item 9B: Other Information
    
    
    36PART IIIItem 10: Directors and Executive Officers of the Registrant
    
    
    37-39Item 11: Executive Compensation
    
    
    39Item 12: Security Ownership of Certain Beneficial Owners and Management
    
    
    39Item 13: Certain Relationships and Related Party Transactions
    
    
    39-40Item 14: Principal Accountant Fees and Services
    
    
    40PART IVItem 15: Exhibits
    
    
    40SIGNATURES
    
    
    41Exhibit 23.1Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2Exhibit 99.1
   2




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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.
    
    DESCRIPTION OF BUSINESS
 General.
       3




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
    
    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




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
    
    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.
    
    DESCRIPTION OF PROPERTIES
 Drilling Activity .
 Summary of Producing Wells .
 Number of Producing WellsGross
    
    
    NetGas
    
    
    165.00
    
    
    
    141.05Oil
    
    
    6.00
    
    
    
    6.00Total
    
    
    171.00
    
    
    
    147.05
  5




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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)2009
    
    
    2,500
    
    
    
    308,800
    
    
    $
    61.83
    
    
    $
    8.07
    
    
    $
    3.192008
    
    
    3,900
    
    
    
    462,200
    
    
    $
    100.66
    
    
    $
    9.68
    
    
    $
    2.75
 
 (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 $366,500 and $361,400 for the years ended
December 31, 2009 and 2008, respectively. The derivative gains are included in other
comprehensive (loss) income 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 $3,600 for the year ended December 31,
2009. The derivative gains are included in other comprehensive (loss) income 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




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December 31,2009
    
    
    2008Natural gas (per mcf)
    
    $
    3.87
    
    
    $
    5.71Oil (per bbl)
    
    
    61.18
    
    
    
    44.80
   7




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At December 31,2009
    
    
    2008Natural gas reserves  Proved Reserves (Mcf) (1)(4)::Proved developed reserves (2)
    
    
    2,625,000
    
    
    
    3,609,500Total proved reserves of natural gas
    
    
    2,625,000
    
    
    
    3,609,500Oil reserves  Proved Reserves (Bbl) (1)(4):Proved developed reserves (2)
    
    
    7,200
    
    
    
    10,300Total proved reserves of oil
    
    
    7,200
    
    
    
    10,300Total proved reserves (Mcfe)
    
    
    2,668,200
    
    
    
    3,671,500PV-10 estimate of cash flows of proved reserves (3)(4):Proved developed reserves
    
    $
    3,226,200
    
    
    $
    7,095,100Total PV-10 estimate
    
    $
    3,226,200
    
    
    $
    7,095,100PV-10 estimate per limited partner unit (5)
    
    $
    1,657
    
    
    $
    3,645Undiscounted estimate per limited partner unit (5)
    
    $
    2,739
    
    
    $
    6,227
 
 (1)
    
    Proved reserves generally refers to the estimated quantities of crude oil, natural
gas, and natural gas liquids 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.   8




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Title to Properties
  Acreage.
 Developed AcreageLocation
    

Gross(1)
    
    

Net(2)Pennsylvania
    
    
    2,762
    
    
    
    2,490West Virginia
    
    
    400
    
    
    
    248Tennessee
    
    
    240
    
    
    
    240Total
    
    
    3,402
    
    
    
    2,978
 
 (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




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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.
  10




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Distributions.
   
    
    $1,374,500 and $2,194,600 to our limited partners; and
    
    $710,000 and $1,182,600 to our managing general partner, respectively.
 
 ITEM 7.
    
    MANAGEMENTS
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATIONS
  General .
    11




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Results of Operations.
 Years EndedDecember 31,2009
    
    
    2008Production revenues (in thousands):Gas
    
    $
    2,125
    
    
    $
    4,113Oil
    
    
    153
    
    
    
    392Total
    
    $
    2,278
    
    
    $
    4,505Production volumes:Gas (mcf/day) (1)
    
    
    846
    
    
    
    1,263Oil (bbls/day) (1)
    
    
    7
    
    
    
    11Total (mcfe/day) (1)
    
    
    888
    
    
    
    1,329Average sales price: (2)Gas (per mcf) (1) (3)
    
    $
    8.07
    
    
    $
    9.68Oil (per bbl) (1) (4)
    
    $
    61.83
    
    
    $
    100.66Average production costs:As a percent of revenues
    
    
    45
    %
    
    
    30
    %Per mcfe (1)
    
    $
    3.19
    
    
    $
    2.75Depletion per mcfe
    
    $
    3.06
    
    
    $
    3.70
 
 (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.(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 $366,500 and $361,400 for the years ended
December 31, 2009 and 2008, respectively. The derivative gains are included in other
comprehensive (loss) income 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 $3,600 for the year ended December 31,
2009. The derivative gains are included in other comprehensive (loss) income and
resulted from prior period impairment charges. Natural Gas Revenues.
   12




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Oil Revenues
 Expenses.
    Liquidity and Capital Resources.
      13




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Critical Accounting Policies .
 Impairment of Long-Lived Assets.
 Fair Value of Financial Instruments
  Level 1 
 Level 2 
 Level 3
  14




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Reserve Estimates .
 Asset Retirement Obligations
 Working Interest.
  15




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ITEM 8.
    
    FINANCIAL STATEMENTS
 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
     
  16




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ATLAS AMERICA SERIES 25-2004 (B) L.P.
 BALANCE SHEETS
 DECEMBER 31,
 2009
    
    
    2008ASSETSCurrent assets:Cash and cash equivalents
    
    $
    116,400
    
    
    $
    265,100Accounts receivable-affiliate
    
    
    438,400
    
    
    
    905,700Short-term hedge receivable due from affiliate
    
    
    375,200
    
    
    
    821,800Total current assets
    
    
    930,000
    
    
    
    1,992,600Oil and gas properties, net
    
    
    11,240,000
    
    
    
    12,761,600Long-term hedge receivable due from affiliate
    
    
    308,500
    
    
    
    521,400$
    12,478,500
    
    
    $
    15,275,600LIABILITIES AND PARTNERS CAPITALCurrent liabilities:Accrued liabilities
    
    $
    36,100
    
    
    $
    22,200Short-term hedge liability due to affiliate
    
    
    4,500
    
    
    
    72,200Total current liabilities
    
    
    40,600
    
    
    
    94,400Asset retirement obligation
    
    
    1,721,100
    
    
    
    1,516,200Long-term hedge liability due to affiliate
    
    
    47,300
    
    
    
    65,000Partners capital:Managing general partner
    
    
    3,343,600
    
    
    
    4,072,800Limited partners (1,265.38 units)
    
    
    6,811,100
    
    
    
    8,790,400Accumulated other comprehensive income
    
    
    514,800
    
    
    
    736,800Total partners capital
    
    
    10,669,500
    
    
    
    13,600,000$
    12,478,500
    
    
    $
    15,275,600
   17




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ATLAS AMERICA SERIES 25-2004 (B) L.P.
 STATEMENTS OF OPERATIONS
 YEARS ENDED DECEMBER 31, 2009 AND 2008
 2009
    
    
    2008REVENUESNatural gas and oil
    
    $
    2,277,800
    
    
    $
    4,504,800Total revenues
    
    
    2,277,800
    
    
    
    4,504,800COST AND EXPENSESProduction
    
    
    1,031,800
    
    
    
    1,335,100Depletion
    
    
    990,600
    
    
    
    1,794,400Impairment of oil and gas properties
    
    
    626,900
    
    
    
    2,550,300Accretion of asset retirement obligation
    
    
    91,000
    
    
    
    88,500General and administrative
    
    
    161,500
    
    
    
    187,200Total expenses
    
    
    2,901,800
    
    
    
    5,955,500Net loss
    
    $
    (624,000
    )
    
    $
    (1,450,700
    )Allocation of net earnings (loss):Managing general partner
    
    $
    20,800
    
    
    $
    128,000Limited partners
    
    $
    (644,800
    )
    
    $
    (1,578,700
    )Net loss per limited partnership unit
    
    $
    (510
    )
    
    $
    (1,248
    )
   18




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ATLAS AMERICA SERIES 25-2004 (B) L.P.
 STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
 YEARS ENDED DECEMBER 31, 2009 AND 2008
 December 31,2009
    
    
    2008Net loss
    
    $
    (624,000
    )
    
    $
    (1,450,700
    )Other comprehensive (loss) income:Unrealized holding gain on hedging contracts
    
    
    334,000
    
    
    
    944,200Less: reclassification adjustment for (gains) losses
realized in net loss
    
    
    (556,000
    )
    
    
    516,800Total other comprehensive (loss) income
    
    
    (222,000
    )
    
    
    1,461,000Comprehensive (loss) income
    
    $
    (846,000
    )
    
    $
    10,300
   19




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ATLAS AMERICA SERIES 25-2004 (B) L.P.
 STATEMENTS OF CHANGES IN PARTNERS CAPITAL
 YEARS ENDED DECEMBER 31, 2009 AND 2008
 AccumulatedManaging
    
    
    
    
    
    
    OtherGeneral
    
    
    Limited
    
    
    ComprehensivePartner
    
    
    Partners
    
    
    (Loss) Income
    
    
    TotalBalance at December 31, 2007
    
    $
    5,127,400
    
    
    $
    12,563,700
    
    
    $
    (724,200
    )
    
    $
    16,966,900Participation in revenue and expensesNet production revenues
    
    
    1,109,400
    
    
    
    2,060,300
    
    
    
    
    
    
    
    3,169,700Depletion
    
    
    (365,500
    )
    
    
    (1,428,900
    )
    
    
    
    
    
    
    (1,794,400
    )Impairment of oil and gas properties
    
    
    (519,400
    )
    
    
    (2,030,900
    )
    
    
    
    
    
    
    (2,550,300
    )Accretion of asset retirement obligation
    
    
    (31,000
    )
    
    
    (57,500
    )
    
    
    
    
    
    
    (88,500
    )General and administrative
    
    
    (65,500
    )
    
    
    (121,700
    )
    
    
    
    
    
    
    (187,200
    )Net earnings (loss)
    
    
    128,000
    
    
    
    (1,578,700
    )
    
    
    
    
    
    
    (1,450,700
    )Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    1,461,000
    
    
    
    1,461,000Distributions to partners
    
    
    (1,182,600
    )
    
    
    (2,194,600
    )
    
    
    
    
    
    
    (3,377,200
    )Balance 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 obligation
    
    
    (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
    
    
    $
    10,669,500
   20




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ATLAS AMERICA SERIES 25-2004 (B) L.P.
 STATEMENTS OF CASH FLOWS
 YEARS ENDED DECEMBER 31, 2009 AND 2008
 2009
    
    
    2008Cash flows from operating activities:Net loss
    
    $
    (624,000
    )
    
    $
    (1,450,700
    )Adjustments
to reconcile net loss to net cash provided by operating activities:Depletion
    
    
    990,600
    
    
    
    1,794,400Non-cash loss on derivative
    
    
    352,100
    
    
    
    147,100Impairment of oil and gas properties
    
    
    644,900
    
    
    
    2,764,500Accretion of asset retirement obligation
    
    
    91,000
    
    
    
    88,500Decrease in accounts receivable-affiliate
    
    
    467,300
    
    
    
    68,800Increase (decrease) in accrued liabilities
    
    
    13,900
    
    
    
    (1,400
    )Net cash provided by operating activities
    
    
    1,935,800
    
    
    
    3,411,200Cash flows from investing activities:Proceeds from sale of tangible equipment
    
    
    
    
    
    
    1,500Net cash provided by investing activities
    
    
    
    
    
    
    1,500Cash flows from financing activities:Distributions to partners
    
    
    (2,084,500
    )
    
    
    (3,377,200
    )Net cash used in financing activities
    
    
    (2,084,500
    )
    
    
    (3,377,200
    )Net (decrease) increase in cash and cash equivalents
    
    
    (148,700
    )
    
    
    35,500Cash and cash equivalents at beginning of period
    
    
    265,100
    
    
    
    229,600Cash and cash equivalents at end of period
    
    $
    116,400
    
    
    $
    265,100Supplemental Schedule of non-cash investing and financing activities:Asset retirement obligation revision
    
    $
    113,900
    
    
    $
    (47,000
    )
   21




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ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
 NOTE 1  DESCRIPTION OF BUSINESS
   NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  Use of Estimates
  Accounts Receivable and Allowance for Possible Losses
   22




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ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Revenue Recognition
   Fair Value of Financial Instruments
   Supplemental Cash Flow Information
  Concentration of Credit Risk
  Comprehensive (Loss) Income
   23




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ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Working Interest
  Oil and Gas Properties
   December 31,
    
    
    December 31,2009
    
    
    2008Natural gas and oil properties:Proved properties:Leasehold interests
    
    $
    898,600
    
    
    $
    898,600Wells and related equipment
    
    
    40,439,000
    
    
    
    40,325,10041,337,600
    
    
    
    41,223,700Accumulated depletion
    
    
    (30,097,600
    )
    
    
    (28,462,100
    )$
    11,240,000
    
    
    $
    12,761,600
   24




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##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
  Asset Retirement Obligation
  Environmental Matters
   Major Customers
  Income Taxes
   25




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ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Recently Adopted Accounting Standards
   
    
    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; and
    
    Require additional disclosures regarding the qualifications
of the chief technical person who oversees the companys
overall reserve estimation process. Additionally,
disclosures are required with regard 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.
   26




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##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Recently Issued Financial Accounting Standards (Continued)
      27




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ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Recently Issued Financial Accounting Standards (Continued)
   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. NOTE
4  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 in 2009 and 2008 were $107,300 and $128,000, 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 2009
and 2008, for operating and maintaining the wells. Well supervision fees incurred in
2009 and 2008 were $441,400 and $526,800, respectively.
  28




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ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 4  CERTAIN RELATIONSHIPS AND REALTED PARTY TRANSACTIONS (Continued)
 
    
    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 in 2009 and 2008 were $287,100 and $491,600, 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
in 2009 and 2008 were $357,500 and $375,900, respectively.
  NOTE 5  COMMITMENTS
   NOTE 6  SUBORDINATION BY MANAGING GENERAL PARTNER
   29




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ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 7  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
    
    2009
    
    
    2008
    
    
    Location
    
    2009
    
    
    2008Commodity contracts:
    
    Current assets
    
    $
    375,200
    
    
    $
    821,800
    
    
    Current liabilities
    
    $
    4,500
    
    
    $
    72,200Long-term assets
    
    
    308,500
    
    
    
    521,400
    
    
    Long-term liabilities
    
    
    47,300
    
    
    
    65,000Total derivatives
    
    
    
    $
    683,700
    
    
    $
    1,343,200
    
    
    
    
    $
    51,800
    
    
    $
    137,200
 Effects of Derivative Instruments on Statements of Operations:
 Gain
    
    
    
    
    Gain (Loss)Recognized in OCI on Derivative
    
    
    
    
    Reclassified from OCI into Income(Effective Portion)
    
    
    Location of Gain/(Loss)
    
    (Effective Portion)Derivatives in
    
    Twelve Months Ended
    
    
    Reclassified from Accumulated
    
    Twelve Months EndedCash Flow
    
    December 31,
    
    
    December 31,
    
    
    OCI into Income
    
    December 31,
    
    
    December 31,Hedging Relationship
    
    2009
    
    
    2008
    
    
    (Effective Portion)
    
    2009
    
    
    2008Commodity contracts
    
    $
    334,000
    
    
    $
    944,200
    
    
    Natural gas and oil revenue
    
    $
    556,000
    
    
    $
    (516,800
    )
  30




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ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 7  DERIVATIVE INSTRUMENTS (Continued)
    Natural Gas Fixed Price Swaps
 Production
    
    
    
    
    
    AveragePeriod Ending
    
    Volumes
    
    
    Fixed Price
    
    
    Fair ValueDecember 31,
    

(MMbtu)(1)
    
    

(per MMbtu)(1)
    
    

Asset(2)2010
    
    
    215,100
    
    
    $
    7.34
    
    
    $
    329,9002011
    
    
    112,400
    
    
    
    6.98
    
    
    
    99,3002012
    
    
    89,300
    
    
    
    7.22
    
    
    
    74,6002013
    
    
    48,400
    
    
    
    7.08
    
    
    
    20,200$
    524,000
 Natural Gas Costless Collars
 Production
    
    
    
    
    
    
    
    
    
    AveragePeriod Ending
    
    Option
    
    
    Volumes
    
    
    Floor & Cap
    
    
    Fair ValueDecember 31,
    
    Type
    
    

(MMbtu)(1)
    
    

(per MMbtu)(1)
    
    

Asset(2)2010
    
    Puts purchased
    
    
    14,900
    
    
    $
    7.84
    
    
    $
    36,7002010
    
    Calls sold
    
    
    14,900
    
    
    
    9.01
    
    
    
    2011
    
    Puts purchased
    
    
    65,500
    
    
    
    6.45
    
    
    
    42,2002011
    
    Calls sold
    
    
    65,500
    
    
    
    7.63
    
    
    
    2012
    
    Puts purchased
    
    
    33,900
    
    
    
    6.51
    
    
    
    15,2002012
    
    Calls sold
    
    
    33,900
    
    
    
    7.71
    
    
    
    2013
    
    Puts purchased
    
    
    31,400
    
    
    
    6.58
    
    
    
    8,9002013
    
    Calls sold
    
    
    31,400
    
    
    
    7.79
    
    
    
    $
    103,000
  31




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ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 7  DERIVATIVE INSTRUMENTS (Continued)
 Crude Oil Fixed Price Swaps
 Production
    
    
    
    
    
    AveragePeriod Ending
    
    Volumes
    
    
    Fixed Price
    
    
    Fair ValueDecember 31,
    

(Bbl)(1)
    
    

(per Bbl)(1)
    
    

Asset(3)2010
    
    
    200
    
    
    $
    97.40
    
    
    $
    3,0002011
    
    
    200
    
    
    
    77.46
    
    
    
    5002012
    
    
    100
    
    
    
    76.86
    
    
    
    1002013
    
    
    50
    
    
    
    77.36
    
    
    
    100$
    3,700
 Crude Oil Costless Collars
 Production
    
    
    
    
    
    
    
    
    
    AveragePeriod Ending
    
    Option
    
    
    Volumes
    
    
    Floor & Cap
    
    
    Fair ValueDecember 31,
    
    Type
    
    

(Bbl)(1)
    
    

(per Bbl)(1)
    
    

Asset (Liability)(3)2010
    
    Puts purchased
    
    
    
    100
    
    
    $
    85.00
    
    
    $
    1,0002010
    
    Calls sold
    
    
    100
    
    
    
    112.92
    
    
    
    2011
    
    Puts purchased
    
    
    100
    
    
    
    67.22
    
    
    
    2002011
    
    Calls sold
    
    
    100
    
    
    
    89.44
    
    
    
    2012
    
    Puts purchased
    
    
    100
    
    
    
    65.51
    
    
    
    1002012
    
    Calls sold
    
    
    100
    
    
    
    91.45
    
    
    
    2013
    
    Puts purchased
    
    
    50
    
    
    
    65.36
    
    
    
    2013
    
    Calls sold
    
    
    50
    
    
    
    93.44
    
    
    
    (100
    )$
    1,200Total Net Asset
    
    
    $
    631,900
 
 (1)
    
    MMBTU represents million British Thermal Units. Bbl represents barrels.(2)
    
    Fair value based on forward NYMEX natural gas prices.(3)
    
    Fair value based on forward WTI crude oil prices. NOTE 8  FAIR VALUE OF FINANCIAL INSTRUMENTS
  Level 1
    
    
    
    Unadjusted quoted prices in active markets for identical 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 entities own assumptions about the
assumptions that 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.
  32




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ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 8  FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
 Assets and Liabilities Measured at Fair Value on a Recurring Basis
  December 31, 2009
    
    
    December 31, 2008Level 2
    
    
    Total
    
    
    Level 2
    
    
    TotalCommodity-based derivatives
    
    $
    631,900
    
    
    $
    631,900
    
    
    $
    1,206,000
    
    
    $
    1,206,000Total
    
    $
    631,900
    
    
    $
    631,900
    
    
    $
    1,206,000
    
    
    $
    1,206,000
 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
    33




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ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 9  ASSET RETIREMENT OBLIGATION
    Years EndedDecember 31,2009
    
    
    2008Asset retirement obligation at beginning of year
    
    $
    1,516,200
    
    
    $
    1,474,700Revision in estimates
    
    
    113,900
    
    
    
    (47,000
    )Accretion expense
    
    
    91,000
    
    
    
    88,500Asset retirement obligation at end of year
    
    $
    1,721,100
    
    
    $
    1,516,200
 NOTE 10  NATURAL GAS AND OIL PRODUCING ACTIVITIES (UNAUDITED)
 (1) Capitalized Costs Related to Oil and Gas Producing Activities
  At December 31,2009
    
    
    2008Leasehold interest:
    
    $
    898,600
    
    
    $
    898,600Wells and related equipment
    
    
    40,439,000
    
    
    
    40,325,100Accumulated depletion
    
    
    (30,097,600
    )
    
    
    (28,462,100
    )Net capitalized cost
    
    $
    11,240,000
    
    
    $
    12,761,600
 (2) Oil and Gas Reserve Information
   34




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ATLAS AMERICA SERIES 25-2004 (B) L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 10  NATURAL GAS AND OIL PRODUCING ACTIVITIES (UNAUDITED) (Continued)
    Natural Gas
    
    
    Oil(Mcf)
    
    
    (Bbls)Proved developed reserves:Balance at December 31, 2007
    
    
    3,455,100
    
    
    
    13,700Production
    
    
    (462,200
    )
    
    
    (3,900
    )Revisions to previous estimates
    
    
    616,600
    
    
    
    500Balance 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
    
    
    
    7,200
 
 ITEM 9.
    
    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE
   35




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ITEM 9A.
    
    CONTROLS AND PROCEDURES
 Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
   Managements Report on Internal Control over Financial Reporting
 Internal Control  Integrated
Framework
    
 ITEM 9B.
    
    OTHER INFORMATION
   36




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##### Table of Contents



PART III
 
 ITEM 10.
    
    DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
 nd
 Executive Officers and Directors.
 NAME
    
    AGE
    
    POSITION OR OFFICEFreddie M. Kotek
    
    
    54
    
    
    Chairman of the Board of Directors, Chief Executive
Officer and PresidentFrank P. Carolas
    
    
    50
    
    
    Executive Vice President  Land and Geology and a DirectorJeffrey C. Simmons
    
    
    51
    
    
    Executive Vice President  Operations and a DirectorJack L. Hollander
    
    
    53
    
    
    Senior Vice President  Direct Participation ProgramsSean P. McGrath
    
    
    38
    
    
    Chief Accounting OfficerMatthew A. Jones
    
    
    48
    
    
    Chief Financial Officer
  
    
    the approximate amount of an individuals professional time devoted to the business
and affairs of our MGP and Atlas America 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 America, 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 as compared with the other affiliates of our MGP, such as Viking
Resources or Resource Energy.
 Freddie M. Kotek
 Frank P. Carolas.
  37




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##### Table of Contents



Jeffrey C. Simmons.
 Jack L. Hollander.
 Sean P. McGrath
 Matthew A. Jones
 Audit Committee Financial Expert.
 Remuneration of Officers and Directors.
  38




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##### Table of Contents



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
  Organizational and Security Ownership of Beneficial Owners.
 
 ITEM 13.
    
    CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
 Oil and Gas Revenues.
 Administrative Costs.
 Direct Costs.
 Well Charges.
  39




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##### Table of Contents



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.
 
 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) Certification.31.2
    
    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




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##### Table of Contents



SIGNATURES
   Atlas Resources, LLC, Managing General PartnerDate:  March 30, 2010
    By:
    /s/ Freddie M. KotekFreddie M. Kotek, Chairman of the
Board of Directors, Chief Executive Officer and President  Date:  March 30, 2010
    By:
    /s/ Freddie M. KotekFreddie M. Kotek, Chairman of the
Board of Directors, Chief Executive Officer and PresidentDate:  March 30, 2010
    By:
    /s/ Frank P. CarolasFrank P. Carolas, Executive Vice President  Land and GeologyDate:  March 30, 2010
    By:
    /s/ Jeffrey C. SimmonsJeffrey C. Simmons, Executive Vice President  OperationsDate:  March 30, 2010
    By:
    /s/ Sean P. McGrathSean P. McGrath, Chief Accounting OfficerDate:  March 30, 2010
    By:
    /s/ Matthew A. JonesMatthew A. Jones, 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