|                                             | United      States                                                                            |
|--------------------------------------------------|-----------------------------------------------------------------------------------------------|
|                                             | Securities      and Exchange Commission                                                       |
|                                             | Washington,      D.C. 20549                                                                   |
|                                             |                                                                                          |
|                                             | Form      10-KSB                                                                              |
| (Mark      One)                                  |
|                                             |                                                                                          |
| R                                                | ANNUAL      REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF      1934     |
|                                             |                                                                                          |
| For      the fiscal year ended December 31, 2007 |
|                                             |                                                                                          |
| o                                                | TRANSITION      REPORT UNDER 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.                                                    |
|                                             | (Name      of small business issuer in itscharter)                                            |

| Delaware                                                                                                                         |   | 34-1980376                                     |
|----------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|
| (State      or other jurisdiction of                                                                                             |   | (I.R.S.      Employer                          |
| Incorporation      or organization)                                                                                              |   | Identification      No)                        |
|                                                                                                                             |   |                                           |
| Westpointe      Corporate Center One                                                                                             |   |                                           |
| 1550      Coraopolis Heights Road, 2nd Floor                                                                                     |   |                                           |
| Moon      Township, PA                                                                                                           |   | 15108                                          |
| (address      of principal executive offices)                                                                                    |   | (Zip      Code)                                |
|                                                                                                                             |   |                                           |
| Issuer’s      telephone number (412)      262-2830                                                                         |   |                                           |
|                                                                                                                             |   |                                           |
| Securities      registered under Section 12(b) of the Exchange Act.                                                              |
|                                                                                                                             |   |                                           |
| Title      of each class                                                                                                         |   | Name      of each exchange on which registered |
| None                                                                                                                             |   | None                                           |
|                                                                                                                             |   |                                           |
| Securities      registered under Section 12(g) of the Exchange Act Investor General      Partner Units and Limited Partner Units |
| (Title      of Class)                                                                                                            |

| PART      I                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | PAGE   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      1:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Description      of      Business                                                                                                                                           | 3-5    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      2:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Description      of      Properties                                                                                                                                         | 5-9    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      3:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Legal      Proceedings                                                                                                                                                      | 9      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      4:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Submission      of Matters to a Vote of Security      Holders                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 9      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| PART      II                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      5:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Market      for Registrant’s Common Equity and Related Security Holder      Matters                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 9-10   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      6:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Management’s      Discussion and Analysis of Financial Condition or Plan of      Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 10-16  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      7:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Financial      Statements                                                                                                                                                   | 17-33  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      8:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 33     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      8A:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Controls      and      Procedures                                                                                                                                           | 33-34  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      8B:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Other      Information                                                                                                                                                      | 34     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| PART      III                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      9:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Directors,      Executive Officers and Significant Employees, Compliance with Section      (16a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | of      the Exchange      Act                                                                                                                                               | 34-37  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      10:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Executive      Compensation                                                                                                                                                 | 37     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      11:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Security      Ownership of Certain Beneficial Owners and Management                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 37     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      12:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Certain      Relationships and Related Party      Transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 37-38  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      13:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Exhibits                                                                                                                                                                    | 38     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      14:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Principal      Accountant Fees and      Services                                                                                                                            | 38     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| SIGNATURES                                                                                                                                                | 39     |

| ·   | well      tending, routine maintenance andadjustment; |
|--------------------|-------------------------------------------------------|

| ·   | reading      meters, recording production, pumping, maintaining appropriate books and      records; and |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | preparing      reports to us and to governmentagencies. |
|--------------------|---------------------------------------------------------|

| ·   | new      well permit and well registration requirements, procedures and      fees; |
|--------------------|------------------------------------------------------------------------------------|

| ·   | minimum      well spacing requirements; |
|--------------------|-----------------------------------------|

| ·   | restriction      on well locations and underground gasstorage; |
|--------------------|----------------------------------------------------------------|

| ·   | 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; |
|--------------------|--------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Number      of Producing Wells |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Gross                          |   |   | Net |   |
| Gas                                                                         |   |                           | 165.00 |   |   |   | 141.05 |   |
| Oil                                                                         |   |                           | 6.00   |   |   |   | 6.00 |   |
| Total                                                                                                |   |                           | 171.00 |   |   |   | 147.05 |   |

|              |   |                |   |   |                     |   |    | Average             |   |
|-------------------|--------|---------------------|--------|--------|--------------------------|--------|---------|---------------------|--------|
| Year              |   |                |   |   |                     |   |    |                |   |   |   |   |   | Production      Cost |   |
| Ended             |   | Production          |   |   | Average      Sales Price |   |    | (Lifting      Cost) |   |
| December      31, |   | Oil      (bbls) (1) |   |   | Gas      (mcf) (1)       |   |    | per      bbl (1)    |   |   | per      mcf (1) |   |   | per      mcfe (1)      (2) |   |
| 2007              |   |                | 4,400  |   |                     |   | 550,600 |                |   | $ | 63.07 |   |   | $ | 7.49 |   |   | $ | 2.36 |   |
| 2006              |   |                | 7,400  |   |                     |   | 870,200 |                |   | $ | 62.20 |   |   | $ | 9.42 |   |   | $ | 1.84 |   |

| (1)   | “Mcf”      means one thousand cubic feet of natural gas.  “Mcfe” means 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. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                       |   | December      31, |   |
|----------------------------|--------|-------------------|--------|
|                       |   | 2007              |   |   | 2006 |   |
| Natural      gas (per mcf) |   | $                 | 7.59   |   |   | $ | 6.33 |   |
| Oil      (per bbl)         |   |              | 90.18  |   |   |   | 55.08 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | At      December 31, |      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2007                 |      |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                 |      |   |   |   |
| Natural      gas reserves – Proved Reserves (Mcf) (1)(4):                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 |      |   |   |   |
| Proved      developed reserves      (2)                                                                                                                   |   |                 | 3,455,100 |   |   |   | 4,124,300 |   |
| Total      proved reserves of natural gas                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                 | 3,455,100 |   |   |   | 4,124,300 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                 |      |   |   |   |   |   |
| Oil      reserves – Proved Reserves (Bbl) (1)(4):                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                 |      |   |   |   |   |   |
| Proved      developed reserves      (2)                                                                                                              |   |                 | 13,700    |   |   |   | 21,500 |   |
| Total      proved reserves of      oil                                                                                                                                   |   |                 | 13,700    |   |   |   | 21,500 |   |
| Total      proved reserves      (Mcfe)                                                                            |   |                 | 3,537,300 |   |   |   | 4,253,300 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                 |      |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                 |      |   |   |   |   |   |
| PV-10      estimate of cash flows of proved reserves (3)(4):                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                 |      |   |   |   |   |   |
| Proved      developed      reserves                                                                                                                       |   | $                    | 8,785,700 |   |   | $ | 9,956,900 |   |
| Total      PV-10      estimate                                                                                                                                                |   | $                    | 8,785,700 |   |   | $ | 9,956,900 |   |
| PV-10      estimate per limited partner unit (5)                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                    | 4,513     |   |   | $ | 5,115 |   |
| Undiscounted      estimate per limited partner unit (5)                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                    | 7,429     |   |   | $ | 8,163 |   |

| (1)   | “Proved      reserves” generally means 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 means 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. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Developed      Acreage |     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|----------|
| Location                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Gross      (1)         |     |   | Net      (2) |   |
| Pennsylvania                                                                         |   |                   | 2,762.35 |   |   |   | 2,490.28 |   |
| West      Virginia                                                                   |   |                   | 400.00   |   |   |   | 248.00 |   |
| Tennessee                                                                            |   |                   | 240.00   |   |   |   | 240.00 |   |
| Total                                                                                                                   |   |                   | 3,402.35 |   |   |   | 2,978.28 |   |

| (1)   | A      “gross” acre is an acre in which we own a working  interest. |
|-----------------|---------------------------------------------------------------------------------|

| (2)   | A      “net” acre equals 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 netacre. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 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 theright; |
|--------------------|------------------------------------------------|

| ·   | 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. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $2,813,800      and $6,035,200 to our limited partners;and |
|--------------------|------------------------------------------------------------|

| ·   | $1,515,100      and $3,257,000 to our managing generalpartner. |
|--------------------|----------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | Years      Ended  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | December      31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 2007              |   |   | 2006 |   |
| Production      revenues (in thousands):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |              |   |   |   |   |
| Gas                                                                                                                                       |   | $                 | 4,126  |   |   | $ | 8,195 |   |
| Oil                                                                                                                                       |   | $                 | 276    |   |   | $ | 459 |   |
| Total                                                                                                                                     |   | $                 | 4,402  |   |   | $ | 8,654 |   |
| Production      volumes:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |              |   |   |   |   |   |   |
| Gas      (mcf/day)      (2)                                                                                                               |   |              | 1,509  |   |   |   | 2,384 |   |
| Oil      (bbls/day)      (2)                                                                                                              |   |              | 12     |   |   |   | 20 |   |
| Total      (mcfe/day)      (2)                                                                                                            |   |              | 1,581  |   |   |   | 2,504 |   |
| Average      sales price:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |              |   |   |   |   |   |   |
| Gas      (per mcf) (1)      (2)                                                                                                           |   | $                 | 7.49   |   |   | $ | 9.42 |   |
| Oil      (per bbl)      (2)                                                                                                               |   | $                 | 63.07  |   |   | $ | 62.20 |   |
| Average      production costs:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |              |   |   |   |   |   |   |
| As      a percent of      sales                                                                                                           |   |              | 31     | % |   |   | 19 | % |
| Per      mcfe      (2)                                                                                                                    |   | $                 | 2.36   |   |   | $ | 1.84 |   |
| Depletion      per      mcfe                                                                                     |   | $                 | 3.64   |   |   | $ | 4.66 |   |

| (1)   | The      average sales price per mcf before the effects of hedging was $7.81 and      $8.48 for the years ended December 31, 2007 and 2006,      respectively. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | “Mcf”      means thousand cubic feet; “mcfe” means thousand cubic feet equivalent and      “bbls” means barrels.  Bbls are converted to mcfe using the      ratio of six mcfs to one bbl. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Fixed      Price Swaps |               |   |                 |    |   |             |   |   |                 |   |
|------------------------|--------------------|--------|----------------------|---------|--------|------------------|--------|--------|----------------------|--------|
|                   | Twelve      Month  |   |                 |    |   | Average          |   |   | Fair      Value      |   |
|                   | Period      Ending |   | Volumes              |    |   | Fixed      Price |   |   | Asset/               |   |
|                   | December      31,  |   | (per      MMBTU) (1) |    |   | (per      MMBTU) |   |   | (Liability)      (2) |   |
|                   |               |   |                 |    |   |             |   |   |                 |   |
|                   | 2008               |   |                 | 308,600 |   |             | $      | 8.69   |                 |   | $ | 272,800 |   |
|                   | 2009               |   |                 | 299,500 |   |             |   | 8.31   |                 |   |   | (52,500 | ) |
|                   | 2010               |   |                 | 171,400 |   |             |   | 7.61   |                 |   |   | (149,700 | ) |
|                   | 2011               |   |                 | 91,400  |   |             |   | 7.37   |                 |   |   | (91,900 | ) |
|                   |               |   |                 |    |   |             |   |   |                 |   | $ | (21,300 | ) |

| Costless      Collars |               |   |                |   |                 |    |   |                 |               |   |                 |   |
|-----------------------|--------------------|--------|---------------------|--------|----------------------|---------|--------|----------------------|--------------------|--------|----------------------|--------|
|                  |               |   |                |   |                 |    |   |                 |               |   |                 |   |
|                  | Twelve      Month  |   |                |   |                 |    |   | Average              |               |   | Fair      Value      |   |
|                  | Period      Ending |   | Option              |   | Volumes              |    |   | Floor      & Cap |               |   | Asset/               |   |
|                  | December      31,  |   | Type                |   | (per      MMBTU) (1) |    |   | (per      MMBTU)     |               |   | (Liability)      (2) |   |
|                  |               |   |                |   |                 |    |   |                 |               |   |                 |   |
|                  | 2008               |   | Puts      purchased |   |                 | 29,700  |   |                 | $                  | 7.50   |                 |   | $ | 7,000 |   |
|                  | 2008               |   | Calls      sold     |   |                 | 29,700  |   |                 |               | 9.40   |                 |   |   | — |   |
|                  | 2010               |   | Puts      purchased |   |                 | 54,900  |   |                 |               | 7.75   |                 |   |   | — |   |
|                  | 2010               |   | Calls      sold     |   |                 | 54,900  |   |                 |               | 8.75   |                 |   |   | (18,100 | ) |
|                  | 2011               |   | Puts      purchased |   |                 | 137,200 |   |                 |               | 7.50   |                 |   |   | — |   |
|                  | 2011               |   | Calls      sold     |   |                 | 137,200 |   |                 |               | 8.45   |                 |   |   | (66,600 | ) |
|                  | 2012               |   | Puts      purchased |   |                 | 13,700  |   |                 |               | 7.00   |                 |   |   | — |   |
|                  | 2012               |   | Calls      sold     |   |                 | 13,700  |   |                 |               | 8.37   |                 |   |   | (8,900 | ) |
|                  |               |   |                |   |                 |    |   |                 |               |   |                 |   | $ | (86,600 | ) |
|                  |               |   |                |   |                 |    |   |                 |               |   |                 |   |   |   |   |
|                  |               |   |                |   |                 |    |   |                 | Net      Liability |   |                 | $      | (107,900 | ) |

| (1)   | MMBTU      represents million British ThermalUnits. |
|-----------------|-----------------------------------------------------|

| (2)   | Fair      value based on forward NYMEX natural gasprices. |
|-----------------|-----------------------------------------------------------|

opinion on these financial statements based on ouraudits.

audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. ThePartnership is not required to have, nor were we engaged to perform an 
audit of its internal control over financial reporting. Our 
audit included consideration of internal control over financialreporting as a basis for designing 
audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Partnership’s internalcontrol over financial reporting. Accordingly, we expressno such 
opinion. An 
audit also includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements, assessing theaccounting principles used and significant estimates made by management, as wellas evaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our 
opinion.

|                                                |   | 2007   |       |   | 2006   |   |
|-----------------------------------------------------|--------|--------|------------|--------|--------|--------|
| ASSETS                                              |   |   |       |   |   |   |
| Current      assets:                                |   |   |       |   |   |   |
| Cash      and cash equivalents                      |   | $      | 229,600    |   |   | $      | — |   |
| Accounts      receivable-affiliate                  |   |   | 974,500    |   |   |   | 1,853,600 |   |
| Short-term      hedge receivable due from affiliate |   |   | 286,600    |   |   |   | 1,089,600 |   |
| Total      current assets                           |   |   | 1,490,700  |   |   |   | 2,943,200 |   |
|                                                |   |   |       |   |   |   |   |   |
| Oil      and gas properties, net                    |   |   | 17,369,000 |   |   |   | 19,512,800 |   |
| Long-term      hedge receivable due from affiliate  |   |   | 42,900     |   |   |   | 940,600 |   |
|                                                |   | $      | 18,902,600 |   |   | $      | 23,396,600 |   |
|                                                |   |   |       |   |   |   |   |   |
| LIABILITIES      AND PARTNERS’ CAPITAL        |   |   |       |   |   |   |   |   |
| Current      liabilities:                           |   |   |       |   |   |   |   |   |
| Accrued      liabilities                            |   | $      | 23,600     |   |   | $      | 18,000 |   |
| Short-term      hedge liability due to affiliate    |   |   | 6,800      |   |   |   | 6,800 |   |
| Total      current liabilities                      |   |   | 30,400     |   |   |   | 24,800 |   |
|                                                |   |   |       |   |   |   |   |   |
| Asset      retirement obligation                    |   |   | 1,474,700  |   |   |   | 1,468,100 |   |
| Long-term      hedge liability due to affiliate     |   |   | 430,600    |   |   |   | 151,300 |   |
|                                                |   |   |       |   |   |   |   |   |
| Partners’      capital:                       |   |   |       |   |   |   |   |   |
| Managing      general partner                       |   |   | 5,127,400  |   |   |   | 6,037,800 |   |
| Limited      partners (1,265.38 units)              |   |   | 12,563,700 |   |   |   | 15,304,200 |   |
| Accumulated      other comprehensive (loss) income  |   |   | (724,200   | )      |   |   | 410,400 |   |
| Total      partners' capital                        |   |   | 16,966,900 |   |   |   | 21,752,400 |   |
|                                                |   | $      | 18,902,600 |   |   | $      | 23,396,600 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2007   |      |   | 2006   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| REVENUES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |      |   |   |   |
| Natural      gas and      oil                                                                                                            |   | $      | 4,402,100 |   |   | $      | 8,654,000 |   |
| Total      revenues                                                                                                                                               |   |   | 4,402,100 |   |   |   | 8,654,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |      |   |   |   |   |   |
| COST      AND EXPENSES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |      |   |   |   |   |   |
| Production                                                                                                                               |   |   | 1,362,600 |   |   |   | 1,686,200 |   |
| Depletion                                                                                                                                |   |   | 2,098,000 |   |   |   | 4,263,100 |   |
| Impairment      of oil and gas      properties                                                                                           |   |   | —   |   |   |   | 11,505,000 |   |
| Accretion  of      asset retirement      obligation                                                                            |   |   | 88,100    |   |   |   | 86,500 |   |
| General      and      administrative                                                                                                     |   |   | 211,100   |   |   |   | 172,000 |   |
| Total      expenses                                                                                                                                               |   |   | 3,759,800 |   |   |   | 17,712,800 |   |
| Net      earnings      (loss)                                                                                                            |   | $      | 642,300   |   |   | $      | (9,058,800 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |      |   |   |   |   |   |
| Allocation      of net earnings (loss):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |      |   |   |   |   |   |
| Managing      general      partner                                                                                                       |   | $      | 569,000   |   |   | $      | (504,100 | ) |
| Limited      partners                                                                                                                    |   | $      | 73,300    |   |   | $      | (8,554,700 | ) |
| Net      earnings (loss) per limited partnership unit                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $      | 58        |   |   | $      | (6,761 | ) |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | December      31, |       |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2007              |       |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |              |       |   |   |   |
| Net      earnings      (loss)                                                                             |   | $                 | 642,300    |   |   | $ | (9,058,800 | ) |
| Other      comprehensive (loss) income:                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |              |       |   |   |   |   |   |
| Unrealized      holding (loss) gain on hedging contracts                                                                                                                                                                                                                                                                                                                                                                                                                     |   |              | (1,306,100 | ) |   |   | 3,069,000 |   |
| Less:      reclassification adjustment for loss (gains)                                                                                                                                                                                                                                                                                                                                                                                                                      |   |              |       |   |   |   |   |   |
| realized      in net      earnings                                                                        |   |              | 171,500    |   |   |   | (2,232,400 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |              | (1,134,600 | ) |   |   | 836,600 |   |
| Comprehensive      loss                                                                                             |   | $                 | (492,300   | ) |   | $ | (8,222,200 | ) |

|                                                                                                                                                                                                                                                                                                                                                                           |   |     |       |   |     |   |       | Accumulated        |   |   |       |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|------------|--------|----------|--------|------------|--------------------|--------|--------|------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                           |   | Managing |       |   |     |   |       | Other              |   |   |       |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   | General  |       |   | Limited  |   |       | Comprehensive      |   |   |       |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   | Partner  |       |   | Partners |   |       | (Loss)      Income |   |   | Total      |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |     |       |   |     |   |       |               |   |   |       |   |
| Balance      at December 31, 2005                                                                                                                                                                                                                                                                                                                                              |   | $        | 10,647,000 |   |     | $      | 29,894,100 |               |   | $      | (426,200   | )      |   | $ | 40,114,900 |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| Participation      in revenue and expenses                                                                                                                                                                                                                                                                                                                                     |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| Net      production      revenues                                                           |   |     | 2,438,700  |   |     |   | 4,529,100  |               |   |   | —    |   |   |   | 6,967,800 |   |
| Depletion                                                                                   |   |     | (771,000   | )      |     |   | (3,492,100 | )                  |   |   | —    |   |   |   | (4,263,100 | ) |
| Impairment      of oil and gas properties                                                                                                                                                                                                                                                                                                                                      |   |     | (2,081,300 | )      |     |   | (9,423,700 | )                  |   |   | —    |   |   |   | (11,505,000 | ) |
| Accretion      of asset retirement obligation                                                                                                                                                                                                                                                                                                                                  |   |     | (30,300    | )      |     |   | (56,200    | )                  |   |   | —    |   |   |   | (86,500 | ) |
| General      and      administrative                                                        |   |     | (60,200    | )      |     |   | (111,800   | )                  |   |   | —    |   |   |   | (172,000 | ) |
| Net      loss                                                                                                        |   |     | (504,100   | )      |     |   | (8,554,700 | )                  |   |   | —    |   |   |   | (9,058,800 | ) |
|                                                                                                                                                                                                                                                                                                                                                                           |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| MGP asset      contribution adjustment                                                                                                                                                                                                                                                                                                                                    |   |     | (848,100   | )      |     |   | —    |               |   |   | —    |   |   |   | (848,100 | ) |
|                                                                                                                                                                                                                                                                                                                                                                           |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| Other      comprehensive      income                                                        |   |     | —    |   |     |   | —    |               |   |   | 836,600    |   |   |   | 836,600 |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| Distributions      to      partners                                                         |   |     | (3,257,000 | )      |     |   | (6,035,200 | )                  |   |   | —    |   |   |   | (9,292,200 | ) |
|                                                                                                                                                                                                                                                                                                                                                                           |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| Balance      at December 31, 2006                                                                                                                                                                                                                                                                                                                                              |   | $        | 6,037,800  |   |     | $      | 15,304,200 |               |   | $      | 410,400    |   |   | $ | 21,752,400 |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| Participation      in revenue and expenses                                                                                                                                                                                                                                                                                                                                     |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| Net      production      revenues                                                           |   |     | 1,063,800  |   |     |   | 1,975,700  |               |   |   | —    |   |   |   | 3,039,500 |   |
| Depletion                                                                                   |   |     | (390,100   | )      |     |   | (1,707,900 | )                  |   |   | —    |   |   |   | (2,098,000 | ) |
| Accretion      of asset retirement obligation                                                                                                                                                                                                                                                                                                                                  |   |     | (30,800    | )      |     |   | (57,300    | )                  |   |   | —    |   |   |   | (88,100 | ) |
| General      and      administrative                                                        |   |     | (73,900    | )      |     |   | (137,200   | )                  |   |   | —    |   |   |   | (211,100 | ) |
| Net      earnings                                                                                                    |   |     | 569,000    |   |     |   | 73,300     |               |   |   | —    |   |   |   | 642,300 |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| MGP asset      contribution                                                                                                                                                                                                                                                                                                                                               |   |     | 35,700     |   |     |   | —    |               |   |   | —    |   |   |   | 35,700 |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| Other      comprehensive      loss                                                          |   |     | —    |   |     |   | —    |               |   |   | (1,134,600 | )      |   |   | (1,134,600 | ) |
|                                                                                                                                                                                                                                                                                                                                                                           |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| Distributions      to      partners                                                         |   |     | (1,515,100 | )      |     |   | (2,813,800 | )                  |   |   | —    |   |   |   | (4,328,900 | ) |
|                                                                                                                                                                                                                                                                                                                                                                           |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| Balance      at December 31, 2007                                                                                                                                                                                                                                                                                                                                              |   | $        | 5,127,400  |   |     | $      | 12,563,700 |               |   | $      | (724,200   | )      |   | $ | 16,966,900 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2007   |       |   | 2006   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Cash      flows from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |       |   |   |   |
| Net      earnings      (loss)                                                                                                                                         |   | $      | 642,300    |   |   | $      | (9,058,800 | ) |
| Adjustments      to reconcile net earnings (loss) to net cash provided by      operating                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |       |   |   |   |   |   |
| activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |       |   |   |   |   |   |
| Depletion                                                                                                                                                                                      |   |   | 2,098,000  |   |   |   | 4,263,100 |   |
| Non-cash      loss on derivative      value                                                                                                                                                    |   |   | 845,400    |   |   |   | — |   |
| Impairment      of oil and gas      properties                                                                                                                                                 |   |   | —    |   |   |   | 11,505,000 |   |
| Accretion      of asset retirement      obligation                                                                                                                                             |   |   | 88,100     |   |   |   | 86,500 |   |
| Decrease      in accounts      receivable-affiliate                                                                                                                                            |   |   | 879,100    |   |   |   | 2,487,300 |   |
| Increase      (decrease) in accrued      liabilities                                                                                                                                           |   |   | 5,600      |   |   |   | (3,600 | ) |
| Net      cash provided by operating      activities                                                                                                                   |   |   | 4,558,500  |   |   |   | 9,279,500 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |       |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |       |   |   |   |   |   |
| Cash      flows from investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |       |   |   |   |   |   |
| Proceeds      from sale of tangible      equipment                                                                                                                    |   |   | —    |   |   |   | 13,100 |   |
| Purchase      of tangible      equipment                                                                                                                              |   |   | —    |   |   |   | (1,800 | ) |
| Net      cash provided by investing      activities                                                                                                                   |   |   | —    |   |   |   | 11,300 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |       |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |       |   |   |   |   |   |
| Cash      flows from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |       |   |   |   |   |   |
| Distributions      to      partners                                                                                                                                   |   |   | (4,328,900 | )      |   |   | (9,292,200 | ) |
| Net      cash used in financing      activities                                                                                                                       |   |   | (4,328,900 | )      |   |   | (9,292,200 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |       |   |   |   |   |   |
| Net      increase (decrease) in cash and cash      equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 229,600    |   |   |   | (1,400 | ) |
| Cash      and cash equivalents at beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | —    |   |   |   | 1,400 |   |
| Cash      and cash equivalents at end of      period                                                                                                                  |   | $      | 229,600    |   |   | $      | — |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |       |   |   |   |   |   |
| Supplemental Schedule      of non-cash investing and financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |       |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |       |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |       |   |   |   |   |   |
| Assets      contributed and (received) by managing general partner:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |       |   |   |   |   |   |
| Tangible      equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $      | 6,700      |   |   | $      | (497,200 | ) |
| Lease      costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | (2,800     | )      |   |   | (34,500 | ) |
| Intangible      drilling cost                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 31,800     |   |   |   | (316,400 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $      | 35,700     |   |   | $      | (848,100 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |       |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |       |   |   |   |   |   |
| Asset      retirement obligation      revision                                                                                                                        |   | $      | (81,500    | )      |   | $      | (60,700 | ) |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | December      31, |        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2007              |        |   | 2006 |   |
| Mineral      interest in properties:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |              |        |   |   |   |
| Proved      properties                                                                                                     |   | $                 | 920,400     |   |   | $ | 923,200 |   |
| Wells      and related      equipment                                                                                      |   |              | 41,190,100  |   |   |   | 41,233,100 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |              | 42,110,500  |   |   |   | 42,156,300 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |              |        |   |   |   |   |   |
| Accumulated      depletion of oil and gas properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |              | (24,741,500 | ) |   |   | (22,643,500 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                 | 17,369,000  |   |   | $ | 19,512,800 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Years      Ended  |      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | December      31, |      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2007              |      |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |              |      |   |   |   |
| Asset      retirement obligation at beginning of year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                 | 1,468,100 |   |   | $ | 1,442,300 |   |
| Revision      in      estimates                                                                                                              |   |              | (81,500   | ) |   |   | (60,700 | ) |
| Accretion      expense                                                                                                                       |   |              | 88,100    |   |   |   | 86,500 |   |
| Asset      retirement obligation at end of      year                                                                                    |   | $                 | 1,474,700 |   |   | $ | 1,468,100 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Managing |   |   |     |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | General  |   |   | Limited  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Partner  |   |   | Partners |   |
| Organization      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                                                                                                   |   |     | 0.72   | %      |     |   | 99.28 | % |
| 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, which may not      exceed 35%. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | These      costs will be charged to the partners in the same ratio as the related      production revenues are credited. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | 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 2007 and 2006 were      $128,200 and $132,400,respectively. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Monthly      well supervision fees which are included in production expenses in the      Partnership’s Statements of Operations are payable at $301 and $289 per      well per month in 2007 and 2006, respectively, for operating and      maintaining the wells.  Well supervision fees incurred in 2007      and 2006 were $509,800 and $507,300,  respectively. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Transportation      fees which are included in production expenses in the Partnership’s      Statements of Operations are payable at rates ranging from $.29 to $.35      per one thousand cubic feet ("Mcf") to 13% of natural gas sales price.      Transportation fees incurred in 2007 and 2006 were $570,200 and $740,300,      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 2007 and 2006 were $365,600      and $478,200, respectively. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Assets      contributed by the MGP which are disclosed on the Partnership’s Statements      of Cash Flows as a non-cash investing activity for the year ended December      31, 2007 were $35,700. Assets received by the MGP which are disclosed on      the Partnership's Statements of Cash flows as a non-cash investing      activity for the year ended December 31, 2006 were    $848,100. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Fixed      Price Swaps |               |   |                 |    |   |             |   |   |                 |   |
|------------------------|--------------------|--------|----------------------|---------|--------|------------------|--------|--------|----------------------|--------|
|                   | Twelve      Month  |   |                 |    |   | Average          |   |   | Fair      Value      |   |
|                   | Period      Ending |   | Volumes              |    |   | Fixed      Price |   |   | Asset/               |   |
|                   | December      31,  |   | (per      MMBTU) (1) |    |   | (per      MMBTU) |   |   | (Liability)      (2) |   |
|                   |               |   |                 |    |   |             |   |   |                 |   |
|                   | 2008               |   |                 | 308,600 |   |             | $      | 8.69   |                 |   | $ | 272,800 |   |
|                   | 2009               |   |                 | 299,500 |   |             |   | 8.31   |                 |   |   | (52,500 | ) |
|                   | 2010               |   |                 | 171,400 |   |             |   | 7.61   |                 |   |   | (149,700 | ) |
|                   | 2011               |   |                 | 91,400  |   |             |   | 7.37   |                 |   |   | (91,900 | ) |
|                   |               |   |                 |    |   |             |   |   |                 |   | $ | (21,300 | ) |

| Costless      Collars |               |   |                |   |                 |    |   |                 |               |   |                 |   |
|-----------------------|--------------------|--------|---------------------|--------|----------------------|---------|--------|----------------------|--------------------|--------|----------------------|--------|
|                  |               |   |                |   |                 |    |   |                 |               |   |                 |   |
|                  | Twelve      Month  |   |                |   |                 |    |   | Average              |               |   | Fair      Value      |   |
|                  | Period      Ending |   | Option              |   | Volumes              |    |   | Floor      & Cap |               |   | Asset/               |   |
|                  | December      31,  |   | Type                |   | (per      MMBTU) (1) |    |   | (per      MMBTU)     |               |   | (Liability)      (2) |   |
|                  |               |   |                |   |                 |    |   |                 |               |   |                 |   |
|                  | 2008               |   | Puts      purchased |   |                 | 29,700  |   |                 | $                  | 7.50   |                 |   | $ | 7,000 |   |
|                  | 2008               |   | Calls      sold     |   |                 | 29,700  |   |                 |               | 9.40   |                 |   |   | — |   |
|                  | 2010               |   | Puts      purchased |   |                 | 54,900  |   |                 |               | 7.75   |                 |   |   | — |   |
|                  | 2010               |   | Calls      sold     |   |                 | 54,900  |   |                 |               | 8.75   |                 |   |   | (18,100 | ) |
|                  | 2011               |   | Puts      purchased |   |                 | 137,200 |   |                 |               | 7.50   |                 |   |   | — |   |
|                  | 2011               |   | Calls      sold     |   |                 | 137,200 |   |                 |               | 8.45   |                 |   |   | (66,600 | ) |
|                  | 2012               |   | Puts      purchased |   |                 | 13,700  |   |                 |               | 7.00   |                 |   |   | — |   |
|                  | 2012               |   | Calls      sold     |   |                 | 13,700  |   |                 |               | 8.37   |                 |   |   | (8,900 | ) |
|                  |               |   |                |   |                 |    |   |                 |               |   |                 |   | $ | (86,600 | ) |
|                  |               |   |                |   |                 |    |   |                 |               |   |                 |   |   |   |   |
|                  |               |   |                |   |                 |    |   |                 | Net      Liability |   |                 | $      | (107,900 | ) |

| (1)   | MMBTU      represents million British ThermalUnits. |
|-----------------|-----------------------------------------------------|

| (2)   | Fair      value based on forward NYMEX natural gasprices. |
|-----------------|-----------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                |   | December      31, 2007 |     |   | December      31, 2006 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|----------|--------|------------------------|--------|
|                                                                                                                                                                                                                                                                                                |   | Book      Value        |     |   | Fair      Value        |   |   | Book      Value |   |   | Fair      Value |   |
| Assets                                                                                                                                                                                                                                                                                              |   |                   |     |   |                   |   |   |   |   |   |   |   |
| Derivative      instruments                                             |   | $                      | 329,500  |   |                   | $      | 329,500 |   |   | $ | 2,030,200 |   |   | $ | 2,030,200 |   |
|                                                                                                                                                                                                                                                                                                |   | $                      | 329,500  |   |                   | $      | 329,500 |   |   | $ | 2,030,200 |   |   | $ | 2,030,200 |   |
| Liabilities                                                                                                                                                                                                                                                                                         |   |                   |     |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative      instruments                                             |   | $                      | (437,400 | )      |                   | $      | (437,400 | ) |   | $ | (158,100 | ) |   | $ | (158,100 | ) |
|                                                                                                                                                                                                                                                                                                |   | $                      | (107,900 | )      |                   | $      | (107,900 | ) |   | $ | 1,872,100 |   |   | $ | 1,872,100 |   |

| (1)   | Capitalized      Costs Related to Oil and Gas Producing  Activities |
|-----------------|---------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | At      December 31, |        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|-------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2007                 |        |   | 2006 |   |
| Mineral      interest in proved properties:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |  $              | 920,400     |   |   |  $ | 923,200 |   |
| Wells      and related      equipment                                                                                         |   |                 | 41,190,100  |   |   |   | 41,233,100 |   |
| Accumulated      depletion                                                                                                    |   |                 | (24,741,500 | ) |   |   | (22,643,500 | ) |
| Net      capitalized      cost                                                                                                                         |   | $                    | 17,369,000  |   |   | $ | 19,512,800 |   |

| (2)   | Oil      and Gas Reserve Information |
|-----------------|--------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Natural      Gas |       |   | Oil    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|------------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | (Mcf)            |       |   | (Bbls) |   |
| Proved      developed reserves:                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |             |       |   |   |   |
| Balance      at December 31, 2005                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |             | 8,208,600  |   |   |   | 15,200 |   |
| Production                                                                                                      |   |             | (870,200   | )      |   |   | (7,400 | ) |
| Revisions      to previous      estimates                                                                       |   |             | (3,214,100 | )      |   |   | 13,700 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             |       |   |   |   |   |   |
| Balance      at December 31, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |             | 4,124,300  |   |   |   | 21,500 |   |
| Production                                                                                                      |   |             | (550,600   | )      |   |   | (4,400 | ) |
| Revisions      to previous      estimates                                                                       |   |             | (118,600   | )      |   |   | (3,400 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             |       |   |   |   |   |   |
| Balance      at December 31, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |             | 3,455,100  |   |   |   | 13,700 |   |

| NAME                    | AGE    | POSITION OR      OFFICE                                                             |
|-------------------------|--------|-------------------------------------------------------------------------------------|
|                    |   |                                                                                |
| Freddie      M. Kotek   | 52     | Chairman      of the Board of Directors, Chief Executive Officer and      President |
| Frank      P. Carolas   | 48     | Executive      Vice President – Land and Geology and a Director               |
| Jeffrey      C. Simmons | 49     | Executive      Vice President – Operations and a Director                     |
| Jack      L. Hollander  | 51     | Senior      Vice President – Direct Participation Programs                    |
| Nancy      J. McGurk    | 52     | Senior      Vice President, Chief Accounting Officer                                |
| Michael      L. Staines | 58     | Senior      Vice President, Secretary and a Director                                |
| Matthew      A. Jones   | 46     | 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 ResourceEnergy. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Description                                             | Location                                 |
|--------|---------------------------------------------------------|------------------------------------------|
|   |                                                    |                                     |
| 4(a)   | Certificate      of Limited Partnership for             | Previously      filed in our Form S-1 on |
|   | Series      25-2004 (B) L.P.                            | June      30, 2004.                      |
|   |                                                    |                                     |
| 4(b)   | Amended      and Restated Certificate and Agreement of  | Previously      filed in our Form S-1 on |
|   | Limited      Partnership for Series 25-2004 (B) L.P.    | June      30, 2004.                      |
|   |                                                    |                                     |
| 4(c)   | Drilling      and Operating Agreement for               | Previously      filed in our Form S-1 on |
|   | Series      25-2004 (B) L.P.                            | June      30, 2004.                      |
|   |                                                    |                                     |
| 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.                        |                                     |

| In      accordance with Section 13 or 15 (d) of the Exchange Act, the registrant      caused this report to be signed on |
|--------------------------------------------------------------------------------------------------------------------------|
| its      behalf by the undersigned, thereunto duly authorized.                                                           |
|                                                                                                                     |
| Atlas      America Series 25-2004 (B) L.P.                                                                               |
|                                                                                                                     |   |   |
|                                                                                                                     |   | Atlas      Resources, LLC, Managing General Partner |
|                                                                                                                     |   |   |
| Date:  March      31, 2008                                                                                     |   | By: /s/ Freddie M.      Kotek |
|                                                                                                                     |   | Freddie      M. Kotek, Chairman of the Board of Directors, Chief    Executive |
|                                                                                                                     |   | Officer      and President |
|                                                                                                                     |   |   |
|                                                                                                                     |   |   |
|                                                                                                                     |   |   |

| In      accordance with the Exchange Act, this report has been signed by the      following persons on behalf of the |
|----------------------------------------------------------------------------------------------------------------------|
| registrant      and in the capacities and on the dates indicated.                                                    |
|                                                                                                                 |   |   |
| Date:  March      31, 2008                                                                                 |   | By: /s/ Freddie M.      Kotek |
|                                                                                                                 |   | Freddie      M. Kotek, Chairman of the Board of Directors, Chief    Executive |
|                                                                                                                 |   | Officer      and President |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |
| Date:  March      31, 2008                                                                                 |   | By: /s/ Frank P.      Carolas |
|                                                                                                                 |   | Frank      P. Carolas, Executive Vice President – Land and Geology |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |
| Date:  March      31, 2008                                                                                 |   | By: /s/ Jeffrey C.      Simmons |
|                                                                                                                 |   | Jeffrey      C. Simmons, Executive Vice President – Operations |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |
| Date:  March      31, 2008                                                                                 |   | By: /s/ Nancy J.      McGurk |
|                                                                                                                 |   | Nancy      J. McGurk, Vice President, Chief Accounting Officer |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |
| Date:  March      31, 2008                                                                                 |   | By: /s/ Matthew A.      Jones |
|                                                                                                                 |   | Matthew      A. Jones, Chief Financial Officer |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |