# ** **

# **UNITED STATES**

**SECURITIES AND EXCHANGECOMMISSION**

# **Washington,D.C. 20549**

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## **FORM 10-Q**

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# **QUARTERLYREPORT PURSUANT TO SECTION 13 OR 15(d) OF**

# **THESECURITIES EXCHANGE ACT OF 1934**

 

# **For the quarterly period endedSeptember 30, 2007**

 

# **Commission File Number: 333-122935-01**

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

(Exact name of registrant asspecified in its charter)

| **Nevada**                                | ** ** | **20-3170768**                       |
|-------------------------------------------|------------|--------------------------------------|
| (State or other jurisdiction of           |       | (I.R.S. employer                     |
| incorporation or organization)            |       | identification no.)                  |
|                                      |       |                                 |
| **1901 N. Central Expressway, Suite 300** | ** ** | ** **                           |
| **Richardson, Texas 75080**               | ** ** | **(972) 437-6792**                   |
| (Address of principal executive offices,  |       | (Registrant’s telephone number, |
| including zip code)                       |       | including area code)                 |

** **

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

 

Indicate by check markwhether the registrant is a large accelerated filer, an accelerated filer, or anon-accelerated filer. See definition of “accelerated filer and largeaccelerated filer” in Rule 12b-2 of the Exchange Act

Large accelerated filer o                          Accelerated filer o                              Non-acceleratedfiler x

 

Indicate by check markwhether the registrant is a shell company (as defined in Rule 12b-2 of theExchange Act). Yes o    No x

**As of November 14, 2007, theregistrant had 75.363 units held by the managing general partner, 1,190.561units of additional general partner interest and 241.336 units of limitedpartner interest outstanding.**

** **

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** **

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

**Form 10-Q Index**

 
| **PART  I — FINANCIAL INFORMATION** |
|------------------------------------------|
|                                     |   |
|                                     | **ITEM  1.** | **FINANCIAL  STATEMENTS (Unaudited)** |
|                                     | *Condensed  Balance Sheets* |
|                                     | *Condensed Statements of Operations* |
|                                     | *Condensed Statements of Cash Flows* |
|                                     | *Notes to Condensed Financial Statements* |
|                                     |   |
|                                     | **ITEM 2.** | **MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS** |
| ** **                               |   |
|                                     |   |
|                                     | **ITEM 3.** | **QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET  RISK** |
|                                     |   |
|                                     | **ITEM 4.** | **CONTROLS AND PROCEDURES** |
|                                     |   |
| **PART  II — OTHER INFORMATION**    |
|                                     |   |
|                                     | **ITEM  1.** | **LEGAL  PROCEEDINGS** |
|                                     |   |
|                                     | **ITEM  1A.** | **RISK  FACTORS** |
|                                     |   |
|                                     | **ITEM 2.** | **UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF  PROCEEDS** |
|                                     |   |
|                                     | **ITEM 3.** | **DEFAULTS UPON SENIOR SECURITIES** |
|                                     |   |
|                                     | **ITEM 4.** | **SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS** |
|                                     |   |
|                                     | **ITEM  5.** | **OTHER  INFORMATION** |
|                                     |   |
|                                     | **ITEM 6.** | **EXHIBITS** |
|                                     |   |
| **SIGNATURES**                           |

 

i

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# ** **

# **PART I FINANCIALINFORMATION**

 

## **Item 1. FinancialStatements**

**ReefGlobal Energy VI, L.P.**

**Condensed Balance Sheets**

 

| ** **                                                                     | ** ** | **September 30,** | ** **     | **December 31,** | ** ** |
|--------------------------------------------------------------------------------|------------|-------------------|----------------|------------------|------------|
| ** **                                                                     | ** ** | **2007**          | ** **     | **2006**         | ** ** |
| ** **                                                                     | ** ** | **(Unaudited)**   | ** **     | ** **       | ** ** |
| **Assets**                                                                     | ** ** | ** **        | ** **     | ** **       | ** ** |
| ** **                                                                     | ** ** | ** **        | ** **     | ** **       | ** ** |
| **Current  assets:**                                                           | ** ** | ** **        | ** **     | ** **       | ** ** |
| Cash and cash  equivalents                                                     | ** ** | $                 | 4,683,644      |             | $          | 15,641,945 | ** ** |
| Accounts  receivable from affiliates                                           |       | 46,119            |           | 111,508          |       |
| **Total  current assets**                                                      | ** ** | **4,729,763**     | ** **     | **15,753,453**   | ** ** |
|                                                                           |       |              |           |             |       |
| **Oil and  gas properties, full cost method of accounting:**                   | ** ** | ** **        | ** **     | ** **       | ** ** |
| Proved  properties, net of accumulated depletion of $20,161,271 and $8,698,588 |       | 9,398,888         |           | 8,116,583        |       |
| Unproved  properties                                                           |       | 548,452           |           | 2,030,077        |       |
| **Net oil  and gas properties**                                                | ** ** | **9,947,340**     | ** **     | **10,146,660**   | ** ** |
| ** **                                                                     | ** ** | ** **        | ** **     | ** **       | ** ** |
| **Other  assets:**                                                             | ** ** | ** **        | ** **     | ** **       | ** ** |
| Prepaid drilling  costs                                                        |       | 273,179           |           | 2,161,047        |       |
| **Total  other assets**                                                        | ** ** | **273,179**       | ** **     | **2,161,047**    | ** ** |
|                                                                           |       |              |           |             |       |
| **Total  assets**                                                              | ** ** | **$**             | **14,950,282** | ** **       | **$**      | **28,061,160** | ** ** |
| ** **                                                                     | ** ** | ** **        | ** **     | ** **       | ** ** |
| **Liabilities  and partnership Equity**                                        | ** ** | ** **        | ** **     | ** **       | ** ** |
|                                                                           |       |              |           |             |       |
| **Current  liabilities:**                                                      | ** ** | ** **        | ** **     | ** **       | ** ** |
| Accounts payable                                                               | ** ** | $                 | 1,166          |             | $          | 1,948 | ** ** |
| Accounts payable  to affiliates                                                |       | 1,225,166         |           | 3,136,602        |       |
| **Total  current liabilities**                                                 | ** ** | **1,226,332**     | ** **     | **3,138,550**    | ** ** |
|                                                                           |       |              |           |             |       |
| **Noncurrent  liabilities:**                                                   | ** ** | ** **        | ** **     | ** **       | ** ** |
| Accounts payable  to affiliates                                                |       | 604,789           |           | 804,789          |       |
| Asset retirement  obligation                                                   |       | 288,317           |           | 203,803          |       |
| **Total  non-current liabilities**                                             | ** ** | **893,106**       | ** **     | **1,008,592**    | ** ** |
| ** **                                                                     | ** ** | ** **        | ** **     | ** **       | ** ** |
| **Partnership  Equity**                                                        | ** ** | ** **        | ** **     | ** **       | ** ** |
| General partners                                                               |       | 10,045,284        |           | 18,801,910       |       |
| Limited partners                                                               |       | 2,036,328         |           | 3,811,366        |       |
| Managing general  partner                                                      |       | 749,232           |           | 1,300,742        |       |
| **Partnership  equity**                                                        | ** ** | **12,830,844**    | ** **     | **23,914,018**   | ** ** |
| ** **                                                                     | ** ** | ** **        | ** **     | ** **       | ** ** |
| **Total  liabilities and partnership equity**                                  | ** ** | **$**             | **14,950,282** | ** **       | **$**      | **28,061,160** | ** ** |
|                                                                                |            |                   |                |                  |            |  |  |  |  |

 

*Seeaccompanying notes to condensed financial statements.*

 

 

1

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**ReefGlobal Energy VI, L.P.**

**Condensed Statements of Operations**

*** ***

| ** **                                           | ** ** | **For the three months ended  September 30 (unaudited)** | ** **  | **For the nine months ended  September 30 (unaudited)** | ** ** |
|------------------------------------------------------|------------|----------------------------------------------------------|-------------|---------------------------------------------------------|------------|
| ** **                                           | ** ** | **2007**                                                 | ** **  | **2006**                                                | ** ** | **2007** | ** ** | **2006** | ** ** |
| **Revenues:**                                        |       |                                                     |        |                                                    |       |   |   |   |   |
| Oil and gas  income                                  | ** ** | $                                                        | 1,151,705   |                                                    | $          | 141,350 |   | $ | 2,523,476 |   | $ | 199,684 | ** ** |
| **Total  revenues**                                  | ** ** | **1,151,705**                                            | ** **  | **141,350**                                             | ** ** | **2,523,476** | ** ** | **199,684** | ** ** |
| ** **                                           | ** ** | ** **                                               | ** **  | ** **                                              | ** ** | ** ** | ** ** | ** ** | ** ** |
| **Costs  and expenses:**                             | ** ** | ** **                                               | ** **  | ** **                                              | ** ** | ** ** | ** ** | ** ** | ** ** |
| Lease operating                                      |       | 152,708                                                  |        | 24,816                                                  |       | 283,334 |   | 30,906 |   |
| Production taxes                                     |       | 73,106                                                   |        | 9,838                                                   |       | 168,266 |   | 13,324 |   |
| Accretion of  asset retirement obligation            |       | 9,563                                                    |        | (199                                                    | )          | 30,910 |   | 381 |   |
| Depreciation,  depletion and amortization            |       | 520,323                                                  |        | 125,967                                                 |       | 1,996,437 |   | 171,747 |   |
| Property  impairment                                 |       | —                                                   |        | 1,537,239                                               |       | 9,466,246 |   | 1,537,239 |   |
| General and  administrative                          |       | 42,663                                                   |        | 52,600                                                  |       | 156,008 |   | 110,391 |   |
| **Total  costs and expenses**                        | ** ** | **798,363**                                              | ** **  | **1,750,261**                                           | ** ** | **12,101,201** | ** ** | **1,863,988** | ** ** |
|                                                 |       |                                                     |        |                                                    |       |   |   |   |   |
| **Income  (loss) from operations**                   | ** ** | **353,342**                                              | ** **  | **(1,608,911**                                          | **)**      | **(9,577,725** | **)** | **(1,664,304** | **)** |
| ** **                                           | ** ** | ** **                                               | ** **  | ** **                                              | ** ** | ** ** | ** ** | ** ** | ** ** |
| **Other  income:**                                   | ** ** | ** **                                               | ** **  | ** **                                              | ** ** | ** ** | ** ** | ** ** | ** ** |
| Interest income                                      |       | 73,693                                                   |        | 230,552                                                 |       | 349,443 |   | 590,302 |   |
| **Total  other income**                              | ** ** | **73,693**                                               | ** **  | **230,552**                                             | ** ** | **349,443** | ** ** | **590,302** | ** ** |
| ** **                                           | ** ** | ** **                                               | ** **  | ** **                                              | ** ** | ** ** | ** ** | ** ** | ** ** |
| **Net  income (loss)**                               | ** ** | **$**                                                    | **427,035** | ** **                                              | **$**      | **(1,378,359** | **)** | **$** | **(9,228,282** | **)** | **$** | **(1,074,002** | **)** |
|                                                 |       |                                                     |        |                                                    |       |   |   |   |   |
| Net income  (loss) per general partner unit          |       | $                                                        | 218.59      |                                                    | $          | (924.17 | ) | $ | (6,203.17 | ) | $ | (747.48 | ) |
| Net income  (loss) per limited partner unit          |       | $                                                        | 218.59      |                                                    | $          | (924.17 | ) | $ | (6,203.17 | ) | $ | (747.48 | ) |
| Net income  (loss) per managing general partner unit |       | $                                                        | 1,513.19    |                                                    | $          | (730.43 | ) | $ | (4,590.81 | ) | $ | (48.94 | ) |
|                                                      |            |                                                          |             |                                                         |            |  |  |  |  |  |  |  |  |  |  |  |

 

*See accompanying notes to condensed financialstatements.*

 

 

2

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**ReefGlobal Energy VI, L.P.**

**Condensed Statements of Cash Flows**

 
| ** **                                                                       | ** ** | **For the nine months ended  September 30, (unaudited)** | ** **    |
|----------------------------------------------------------------------------------|------------|----------------------------------------------------------|---------------|
| ** **                                                                       | ** ** | **2007**                                                 | ** **    | **2006** | ** ** |
| **Operating  Activities**                                                        |       |                                                     |          |   |   |
| Net loss                                                                         | ** ** | $                                                        | (9,228,282    | ) | $ | (1,074,002 | ) |
| Adjustments for  non-cash transactions:                                          |       |                                                     |          |   |   |
| Depreciation,  depletion and amortization                                        |       | 1,996,437                                                |          | 171,747 |   |
| Property  impairment                                                             |       | 9,466,246                                                |          | 1,537,239 |   |
| Accretion of  asset retirement obligation                                        |       | 30,910                                                   |          | 381 |   |
| Adjustments to  reconcile net loss to net cash provided by operating activities: | ** ** | ** **                                               | ** **    | ** ** | ** ** |
| Decrease in  other assets                                                        |       | 1,887,868                                                |          | 3,043,755 |   |
| **Changes  in operating assets and liabilities:**                                | ** ** | ** **                                               | ** **    | ** ** | ** ** |
| Accounts  receivable                                                             |       | —                                                   |          | (33,327 | ) |
| Accounts  receivable from affiliates                                             |       | 46,842                                                   |          | 374,048 |   |
| Accounts payable                                                                 |       | (782                                                     | )             | (6,981 | ) |
| Accounts payable  to affiliates                                                  |       | 32,430                                                   |          | (178,012 | ) |
| **Net  cash provided by operating activities**                                   | ** ** | **4,231,669**                                            | ** **    | **3,834,848** | ** ** |
|                                                                             |       |                                                     |          |   |   |
| **Investing  Activities**                                                        | ** ** | ** **                                               | ** **    | ** ** | ** ** |
| Property  acquisition and development                                            |       | (13,353,625                                              | )             | (7,785,892 | ) |
| **Net  cash used in investing activities**                                       | ** ** | **(13,353,625**                                          | **)**         | **(7,785,892** | **)** |
|                                                                             |       |                                                     |          |   |   |
| **Financing  Activities**                                                        | ** ** | ** **                                               | ** **    | ** ** | ** ** |
| Partner capital  contributions                                                   |       | 114,405                                                  |          | 84,565 |   |
| Partner  distributions                                                           |       | (1,950,750                                               | )             | (518,623 | ) |
| **Net  cash used in financing activities**                                       | ** ** | **(1,836,345**                                           | **)**         | **(434,058** | **)** |
|                                                                             |       |                                                     |          |   |   |
| **Net  decrease in cash and cash equivalents**                                   | ** ** | **(10,958,301**                                          | **)**         | **(4,385,102** | **)** |
| Cash and cash  equivalents at beginning of period                                |       | 15,641,945                                               | ** **    | **25,839,550** | ** ** |
| **Cash  and cash equivalents at end of period**                                  | ** ** | **$**                                                    | **4,683,644** | ** ** | **$** | **21,454,448** | ** ** |
|                                                                             |       |                                                     |          |   |   |
| **Non-cash  investing transactions:**                                            | ** ** |                                                     |          |   |   |
| Property additions  included in accounts payable                                 | ** ** | $                                                        | —        |   | $ | 32,995 |   |
| Property  additions included in accounts payable to affiliates                   | ** ** | $                                                        | 992,736       |   | $ | 972,307 |   |
| Property  additions and asset retirement obligation                              | ** ** | $                                                        | 53,604        |   | $ | 75,068 |   |
| **Non-cash  financing transactions:**                                            | ** ** |                                                     |          |   |   |
| Managing partner  contributions included in accounts receivable from affiliates  | ** ** | $                                                        | 46,119        |   | $ | 29,288 |   |

 

*See accompanying notes to condensed financialstatements.*

 

 

3

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

**Notes to Condensed FinancialStatements (unaudited)**

**September 30, 2007**

 

**1. Organization and Basis of Presentation**

 

The financial statements for Reef Global Energy VI, L.P. (thePartnership) have been prepared pursuant to the rules and regulations of theSecurities and Exchange Commission (SEC). Certain information and footnotedisclosure normally included in annual financial statements prepared inaccordance with accounting principles generally accepted in the United Stateshave been condensed or omitted pursuant to those rules and regulations. We haverecorded all transactions and adjustments necessary to fairly present thefinancial statements included in this Form 10-Q. The adjustments are normal andrecurring. The following notes describe only the material changes in accountingpolicies, account details, or financial statement notes during the first ninemonths of 2007. Therefore, please read these condensed financial statements andnotes to condensed financial statements together with the audited financialstatements and notes to financial statements contained in the Partnership’sReport on Form 10-K for the period ended December 31, 2006 (the 2006 10-K).

 

**2. Summary of Accounting Policies**

 

# **Oil and Gas Properties**

 

The Partnership follows the full cost method of accounting for crudeoil and natural gas properties. Under this method, all direct costs and certainindirect costs associated with acquisition of properties and successful as wellas unsuccessful exploration and development activities are capitalized.Depreciation, depletion, and amortization of capitalized crude oil and naturalgas properties and estimated future development costs, excluding unprovedproperties, are based on the unit-of-production method using proved reserves.  Proved gas reserves are converted toequivalent barrels at a rate of 6 Mcf to 1 Bbl. Net capitalized costs of crudeoil and natural gas properties, as adjusted for asset retirement obligations,are limited to the lower of unamortized cost or the cost ceiling, defined asthe sum of the present value of estimated future net revenues from provedreserves based on un-escalated prices discounted at 10 percent, plus the costof properties not being amortized, if any, plus the lower of cost or estimatedfair value of unproved properties included in the costs being amortized, ifany. Pursuant to full cost accounting rules, the Partnership performs a ceilingtest quarterly as of the balance sheet date on its proved oil and gasproperties. Excess capitalized costs are charged to property impairmentexpense. No gain or loss is recognized upon sale or disposition of crude oiland natural gas properties, except in unusual circumstances. Unprovedproperties consist primarily of drilling costs in progress on wells drillingfor unproved reserves. Investments in unproved properties are not depletedpending determination of the existence of proved reserves. During the three andnine month periods ended September 30, 2007, the Partnership recognizedproperty impairment expense of $0 and $9,466,246.

 

**Asset Retirement Obligations**

 

Statement of Financial Accounting Standards No. 143, “Accounting forRetirement Obligations” (SFAS 143) addresses accounting and reporting forobligations associated with the retirement of tangible long-lived assets andthe associated asset retirement costs. SFAS 143 requires that the fair value ofa liability for an asset’s retirement obligation be recorded in the period inwhich it is incurred and the corresponding cost capitalized by increasing thecarrying amount of the related long-lived asset. The liability is accreted toits then present value each period, and the capitalized cost is depreciatedover the useful life of the related asset.

 

The following table summarizes thePartnership’s asset retirement obligation for the nine months ended September30, 2007 and the year ended December 31, 2006.

 

4

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| ** **                             | ** ** | **Nine months ended  September 30, 2007** | ** ** | **2006** | ** ** |
|----------------------------------------|------------|-------------------------------------------|------------|----------|------------|
| Beginning asset  retirement obligation |       | $                                         | 203,803    |     | $          | 1,982 |   |
| Additions  related to new properties   |       | 53,604                                    |       | 199,253  |       |
| Accretion  expense                     |       | 30,910                                    |       | 2,568    |       |
| Ending asset  retirement obligation    |       | $                                         | 288,317    |     | $          | 203,803 |   |

 

**Reclassifications**

 

Certaininformation provided for prior years has been reclassified to conform to the2007 financial statement presentation.

 

**3. Transactions with Affiliates**

 

Reef Oil & Gas Partners, L.P. (Reef), the managing general partner,contributes 1% of all leasehold, drilling and completion costs when incurred.In addition, Reef purchased 5% of the Partnership units and pays 5% of the 99%of these costs paid by the unit holders (4.95%). During the three and ninemonth periods ended September 30, 2007, this 1% obligation totaled $46,119 and$95,858, respectively. The Partnership settles its balances with Reef on aquarterly basis.

 

Reef Exploration, L.P. (RELP), an affiliate of Reef, processes revenuesand joint interest billings on behalf of the Partnership. At September 30,2007, the Partnership owed RELP $703,237 for net drilling and operatinginvoices in excess of net revenues processed by RELP on behalf of thePartnership.  The Partnership settles itsbalances with RELP on a quarterly basis.

 

The Partnership has no employees. RELP employs a staff includinggeologists, petroleum engineers, landmen and accounting personnel whoadminister all of the Partnership’s operations. The Partnership reimburses RELPfor technical and administrative services at cost. During the three and ninemonth periods ended September 30, 2007, the Partnership incurred technicalservices costs totaling $289,500 and $663,512, which have been capitalized asproject costs, and incurred general and administrative costs totaling $29,339and $82,694. At September 30, 2007, the Partnership owed RELP $321,929, consistingprimarily of third quarter technical services and administrative costs.

 

Accounts payable to affiliates at September 30, 2007 also includes$804,789 for the unpaid portion of the 15% management fee due to Reef fororganization and offering costs, including sales commissions. Of this amount,$200,000 is classified as a current liability and $604,789 as a long-termliability. The management fee is payable in two parts. Reef receivesreimbursement for actual commissions and organization and offering costs asincurred. The remaining balance will be paid to Reef from cash flows availablefor partner distributions, at a rate not to exceed $1 million per year. The$200,000 represents the portion of the fee the Partnership expects to pay Reeffrom cash flows available for distribution during the next twelve months.

 

**4. Partnership Equity**

 

Information regarding thenumber of units outstanding and the net income (loss) per type of Partnershipunit for the three and nine month periods ended September 30, 2007 is detailedbelow:

For the three months ended September 30, 2007

| **Type of Unit**                | ** ** | **Number of  Units** | ** ** | **Net income** | ** ** | **Net income  per unit** | ** ** |
|---------------------------------|------------|----------------------|------------|----------------|------------|--------------------------|------------|
| Managing general  partner units |       | 75.363               |       | $              | 114,039    |                     | $          | 1,513,19 |   |
| General partner  units          |       | 1,190.561            |       | 260,242        |       | $                        | 218.59     |   |
| Limited partner  units          |       | 241.336              |       | 52,754         |       | $                        | 218.59     |   |
| Total                           |       | 1,507.260            |       | $              | 427,035    |                     |       |   |

 

 

5

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For the nine months ended September 30, 2007

| **Type of Unit**                | ** ** | **Number of Units** | ** ** | **Net loss** | ** ** | **Net loss per  unit** | ** ** |
|---------------------------------|------------|---------------------|------------|--------------|------------|------------------------|------------|
| Managing general  partner units |       | 75.363              |       | $            | (345,977   | )                      | $          | (4,590.81 | ) |
| General partner  units          |       | 1,190.561           |       | (7,385,255   | )          | $                      | (6,203.17  | ) |
| Limited partner  units          |       | 241.336             |       | (1,497,050   | )          | $                      | (6,203.17  | ) |
| Total                           |       | 1,507.260           |       | $            | (9,228,282 | )                      |       |   |
|                                 |            |                     |            |              |            |                        |            |  |  |  |

 

 

**Item 2. Management’s Discussion and Analysis of Financial Condition and Resultsof Operations.**

 

The following is a discussion ofthe Partnership’s financial position, results of operations, liquidity andcapital resources. This discussion should be read in conjunction with ourfinancial statements and the related notes thereto, included in the 2006 10-K.

 

This Report on Form 10-Q contains forward-looking statements thatinvolve risks and uncertainties.  You should exercise extreme caution withrespect to all forward-looking statements made in this Report. Specifically, the following statements are forward-looking:

 

•                                     statements regarding the state of the oiland gas industry and the opportunity to profit within the oil and gas industry,competition, pricing, level of production, or the regulations that may affectthe Partnership;

 

•                                     statements regarding the plans andobjectives of Reef for future operations, including, without limitation, theuses of Partnership funds and the size and nature of the costs the Partnershipexpects to incur and people and services the Partnership may employ;

 

•                                     any statements using the words “anticipate,”“believe,” “estimate,” “expect” and similar such phrases or words; and

 

•                                     any statements of other than historicalfact.

 

Reef believes that it is important to communicate its futureexpectations to the partners.  Forward-looking statements reflect thecurrent view of management with respect to future events and are subject tonumerous risks, uncertainties and assumptions, including, without limitation,the factors listed in the section captioned “RISK FACTORS” contained inthe Program’s prospectus and prospectus supplement each dated July 8, 2005.Although Reef believes that the expectations reflected in such forward-lookingstatements are reasonable, Reef can give no assurance that such expectationswill prove to have been correct.  Should any one or more of these or otherrisks or uncertainties materialize or should any underlying assumptions proveincorrect, actual results are likely to vary materially from those describedherein.  There can be no assurance that the projected results will occur,that these judgments or assumptions will prove correct or that unforeseendevelopments will not occur.

 

Reef does not intend to update its forward-looking statements.  Allsubsequent written and oral forward-looking statements attributable to Reef orpersons acting on its behalf are expressly qualified in their entirety by theapplicable cautionary statements.

 

**Overview**

 

Reef Global Energy VI, L.P. is a Nevada limited partnership formed toacquire, explore, develop and produce crude oil, natural gas, and natural gasliquids for the benefit of its investor partners. The Partnership’s primarypurposes are to generate revenues from the production of oil and gas,distribute cash flow to investors, and provide tax benefits to investors. ThePartnership’s capital has been used to purchase prospects upon which thePartnership has and will conduct drilling operations, and to pay for suchdrilling operations.

 

6

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The Partnership expects to drill 48 wells in total on 34 prospectspurchased with the capital raised by the Partnership. These wells are expectedto comprise the drilling phase of Partnership operations, and utilize all ofthe initial capital raised by the Partnership. It is expected that all of thesewells will have completed drilling operations by the end of 2007. ThePartnership did not purchase working interests in any additional prospectsduring the third quarter of 2007, and does not expect to purchase workinginterests in any additional prospects. Prior to this quarter, the Partnershippurchased working interests in 14 exploratory prospects for approximately $1.23million, upon which a total of 14 exploratory and seven developmental wells areexpected to be drilled. The Partnership purchased working interests in 20developmental prospects for approximately $1.60 million, upon which a total of27 developmental wells are expected to be drilled. The Partnership has twentyprospects located in Texas, ten in Louisiana, one in Oklahoma, one in NewMexico, and two in United States coastal waters in the Gulf of Mexico.

 

At September 30, initial drilling operations have been completed on all34 prospects, and development drilling operations are ongoing on certainprospects. The Partnership drilled seven successful exploratory wells, one ofwhich is currently shut-in, one of which has been plugged and abandoned, andone of which is currently being completed, and drilled seven unsuccessfulexploratory wells. Five successful developmental wells have been drilled on oneof the exploratory prospects, and one is currently drilling. One developmentalwell was drilled on a second exploratory prospect during the second quarter of2007, and, after a review of well logs and geologic data, a proposal toside-track the well approximately 2,500 feet from its current bottom holelocation was made. Side-track operations have commenced and are expected to becompleted in late December 2007. The Partnership has drilled eleven successfuland eleven unsuccessful developmental wells, and expects to drill fiveadditional developmental wells on its Sand Dunes prospect in Eddy County, NewMexico during the fourth quarter. All 48 wells are expected to complete drillingoperations by December 31, 2007.

 

During the third quarter, the Partnership completed drilling operationson one successful developmental well in its Sugg Ranch prospect in SterlingCounty, Texas, and three successful wells in its Sand Dunes prospect in EddyCounty, New Mexico. The Sugg Ranch well began production operations during thethird quarter and the three Sand Dunes wells are expected to begin producing inlate November, after construction of a gas sales pipeline is completed. ThePartnership completed the HBR Big Gas Unit #1 well (Troon Prospect) inGalveston County, Texas during the quarter and it began production operationsin September 2007.

 

One additional Sugg Ranch developmental well and five additional SandDunes developmental wells are being drilled during the fourth quarter. Ifsuccessful, these wells are all expected to begin production during lateNovember and December 2007. In addition, the side-track drilling operations onthe partnership’s Gumbo II prospect in Terrebonne Parish, Louisiana areexpected to be completed in late December. If successful, completion operationswill begin in early 2008. The exploratory well currently being completed in thePartnership’s Dolphin B prospect located in United States coastal waters in theGulf of Mexico, if successful, is not expected to begin producing operationsuntil early 2008.

 

The Partnership operates solely in the United States. RELP and itspredecessor entity, OREI, Inc., have expertise and have drilled and operatedwells primarily in Texas and Louisiana since 1987. The Partnership has twentyprospects located in Texas, ten in Louisiana, one in Oklahoma, one in NewMexico, and two in United States coastal waters in the Gulf of Mexico.

 

The Partnership does not operate in any other industry segment. Shouldany prospect in which the Partnership has an interest be determined to warrantadditional development activity, the Partnership may borrow any amount up to25% of the Partnership’s aggregate capital contributions without the consent ofthe investor partners, provided the lender agrees it will have no recourseagainst individual investor partners. The Partnership is prohibited fromissuing additional cash calls to investor partners. Total borrowings cannotexceed 25% of the Partnership’s aggregate capital contributions without theapproval of the investor partners. The Partnership is not allowed to borrowfunds during the drilling phase of Partnership operations. To date, thePartnership has chosen to fund additional developmental activity on successfulprospects utilizing the original Partnership capital. Should the Partnershipelect to borrow monies for additional development activity on Partnershipproperties, it will be subject to the interest rate risk inherent in borrowingactivities. The Partnership is permitted but has not and is not expected toengage in commodity futures trading or hedging activities, and therefore issubject to commodity price risk.   See “Item 3—Quantitative andQualitative Disclosures About Market Risk.”

 

7

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**Critical AccountingPolicies**

 

There have been no changes from theCritical Accounting Policies described in the 2006 10-K.

 

**Liquidity and Capital Resources**

 

During the offering period ended October 31, 2005, the Partnershipraised $35,797,434 from the sale of 1,431.897 Partnership units to investorpartners. Reef purchased 5% of the total partnership units (75.363 units) for$1,601,464. Reef will also contribute 1% of all leasehold,drilling, and completion costs when incurred, in addition to paying its prorata share (4.95%) of the leasehold, drilling, and completion costs paid by thePartnership. As of September 30, 2007, Reef has contributed $235,521 andaccrued $46,119 in connection with its obligation to pay 1% of such costs.Organization and offering costs totaled $5,369,615, leaving the Partnership$32,310,923 for drilling operations and pre-production administrative costs.These funds are expected to be expended over a period of approximately 30-36months beginning in July 2005.

 

To date, the Partnership has acquired working interests in twentydevelopmental prospects with a total of twenty-seven planned wells havingaggregate estimated costs of $14.941 million. The Partnership has also acquiredworking interests in fourteen exploratory prospects with a total of fourteenplanned exploratory and seven planned development wells having aggregateestimated costs of $16.926 million. Estimated pre-production administrativecosts incurred were $0.138 million. The Partnership acquired its final prospectworking interest during the second quarter of 2007. Drilling operations arewinding down and all forty-eight Partnership wells are expected to havecompleted drilling operations by December 31, 2007. During this quarter, thePartnership completed drilling operations on one successful developmental wellin its Sugg Ranch prospect in Sterling County, Texas, and three successfulwells in its Sand Dunes prospect in Eddy County, New Mexico. The Sugg Ranchwell began production operations during the third quarter and the three SandDunes wells are expected to begin producing in late November, afterconstruction of a gas sales pipeline is completed. The Partnership completedthe HBR Big Gas Unit #1 well (Troon Prospect) in Galveston County, Texas duringthe quarter and it began production operations in September 2007.

 

Until initial drilling operations are completed it is not known whetherany borrowings will be required for additional developmental activities. ThePartnership is prohibited from raising additional capital through voluntary orinvoluntary partner cash calls.

 

The Partnership has working capital of $3,503,431 at September 30,2007, which includes $579,809 of interest income and net revenues available fordistribution to investor partners, $604,789 of deferred organization andoffering costs due Reef, and $2,318,833 available for drilling operations. ThePartnership has expended $29,992,090 to date in connection with the purchase ofleasehold interests, drilling activity, and pre-production administrativecosts. The Partnership will expend substantially all of these funds during thefourth quarter. Subsequent to its drilling phase, the Partnership will haveminimal working capital, primarily consisting of cash and accounts receivablefrom oil and gas sales, which the Partnership will use to pay monthly cashdistributions to investors.

 

**Results of Operations**

 

**Three Months Ended September 30, 2007 and 2006**

 

Partnership net income totaled $427,035 during the three month periodended September 30, 2007, compared to a net loss of $1,378,359 for the threemonth period ended September 30, 2006.

 

Partnership oil and gas drilling activities began during the thirdquarter of 2005 and are expected to continue through December 2007. AtSeptember 30, 2006, the Partnership had only four productive wells, and oil andgas revenues for the third quarter totaled $141,350. Cash flow from operationstotaled $54,096. The net loss of $1,378,359 was primarily the result of animpairment charge of $1,537,239, which resulted from a substantial negativeadjustment to the initial reserve estimates on the Partnership’s KK Westervelt#2 (Gumbo prospect) well, in which the Partnership holds a 5% working interest.This non-operated well began production operations in August 2006 but rapidpressure declines indicating a much smaller reservoir caused an adjustment toestimated reserves.

 

8

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During the third quarter of 2007, the Partnership had oil and gas productionfrom eighteen successful wells. One of these wells, the VO Thomas Heirs #1 inSt. Martin Parish, Louisiana, ceased production during the quarter and will beplugged and abandoned. The well contributed 0.6% of third quarter oil and gasrevenues. During this quarter, one additional well in the Sugg Ranch prospectand the HBR Big Gas Unit #1 well (Troon Prospect) in Galveston County, Texasbegan production operations. The Partnership owns a 35.4% working interest inthe HBR Big Gas Unit #1 well, and the initial results from the well have beenextremely encouraging, with production levels holding in excess of 100 barrelsof oil and 2.5 million cubic feet of natural gas per day. The Partnership alsobenefited from increases in crude oil prices, which have continued to escalateduring the fourth quarter. Consequently, Partnership oil and gas revenues forthe third quarter of 2007 totaled $1,151,705 compared to $509,731 and $862,040during the first two quarters of 2007. The Troon prospect discovery and oilprice increases led to the Partnership having no impairment charge for thecurrent quarter, and the Partnership experienced its first quarter this yearwith net income, which totaled $427,035. We expect even higher productionvolumes and prices during the fourth quarter.

 

Interest income continues its sharp decline as investor capitalcontributions are expended on oil and gas drilling operations. We expectdrilling operations to be completed at December 31, 2007. During the firstthree quarters of 2007, interest income has totaled $157,205, $118,545, and$73,693, respectively. A similar decline is expected during the fourth quarter,after which we expect minimal interest income during 2008. General andadministrative costs totaled $42,663 during the third quarter. This amount isexpected to rise next quarter as a result of expenditures related to year-endprocess improvement and compliance projects, and as a result of increasedadministrative charges by RELP as the Partnership adds productive wells.

 

The Partnership currently has three wells on its Sand Dunes prospect inEddy County, New Mexico which are expected to begin production operationsduring the fourth quarter, and has five additional wells on this prospect whichwill be drilled during the fourth quarter and which, if capable of commercialproduction, are expected to begin production operations late in the fourthquarter. The seventh well on the partnership’s Sugg Ranch prospect in SterlingCounty, Texas is also drilling and, if capable of commercial production, isalso expected to begin production operations late in the fourth quarter. TheDolphin B well, an exploratory well located in United States coastal waters inthe Gulf of Mexico, is currently being completed and is expected to beoperational in January 2008. Finally, the KK Westervelt #1 side-track well(Gumbo prospect), is expected to finish drilling operations in late Decemberand, if successful, be completed during the first quarter of 2008. ThePartnership’s future results from operations could improve significantlydepending upon the final results of all these projects.

 

**Nine Months Ended September 30, 2007 and 2006**

 

The Partnership incurred a net loss of $9,228,282 during the nine monthperiod ended September 30, 2007, compared to a net loss of $1,074,002 for thenine month period ended September 30, 2006.

 

As of September 30, 2006, the Partnership had four productive wells andhad in excess of $21,000,000 of unspent investor capital. Interest income onunspent investor capital accounted for 74.7% of the total of interest incomeand oil and gas revenues.  Oil and gasrevenues for the nine months ended September 30, 2006 totaled $199,684. The netloss of $1,074,002 was primarily the result of an impairment charge of$1,537,239 incurred during the third quarter, which resulted from a substantialnegative adjustment to the initial reserve estimates on the Partnership’s KKWestervelt #2 (Gumbo prospect) well, in which the Partnership holds a 5%working interest. This non-operated well began production operations in August2006 but rapid pressure declines indicating a much smaller reservoir caused anadjustment to estimated reserves.

 

The Partnership had a net loss of $9,228,282 during the nine monthperiod ended September 30, 2007. During the first two quarters of the year thePartnership had impairment charges totaling $9,466,246. Approximately $4.1million of the impairment charge was related to unsuccessful well costs, andthe remainder was the result of significant reserve reductions on four Partnershipwells which began production in late 2006 and early 2007. The Partnership hadno impairment charges during the third quarter, and currently does notanticipate any further impairment charges during 2007. The Partnership hadeighteen productive wells during the first nine months of 2007, one of whichhas ceased production and which will be plugged and abandoned. This wellcontributed 1.45% of total Partnership oil and gas revenues for the first ninemonths of 2007. Oil and gas sales have been climbing each quarter of 2007, andare expected to continue to increase during the fourth quarter. Future resultscould also be significantly impacted by the results of drilling operationsduring the fourth quarter. These drilling operations are described below.

 

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As investor capital has been expended on drilling operations, interestincome has declined. Interest income was $590,302 for the first nine months of2006, compared to $349,443 during the first nine months of 2007. Only $73,693of this $349,443 was received during the third quarter. General andadministrative costs totaled $156,008 for the first nine months of 2007,compared to $110,391 for the first nine months of 2006. General andadministrative cost paid to RELP totaled $82,694 during the first nine monthsof 2007 compared to $15,878 during the first nine months of 2006, and aredirectly related to the additional administrative costs incurred by RELP asPartnership operations increase. Fourth quarter general and administrativecosts are expected to rise above third quarter levels as a result ofexpenditures related to year-end process improvement and compliance projects,and as a result of increased administrative charges by RELP as the Partnershipadds productive wells.

 

The Partnership currently has three wells on its Sand Dunes prospect inEddy County, New Mexico which are expected to begin production operationsduring the fourth quarter, and has five additional wells on this prospect whichwill be drilled during the fourth quarter and which, if capable of commercialproduction, are expected to begin production operations late in the fourthquarter. The seventh well on the partnership’s Sugg Ranch prospect in SterlingCounty, Texas is also drilling and, if capable of commercial production, isalso expected to begin production operations late in the fourth quarter. TheDolphin B well, an exploratory well located in United States coastal waters inthe Gulf of Mexico, is currently being completed and is expected to beoperational in January 2008. Finally, the KK Westervelt #1 side-track well(Gumbo prospect), is expected to finish drilling operations in late Decemberand, if successful, be completed during the first quarter of 2008. ThePartnership’s future results from operations could improve significantlydepending upon the final results of all these projects.

 

Net proved reserves of the Partnership include proved developedproducing reserves, proved developed non-producing reserves, and provedundeveloped reserves. Total net proved oil and gas reserves at September 30,2007 and December 31, 2006 are presented below. The estimated proved reservesof the Partnership include only those quantities which are reasonably expectedto be recovered from known oil and gas reservoirs under current economic andoperating conditions. Proved reserves include only quantities we expect torecover commercially using current prices, costs, existing regulatorypractices, and technology. Therefore, any changes in future prices, costs,regulations, technology or other unforeseen factors could materially increaseor decrease the estimate of proved reserves. The estimates of proved reservesat September 30, 2007 use closing NYMEX prices of $81.66 per barrel and $6.87per mmBtu, adjusted by property for energy content, quality and transportationcosts. The estimates of proved reserves at December 31, 2006 use closing NYMEXprices of $57.75 per barrel and $5.635 per mmBtu, adjusted by property forenergy content, quality and transportation costs.  Additional development costs required torecover these proved reserves are estimated at approximately $1.09 million asof September 30, 2007. All of the Partnership’s reserves are located in theUnited States.

 

| **Net  proved reserves** | ** ** | **Oil  (BBL)** | ** ** | **Gas  (MCF)** | ** ** |
|--------------------------|------------|----------------|------------|----------------|------------|
| December 31,  2006       |       | 69,253         |       | 1,597,089      |       |
| September 30,  2007      |       | 162,393        |       | 2,004,903      |       |

 

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

 

**Interest Rate Risk**

 

The Partnership currently has no borrowings. The partnership agreementprohibits bank borrowings during the Partnership’s drilling phase ofoperations. The Partnership is permitted to borrow monies for additionaldevelopment drilling and facilities costs on Partnership prospects alreadydrilled. Upon completion of the drillingphase of operations, should the Partnership elect to borrow monies foradditional development activity on Partnership properties, it will be subjectto the interest rate risk inherent in borrowing activities. Changes in interestrates could significantly affect the Partnership’s results of operations andthe amount of net cash flow available for partner distributions. Also, to theextent that changes in interest rates affect general economic conditions, thePartnership is affected by such changes.

 

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**Commodity Price Risk**

 

The Partnership has not and is not expected to engage in commodityfutures trading or hedging activities or enter into derivative financialinstrument transactions for trading or other speculative purposes. ThePartnership sells a vast majority of its production from successful oil and gaswells on a month-to-month basis at current spot market prices. Accordingly, thePartnership is at risk for the volatility in commodity prices inherent in theoil and gas industry, and the level of commodity prices has a significantimpact on the Partnership’s results of operations.

 

Assuming the production levels we attained during the nine months endedSeptember 30, 2007, a 10% change in the price received for our crude oil wouldhave had an approximate $85,000 impact on our oil revenues, and a 10% change inthe price received for our natural gas would have had an approximate $167,000impact on our natural gas revenues. 

 

**Item 4. Controls and Procedures**

 

The Partnership, under the supervision and with the participation ofits management, including the principal executive officer and principalfinancial officer of the Partnership’s managing general partner, Reef,evaluated the effectiveness of its “disclosure controls and procedures,” assuch term is defined in Rule 13a-15(e) under the Securities Exchange Act of1934, as amended (Exchange Act), as of the end of the period covered by thisquarterly report on Form 10-Q.

 

Based on that evaluation, the principal executive officer and principalfinancial officer of our managing general partner have concluded that thePartnership’s disclosure controls and procedures are effective  to ensure that information required to bedisclosed by the Partnership in reports that it files or submits under theExchange Act is recorded, processed, summarized and reported within the timeperiods specified in SEC rules and forms, and includes controls and proceduresdesigned to ensure that information required to be disclosed by us in suchreports is accumulated and communicated to our management, including theprincipal executive officer and principal financial officer of our managinggeneral partner, as appropriate to allow timely decisions regarding requireddisclosure. During our fiscal quarter ended September 30, 2007, no changesoccurred in our internal control over financial reporting (as defined in Rule13a-15(f) under the Exchange Act) that have materially affected, or arereasonably likely to materially affect, our internal control over financialreporting.

 

**PART II — OTHER INFORMATION**

 

**Item 1.  Legal Proceedings**

 

None.

 

**Item 1A.  RISK FACTORS**

 

In addition to the other information set forth in this report, youshould carefully consider the risk factors discussed in Part I, Item 1A in the2006 10-K, which could materially affect our business, financial condition orfuture results. The risks described in our 2006 10-K are not the only risksfacing the Partnership. Additional risks and uncertainties not currently knownto us or that we currently deem to be immaterial also may materially adverselyaffect our business, financial condition and/or operating results. There havebeen no material changes from the risk factors previously disclosed in the 200610-K.

 

**Item 2.  Unregistered Sales of Equity Securities andUse of Proceeds**

 

**Use of Proceeds**

 

In connection with the Registration Statement filed on Form S-1 (No.333-122935) and declared effective July 7, 2005, Reef filed a final prospectusfor the Program and filed a prospectus supplement describing the Partnership onJuly 8, 2005. At such time Reef commenced the offering of units in thePartnership. All sales of Partnership units were made through the Program’sdealer manager, Reef Securities, Inc., and a number of soliciting dealers. Theoffering period ended October 31, 2005.

 

During the offering period ending on October 31, 2005, the Partnershipsold 1,431.897 units to investor partners, consisting of 241.336 units oflimited partner interest and 1,190.561 units of additional general partnerinterest. Reef purchased 75.363 general partner units, equaling 5.00% of thetotal Partnership units sold. Total offering proceeds were $37,398,898. Reefwill also contribute 1% of all leasehold, drilling, and completion costs asincurred. As of September 30, 2007, Reef has contributed $235,521 and hasaccrued $46,119 in connection with this obligation.

 

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All units except those purchased by Reef paid a 15% management fee toReef to pay for the Partnership organization and offering costs, includingsales commissions. These costs totaled $5,369,615, leaving net capitalcontributions of $32,310,923 available for Partnership oil and gas operations.As of September 30, 2007, the Partnership had expended $29,853,772 on propertyacquisitions and prepayments and $138,318 on pre-production administrativecosts, including amounts in accounts payable at September 30, 2007. ThePartnership intends to utilize substantially all remaining availablePartnership capital for oil and gas activities by December 31, 2007.

 

**Item 3.  Defaults Upon Senior Securities**

 

None.

 

**Item 4.  Submission of Matters to a Vote of SecurityHolders**

 

None.

 

**Item 5.  Other Information**

 

None.

 

**Item 6.  Exhibits**

 
| **Exhibits** | ** ** | ** **                                                                                                                                          |
|--------------|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
|         |       |                                                                                                                                                |
| 31.1         |       | Certification of Chief Executive Officer required by  Rule 13a-14(a)/15d-14(a) pursuant to Section 302 of the Sarbanes-Oxley Act of  2002.          |
|         |       |                                                                                                                                                |
| 31.2         |       | Certification of Chief Financial Officer required by  Rule 13a-14(a)/15d-14(a) pursuant to Section 302 of the Sarbanes-Oxley Act of  2002.          |
|         |       |                                                                                                                                                |
| 32.1         |       | Certification of Chief Executive Officer pursuant to  18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of 2002. |
|         |       |                                                                                                                                                |
| 32.2         |       | Certification of Chief Financial Officer pursuant to  18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of 2002. |

 

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**SIGNATURES**

 

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

 
|       |              | REEF GLOBAL ENERGY VI,  L.P. |
|------------|-------------------|------------------------------|
|       |              |                         |   |
|       |              | By:                          | Reef Oil & Gas  Partners, L.P. |
|       |              |                         | Managing General  Partner |
|       |              |                         |   |
|       |              | By:                          | Reef Oil & Gas  Partners, GP, LLC |
|       |              |                         |   |
| Dated:     | November 19, 2007 | By:                          | /s/ Michael J. Mauceli |
| ** ** | ** **        |                         | **Michael J. Mauceli** |
|       |              |                         | Manager and Member |
|       |              |                         | (*principal  executive officer)* |
|       |              |                         |   |
| Dated:     | November 19, 2007 | By:                          | /s/ Daniel C. Sibley |
| ** ** | ** **        |                         | **Daniel C. Sibley** |
|       |              |                         | Chief Financial Officer |
|       |              |                         | (*principal financial and  accounting officer)* |

 

 

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