**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

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

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**FORM 10-Q**

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**QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF**

**THE SECURITIES EXCHANGE ACT OF 1934**

# **For thequarterly period ended September 30, 2006**

# **CommissionFile Number: 333-122935-01**

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

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

Indicateby check mark whether the registrant is a large accelerated filer, anaccelerated filer, or a non-accelerated filer. See definition of “acceleratedfiler and large accelerated filer” in Rule 12b-2 of the Exchange Act
| Large accelerated filer  o | Accelerated filer  o | Non-accelerated filer  x |
|--------------------------------------|--------------------------------|------------------------------------|

 

Indicateby check mark whether the registrant is a shell company (as defined in Rule12b-2 of the Exchange Act). Yes  o  No  x

As of November 14, 2006, the registrant had 75.363 units held by themanaging general partner, 1,190.561 units of additional general partnerinterest and 241.336 units of limited partner interest outstanding.

 

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

**Form 10-QIndex**
| **PART I — FINANCIAL  INFORMATION**                                      |                           |
|-------------------------------------------------------------------------------|--------------------------------|
| ** **                                                                    |                           |
| **ITEM  1. FINANCIAL STATEMENTS (Unaudited)**                                 |                           |
| *Condensed  Balance Sheets*                                                   |                           |
| *Condensed Statement of Operations*                                           |                           |
| *Condensed Statement 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**                                                                |                           |
|                                                                               |                                |  |

 

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# **PART IFINANCIAL INFORMATION**

## **Item 1. Financial Statements**

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

**Condensed Balance Sheets**
| ** **                                              | ** ** | **September 30,** | ** ** | **December 31,** | ** ** |
|---------------------------------------------------------|------------|------------------------|------------|-----------------------|------------|
| ** **                                              | ** ** | **2006**               | ** ** | **2005**              | ** ** |
| ** **                                              | ** ** | **(Unaudited)**        | ** ** | ** **            | ** ** |
| **Assets**                                              |       |                   |       |                  |       |
| **Current  assets:**                                    |       |                   |       |                  |       |
| Cash and cash  equivalents                              | ** ** | $                      | 21,454,448 |                  | $          | 25,839,550 |   |
| Accounts  receivable                                    |       | 33,327                 |       | —                |       |
| Accounts  receivable from affiliates                    |       | 29,288                 |       | 402,095               |       |
| **Total  current assets**                               |       | 21,517,063             |       | 26,241,645            |       |
| ** **                                              |       |                   |       |                  |       |
| **Property  and equipment:**                            |       |                   |       |                  |       |
| Oil and gas  properties, full cost method of accounting |       | 12,006,927             |       | 1,411,666             |       |
| Drilling in  progress                                   |       | 363,027                |       | 2,092,026             |       |
| Prepaid drilling  costs                                 |       | 1,011,857              |       | 4,055,612             |       |
| Accumulated  depreciation and depletion                 |       | (1,708,986             | )          | —                |       |
| **Net  property and equipment**                         |       | 11,672,825             |       | 7,559,304             |       |
| ** **                                              | ** ** |                   |       |                  | ** ** |
| **Total assets**                                        | ** ** | $                      | 33,189,888 |                  | $          | 33,800,949 |   |
| ** **                                              |       |                   |       |                  |       |
| **Liabilities and partners’  equity**              |       |                   |       |                  |       |
| **Current  liabilities:**                               |       |                   |       |                  |       |
| Accounts payable                                        | ** ** | $                      | 53,276     |                  | $          | 27,262 |   |
| Accounts payable  to affiliates                         |       | 2,389,919              |       | 1,595,624             |       |
| **Total  current liabilities**                          |       | 2,443,195              |       | 1,622,886             |       |
| ** **                                              |       |                   |       |                  |       |
| **Non-current  liabilities:**                           |       |                   |       |                  |       |
| Asset retirement  obligation                            |       | 77,431                 |       | 1,982                 |       |
| **Total  non-current liabilities**                      |       | 77,431                 |       | 1,982                 |       |
| ** **                                              |       |                   |       |                  |       |
| **Partners’  equity:**                             |       |                   |       |                  |       |
| General partners                                        |       | 24,147,688             |       | 25,402,198            |       |
| Limited partners                                        |       | 4,894,999              |       | 5,149,298             |       |
| Managing general  partner                               |       | 1,626,575              |       | 1,624,585             |       |
| **Total  partners’ equity**                        |       | 30,669,262             |       | 32,176,081            |       |
| ** **                                              | ** ** |                   |       |                  | ** ** |
| **Total liabilities and partners’ equity**         | ** ** | $                      | 33,189,888 |                  | $          | 33,800,949 |   |

 

*See accompanying notes tocondensed financial statements.*

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

**Condensed Statement of Operations**
| ** **                                  | ** ** | **For the three months ended** | ** ** | **For the nine months ended** | ** ** |
|---------------------------------------------|------------|----------------------------------------------------|------------|---------------------------------------------------|------------|
| ** **                                  | ** ** | **September 30 (unaudited)**             | ** ** | **September 30 (unaudited)**            | ** ** |
| ** **                                  | ** ** | **2006**                                           | ** ** | **2005**                                          | ** ** | **2006** | ** ** | **2005** | ** ** |
|                                        |       |                                               |       |                                              |       |   |   |   |   |
| **Revenues:**                               |       |                                               |       |                                              |       |   |   |   |   |
| Oil and gas income                          | ** ** | $                                                  | 141,350    |                                              | $          | — |   | $ | 199,684 |   | $ | — |   |
| Interest income                             |       | 230,552                                            |       | 49,189                                            |       | 590,302 |   | 49,189 |   |
| **Total  revenues**                         |       | 371,902                                            |       | 49,189                                            |       | 789,986 |   | 49,189 |   |
|                                        |       |                                               |       |                                              |       |   |   |   |   |
| **Costs  and expenses:**                    |       |                                               |       |                                              |       |   |   |   |   |
| Lease operating expenses                    |       | 24,816                                             |       | —                                            |       | 30,906 |   | — |   |
| Production taxes                            |       | 9,838                                              |       | —                                            |       | 13,324 |   | — |   |
| General and administrative                  |       | 52,600                                             |       | 13,028                                            |       | 110,391 |   | 13,028 |   |
| Organization costs                          |       | —                                             |       | 50,000                                            |       | — |   | 50,000 |   |
| Accretion of asset retirement obligation    |       | (199                                               | )          | —                                            |       | 381 |   | — |   |
| Depreciation, depletion and amortization    |       | 1,663,206                                          |       | —                                            |       | 1,708,986 |   | — |   |
| **Total  costs and expenses**               |       | 1,750,261                                          |       | 63,028                                            |       | 1,863,988 |   | 63,028 |   |
|                                        |       |                                               |       |                                              |       |   |   |   |   |
| **Net  loss**                               | ** ** | $                                                  | (1,378,359 | )                                                 | $          | (13,839 | ) | $ | (1,074,002 | ) | $ | (13,839 | ) |
|                                        |       |                                               |       |                                              |       |   |   |   |   |
| Net loss per  general partner unit          |       | $                                                  | (924.17    | )                                                 | $          | (11.44 | ) | $ | (747.48 | ) | $ | (11.44 | ) |
| Net loss per  limited partner unit          |       | $                                                  | (924.17    | )                                                 | $          | (13.38 | ) | $ | (747.48 | ) | $ | (13.38 | ) |
| Net loss per managing  general partner unit |       | $                                                  | (730.43    | )                                                 | $          | (38.09 | ) | $ | (48.94 | ) | $ | (38.09 | ) |

 

*See accompanying notes tocondensed financial statements.*

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

**Condensed Statement of Cash Flows**
| ** **                                                                       | ** ** | **For the nine months ended September 30,** | ** ** |
|----------------------------------------------------------------------------------|------------|---------------------------------------------------------------------------|------------|
| ** **                                                                       | ** ** | **(unaudited)**                                                           | ** ** |
| ** **                                                                       | ** ** | **2006**                                                                  | ** ** | **2005** | ** ** |
| **Operating  Activities**                                                        |       |                                                                      |       |   |   |
| **Net loss**                                                                     | ** ** | $                                                                         | (1,074,002 | ) | $ | (13,839 | ) |
| Adjustments for non-cash transactions:                                           |       |                                                                      |       |   |   |
| Depreciation, depletion and amortization                                         |       | 1,708,986                                                                 |       | — |   |
| Accretion of asset retirement obligation                                         |       | 381                                                                       |       | — |   |
| Adjustments to reconcile net loss to net cash  provided by operating activities: |       |                                                                      |       |   |   |
| **Changes in operating assets and liabilities:**                                 |       |                                                                      |       |   |   |
| Accounts receivable                                                              |       | (33,327                                                                   | )          | (4,158 | ) |
| Accounts receivable from affiliates                                              |       | 374,048                                                                   |       | — |   |
| Accounts payable                                                                 |       | (6,981                                                                    | )          | 189 |   |
| Accounts payable to affiliates                                                   |       | (178,012                                                                  | )          | 872,320 |   |
| **Net cash provided by operating activities**                                    |       | 791,093                                                                   |       | 854,512 |   |
| ** **                                                                       | ** ** |                                                                      |       |   |   |
| **Investing  Activities**                                                        |       |                                                                      |       |   |   |
| Property acquisition and development                                             |       | (4,742,137                                                                | )          | (822,946 | ) |
| **Net cash used in investing activities**                                        |       | (4,742,137                                                                | )          | (822,946 | ) |
|                                                                             |       |                                                                      |       |   |   |
| **Financing  Activities**                                                        |       |                                                                      |       |   |   |
| Partner capital contributions                                                    |       | 84,565                                                                    |       | 25,089,099 |   |
| Distributions to partners                                                        |       | (518,623                                                                  | )          | (3,713,365 | ) |
| **Net cash provided by (used in) financing  activities**                         |       | (434,058                                                                  | )          | 21,375,734 |   |
| ** **                                                                       | ** ** |                                                                      |       |   |   |
| **Net  decrease in cash and cash equivalents**                                   |       | (4,385,102                                                                | )          | 21,407,300 |   |
| Cash and cash  equivalents at December 31                                        |       | 25,839,550                                                                |       | — |   |
| **Cash  and cash equivalents at September 30**                                   | ** ** | $                                                                         | 21,454,448 |   | $ | 21,407,300 |   |
| ** **                                                                       | ** ** |                                                                      |       |   |   |
| **Non-cash  investing transactions:**                                            |       |                                                                      |       |   |   |
| Increase in property additions included in accounts  payable to affiliates       | ** ** | $                                                                         | 972,307    |   | $ | 1,313,496 |   |
| Increase in property additions included in accounts  payable                     | ** ** | $                                                                         | 32,995     |   | $ | — |   |
| Additions to property and asset retirement  obligation                           | ** ** | $                                                                         | 75,068     |   | $ | — |   |
| **Non-cash  financing transactions:**                                            | ** ** |                                                                      |       |   |   |
| Managing partner  contributions included in accounts receivable from affiliates  | ** ** | $                                                                         | 29,288     |   | 1,122,407 |   |

 

*Seeaccompanying notes to condensed financial statements.*

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

**Notes to Condensed Financial Statements(unaudited)**

**September 30, 2006**

**1.Organization and Basis of Presentation**

Thefinancial statements for Reef Global Energy VI, L.P. (the Partnership) havebeen prepared pursuant to the rules and regulations of the Securities andExchange Commission (SEC). Certain information and footnote disclosure normallyincluded in annual financial statements prepared in accordance with accountingprinciples generally accepted in the United States have been condensed oromitted pursuant to those rules and regulations. We have recorded alltransactions and adjustments necessary to fairly present the financialstatements included in this Form 10-Q. The adjustments are normal andrecurring. The following notes describe only the material changes in accountingpolicies, account details, or financial statement notes during the first ninemonths of 2006. 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, 2005 (the 2005 10-K). ThePartnership was formed on July 18, 2005 and began oil and gas drillingactivities in the third quarter of 2005. Because the future results of thePartnership are dependent upon the success of drilling and completionoperations which will continue to occur during the remainder of 2006 and 2007,the results for the three and nine month periods ended September 30, 2006cannot necessarily be used to project results for the full year.

**2. Summaryof Accounting Policies**

# **Oil and Gas Properties**

ThePartnership follows the full cost method of accounting for crude oil andnatural 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 provedreserves.  Proved gas reserves areconverted to equivalent barrels at a rate of 6 Mcf to 1 Bbl. Net capitalizedcosts of crude oil and natural gas properties, as adjusted for asset retirementobligations, are limited to the lower of unamortized cost or the cost ceiling,defined as the sum of the present value of estimated future net revenues fromproved reserves based on un-escalated prices discounted at 10 percent, plus thecost of properties not being amortized, if any, plus the lower of cost orestimated fair value of unproved properties included in the costs beingamortized, if any. Excess costs are charged to property impairment expense. Nogain or loss is recognized upon sale or disposition of crude oil and naturalgas properties, except in unusual circumstances. The Partnership recognizedproperty impairment expense of $1,442,239 and $1,442,239, respectively, for thethree and nine month periods ended September 30, 2006.

**Asset Retirement Obligations**

Statement ofFinancial Accounting Standards No. 143, “Accounting for Retirement Obligations”(SFAS 143) addresses accounting and reporting for obligations associated withthe retirement of tangible long-lived assets and the associated asset retirementcosts. SFAS 143 requires that the fair value of a liability for an asset’sretirement obligation be recorded in the period in which it is incurred and thecorresponding cost capitalized by increasing the carrying amount of the relatedlong-lived asset. The liability is accreted to its then present value eachperiod, and the capitalized cost is depreciated over the useful life of therelated asset. SFAS 143 is effective for the Partnership as of its inceptiondate. During the three and nine month periods ended September 30, 2006, thePartnership recognized $59,674 and $75,068, respectively, of asset retirementobligation and additional capitalized cost in connection with the successfuldrilling of nine Partnership wells.

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The following table summarizes the Partnership’sasset retirement obligation for the nine months ended September 30, 2006 andthe year ended December 31, 2005.
|                                        | ** ** | **Nine months ended   September 30, 2006** | ** ** | **2005** | ** ** |
|----------------------------------------|------------|---------------------------------------------------------------------|------------|----------|------------|
| Beginning asset  retirement obligation |       | $                                                                   | 1,982      |     | $          | — |   |
| Additions  related to new properties   |       | 75,068                                                              |       | 1,982    |       |
| Accretion  expense                     |       | 381                                                                 |       | —   |       |
| Ending asset retirement  obligation    |       | $                                                                   | 77,431     |     | $          | 1,982 |   |

 

**3.Transactions with Affiliates**

ThePartnership has no employees. Reef Exploration, L.P. (RELP), an affiliate ofReef, employs a staff including geologists, petroleum engineers, landmen andaccounting personnel who administer all of the Partnership’s operations. ThePartnership reimburses RELP for direct and administrative services at cost.During the three and nine month periods ended September 30, 2006, thePartnership incurred $220,386 and $230,131 of administrative costs,respectively.

RELPprocesses revenues and joint interest billings on behalf of the Partnership. AtSeptember 30, 2006, the Partnership owed RELP approximately $926,000 inconnection with drilling and operating invoices, net of revenues, paid by RELPon behalf of the Partnership, and approximately $220,000 for administrativecosts. The Partnership settles its balances with RELP on a quarterly basis.Accounts payable to affiliates at September 30 also includes approximately$805,000 for the unpaid portion of the 15% management fee due to Reef Oil &Gas Partners, L.P. (Reef), the managing general partner, to pay for partnershiporganization and syndication costs, including sales commissions. The managementfee is payable in two parts. Reef initially received an amount to recoveractual commissions and organization and syndication costs. This remainingbalance will be paid to Reef from the oil and gas cash flows available forpartner distributions, at a rate not to exceed $1 million per year. ThePartnership began distributions of oil and gas revenues to partners during thesecond quarter of 2006, but has not paid Reef any of the $805,000 during thefirst nine months of 2006. The Partnership will begin to pay this additionalmanagement fee amount during the 4th quarter of 2006, when oil and gas revenuesavailable for distribution are expected to significantly increase. In addition,accounts payable to affiliates at September 30 includes approximately $439,000for reimbursement of project costs paid by another affiliate. The Partnershiphas reimbursed the affiliate for these costs.

Reef,as the managing general partner, contributes 1% of all leasehold, drilling and completioncosts when incurred, in addition to purchasing 5% of the Partnership units.During the three and nine month periods ended September 30, 2006, this 1%obligation totaled $29,288 and $85,806. The $29,288 is shown as a receivablefrom affiliates. Balances due the Partnership by Reef are settled on aquarterly basis.

**4. Partnership Equity**

Informationregarding the number of units outstanding and the net loss per type ofPartnership unit for the three and nine month periods ended September 30, 2006is detailed below:

For the threemonths ended September 30, 2006
| Type of Unit          | ** ** | **Number of   Units** | ** ** | **Net loss** | ** ** | **Net loss per   unit** | ** ** |
|---------------------------------|------------|---------------------------------|------------|-------------------|------------|----------------------------------------|------------|
| Managing general  partner units |       | 75.363                          |       | $                 | (55,048    | )                                      | $          | (730.43 | ) |
| General partner  units          |       | 1,190.561                       |       | (1,100,277        | )          | (924.17                                | )          |
| Limited partner  units          |       | 241.336                         |       | (223,034          | )          | (924.17                                | )          |
| Total                           |       | 1,507.260                       |       | $                 | (1,378,359 | )                                      |       |   |
|                                 |            |                                 |            |                   |            |                                        |            |  |  |

 

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Forthe nine months ended September 30, 2006
| Type of Unit          | ** ** | **Number of   Units** | ** ** | **Net loss** | ** ** | **Net loss per   unit** | ** ** |
|---------------------------------|------------|---------------------------------|------------|-------------------|------------|----------------------------------------|------------|
| Managing general  partner units |       | 75.363                          |       | $                 | (3,689     | )                                      | $          | (48.94 | ) |
| General partner  units          |       | 1,190.561                       |       | (889,920          | )          | (747.48                                | )          |
| Limited partner  units          |       | 241.336                         |       | (180,393          | )          | (747.48                                | )          |
| Total                           |       | 1,507.260                       |       | $                 | (1,074,002 | )                                      |       |   |
|                                 |            |                                 |            |                   |            |                                        |            |  |  |

 

**Item2.  Management’s Discussion and Analysisof Financial Condition and Results of Operations.**

The following is a discussion of thePartnership’s financial position, results of operations, liquidity and capitalresources. This discussion should be read in conjunction with our financialstatements and the related notes thereto, included in the 2005 10-K.

ThisReport on Form 10-Q contains forward-looking statements that involve risks anduncertainties.  You should exercise extreme caution with respect to allforward-looking statements made in this Report.  Specifically, thefollowing statements are forward-looking:

·                                     statementsregarding the state of the oil and gas industry and the opportunity to profitwithin the oil and gas industry, competition, pricing, level of production, orthe regulations that may affect the Partnership;

·                                     statementsregarding the plans and objectives of Reef for future operations, including,without limitation, the uses of Partnership funds and the size and nature ofthe costs the Partnership expects to incur and people and services thePartnership may employ;

·                                     any statementsusing the words “anticipate,” “believe,” “estimate,” “expect” and similar suchphrases or words; and

·                                     any statements ofother than historical fact.

Reefbelieves that it is important to communicate its future expectations to thepartners.  Forward-looking statements reflect the current view ofmanagement with respect to future events and are subject to numerous risks,uncertainties and assumptions, including, without limitation, the factorslisted in the section captioned “RISK FACTORS” contained in the Program’sprospectus and prospectus supplement dated July 8, 2005. Although Reef believesthat the expectations reflected in such forward-looking statements arereasonable, Reef can give no assurance that such expectations will prove tohave been correct.  Should any one or more of these or other risks oruncertainties materialize or should any underlying assumptions prove incorrect,actual results are likely to vary materially from those described herein. There can be no assurance that the projected results will occur, that thesejudgments or assumptions will prove correct or that unforeseen developmentswill not occur.

Reefdoes not intend to update its forward-looking statements.  All subsequentwritten and oral forward-looking statements attributable to Reef or personsacting on its behalf are expressly qualified in their entirety by theapplicable cautionary statements.

**Overview**

ReefGlobal Energy VI, L.P. is a Nevada limited partnership formed to acquire,explore, develop and produce crude oil, natural gas, and natural gas liquidsfor the benefit of its investor partners. The Partnership’s primary purposesare to generate revenues from the production of oil and gas, distribute cashflow to investors, and 

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provide taxbenefits to investors. The majority of the Partnership’s proceeds will be usedto purchase prospects upon which the Partnership will conduct drillingoperations. The Partnership expects to drill approximately forty wells onapproximately thirty prospects with the capital raised by the Partnership.

ThePartnership has currently purchased interests in twenty-eight prospects uponwhich forty wells have been budgeted. Ten prospects are classified asexploratory and eighteen are classified as developmental. The Partnershipexpects to operate solely in the United States, although there are norestrictions regarding prospect locations. RELP, an affiliate of the managinggeneral partner, and its predecessor entity, OREI, Inc., have expertise andhave drilled and operated wells primarily in Texas and Louisiana, and it isexpected that the Partnership will focus its operations in these areas. Theseareas have a highly developed pipeline system and a highly competitive marketfor sale of the Partnership’s production. Twenty-seven of the twenty-eightprojects purchased to date are located in Louisiana, Texas, or in United Statescoastal waters in the Gulf of Mexico. The remaining project is located inOklahoma.

ThePartnership will not operate in any other industry segment. Should any prospectin which the Partnership has an interest be determined to warrant additionaldevelopment activity, the Partnership may borrow up to 25% of the Partnership’saggregate capital contributions without the consent of the investor partners,provided the lender agrees it will have no recourse against individual investorpartners. The Partnership is prohibited from issuing additional cash calls toinvestor partners. Borrowings in excess of 25% of the Partnership’s aggregatecapital contributions require approval of the investor partners. ThePartnership is not allowed to borrow funds during the drilling phase ofPartnership 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. The Partnership ispermitted but is not expected to engage in commodity futures trading or hedgingactivities, and therefore is subject to commodity price risk.   See “Item3—Quantitative and Qualitative Disclosures About Market Risk.”

**Critical Accounting Policies**

There have been no changes from theCritical Accounting Policies described in the 2005 10-K.

**Liquidity and Capital Resources**

The Partnership had working capital of$19,073,868 at September 30, 2006, which includes interest income earned onfunds during and subsequent to escrow. Because the Partnership is not allowedto borrow funds during the drilling phase of operations, the $19,073,868, plusthe additional 1% of all leasehold, drilling and completion costs which will becontributed by Reef, is the total amount available to the Partnership fordrilling and administrative costs. Interest income earned by the Partnership and the net cash flow fromsuccessful Partnership wells will not be available for drilling activities.

The Partnership expects to utilize theremaining available capital contributions for lease acquisition and drillingactivities to be conducted during 2006 and 2007. The Partnership will purchaseinterests in additional prospects this year and expects the Partnership toparticipate in approximately thirty prospects and drill approximately fortywells.

Until initial drilling operations arecompleted it is not known whether any borrowings will be required foradditional developmental activities.  ThePartnership currently has three prospects upon which successful wells have beendrilled for which the Partnership has budgeted additional developmental wellsusing the original capital raised by the Partnership. The Partnership isprohibited from raising additional capital through voluntary or involuntarypartner cash calls.

**Resultsof Operations**

**ThreeMonths Ended September 30, 2006 and 2005**

Duringthe three months ended September 30, 2006, the Partnership drilled seven wells,one of which began production operations in November, five of which areundergoing completion operations, and one which was 

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unsuccessful. Oneof the three wells undergoing completion operations at June 30 was deemednon-commercial and has been abandoned. The Partnership currently has fourproducing wells, two shut-in productive wells, five wells being completed, andthirteen unsuccessful wells. It is expected that four and possibly all five ofthe wells currently undergoing completion operations will begin productionoperations by December 31. Workover operations on the two shut-in wells willbegin during the second half of November.

ThePartnership had a net loss of  $1,378,359during the three months ended September 30. While net cash flow fromoperations, excluding interest income, rose from $2,616 during the secondquarter to $54,096 in the third quarter, the fund incurred an asset impairmentcharge of $1,442,239. The impairment charge was primarily the result of anegative adjustment to the initial reserve estimates on one of the fundsproductive wells. The well began production operations in August but iscurrently shut-in waiting on a workover. The well provided approximately 60% of the third quarter oil and gasrevenues generated by the Partnership. Future results of operations will begreatly impacted by the success or failure of the operator to return this wellto profitable operations.

Interestincome was $230,552 during the third quarter. The increase from the secondquarter amount of $194,631 was due to the fact that the fund moved itsinvestable monies from tax-free to taxable investments. The Partnership expectsinterest income to begin declining effective with fourth quarter operations dueto the fact that invested capital is decreasing as wells are drilled.Administrative expenses increased from $32,105 in the second quarter to $52,600during the third quarter, primarily due to increased administrative costsincurred by RELP for operations of the funds wells. Overall, the Partnershipexpects that fourth quarter income from oil and gas production will becomparable to levels during the third quarter, and begin increasing during thefirst quarter of 2007 as wells currently being completed begin selling oil andgas. A successful workover of the above mentioned well could have a significantpositive impact on the Partnership.

ThePartnership began operations on July 18, 2005 and was still in formation atSeptember 30, 2005. During the third quarter of 2005 the Partnership was notyet involved in any oil and gas drilling activity. The sole source of income tothe Partnership was interest income earned through the investment of partnercapital contributions. The results of operations for the quarter endedSeptember 30, 2005 are not comparable with the quarter ended September 30,2006.

**NineMonths Ended September 30, 2006 and 2005**

Asof September 30, 2006, the Partnership has drilled twenty-four wells, of whichfour are producing oil and gas, two are productive wells currently shut-inawaiting workovers, five are undergoing completion operations, and thirteen areunsuccessful. The Partnership incurred a net loss totaling $1,074,002 for thefirst nine months of 2006. Interest income accounted for 74.7% of Partnershiprevenues. Partnership oil and gas revenues for the first three quarters havetotaled $16,478, $41,856, and $141,350, respectively. We expect fourth quarteroil and gas revenues to be comparable to third quarter revenues, and, ifsuccessful, the two pending workovers in late November could provide anincrease in oil and gas revenues for the fourth quarter. Four wells expected tobe commercially productive should begin production operations within the nextforty-five days, and a fifth is expected to begin production operations inJanuary 2007. The net loss for the first nine months of 2006 results primarilyfrom an asset impairment charge of $1,442,239 incurred during the thirdquarter. The impairment charge was primarily the result of a negativeadjustment to the initial reserve estimates on one of the funds productivewells, which caused the present value of net oil and gas revenues expected tobe received by the Partnership to be less than the funds expended the drillingof oil and gas properties as of September 30, 2006.

Generaland administrative costs of the Partnership totaled $110,391 for the ninemonths ended September 30, 2006, of which approximately $31,000 representedprofessional services in connection with the audited 2005 financial statements.We expect general and administrative costs to average $40-$50 thousand perquarter during the next several quarters.

Netproved oil and gas reserves at September 30, 2006 and December 31, 2005 arepresented below. The estimated proved reserves of the Partnership include onlythose quantities which are reasonably expected to be recovered from known oiland gas reservoirs under current economic and operating conditions. Provedreserves include only quantities we expect to recover commercially usingcurrent prices, costs, existing regulatory practices, and technology.Therefore, any changes in future prices, costs, regulations, technology orother unforeseen factors 

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could materially increaseor decrease the estimate of proved reserves. Because current oil and gas pricesare in excess of prices at September 30, 2006, the estimates of proved reservesat September 30, 2006 use the November 3, 2006 closing NYMEX prices of $59.14per barrel and $7.88 per MMBTU, compared to December 31 prices of $61.04 perbarrel and $10.08 per MMBTU. At December 31, 2005, the Partnership had only onewell with proved reserves.

 
| Net proved reserves | ** ** | **Oil (BBL)** | ** ** | **Gas (MCF)** | ** ** |
|---------------------|------------|---------------|------------|---------------|------------|
| December 31,  2005  |       | 1,046         |       | 29,002        |       |
| September 30, 2006  |       | 72,296        |       | 1,398,872     |       |

 

Thestandardized measure of discounted cash flows is computed by applying the abovequarter end prices, adjusted on a property by property basis for energycontent, quality and transportation costs, and a discount factor of 10% toproved reserves. The standardized measure of discounted cash flows does notpurport to present the fair value of our oil and natural gas reserves.
| Standardized measure of  discounted cash flows |   |   |       |
|------------------------------------------------|--------|--------|------------|
| December 31,  2005                             |   | $      | 267,642    |   |
| September 30, 2006                             |   | $      | 10,297,941 |   |

 

ThePartnership began operations on July 18, 2005 and was still in formation atSeptember 30, 2005. During the third quarter of 2005 the Partnership was notyet involved in any oil and gas drilling activity. The sole source of income tothe Partnership was interest income earned through the investment of partnercapital contributions. The results of operations for the period from July 18,2005 through September 30, 2005 are not comparable with the results ofoperations for the nine months ended September 30, 2006.

**Item3.  Quantitative and QualitativeDisclosures about Market Risk.**

**Interest Rate Risk**

ThePartnership Agreement allows borrowings from banks or other financial sourcesof up to 25% of the Partnership’s aggregate capital contributions withoutinvestor approval, and allows borrowings in excess of 25% of the aggregatecapital contributions to the Partnership with the consent of investor partners.Borrowings are not allowed during the initial drilling phase of thePartnership, but only for additional development drilling and facilities costson Partnership prospects already drilled. Should the Partnership elect toborrow monies for additional development activity on Partnership properties, itwill be subject to the interest rate risk inherent in borrowing activities.Changes in interest rates could significantly affect the Partnership’s resultsof operations and the amount of net cash flow available for partnerdistributions. Also, to the extent that changes in interest rates affectgeneral economic conditions, the Partnership will be affected by such changes.

**Commodity Price Risk**

ThePartnership is permitted but does not expect to engage in commodity futurestrading or hedging activities or enter into derivative financial instrumenttransactions for trading or other speculative purposes.  The Partnership sells a vast majority of itsproduction from successful oil and gas wells on a month-to-month basis atcurrent spot market prices. Accordingly, the Partnership is at risk for thevolatility in commodity prices inherent in the oil and gas industry, and thelevel of commodity prices has a significant impact on the Partnership’s resultsof operations.

**ExchangeRate Risk**

ThePartnership currently has no income from foreign sources or operations inforeign countries that would subject it to currency exchange rate risk. ThePartnership does not currently expect to purchase any prospects located outsideof either the United States or United States coastal waters in the Gulf ofMexico.

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**Item 4.Controls and Procedures**

Asthe Managing General Partner of the Partnership, Reef maintains a system ofcontrols and procedures designed to provide reasonable assurance as to thereliability of the financial statements and other disclosures included in thisreport, as well as to safeguard assets from unauthorized use or disposition. Asof the end of the period covered by this report, Reef’s Principal ExecutiveOfficer and Chief Financial Officer have evaluated the effectiveness of thedesign and operation of the Partnership’s disclosure controls and procedures(as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) withthe assistance and participation of other members of management. Based uponthat evaluation, Reef’s Principal Executive Officer and Chief Financial Officerconcluded that our disclosure controls and procedures are effective at areasonable assurance level for gathering, analyzing and disclosing theinformation the Partnership is required to disclose in the reports it filesunder the Securities Exchange Act of 1934 within the time periods specified inthe SEC’s rules and forms. During our fiscal quarter ended September 30, 2006,no change occurred in our internal control over financial reporting (as definedin Rule 13a-15(f) under the Securities Exchange Act of 1934) that hasmaterially affected, or is reasonably likely to materially affect, our internalcontrol over financial reporting.

**PART II –OTHER INFORMATION**

**Item1.  Legal Proceedings**

None

**Item 1A. RISK FACTORS**

In addition to the other information set forth in thisreport, you should carefully consider the risk factors discussed in Part I,Item 1A in the 2005 10-K, which could materially affect our business, financialcondition or future results. The risks described in our 2005 10-K are not theonly risks facing the Partnership. Additional risks and uncertainties notcurrently known to us or that we currently deem to be immaterial also maymaterially adversely affect our business, financial condition and/or operatingresults. Except for the additional risk factor provided below, there have beenno material changes from the risk factors previously disclosed in the 200510-K.

*Our dependence on third parties for the processingand transportation of oil and gas may adversely affect the Partnership’srevenues and, consequently, the distribution of net cash flows to investorpartners.* We rely on third parties to process and transportthe oil and gas produced by the Partnership’s successful wells. In the event athird party upon whom we rely is unable to provide transportation or processingservices, and another third party is unavailable to provide such services, thePartnership may have to temporarily shut-in successful wells, and revenues tothe Partnership and distributions to investor partners related to those wellsmay be delayed.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

**Use of Proceeds**

Inconnection with the Registration Statement filed on Form S-1 (No. 333-122935)and declared effective July 7, 2005, Reef filed a final prospectus for theProgram and filed a prospectus supplement describing the Partnership on July 8,2005. At such time Reef commenced the offering of units in the Partnership. Allsales of Partnership units were made through the Program’s dealer manager, ReefSecurities, Inc., and a number of soliciting dealers. The offering period endedOctober 31, 2005.

Duringthe offering period ending on October 31, 2005, the Partnership sold 1,431.897units to investor partners, consisting of 241.336 units of limited partnerinterest and 1190.561 units of additional general partner interest. Reefpurchased 75.363 general partner units, equaling 5.00% of the total Partnershipunits sold. Total offering proceeds were $37,398,898. Reef will also contribute1% of all leasehold, drilling, and completion costs as incurred. At September30, 2006, Reef had contributed $91,828 to the Partnership in connection withthis obligation.

Allunits except those purchased by Reef paid a 15% management fee to Reef to payfor the Partnership organization and offering costs, including salescommissions. These costs totaled $5,369,615, leaving capital 

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contributions of$32,121,111 available for Partnership oil and gas operations. As of September30, 2006, the Partnership had expended $13,304,761 on property acquisitions andprepayments and $167,384 on general and administrative expenses, includingamounts in accounts payable at September 30, 2006.

ThePartnership intends to utilize all remaining available Partnership capital foroil and gas activities during 2006 and 2007.

**Item 3. Defaults Upon Senior Securities**

None

**Item 4. Submission of Matters to a Vote of Security Holders**

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-Ox ley 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 therequirements of the Securities Exchange Act of 1934, the registrant has dulycaused this report to be signed on its behalf by the undersigned thereunto dulyauthorized.
|                                      | 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  14, 2006 | By:                                       | /s/ Michael J. Mauceli |   |
| ** **                           | ** **                                | **Michael  J. Mauceli** |
|                                 |                                      | Manager and  Member |
| * *                             | * *                                  | *(principal  executive officer)* |
| * *                             | * *                                  | * * |
| * *                             | * *                                  | * * |
| Dated:  November  14, 2006 | By:                                       | /s/ Daniel C. Sibley |   |
| ** **                           | ** **                                | **Daniel  C. Sibley** |
|                                 |                                      | Chief Financial  Officer |
| * *                             | * *                                  | *(principal  financial and accounting officer)* |

 

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