** **

**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 the quarterly periodended June 30, 2006**

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**Commission File 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 |
|---------------------------|--------|----------------------|--------|--------------------------|

 

Indicate by check mark whether the registrant is ashell company (as defined in Rule 12b-2 of the Exchange Act).Yes o No x

**As ofAugust 14, 2006, the registrant had 75.363 units held by the managing generalpartner, 1,190.561 units of additional general partner interest and 241.336units of limited partner interest outstanding.**

 

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**ReefGlobal Energy VI, L.P.Form 10-Q Index**
| **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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** **

**PARTI FINANCIAL INFORMATION**

## **Item1. Financial Statements**

**Reef Global Energy VI, L.P.Condensed Balance Sheets**

 
| ** **                                              | ** ** | **June 30,** | ** ** | **December 31,** | ** ** |
|---------------------------------------------------------|------------|-------------------|------------|-----------------------|------------|
| ** **                                              | ** ** | **2006**          | ** ** | **2005**              | ** ** |
| ** **                                              | ** ** | **(Unaudited)**   | ** ** | ** **            | ** ** |
| **Assets**                                              |       |              |       |                  |       |
| **Current  assets:**                                    |       |              |       |                  |       |
| Cash and cash  equivalents                              | ** ** | $                 | 24,166,961 |                  | $          | 25,839,550 |   |
| Accounts  receivable from affiliates                    |       | 30,214            |       | 402,095               |       |
| **Total  current assets**                               |       | 24,197,175        |       | 26,241,645            |       |
| ** **                                              |       |              |       |                  |       |
| **Property  and equipment:**                            |       |              |       |                  |       |
| Oil and gas  properties, full cost method of accounting |       | 9,082,303         |       | 1,411,666             |       |
| Drilling in  progress                                   |       | 117,831           |       | 2,092,026             |       |
| Prepaid drilling  costs                                 |       | 126,249           |       | 4,055,612             |       |
| Accumulated  depreciation and depletion                 |       | (46,243           | )          | —                |       |
| **Net  property and equipment**                         |       | 9,280,140         |       | 7,559,304             |       |
| ** **                                              | ** ** |              |       |                  | ** ** |
| **Total assets**                                        | ** ** | $                 | 33,477,315 |                  | $          | 33,800,949 |   |
| ** **                                              |       |              |       |                  |       |
| **Liabilities and partners’  equity**              |       |              |       |                  |       |
| **Current  liabilities:**                               |       |              |       |                  |       |
| Accounts payable                                        | ** ** | $                 | 57,710     |                  | $          | 27,262 |   |
| Accounts payable  to affiliates                         |       | 1,177,806         |       | 1,595,624             |       |
| **Total  current liabilities**                          |       | 1,235,516         |       | 1,622,886             |       |
| ** **                                              |       |              |       |                  |       |
| **Non-current  liabilities:**                           |       |              |       |                  |       |
| Asset retirement  obligation                            |       | 17,493            |       | 1,982                 |       |
| **Total  non-current liabilities**                      |       | 17,493            |       | 1,982                 |       |
| ** **                                              |       |              |       |                  |       |
| **Partners’  equity:**                             |       |              |       |                  |       |
| General partners                                        |       | 25,392,763        |       | 25,402,198            |       |
| Limited partners                                        |       | 5,147,385         |       | 5,149,298             |       |
| Managing general  partner                               |       | 1,684,158         |       | 1,624,585             |       |
| **Total  partners’ equity**                        |       | 32,224,306        |       | 32,176,081            |       |
| ** **                                              | ** ** |              |       |                  | ** ** |
| **Total liabilities and partners’ equity**         | ** ** | $                 | 33,477,315 |                  | $          | 33,800,949 |   |

 

*See accompanying notes tocondensed financial statements.*

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**Reef Global Energy VI, L.P.Condensed Statement of Operations**
| ** **                                   | ** ** | **Three months  ended June 30,  2006** | ** ** | **Six months  ended June 30,  2006** | ** ** |
|----------------------------------------------|------------|-------------------------------------------------------|------------|-----------------------------------------------------|------------|
| ** **                                   | ** ** | **(Unaudited)**                                       | ** ** | **(Unaudited)**                                     | ** ** |
| **Revenues:**                                |       |                                                  |       |                                                |       |
| Oil and gas  sales                           | ** ** | $                                                     | 41,856     |                                                | $          | 58,334 |   |
| Interest income                              |       | 194,631                                               |       | 359,750                                             |       |
| **Total revenues**                           |       | 236,487                                               |       | 418,084                                             |       |
| ** **                                   |       |                                                  |       |                                                |       |
| **Costs and expenses:**                      |       |                                                  |       |                                                |       |
| Lease operating  expenses                    |       | 4,419                                                 |       | 6,090                                               |       |
| Production taxes                             |       | 2,716                                                 |       | 3,486                                               |       |
| General and  administrative                  |       | 32,105                                                |       | 57,791                                              |       |
| Accretion of  asset retirement obligation    |       | 242                                                   |       | 580                                                 |       |
| Depreciation,  depletion and amortization    |       | 37,389                                                |       | 45,780                                              |       |
| **Total costs and expenses**                 |       | 76,871                                                |       | 113,727                                             |       |
|                                         |       |                                                  |       |                                                |       |
| **Net income**                               | ** ** | $                                                     | 159,616    |                                                | $          | 304,357 |   |
|                                         |       |                                                  |       |                                                |       |
| Net income per general  partner unit         |       | $                                                     | 91.78      |                                                | $          | 176.69 |   |
| Net income per limited  partner unit         |       | $                                                     | 91.78      |                                                | $          | 176.69 |   |
| Net income per managing general partner unit |       | $                                                     | 374.20     |                                                | $          | 681.49 |   |

 

*See accompanying notes tocondensed financial statements.*

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**Reef Global Energy VI, L.P.Condensed Statement of Cash Flows**
| ** **                                                                       | ** ** | **Six months  ended June 30,** | ** ** |
|----------------------------------------------------------------------------------|------------|-----------------------------------------------|------------|
| ** **                                                                       | ** ** | **2006**                                      | ** ** |
| ** **                                                                       | ** ** | **(Unaudited)**                               | ** ** |
| ** **                                                                       |       |                                          |       |
| **Operating Activities**                                                         | ** ** | ** **                                    | ** ** |
| **Net  income**                                                                  | ** ** | $                                             | 304,357    | ** ** |
| Adjustments for  non-cash transactions:                                          |       |                                          |       |
| Depreciation and  depletion                                                      |       | 45,780                                        |       |
| Accretion of  asset retirement obligation                                        |       | 580                                           |       |
| Adjustments to  reconcile net loss to net cash provided by operating activities: |       |                                          |       |
| **Changes  in operating assets and liabilities:**                                | ** ** |                                          | ** ** |
| Accounts  receivable from affiliates                                             |       | 374,048                                       |       |
| Accounts payable                                                                 |       | (3,354                                        | )          |
| Accounts payable  to affiliates                                                  |       | (212,617                                      | )          |
| **Net  cash provided by operating activities**                                   |       | 508,794                                       |       |
| ** **                                                                       | ** ** |                                          | ** ** |
| **Investing Activities**                                                         | ** ** |                                          | ** ** |
| Property  acquisition and development                                            |       | (1,923,084                                    | )          |
| **Net  cash used in investing activities**                                       |       | (1,923,084                                    | )          |
| ** **                                                                       | ** ** |                                          | ** ** |
| **Financing Activities**                                                         | ** ** |                                          | ** ** |
| Partner capital  contributions                                                   |       | 54,351                                        |       |
| Partner  distributions                                                           |       | (312,650                                      | )          |
| **Net  cash used in financing activities**                                       |       | (258,299                                      | )          |
| ** **                                                                       | ** ** |                                          | ** ** |
| **Net decrease in cash and cash  equivalents**                                   |       | (1,672,589                                    | )          |
| Cash and cash  equivalents at December 31, 2005                                  |       | 25,839,550                                    |       |
| **Cash and cash equivalents at  June 30, 2006**                                  | ** ** | $                                             | 24,166,961 | ** ** |
| ** **                                                                       | ** ** |                                          | ** ** |
| **Non-cash investing  transactions:**                                            | ** ** |                                          | ** ** |
| Increase in  property additions included in accounts payable                     | ** ** | $                                             | 53,659     | ** ** |
| Increase in  property additions included in accounts payable to affiliate        | ** ** | $                                             | 368,586    | ** ** |
| Additions to  property and asset retirement obligation                           | ** ** | $                                             | 15,394     | ** ** |
| **Non-cash financing  transactions:**                                            | ** ** |                                          | ** ** |
| Managing partner  contributions included in accounts receivable from affiliates  | ** ** | $                                             | 30,214     | ** ** |

*See accompanying notes tocondensed financial statements*

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**Reef Global Energy VI, L.P.Notes to Condensed Financial Statements (unaudited)June 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 sixmonths 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 drilling activitiesin the third quarter of 2005. Because the future results of the Partnership aredependent upon the success of drilling and completion operations which willcontinue to occur during the remainder of 2006 and 2007, the results for thethree and six month periods ended June 30, 2006 cannot necessarily be used toproject results for the full year.

**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 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 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. Excess costs are charged to property impairment expense. No gain or lossis recognized upon sale or disposition of crude oil and natural gas properties,except in unusual circumstances. The Partnership recognized no propertyimpairment expense for the three and six month periods ended June 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 assetretirement costs. SFAS 143 requires that the fair value of a liability for anasset’s retirement obligation be recorded in the period in which it is incurredand the corresponding cost capitalized by increasing the carrying amount of therelated long-lived asset. The liability is accreted to its then present valueeach period, and the capitalized cost is depreciated over the useful life ofthe related asset. SFAS 143 is effective for the Partnership as of its inceptiondate. During the three and six month periods ended June 30, 2006, thePartnership recognized $8,105 and $15,394, respectively, of asset retirementobligation and additional capitalized cost in connection with the successfuldrilling of five Partnership wells.

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Thefollowing table summarizes the Partnership’s asset retirement obligation forthe six months ended June 30, 2006 and the year ended December 31, 2005.

 

|                                        | ** ** | **Six months  ended June 30,  2006** | ** ** | **2005** | ** ** |
|----------------------------------------|------------|-----------------------------------------------------|------------|----------|------------|
| Beginning asset retirement  obligation |       | $                                                   | 1,982      |     | $          | — |   |
| Additions related to  new properties   |       | 15,394                                              |       | 1,982    |       |
| Accretion expense                      |       | 117                                                 |       | —   |       |
| Ending asset retirement obligation     |       | $                                                   | 17,493     |     | $          | 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 six month periods ended June 30, 2006, the Partnershipincurred $4,431 and $9,745 of administrative costs, respectively.

RELPprocesses revenues and joint interest billings on behalf of the Partnership. AtJune 30, 2006, the Partnership owed RELP approximately $369,000 in connectionwith drilling and operating invoices, net of revenues, paid by RELP on behalfof the Partnership, and approximately $4,000 for administrative costs. ThePartnership has paid RELP for these invoices subsequent to June 30. Accountspayable to affiliates at June 30 also includes approximately $805,000 for theunpaid portion of the 15% management fee due to Reef Oil & Gas Partners,L.P. (Reef), the managing general partner, to pay for partnership organization andsyndication costs, including sales commissions. The management fee is payablein two parts. Reef initially received an amount to recover actual commissionsand organization and syndication costs. This remaining balance will be paid toReef from the oil and gas cash flows available for partner distributions, at arate not to exceed $1 million per year. The Partnership began distributions ofoil and gas revenues to partners during the second quarter of 2006, but has notpaid Reef any of the $805,000 during the first half of 2006. It is expectedthat the Partnership will begin to pay this additional management fee amountduring the 4th quarter of 2006, when oil and gas revenues available fordistribution are expected to significantly increase.

Reef,as the managing general partner, contributes 1% of all leasehold, drilling andcompletion costs when incurred, in addition to purchasing 5% of the Partnershipunits. During the three and six month periods ended June 30, 2006, this 1%obligation totaled $30,214 and $56,518. The $30,214 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 income per type ofPartnership unit for the three and six month periods ended June 30, 2006 isdetailed below:

Forthe three months ended June 30, 2006

| Type of Unit          | ** ** | **Number of  Units** | ** ** | **Net income** | ** ** | **Net income  per unit** | ** ** |
|---------------------------------|------------|---------------------------|------------|---------------------|------------|------------------------------------|------------|
| Managing general  partner units |       | 75.363                    |       | $                   | 28,200     |                               | $          | 374.20 |   |
| General partner units           |       | 1,190.561                 |       | 109,266             |       | 91.78                              |       |
| Limited partner units           |       | 241.336                   |       | 22,150              |       | 91.78                              |       |
| Total                           |       | 1,507.260                 |       | $                   | 159,616    |                               |       |   |
|                                 |            |                           |            |                     |            |                                    |            |  |  |

 

 

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** **

For the six months ended June 30,2006

| Type of Unit          | ** ** | **Number of Units** | ** ** | **Net income** | ** ** | **Net income per unit** | ** ** |
|---------------------------------|------------|-------------------------------|------------|---------------------|------------|----------------------------------------|------------|
| Managing general  partner units |       | 75.363                        |       | $                   | 51,359     |                                   | $          | 681.49 |   |
| General partner units           |       | 1,190.561                     |       | 210,357             |       | 176.69                                 |       |
| Limited partner units           |       | 241.336                       |       | 42,641              |       | 176.69                                 |       |
| Total                           |       | 1,507.260                     |       | $                   | 304,357    |                                   |       |   |
|                                 |            |                               |            |                     |            |                                        |            |  |  |

 

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

The following is a discussion of the Partnership’s financialposition, results of operations, liquidity and capital resources. Thisdiscussion should be read in conjunction with our financial statements and therelated notes thereto, included in the 2005 10-K.

This Report onForm 10-Q contains forward-looking statements that involve risks and uncertainties. You should exercise extreme caution with respect to all forward-lookingstatements made in this Report.  Specifically, the following statementsare 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;

·                                     anystatements using the words “anticipate,” “believe,” “estimate,” “expect” andsimilar such phrases or words; and

·                                     anystatements of other than historical fact.

Reef believes thatit is importantto communicate its future expectations to the partners.  Forward-lookingstatements reflect the current view of management with respect to future eventsand are subject to numerous risks, uncertainties and assumptions, including,without limitation, the factors listed in the section captioned “RISKFACTORS” contained in the Program’s prospectus and prospectus supplement datedJuly 8, 2005. Although Reef believes that the expectations reflected in suchforward-looking statements are reasonable, Reef can give no assurance that suchexpectations will prove to have been correct.  Should any one or more ofthese or other risks or uncertainties materialize or should any underlyingassumptions prove incorrect, actual results are likely to vary materially fromthose described herein.  There can be no assurance that the projectedresults will occur, that these judgments or assumptions will prove correct orthat unforeseen developments will not occur.

Reefdoes not intend to update its forward-looking statements.  All subsequentwritten 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 EnergyVI, L.P. is a Nevada limited partnership formed to explore, develop, acquireand produce crude oil, natural gas, and natural gas liquids for the benefit ofits investor partners. The Partnership’s primary purposes are to generaterevenues from the production of oil and gas, distribute cash flow to investors,and provide tax benefits to investors. The majority of the Partnership’sproceeds will be used to purchase prospects upon which the Partnership willconduct drilling operations. The Partnership expects to purchase interests in35-40 prospects.

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The Partnershiphas currently purchased interests in twenty-seven prospects, twelve of whichare classified as exploratory and fifteen of which are classified asdevelopmental. The Partnership expects to operate solely in the United States,although there are no restrictions regarding prospect locations. RELP, anaffiliate of the managing general partner, and its predecessor entity, OREI,Inc., have expertise and have drilled and operated wells primarily in Texas andLouisiana, and it is expected that the Partnership will focus its operations inthese areas. These areas have a highly developed pipeline system and a highlycompetitive market for sale of the Partnership’s production. Twenty-six of thetwenty-seven projects purchased to date are located in Louisiana, Texas, or inUnited States coastal waters in the Gulf of Mexico. The remaining project islocated in Oklahoma.

The Partnershipwill not operate in any other industry segment. Should any prospect in whichthe Partnership has an interest be determined to warrant additional developmentactivity, the Partnership may borrow up to 25% of the Partnership’s aggregatecapital contributions without the consent of the investor partners, providedthe 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.”

**CriticalAccounting Policies**

There have been no changes from the Critical Accounting Policiesdescribed in the 2005 10-K.

**Liquidityand Capital Resources**

The Partnership had working capital of$22,961,659 at June 30, 2006, which includes interest income earned on fundsduring and subsequent to escrow. Because the Partnership is not allowed toborrow funds during the drilling phase of operations, the $22,961,659, plus theadditional 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 the remaining available capitalcontributions for lease acquisition and drilling activities to be conductedduring 2006 and 2007. The Partnership will purchase interests in additionalprospects this year and expects the Partnership to participate in a total ofapproximately 35-40 prospects.

Until initial drilling operations are completed it is not knownwhether any borrowings will be required for additional developmentalactivities.  On one of the Partnership’sprospects upon which a discovery has already been made, the Partnership hasadded to the drilling budget four additional development wells, and does notplan to borrow funds for this particular development activity. The Partnershipis prohibited from raising additional capital through voluntary or involuntarypartner cash calls.

**Resultsof Operations**

Because thePartnership was formed on July 18, 2005, there is no comparable information forthe three and six month periods ended June 30, 2005.

**Three Months Ended June 30, 2006**

During the threemonths ended June 30, 2006, the Partnership drilled five wells, two of whichare being completed, and three of which were unsuccessful. The Partnershipcurrently has three producing wells, three wells undergoing completionoperations, and eleven unsuccessful wells. Two Partnership wells beganproduction during May 2006, joining the initial well which began productionoperations in January. Three other wells are expected to begin productionoperations during August and September. A second well is expected to begindrilling operations on 

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one of the successfulprospects in November, and up to three additional wells may be drilledbeginning in 2007 in order to further develop this prospect.

Partnership netincome was $159,616 during the three months ended June 30, up from the $144,741earned during the first quarter. Interest income was up approximately 17% dueto the general rise in interest rates, and oil and gas revenues increased from$16,478 in the first quarter to $41,856 in the second quarter, as two morewells began production operations during May. Third quarter interest income isexpected to remain comparable to that earned during the second quarter. The Partnershipdoes not expect a significant rise in oil and gas revenues until September2006, when the Partnership’s largest expected producing well drilled to datebegins operations. The Partnership expects that oil and gas revenues willincrease substantially during the fourth quarter. Administrative expensesincreased from $25,686 in the first quarter to $32,105 during the secondquarter. These costs are expected to remain near second quarter levels duringthe remainder of the year. While audit and professional service costs areexpected to decline during the second half of the year, other general andadministrative costs are expected to increase as the level of Partnershipdrilling activity increases and the need to administer productive wellsincreases.  Overall, the Partnershipexpects to see quarterly earnings continue to rise slowly as production fromsuccessful wells begins.

**Six Months Ended June 30, 2006**

As of June 30,2006, the Partnership has drilled seventeen wells, of which three are producingoil and gas, three are being completed, and eleven were unsuccessful.Partnership net income totaled $304,357 for the first six months of 2006.Interest income earned on invested partner capital rose 17% in the secondquarter. For the first half of the year interest income accounted for 86% ofPartnership revenues with 14% of partnership revenues coming from the sale ofoil and gas. We expect continued strong interest income through the thirdquarter, with higher interest rates offsetting the reduction of investedPartnership capital. During the fourth quarter we expect interest income tobegin declining due to funds being expended for increased drilling activity.Correspondingly, we expect revenues to gradually increase during the thirdquarter as three additional wells are expected to begin production operationsduring August and September. Fourth quarter oil and gas sales are expected torise substantially and should exceed oil and gas revenues for the first threequarters of the year combined. During the second half of the year we expect oiland gas revenues to account for over half of the overall revenues of thePartnership. The Partnership expects to see quarterly earnings continue to riseslowly as production from successful wells begins.

General and administrativecosts of the Partnership totaled $57,791 for the six months ended June 30,2006, of which approximately $31,000 represented professional services inconnection with the audited 2005 financial statements. While audit andprofessional service costs are expected to decline during the second half ofthe year, other general and administrative costs are expected to increase asthe level of Partnership drilling activity increases and the need to administerproductive wells increases.

**Item 3. Quantitative and Qualitative Disclosures about Market Risk.**

**Interest Rate Risk**

The PartnershipAgreement allows borrowings from banks or other financial sources of up to 25%of the Partnership’s aggregate capital contributions without investor approval,and allows borrowings in excess of 25% of the aggregate capital contributionsto the Partnership with the consent of investor partners. Borrowings are notallowed during the initial drilling phase of the Partnership, but only foradditional development drilling and facilities costs on Partnership prospectsalready drilled. Should the Partnership elect to borrow monies for additionaldevelopment activity on Partnership properties, it will be subject to theinterest rate risk inherent in borrowing activities. Changes in interest ratescould significantly affect the Partnership’s results of operations and theamount of net cash flow available for partner distributions. Also, to theextent that changes in interest rates affect general economic conditions, thePartnership will be affected by such changes.

**CommodityPrice Risk**

The Partnership ispermitted but does not expect to engage in commodity futures trading or hedgingactivities or enter into derivative financial instrument transactions fortrading or other speculative purposes. The 

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Partnership sells a vastmajority of its production from successful oil and gas wells on amonth-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 will have a significantimpact on the Partnership’s results of operations.

**Exchange Rate Risk**

The Partnershipcurrently has no income from foreign sources or operations in foreign countriesthat would subject it to currency exchange rate risk. The Partnership does notcurrently expect to purchase any prospects located outside of either the UnitedStates or United States coastal waters in the Gulf of Mexico.

**Item 4. Controls and Procedures**

As the Managing GeneralPartner of the Partnership, Reef maintains a system of controls and proceduresdesigned to provide reasonable assurance as to the reliability of the financialstatements and other disclosures included in this report, as well as tosafeguard assets from unauthorized use or disposition. As of the end of theperiod covered by this report, Reef’s Principal Executive Officer and ChiefFinancial Officer have evaluated the effectiveness of the design and operationof the Partnership’s disclosure controls and procedures (as defined in Rule13a-15(e) under the Securities Exchange Act of 1934) with the assistance andparticipation of other members of management. Based upon that evaluation, Reef’sPrincipal Executive Officer and Chief Financial Officer concluded that ourdisclosure controls and procedures are effective at a reasonable assurancelevel for gathering, analyzing and disclosing the information the Partnershipis required to disclose in the reports it files under the Securities ExchangeAct of 1934 within the time periods specified in the SEC’s rules and forms.During our fiscal quarter ended June 30, 2006, no change occurred in ourinternal control over financial reporting (as defined in Rule 13a-15(f) underthe Securities Exchange Act of 1934) that has materially affected, or isreasonably 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 the2005 10-K, which could materially affect our business, financial condition orfuture results. The risks described in our 2005 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. Except forthe additional risk factor provided below, there have been no material changesfrom the risk factors previously disclosed in the 2005 10-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 andUse of Proceeds**

**Use of Proceeds**

In connection with the RegistrationStatement filed on Form S-1 (No. 333-122935) and declared effective July 7,2005, Reef filed a final prospectus for the Program and filed a prospectussupplement describing the Partnership on July 8, 2005. At such time Reefcommenced the offering of units in the 

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Partnership. All sales of Partnership units were made through theProgram’s dealer manager, Reef Securities, Inc., and a number of solicitingdealers. The offering period ended October 31, 2005.

During theoffering 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 June 30,2006, Reef had contributed $61,614 to the Partnership in connection with thisobligation.

All units exceptthose purchased by Reef paid a 15% management fee to Reef to pay for thePartnership organization and offering costs, including sales commissions. Thesecosts totaled $5,369,615, leaving capital contributions of $32,090,897available for Partnership oil and gas operations. As of June 30, 2006, thePartnership had expended $9,309,007 on property acquisitions and prepaymentsand $114,780 on general and administrative expenses, including amounts inaccounts payable at June 30, 2006.

The Partnershipintends to utilize all remaining available Partnership capital for oil and gasactivities during 2006 and 2007.

**Item 3.  Defaults Upon Senior Securities**

None

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

None

**Item 5.  Other Information**

None

**Item6.  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 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: August 14, 2006 |       |       |   | By:                         |   | /s/ Michael J. Mauceli |
| ** **             | ** ** | ** ** |   |                        |   | **Michael J. Mauceli** |
|                   |       |       |   |                        |   | Manager and Member |
| * *               |       |       |   |                        |   | *(principal executive officer)* |
| * *               |       |       |   |                        |   | * * |
| Dated: August 14, 2006 |       |       |   | By:                         |   | /s/ Daniel C. Sibley |
| ** **             | ** ** | ** ** |   |                        |   | **Daniel C. Sibley** |
|                   |       |       |   |                        |   | Chief Financial Officer |
| * *               |       |       |   |                        |   | *(principal financial and accounting officer)* |

 

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