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United States
Securities and Exchange Commission
 Washington, D.C. 20549
 Form 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2010
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission file number 0-51271
 ATLAS AMERICA SERIES 25-2004 (B) L.P.
  Delaware
    
    34-1980376(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)Westpointe Corporate Center One1550 Coraopolis Heights Rd. 2nd FloorMoon Township, PA
    
    15108(Address of principal executive offices)
    
    (zip code)
 (412) 262-2830
 þ o
 Yes
o No o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ
 o þ




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##### 



ATLAS AMERICA SERIES 25-2004 (B) L.P.
(A Delaware Limited Partnership)
INDEX TO QUARTERLY REPORT
 ON FORM 10-Q
 PAGEPART I. FINANCIAL INFORMATIONItem 1: Financial StatementsBalance Sheets as of June 30, 2010 and December 31, 2009
    
    
    3Statements of Operations for the Three Months and Six Months ended June 30, 2010 and 2009
    
    
    4Statement of Changes in Partners Capital for the Six Months ended June 30, 2010
    
    
    5Statements of Cash Flows for the Six Months ended June 30, 2010 and 2009
    
    
    6Notes to Financial Statements
    
    
    7-17Item 2: Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    17-21Item 4: Controls and Procedures
    
    
    21PART II. OTHER INFORMATIONItem 1: Legal Proceedings
    
    
    22Item 6: Exhibits
    
    
    22SIGNATURES
    
    
    23CERTIFICATIONSExhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   2




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PART 1. FINANCIAL INFORMATION
 
 ITEM 1. FINANCIAL STATEMENTS
ATLAS AMERICA SERIES 25-2004(B) L.P.
 
 BALANCE SHEETS
 June 30,
    
    
    December 31,2010
    
    
    2009(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    104,200
    
    
    $
    116,400Accounts receivable-affiliate
    
    
    367,000
    
    
    
    438,400Short-term hedge receivable due from affiliate
    
    
    460,900
    
    
    
    375,200Total current assets
    
    
    932,100
    
    
    
    930,000Oil and gas properties, net
    
    
    10,753,700
    
    
    
    11,240,000Long-term hedge receivable due from affiliate
    
    
    598,500
    
    
    
    308,500$
    12,284,300
    
    
    $
    12,478,500LIABILITIES AND PARTNERS CAPITALCurrent liabilities:Accrued liabilities
    
    $
    33,200
    
    
    $
    36,100Short-term hedge liability due to affiliate
    
    
    7,900
    
    
    
    4,500Total current liabilities
    
    
    41,100
    
    
    
    40,600Asset retirement obligation
    
    
    1,772,700
    
    
    
    1,721,100Long-term hedge liability due to affiliate
    
    
    190,800
    
    
    
    47,300Partners capital:Managing general partner
    
    
    3,211,200
    
    
    
    3,343,600Limited partners (1,265.38 units)
    
    
    6,301,200
    
    
    
    6,811,100Accumulated other comprehensive income
    
    
    767,300
    
    
    
    514,800Total partners capital
    
    
    10,279,700
    
    
    
    10,669,500$
    12,284,300
    
    
    $
    12,478,500
   3




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ATLAS AMERICA SERIES 25-2004(B) L.P.
 
 STATEMENTS OF OPERATIONS  (Unaudited)
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009REVENUESNatural gas and oil
    
    $
    501,000
    
    
    $
    486,600
    
    
    $
    1,068,800
    
    
    $
    1,349,400Total revenues
    
    
    501,000
    
    
    
    486,600
    
    
    
    1,068,800
    
    
    
    1,349,400COSTS AND EXPENSESProduction
    
    
    268,100
    
    
    
    280,300
    
    
    
    509,700
    
    
    
    572,500Depletion
    
    
    228,500
    
    
    
    218,400
    
    
    
    487,500
    
    
    
    477,200Accretion of asset retirement obligation
    
    
    25,800
    
    
    
    22,800
    
    
    
    51,600
    
    
    
    45,500General and administrative
    
    
    46,700
    
    
    
    44,400
    
    
    
    89,600
    
    
    
    87,200Total expenses
    
    
    569,100
    
    
    
    565,900
    
    
    
    1,138,400
    
    
    
    1,182,400Net (loss) earnings
    
    $
    (68,100
    )
    
    $
    (79,300
    )
    
    $
    (69,600
    )
    
    $
    167,000Allocation of net (loss) earnings:Managing general partner
    
    $
    9,600
    
    
    $
    4,600
    
    
    $
    46,900
    
    
    $
    129,100Limited partners
    
    $
    (77,700
    )
    
    $
    (83,900
    )
    
    $
    (116,500
    )
    
    $
    37,900Net (loss) earnings per limited partnership unit
    
    $
    (61
    )
    
    $
    (66
    )
    
    $
    (92
    )
    
    $
    30
   4




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ATLAS AMERICA SERIES 25-2004(B) L.P.
 
 STATEMENT OF CHANGES IN PARTNERS CAPITAL  FOR THE SIX MONTHS ENDED  June 30, 2010  (Unaudited)
 AccumulatedManaging
    
    
    
    
    
    
    OtherGeneral
    
    
    Limited
    
    
    ComprehensivePartner
    
    
    Partners
    
    
    Income
    
    
    TotalBalance at January 1, 2010
    
    $
    3,343,600
    
    
    $
    6,811,100
    
    
    $
    514,800
    
    
    $
    10,669,500Participation in revenues and expenses:Net production revenues
    
    
    195,700
    
    
    
    363,400
    
    
    
    
    
    
    
    559,100Depletion
    
    
    (99,300
    )
    
    
    (388,200
    )
    
    
    
    
    
    
    (487,500
    )Accretion of asset retirement obligation
    
    
    (18,100
    )
    
    
    (33,500
    )
    
    
    
    
    
    
    (51,600
    )General and administrative
    
    
    (31,400
    )
    
    
    (58,200
    )
    
    
    
    
    
    
    (89,600
    )Net earnings (loss)
    
    
    46,900
    
    
    
    (116,500
    )
    
    
    
    
    
    
    (69,600
    )Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    252,500
    
    
    
    252,500Asset contributed by MGP
    
    
    1,200
    
    
    
    
    
    
    
    
    
    
    
    1,200Distributions to partners
    
    
    (180,500
    )
    
    
    (393,400
    )
    
    
    
    
    
    
    (573,900
    )Balance at June 30, 2010
    
    $
    3,211,200
    
    
    $
    6,301,200
    
    
    $
    767,300
    
    
    $
    10,279,700
   5




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ATLAS AMERICA SERIES 25-2004(B) L.P.
 
 STATEMENTS OF CASH FLOWS  (Unaudited)
 Six Months EndedJune 30,2010
    
    
    2009Cash flows from operating activities:Net (loss) earnings
    
    $
    (69,600
    )
    
    $
    167,000Adjustments to reconcile net (loss) earnings to
net cash provided by operating activities:Depletion
    
    
    487,500
    
    
    
    477,200Non-cash loss on derivative value
    
    
    23,700
    
    
    
    152,900Accretion of asset retirement obligation
    
    
    51,600
    
    
    
    45,500Decrease in accounts receivable  affiliate
    
    
    71,400
    
    
    
    332,700Decrease in accrued liabilities
    
    
    (2,900
    )
    
    
    (3,400
    )Net cash provided by operating activities
    
    
    561,700
    
    
    
    1,171,900Cash flows from financing activities:Distributions to partners
    
    
    (573,900
    )
    
    
    (1,289,400
    )Net cash used in financing activities
    
    
    (573,900
    )
    
    
    (1,289,400
    )Net decrease in cash and cash equivalents
    
    
    (12,200
    )
    
    
    (117,500
    )Cash and cash equivalents at beginning of period
    
    
    116,400
    
    
    
    265,100Cash and cash equivalents at end of period
    
    $
    104,200
    
    
    $
    147,600Supplemental schedule of non-cash
investing and financing activities:Assets contributed by managing general partnerTangible equipment
    
    $
    1,200
    
    
    $
    $
    1,200
    
    
    $
    
   6




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ATLAS AMERICA SERIES 25-2004(B) L.P.
 
 NOTES TO FINANCIAL STATEMENTS  June 30, 2010  (Unaudited)
 NOTE 1  BASIS OF PRESENTATION
   NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Use of Estimates
   Fair Value of Financial Instruments
   7




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ATLAS AMERICA SERIES 25-2004(B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Oil and Gas Properties
   Impairment of Long-Lived Assets
      8




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ATLAS AMERICA SERIES 25-2004(B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Working Interest
  Revenue Recognition
   Comprehensive (Loss) Income
  Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Net (loss) earnings
    
    $
    (68,100
    )
    
    $
    (79,300
    )
    
    $
    (69,600
    )
    
    $
    167,000Other comprehensive (loss) income:Unrealized holding (loss) gain
on hedging contracts
    
    
    (53,300
    )
    
    
    300
    
    
    
    485,000
    
    
    
    (34,500
    )Less: reclassification
adjustment for gains realized in
net (loss) earnings
    
    
    (87,700
    )
    
    
    (101,900
    )
    
    
    (232,500
    )
    
    
    (280,600
    )Total other comprehensive (loss) income
    
    
    (141,000
    )
    
    
    (101,600
    )
    
    
    252,500
    
    
    
    (315,100
    )Comprehensive (loss) income
    
    $
    (209,100
    )
    
    $
    (180,900
    )
    
    $
    182,900
    
    
    $
    (148,100
    )
  9




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ATLAS AMERICA SERIES 25-2004(B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Recently Adopted Accounting Standards
    Recently Issued Accounting Standards
   10




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ATLAS AMERICA SERIES 25-2004(B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
 NOTE 3  OIL AND GAS PROPERTIES
  June 30,
    
    
    December 31,2010
    
    
    2009Natural gas and oil properties:Proved properties:Leasehold interests
    
    $
    898,600
    
    
    $
    898,600Wells and related equipment
    
    
    40,440,200
    
    
    
    40,439,00041,338,800
    
    
    
    41,337,600Accumulated depletion
    
    
    (30,585,100
    )
    
    
    (30,097,600
    )$
    10,753,700
    
    
    $
    11,240,000
 NOTE 4  ASSET RETIREMENT OBLIGATIONS
    Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Asset retirement obligation at beginning of period
    
    $
    1,746,900
    
    
    $
    1,538,900
    
    
    $
    1,721,100
    
    
    $
    1,516,200Accretion expense
    
    
    25,800
    
    
    
    22,800
    
    
    
    51,600
    
    
    
    45,500Asset retirement obligation at end of period
    
    $
    1,772,700
    
    
    $
    1,561,700
    
    
    $
    1,772,700
    
    
    $
    1,561,700
  11




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ATLAS AMERICA SERIES 25-2004(B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS
     Fair Value of Derivative Instruments:
 Asset Derivatives
    
    
    Liability DerivativesDerivatives in
    
    
    
    Fair Value
    
    
    
    
    Fair ValueCash Flow
    
    Balance Sheet
    
    June 30,
    
    
    December 31,
    
    
    Balance Sheet
    
    June 30,
    
    
    December 31,Hedging Relationships
    
    Location
    
    2010
    
    
    2009
    
    
    Location
    
    2010
    
    
    2009Commodity contracts:
    
    Current assets
    
    $
    460,900
    
    
    $
    375,200
    
    
    Current liabilities
    
    $
    (7,900
    )
    
    $
    (4,500
    )Long-term assets
    
    
    598,500
    
    
    
    308,500
    
    
    Long-term liabilities
    
    
    (190,800
    )
    
    
    (47,300
    )Total derivatives
    
    
    
    $
    1,059,400
    
    
    $
    683,700
    
    
    
    
    $
    (198,700
    )
    
    $
    (51,800
    )
  12




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ATLAS AMERICA SERIES 25-2004(B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS (Continued)
 Effects of Derivative Instruments on Statements of Operations:
 Gain/(Loss)
    
    
    
    
    GainRecognized in OCI on Derivative
    
    
    
    
    Reclassified from OCI into Income(Effective Portion)
    
    
    Location of Gain
    
    (Effective Portion)Derivatives in
    
    Three Months Ended
    
    
    Reclassified from Accumulated
    
    Three Months EndedCash Flow
    
    June 30,
    
    
    June 30,
    
    
    OCI into Income
    
    June 30,
    
    
    June 30,Hedging Relationship
    
    2010
    
    
    2009
    
    
    (Effective Portion)
    
    2010
    
    
    2009Commodity contracts
    
    $
    (53,300
    )
    
    $
    300
    
    
    Natural gas and oil revenue
    
    $
    87,700
    
    
    $
    101,900
 Gain/(Loss)
    
    
    
    
    GainRecognized in OCI on Derivative
    
    
    
    
    Reclassified from OCI into Income(Effective Portion)
    
    
    Location of Gain
    
    (Effective Portion)Derivatives in
    
    Six Months Ended
    
    
    Reclassified from Accumulated
    
    Six Months EndedCash Flow
    
    June 30,
    
    
    June 30,
    
    
    OCI into Income
    
    June 30,
    
    
    June 30,Hedging Relationship
    
    2010
    
    
    2009
    
    
    (Effective Portion)
    
    2010
    
    
    2009Commodity contracts
    
    $
    485,000
    
    
    $
    (34,500
    )
    
    Natural gas and oil revenue
    
    $
    232,500
    
    
    $
    280,600
  Natural Gas Fixed Price Swaps
 Production
    
    
    
    
    
    AveragePeriod Ending
    
    Volumes
    
    
    Fixed Price
    
    
    Fair ValueDecember 31,
    
    (MMbtu)(1)
    
    
    (per MMbtu)(1)
    
    
    Asset(2)2010
    
    
    106,100
    
    
    $
    7.238
    
    
    $
    255,4002011
    
    
    144,700
    
    
    
    6.839
    
    
    
    216,0002012
    
    
    97,100
    
    
    
    7.165
    
    
    
    141,4002013
    
    
    54,700
    
    
    
    7.011
    
    
    
    58,8002014
    
    
    
    
    
    
    
    
    
    
    $
    671,600
  13




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ATLAS AMERICA SERIES 25-2004(B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS (Continued)
 Natural Gas Costless Collars
 Production
    
    
    
    
    
    
    
    AveragePeriod Ending
    
    Option
    
    Volumes
    
    
    Floor & Cap
    
    
    Fair ValueDecember 31,
    
    Type
    
    (MMbtu)(1)
    
    
    (per MMbtu)(1)
    
    
    Asset (Liability)(2)2010
    
    Puts purchased
    
    
    14,300
    
    
    $
    6.123
    
    
    $
    24,1002010
    
    Calls sold
    
    
    14,300
    
    
    
    7.327
    
    
    
    (2,100
    )2011
    
    Puts purchased
    
    
    66,800
    
    
    
    6.435
    
    
    
    107,3002011
    
    Calls sold
    
    
    66,800
    
    
    
    7.545
    
    
    
    (19,800
    )2012
    
    Puts purchased
    
    
    60,300
    
    
    
    6.012
    
    
    
    88,8002012
    
    Calls sold
    
    
    66,300
    
    
    
    7.181
    
    
    
    (49,900
    )2013
    
    Puts purchased
    
    
    70,400
    
    
    
    6.010
    
    
    
    117,4002013
    
    Calls sold
    
    
    70,400
    
    
    
    7.173
    
    
    
    (85,300
    )2014
    
    Puts purchased
    
    
    24,400
    
    
    
    5.860
    
    
    
    41,0002014
    
    Calls sold
    
    
    24,400
    
    
    
    6.961
    
    
    
    (38,500
    )$
    183,000
 Crude Oil Fixed Price Swaps
 Production
    
    
    
    
    
    AveragePeriod Ending
    
    Volumes
    
    
    Fixed Price
    
    
    Fair ValueDecember 31,
    
    (Bbl)(1)
    
    
    (per Bbl)(1)
    
    
    Asset(3)2010
    
    
    100
    
    
    $
    97.123
    
    
    $
    2,1002011
    
    
    200
    
    
    
    88.304
    
    
    
    1,4002012
    
    
    100
    
    
    
    87.901
    
    
    
    8002013
    
    
    50
    
    
    
    88.211
    
    
    
    2002014
    
    
    
    
    
    
    
    
    
    
    $
    4,500
  14




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ATLAS AMERICA SERIES 25-2004(B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS (Continued)
 Crude Oil Costless Collars
 Production
    
    
    
    
    
    
    
    AveragePeriod Ending
    
    Option
    
    Volumes
    
    
    Floor & Cap
    
    
    Fair ValueDecember 31,
    
    Type
    
    (Bbl)(1)
    
    
    (per Bbl)(1)
    
    
    Asset (Liability)(3)2010
    
    Puts purchased
    
    
    100
    
    
    $
    85.000
    
    
    $
    7002010
    
    Calls sold
    
    
    100
    
    
    
    112.350
    
    
    
    (100
    )2011
    
    Puts purchased
    
    
    100
    
    
    
    77.381
    
    
    
    1,0002011
    
    Calls sold
    
    
    100
    
    
    
    101.642
    
    
    
    (400
    )2012
    
    Puts purchased
    
    
    100
    
    
    
    76.756
    
    
    
    9002012
    
    Calls sold
    
    
    100
    
    
    
    102.181
    
    
    
    (600
    )2013
    
    Puts purchased
    
    
    50
    
    
    
    76.757
    
    
    
    3002013
    
    Calls sold
    
    
    50
    
    
    
    103.103
    
    
    
    (200
    )2014
    
    Puts purchased
    
    
    
    
    
    
    
    
    
    
    2014
    
    Calls sold
    
    
    
    
    
    
    
    
    
    
    $
    1,600Total Net Asset
    
    
    $
    860,700
 
 (1)
    
    MMBTU represents million British Thermal Units. Bbl represents barrels.(2)
    
    Fair value based on forward NYMEX natural gas prices, as applicable.(3)
    
    Fair value based on forward WTI crude oil prices, as applicable. NOTE 6  FAIR VALUE OF FINANCIAL INSTRUMENTS
  Level 1 Unadjusted quoted prices in active markets for identical, unrestricted assets and
liabilities that the reporting entity has the ability to access at the measurement date.
 Level 2 Inputs other than quoted prices included within Level 1 that are observable for the
asset and liability or can be corroborated with observable market data for substantially the
entire contractual term of the asset or liability.
 Level 3 Unobservable inputs that reflect the entitys own assumptions about the assumption
market participants would use in the pricing of the asset or liability and are consequently
not based on market activity but rather through particular valuation techniques.
 Assets and Liabilities Measured at Fair Value on a Recurring Basis
   15




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ATLAS AMERICA SERIES 25-2004(B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
 NOTE 6  FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
 Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
  NOTE 7  CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
  
    
    Administrative costs which are included in general and administrative expenses in the
Partnerships statements of operations are payable at $75 per well per month.
Administrative costs incurred for the three months and six months ended June 30, 2010
were $31,800 and $61,500, respectively. Administrative costs incurred for the three
months and six months ended June 30, 2009 were $31,800 and $63,400, respectively.
 
    
    Monthly well supervision fees which are included in production expenses in the
Partnerships statements of operations are payable at $313 per well per month in 2010
and 2009, for operating and maintaining the wells. Well supervision fees incurred for
the three months and six months ended June 30, 2010 were $130,100 and $252,800,
respectively. Well supervision fees incurred for the three months and six months ended
June 30, 2009 were $130,600 and $260,800, respectively
 
    
    Transportation fees which are included in production expenses in the Partnerships
statements of operations are generally payable at 13% of the natural gas sales price.
Transportation fees incurred for the three months and six months ended June 30, 2010
were $52,100 and $109,900, respectively. Transportation fees incurred for the three
months and six months ended June 30, 2009 were $63,600 and $159,600, respectively.
 
    
    Assets contributed by the MGP, which are disclosed in the Partnerships statement of
cash flows as a non-cash activity for the six months ended June 30, 2010, were $1,200.
   16




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##### Table of Contents



ATLAS AMERICA SERIES 25-2004(B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
 NOTE 7  CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS (Continued)
 Subordination by Managing General Partner
  NOTE 8  COMMITMENTS AND CONTINGENCIES
 Legal Proceedings
   
 ITEM 2.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (UNAUDITED)
 Forward-Looking Statements
 When used in this Form 10-Q , the words believes, anticipates, expects and similar
expressions are intended to identify forward-looking statements. There are risks and uncertainties
that could cause actual results to differ materially from the results stated or implied in this
document. Readers are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. We undertake no obligation to publicly release the results
of any revisions to forward-looking statements which we may make to reflect events or circumstances
after the date of this Form 10-Q or to reflect the occurrence of unanticipated events.
 BUSINESS OVERVIEW
    17




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Results of Operations
  Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Production revenues (in thousands):Gas
    
    $
    458
    
    
    $
    456
    
    
    $
    981
    
    
    $
    1,279Oil
    
    
    43
    
    
    
    31
    
    
    
    88
    
    
    
    70Total
    
    $
    501
    
    
    $
    487
    
    
    $
    1,069
    
    
    $
    1,349Production volumes:Gas (mcf/day) (1)
    
    
    734
    
    
    
    810
    
    
    
    787
    
    
    
    895Oil (bbls/day) (1)
    
    
    6
    
    
    
    7
    
    
    
    7
    
    
    
    7Total (mcfe/day) (1)
    
    
    770
    
    
    
    852
    
    
    
    829
    
    
    
    937Average sales prices: (2)Gas (per mcf) (1) (3)
    
    $
    7.47
    
    
    $
    8.31
    
    
    $
    7.05
    
    
    $
    8.83Oil (per bbl) (1) (4)
    
    $
    78.31
    
    
    $
    47.38
    
    
    $
    75.10
    
    
    $
    56.25Average production costs:As a percent of revenues
    
    
    54
    %
    
    
    58
    %
    
    
    48
    %
    
    
    42
    %Per mcfe (1)
    
    $
    3.82
    
    
    $
    3.61
    
    
    $
    3.41
    
    
    $
    3.37Depletion per mcfe
    
    $
    3.26
    
    
    $
    2.81
    
    
    $
    3.26
    
    
    $
    2.81
 
 (1)
    
    Mcf represents thousand cubic feet, mcfe represents thousand cubic feet
equivalent, and bbls represents barrels. Bbls are converted to mcfe using the ratio
of six mcfs to one bbl.(2)
    
    Average sales prices represent accrual basis pricing after reversing the effect
of previously recognized gains resulting from prior period impairment charges.(3)
    
    Average gas prices are calculated by including in total revenue derivative
losses previously recognized into (loss) earnings and dividing by the total volume for
the period. Previously recognized derivative losses were $40,700 and $156,400 for the
three months ended June 30, 2010 and 2009, respectively. Previously recognized
derivative losses were $22,600 and $150,800 for the six months ended June 30, 2010 and
2009, respectively. The derivative losses are included in other comprehensive (loss)
income and resulted from prior period impairment charges.(4)
    
    Average oil prices are calculated by including in total revenue derivative
losses previously recognized into (loss) earnings and dividing by the total volume for
the period. Previously recognized derivative losses were $600 and $1,000 for the three
months ended June 30, 2010 and 2009, respectively. Previously recognized derivative
losses were $1,100 and $2,100 for the six months ended June 30, 2010 and 2009,
respectively. The derivative losses are included in other comprehensive (loss) income
and resulted from prior period impairment charges.  18




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Natural Gas Revenues.
  Oil Revenues.
  Expenses.
    19




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Liquidity and Capital Resources
     Subordination by Managing General Partner
  CRITICAL ACCOUNTING POLICIES AND ESTIMATES
   20




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Fair Value of Financial Instruments
  Level 1 Unadjusted quoted prices in active markets for identical, unrestricted assets and
liabilities that the reporting entity has the ability to access at the measurement date.
 Level 2 Inputs other than quoted prices included within Level 1 that are observable for the
asset and liability or can be corroborated with observable market data for substantially the
entire contractual term of the asset or liability.
 Level 3 Unobservable inputs that reflect the entitys own assumptions about the assumption
market participants would use in the pricing of the asset or liability and are consequently
not based on market activity but rather through particular valuation techniques.
   
 ITEM 4. CONTROLS AND PROCEDURES
     21




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PART II. OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
   
 ITEM 6. EXHIBITS
 
 EXHIBIT INDEX
 Exhibit No.
    
    Description4.0
    
    
    Amended and Restated Certificate and Agreement of Limited Partnership for Atlas America
Series 25-2004 (B) L.P. (1)10.1
    
    
    Drilling and Operating Agreement for Atlas America Series 25-2004 (B) L.P. (1)31.1
    
    
    Rule 13a-14(a)/15d-14(a) Certification.31.2
    
    
    Rule 13a-14(a)/15d-14(a) Certification.32.1
    
    
    Section 1350 Certification.32.2
    
    
    Section 1350 Certification.
 
 (1)
    
    Filed on April 29, 2005 in the Form S-1 Registration Statement dated April 29, 2005, File No. 0-51271  22




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SIGNATURES
  Atlas America Series 25-2004 (B) L.P.Atlas Resources, LLC, Managing General PartnerDate:  August 16, 2010
    By:
    /s/ FREDDIE M. KOTEKFreddie M. KotekChairman of the Board of Directors,
Chief Executive Officer and PresidentDate:  August 16, 2010
    By:
    /s/ MATTHEW A. JONESMatthew A. JonesChief Financial Officer  23