|                        | **United                  States Securities and Exchange Commission**         |
|-----------------------------|-------------------------------------------------------------------------------|
|                        |                                                                          |
|                        | **Washington,                  D.C. 20549**                                   |
|                        |                                                                          |
|                        | **Form                  10 QSB**                                              |
|                        |                                                                          |
| (Mark                  One) |                                                                          |
|                        |                                                                          |
| **R**                       | **QUARTERLY                  REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE** |
|                        | **SECURITIES                  EXCHANGE ACT OF 1934**                          |
|                        |                                                                          |
|                        | For                  the quarterly period ended September 30, 2006            |
|                        |                                                                          |
| o                           | **TRANSITION                  REPORT UNDER SECTION 13 OR 15 (d) OF THE**      |
|                        | **SECURITIES                  EXCHANGE ACT OF 1934**                          |
|                        |                                                                          |
|                        | For                  the transition period from _____ to _____                |
|                        |                                                                          |
|                        | Commission                  file number 0-57271                               |
|                        |                                                                          |
|                        |                                                                          |
|                        | **ATLAS                  AMERICA SERIES 25-2004 (B) L.P.**                    |
|                        | (Name                  of small business issuer in its charter)               |
|                        |                                                                          |

|                                                                                                                                                                                    |                                                                  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------|
|                                                                                                                                                                                    |                                                                  |
| **Delaware**                                                                                                                                                                            | **34-1980376**                                                        |
| (State                  or other jurisdiction ofincorporation                  or organization)                                                                                         | (I.R.S.                  EmployerIdentification                  No.) |
|                                                                                                                                                                                    |                                                                  |
| 311                  Rouser Road                                                                                                                                                        | 15108                                                                 |
| Moon                  Township, PA                                                                                                                                                      | (zip                  code)                                           |
| (Address                  of principal executive offices)                                                                                                                               |                                                                  |
|                                                                                                                                                                                    |                                                                  |
| Issuer’s                  telephone number, including area code: **(412)                  262-2830**                                                                              |
|                                                                                                                                                                                    |
| Check                  whether the issuer (1) filed all reports required to be filed by                  Section                  13 or 15 (d) of the Exchange Act                      |
| during                  the past 12 months (or for such shorter period that the registrant                  was                  required to file such reports),                        |
| and                  (2) has been subject to such filing requirements for the past 90                  days.                  Yes** ****R**                  No                  o |
|                                                                                                                                                                                    |
| Indicate                  by check mark whether the registrant is a shell company (as defined                  in                  Rule 12b-2 of the Exchange                           |
| Act).Yes                  o                  No                  **R**                                                                                                                  |
|                                                                                                                                                                                    |
| Transitional                  Small Business Disclosure Format (check one): Yes o                  No                  **R**                                                            |

----

**ATLAS        AMERICA SERIES 25-2004 (B) L.P.**

**INDEX        TO QUARTERLY REPORT**

**ON        FORM 10-QSB**

| **PART                  I.**  |   | **FINANCIAL                  INFORMATION**                                                                                                  | **PAGE** |
|-------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                          |   |                                                                                                                                        |     |
| Item                  1:      |   | Financial                  Statements                                                                                                       |     |
|                          |   |                                                                                                                                        |     |
|                          |   | Balance                  Sheets as of September 30, 2006 and December 31, 2005                  (Unaudited)                                 | 3        |
|                          |   |                                                                                                                                        |     |
|                          |   | Statements                  of Operations for the Three and Nine months ended September 30,                  2006 and                  2005 |     |
|                          |   | (Unaudited)                                                                                                                                 | 4        |
|                          |   |                                                                                                                                        |     |
|                          |   | Statement                  of Partners’ Capital Accounts for the Nine months ended September 30,                  2006                |     |
|                          |   | (Unaudited)                                                                                                                                 | 5        |
|                          |   |                                                                                                                                        |     |
|                          |   | Statements                  of Cash Flows for the Nine months ended September 30, 2006 and                  2005                            |     |
|                          |   | (Unaudited)                                                                                                                                 | 6        |
|                          |   |                                                                                                                                        |     |
|                          |   | Notes                  to Financial Statements (Unaudited)                                                                                  | 7-12     |
|                          |   |                                                                                                                                        |     |
| Item                  2:      |   | Management’s                  Discussion and Analysis of Financial Condition or Plan of                  Operations                   | 12-15    |
|                          |   |                                                                                                                                        |     |
| Item                  3:      |   | Controls                  and Procedures                                                                                                    | 16       |
|                          |   |                                                                                                                                        |     |
| **PART                  II.** |   | **OTHER                  INFORMATION**                                                                                                      |     |
|                          |   |                                                                                                                                        |     |
| Item                  6:      |   | Exhibits                                                                                                                                    | 16       |
|                          |   |                                                                                                                                        |     |
|                          |   |                                                                                                                                        |     |
| **SIGNATURES**                | 17     |
|                          |   |                                                                                                                                        |     |
| **CERTIFICATIONS**            | 18-21  |

----

**PART        I**

**ITEM        1.**
**FINANCIAL        STATEMENTS**

**ATLAS        AMERICA SERIES 25-2004(B) L.P.**

**BALANCE        SHEETS**

**(Unaudited)**

|                                                         |   | **September                  30,** |       | **December                  31,** |   |
|--------------------------------------------------------------|--------|------------------------------------|------------|-----------------------------------|--------|
|                                                         |   | **2006**                           |       | **2005**                          |   |
|                                                         |   |                               |       |                              |   |   |   |
| **ASSETS**                                                   |   |                               |       |                              |   |   |   |
| Current                  Assets:                             |   |                               |       |                              |   |   |   |
| Cash                  and cash equivalents                   |   | $                                  | 561,700    |                              | $      | 1,400 |   |
| Accounts                  receivable-affiliate               |   |                               | 1,796,500  |                              |   | 4,340,900 |   |
| Hedge                  receivable short-term-affiliate       |   |                               | 953,700    |                              |   | 122,700 |   |
| Total                  current assets                        |   |                               | 3,311,900  |                              |   | 4,465,000 |   |
|                                                         |   |                               |       |                              |   |   |   |
| Oil                  and gas properties, net            |   |                               | 34,873,500 |                              |   | 37,662,700 |   |
|                                                         |   |                               |       |                              |   |   |   |
| Hedge                  receivable long-term-affiliate   |   |                               | 1,020,300  |                              |   | ― |   |
|                                                         |   | $                                  | 39,205,700 |                              | $      | 42,127,700 |   |
|                                                         |   |                               |       |                              |   |   |   |
| **LIABILITIES                  AND PARTNERS’ CAPITAL** |   |                               |       |                              |   |   |   |
| Current                  liabilities:                        |   |                               |       |                              |   |   |   |
| Accrued                  liabilities                    |   | $                                  | 13,400     |                              | $      | 21,600 |   |
| Hedge                  liability short-term-affiliate        |   |                               | ―    |                              |   | 12,000 |   |
| Total                  current liabilities                   |   |                               | 13,400     |                              |   | 33,600 |   |
|                                                         |   |                               |       |                              |   |   |   |
| Asset                  retirement obligation            |   |                               | 1,489,800  |                              |   | 1,442,300 |   |
| Hedge                  liability long-term-affiliate    |   |                               | 97,900     |                              |   | 536,900 |   |
|                                                         |   |                               |       |                              |   |   |   |
|                                                         |   |                               |       |                              |   |   |   |
| Partners’                  capital:                    |   |                               |       |                              |   |   |   |
| Managing                  general partner                    |   |                               | 9,652,400  |                              |   | 10,647,000 |   |
| Limited                  partners (1,265.38 units)           |   |                               | 26,076,100 |                              |   | 29,894,100 |   |
| Accumulated                  comprehensive income (loss)     |   |                               | 1,876,100  |                              |   | (426,200 | ) |
|                                                         |   |                               | 37,604,600 |                              |   | 40,114,900 |   |
|                                                         |   | $                                  | 39,205,700 |                              | $      | 42,127,700 |   |

----

**ATLAS        AMERICA SERIES 25-2004(B) L.P.**

**STATEMENTS        OF OPERATIONS**

**(Unaudited)**

|                                                       |   | **Three                  Months Ended** |      | **Nine                  Months Ended** |   |
|------------------------------------------------------------|--------|-----------------------------------------|-----------|----------------------------------------|--------|
|                                                       |   | **September                  30,**      |      | **September                  30,**     |   |
|                                                       |   | **2006**                                |      | **2005**                               |   | **2006** |   | **2005** |   |
| **REVENUES:**                                              |   |                                    |      |                                   |   |   |   |   |   |   |   |   |   |
| Natural                  gas and oil sales                 |   | $                                       | 2,077,000 |                                   | $      | 2,007,100 |   | $ | 7,172,600 |   | $ | 5,470,900 |   |
| Total                  revenues                            |   |                                    | 2,077,000 |                                   |   | 2,007,100 |   |   | 7,172,600 |   |   | 5,470,900 |   |
|                                                       |   |                                    |      |                                   |   |   |   |   |   |   |   |   |   |
| **COSTS                  AND EXPENSES:**                   |   |                                    |      |                                   |   |   |   |   |   |   |   |   |   |
| Production                  expenses                  |   |                                    | 445,900   |                                   |   | 259,700 |   |   | 1,341,800 |   |   | 605,500 |   |
| Depletion                                             |   |                                    | 973,700   |                                   |   | 761,000 |   |   | 3,124,100 |   |   | 3,013,200 |   |
| Accretion                  of asset retirement obligation  |   |                                    | 15,800    |                                   |   | 14,900 |   |   | 47,500 |   |   | 44,800 |   |
| General                  and administrative expenses  |   |                                    | 39,300    |                                   |   | 57,900 |   |   | 126,600 |   |   | 125,600 |   |
| Total                  expenses                            |   |                                    | 1,474,700 |                                   |   | 1,093,500 |   |   | 4,640,000 |   |   | 3,789,100 |   |
|                                                       |   |                                    |      |                                   |   |   |   |   |   |   |   |   |   |
| **Net                  earnings**                     |   | $                                       | 602,300   |                                   | $      | 913,600 |   | $ | 2,532,600 |   | $ | 1,681,800 |   |
|                                                       |   |                                    |      |                                   |   |   |   |   |   |   |   |   |   |
| **Allocation                  of net earnings:**           |   |                                    |      |                                   |   |   |   |   |   |   |   |   |   |
| Managing                  general partner                  |   | $                                       | 309,600   |                                   | $      | 533,300 |   | $ | 1,356,000 |   | $ | 1,060,800 |   |
| Limited                  partners                          |   | $                                       | 292,700   |                                   | $      | 380,300 |   | $ | 1,176,600 |   | $ | 621,000 |   |
| Net                  earnings per limited partnership unit |   | $                                       | 231       |                                   | $      | 301 |   | $ | 930 |   | $ | 491 |   |

----

**ATLAS        AMERICA SERIES 25-2004(B) L.P.**

**STATEMENT        OF PARTNERS’ CAPITAL ACCOUNTS**

**FOR        NINE MONTHS ENDED September 30, 2006**

**(Unaudited)**

|                                                      |   | **Managing** |       |         |   | **Accumulated**                    |   |      |      |
|-----------------------------------------------------------|--------|--------------|------------|--------------|--------|------------------------------------|--------|-----------|-----------|
|                                                      |   | **General**  |       | **Limited**  |   | **Comprehensive**                  |   |      |      |
|                                                      |   | **Partner**  |       | **Partners** |   | **Income                  (Loss)** |   | **Total** |      |
|                                                      |   |         |       |         |   |                               |   |      |      |   |   |   |   |
| **Balance                  at January 1, 2006**           |   | $            | 10,647,000 |         | $      | 29,894,100                         |   | $         | (426,200  | ) | $ | 40,114,900 |   |
|                                                      |   |         |       |         |   |                               |   |      |      |   |   |   |   |
| Participation                  in revenues and expenses:  |   |         |       |         |   |                               |   |      |      |   |   |   |   |
| Net                  production revenues                  |   |         | 2,040,800  |         |   | 3,790,000                          |   |      | ―   |   |   | 5,830,800 |   |
| Depletion                                                 |   |         | (623,800   | )            |   | (2,500,300                         | )      |      | ―   |   |   | (3,124,100 | ) |
| Accretion                  of asset retirement obligation |   |         | (16,600    | )            |   | (30,900                            | )      |      | ―   |   |   | (47,500 | ) |
| General                  and administrative               |   |         | (44,400    | )            |   | (82,200                            | )      |      | ―   |   |   | (126,600 | ) |
| Net                  earnings                             |   |         | 1,356,000  |         |   | 1,176,600                          |   |      | ―   |   |   | 2,532,600 |   |
|                                                      |   |         |       |         |   |                               |   |      |      |   |   |   |   |
| Additional                  MGP contributions             |   |         | 346,200    |         |   | ―                            |   |      | ―   |   |   | 346,200 |   |
|                                                      |   |         |       |         |   |                               |   |      |      |   |   |   |   |
| Other                  comprehensive income               |   |         | ―    |         |   | ―                            |   |      | 2,302,300 |   |   | 2,302,300 |   |
|                                                      |   |         |       |         |   |                               |   |      |      |   |   |   |   |
|                                                      |   |         |       |         |   |                               |   |      |      |   |   |   |   |
| Distributions                  to partners                |   |         | (2,696,800 | )            |   | (4,994,600                         | )      |      | ―   |   |   | (7,691,400 | ) |
|                                                      |   |         |       |         |   |                               |   |      |      |   |   |   |   |
| **Balance                  at September 30, 2006**        |   | $            | 9,652,400  |         | $      | 26,076,100                         |   | $         | 1,876,100 |   | $ | 37,604,600 |   |

----

**ATLAS        AMERICA SERIES 25-2004(B) L.P.**

**STATEMENTS        OF CASH FLOWS**

**(Unaudited)**

|                                                                                                                  |   | **Nine                  Months Ended** |       |
|-----------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|------------|
|                                                                                                                  |   | **September                  30,**     |       |
|                                                                                                                  |   | **2006**                               |       | **2005** |   |
| **Cash                  flows from operating activities:**                                                            |   |                                   |       |   |   |   |   |
| Net                  earnings                                                                                         |   | $                                      | 2,532,600  |   | $ | 1,681,800 |   |
| Adjustments                  to reconcile net earnings to net cash provided by operating                  activities: |   |                                   |       |   |   |   |   |
| Depletion                                                                                                             |   |                                   | 3,124,100  |   |   | 3,013,200 |   |
| Accretion                  of asset retirement obligation                                                             |   |                                   | 47,500     |   |   | 44,800 |   |
| Decrease                  (increase) in accounts receivable - affiliate                                               |   |                                   | 2,544,400  |   |   | (1,188,500 | ) |
| (Decrease)                  increase in accrued liabilities                                                           |   |                                   | (8,200     | ) |   | 11,100 |   |
| Net                  cash provided by operating activities                                                       |   |                                   | 8,240,400  |   |   | 3,562,400 |   |
|                                                                                                                  |   |                                   |       |   |   |   |   |
| **Cash                  flows from investing activities:**                                                            |   |                                   |       |   |   |   |   |
| Sale                  of tangible equipment                                                                      |   |                                   | 13,100     |   |   | ― |   |
| Purchase                  of tangible equipment                                                                  |   |                                   | (1,800     | ) |   | ― |   |
| Net                  cash provided by investing activities                                                       |   |                                   | 11,300     |   |   | ― |   |
|                                                                                                                  |   |                                   |       |   |   |   |   |
| **Cash                  flows from financing activities:**                                                            |   |                                   |       |   |   |   |   |
| Distributions                  to partners                                                                            |   |                                   | (7,691,400 | ) |   | (3,052,300 | ) |
| Return                  of initial capital contribution to managing general                  partner                  |   |                                   | ―    |   |   | (100 | ) |
| Net                  cash used in financing activities                                                                |   |                                   | (7,691,400 | ) |   | (3,052,400 | ) |
|                                                                                                                  |   |                                   |       |   |   |   |   |
| Net                  increase in cash and cash equivalents                                                       |   |                                   | 560,300    |   |   | 510,000 |   |
| Cash                  and cash equivalents at beginning of period                                                |   |                                   | 1,400      |   |   | 100 |   |
| Cash                  and cash equivalents at end of period                                                      |   | $                                      | 561,700    |   | $ | 510,100 |   |
|                                                                                                                  |   |                                   |       |   |   |   |   |
| **Supplemental                  schedule of non-cash investing and financing                  activities:**           |   |                                   |       |   |   |   |   |
|                                                                                                                  |   |                                   |       |   |   |   |   |
| Managing                  General Partner adjusted asset contributions:                                               |   |                                   |       |   |   |   |   |
| Lease                  cost included in oil & gas properties                                                      |   | $                                      | ―    |   | $ | (177,700 | ) |
| Tangible                  equipment cost included in oil and gas properties                                           |   |                                   | (155,100   | ) |   | (1,951,500 | ) |
| Intangible                  drilling cost included in oil and gas properties                                          |   |                                   | 501,300    |   |   | 156,800 |   |
|                                                                                                                  |   | $                                      | 346,200    |   | $ | (1,972,400 | ) |

----

**ATLAS        AMERICA SERIES 25-2004(B) L.P.**

**NOTES        TO FINANCIAL STATEMENTS**

**September        30, 2006**

**(Unaudited)**

**NOTE        1 **
**-**
**        NATURE OF OPERATIONS**

**NOTE        2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Recently        Issued Financial Accounting Standards**

*Considering        the Effects of Prior Year Misstatements when Quantifying Misstatements in        Current Year Financial Statements*

*Fair        Value*
*Measurement*

----

**ATLAS        AMERICA SERIES 25-2004(B) L.P.**

**NOTES        TO FINANCIAL STATEMENTS**

**September        30, 2006**

**(Unaudited)**

**NOTE        2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

**Receivables**

**Revenue        Recognition**

**Reclassifications**

**Asset        Retirement Obligation**

*Accounting        for Asset Retirement Obligations*

|                                                                      |   | **Three                  Months** |      | **Nine                  Months** |   |
|---------------------------------------------------------------------------|--------|-----------------------------------|-----------|----------------------------------|--------|
|                                                                      |   | **2006**                          |      | **2005**                         |   | **2006** |   | **2005** |   |
|                                                                      |   |                              |      |                             |   |   |   |   |   |   |   |   |   |
| Asset                  retirement obligation at beginning of period       |   | $                                 | 1,474,000 |                             | $      | 1,026,900 |   | $ | 1,442,300 |   | $ | 997,000 |   |
| Accretion                  expense                                        |   |                              | 15,800    |                             |   | 14,900 |   |   | 47,500 |   |   | 44,800 |   |
| Total                  asset retirement obligation at end of period  |   | $                                 | 1,489,800 |                             | $      | 1,041,800 |   | $ | 1,489,800 |   | $ | 1,041,800 |   |

**Concentration        of Credit Risk**

----

**ATLAS        AMERICA SERIES 25-2004(B) L.P.**

**NOTES        TO FINANCIAL STATEMENTS**

**September        30, 2006**

**(Unaudited)**

**NOTE        2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

**Property        and Equipment**

| Oil                  and gas properties consist of the following at the dates                  indicated: |   | **September                  30,** |       | **December                  31,** |   |
|-----------------------------------------------------------------------------------------------------------|--------|------------------------------------|------------|-----------------------------------|--------|
|                                                                                                      |   | **2006**                           |       | **2005**                          |   |
| Capitalized                  costs of properties:                                                         |   |                               |       |                              |   |   |   |
| Proved                  properties                                                                        |   | $                                  | 957,700    |                              | $      | 957,700 |   |
| Wells                  and related equipment                                                              |   |                               | 42,453,600 |                              |   | 42,118,700 |   |
|                                                                                                      |   |                               | 43,411,300 |                              |   | 43,076,400 |   |
| Accumulated                  depletion                                                                    |   |                               | (8,537,800 | )                                 |   | (5,413,700 | ) |
|                                                                                                      |   | $                                  | 34,873,500 |                              | $      | 37,662,700 |   |

**NOTE        3 **
**-**
**        TRANSACTIONS WITH ATLAS RESOURCES, LLC AND ITS AFFILIATES**

| ·   | 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 ended September                30, 2006 and 2005 were $33,400 and $27,300, respectively; and $99,400                and                $61,600 for the nine months ended September 30, 2006 and 2005,                respectively. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Monthly                well supervision fees which are included in production expenses in                the                Partnership’s Statements of Operations are payable at $289 per well per                month for operating and maintaining the wells. Well supervision fees                incurred for the three months ended September 30, 2006 and 2005 were                $133,800 and $99,900, respectively; and $379,400 and $225,300 for                the nine                months ended September 30, 2006 and 2005,                respectively. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Transportation                fees which are included in production expenses in the Partnership’s                Statements of Operations are payable at rates ranging from $.29-$.35                per                mcf (one thousand cubic feet) to 10% of the natural gas sales price.                Transportation costs incurred for the three months ended September                30,                2006 and 2005 were $180,000 and $72,400, respectively; and $615,500                and                $188,600 for the nine months ended September 30, 2006 and 2005,                respectively. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Adjusted                asset contributions from the Managing General Partner which are included                on the Partnership’s Statements of Cash Flows for the nine months ended                September 30, 2006 and 2005 were $346,200 and $1,972,400, respectively.                The adjustment from September 30, 2005 resulted in a reduction to oil                and gas properties costs. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ATLAS        AMERICA SERIES 25-2004(B) L.P.**

**NOTES        TO FINANCIAL STATEMENTS**

**September        30, 2006**

**(Unaudited)**

**NOTE        3 **
**-**
**        TRANSACTIONS WITH ATLAS RESOURCES, LLC AND ITS AFFILIATES        (CONTINUED)**

**Comprehensive        Income**

|                                                          |   | **Three                  Months Ended** |      | **Nine                  Months Ended** |   |
|---------------------------------------------------------------|--------|-----------------------------------------|-----------|----------------------------------------|--------|
|                                                          |   | **September                  30,**      |      | **September                  30,**     |   |
|                                                          |   | **2006**                                |      | **2005**                               |   | **2006** |   | **2005** |   |
|                                                          |   |                                    |      |                                   |   |   |   |   |   |   |   |   |   |
| Net                  earnings                                 |   | $                                       | 602,300   |                                   | $      | 913,600 |   | $ | 2,532,600 |   | $ | 1,681,800 |   |
| Other                  comprehensive income:                  |   |                                    |      |                                   |   |   |   |   |   |   |   |   |   |
| Unrealized                  holding gain on hedging contracts |   |                                    | 1,719,500 |                                   |   | ― |   |   | 2,881,900 |   |   | ― |   |
| Less:                  reclassification adjustment for gains  |   |                                    |      |                                   |   |   |   |   |   |   |   |   |   |
| realized                  in net earnings                     |   |                                    | (219,600  | )                                      |   | ― |   |   | (579,600 | ) |   | ― |   |
| Total                  other comprehensive income             |   |                                    | 1,499,900 |                                   |   | ― |   |   | 2,302,300 |   |   | ― |   |
| Comprehensive                  income                         |   | $                                       | 2,102,200 |                                   | $      | 913,600 |   | $ | 4,834,900 |   | $ | 1,681,800 |   |

**Subordination        of Managing General Partner’s Revenue Share**

**NOTE        4 - DERIVATIVE INSTRUMENTS**

----

**ATLAS        AMERICA SERIES 25-2004(B) L.P.**

**NOTES        TO FINANCIAL STATEMENTS**

**September        30, 2006**

**(Unaudited)**

**NOTE        4 - DERIVATIVE INSTRUMENTS (CONTINUED)**

| **Natural                Gas Fixed - Price Swaps** |   |               |    |                           |   |
|----------------------------------------------------|--------|--------------------|---------|--------------------------------|--------|
|                                               |   |               |    |                           |   |   |   |
| **Twelve                Months**                   |   |               |    | **Average**                    |   | **Fair                Value** |   |
| **Production                Period**               |   | **Volumes**        |    | **Fixed                Price** |   | **Asset****(2)** |   |
| **Ended                September 30,**             |   | **(MMBTU)****(1)** |    | **(per                MMBTU)** |   | **(in                thousands)** |   |
|                                               |   |               |    |                           |   |   |   |   |   |   |
| 2007                                               |   |               | 479,300 |                           | $      | 9.26 |   | $ | 954 |   |
| 2008                                               |   |               | 694,100 |                           |   | 8.75 |   |   | 471 |   |
| 2009                                               |   |               | 519,100 |                           |   | 8.65 |   |   | 373 |   |
| 2010                                               |   |               | 115,200 |                           |   | 8.61 |   |   | 78 |   |
|                                               |   |               |    |                           |   |   |   |   |   |   |
| Total                asset                         | $      | 1,876              |    |

| (1)   | MMBTU                represents million British Thermal                Units. |
|-----------------|-------------------------------------------------------------------------------|

| (2)   | Fair                value based on forward NYMEX natural gas prices, as                applicable. |
|-----------------|----------------------------------------------------------------------------------------------------|

----

**ATLAS      AMERICA SERIES 25-2004(B) L.P.**

**NOTES      TO FINANCIAL STATEMENTS**

**September      30, 2006**

**(Unaudited)**

**NOTE      4 - DERIVATIVE INSTRUMENTS (CONTINUED)**

|                                  |   | **September                30, 2006** |   | **December                31, 2005** |   |
|---------------------------------------|--------|---------------------------------------|--------|--------------------------------------|--------|
|                                  |   | **Book                Value**         |   | **Fair                Value**        |   | **Book                Value** |   | **Fair                Value** |   |
| Assets                                |   |                                  |   |                                 |   |   |   |   |   |   |   |   |   |
| Derivative                instruments |   | $                                     | 1,974  |                                 | $      | 1,974 |   | $ | 123 |   | $ | 123 |   |
|                                  |   | $                                     | 1,974  |                                 | $      | 1,974 |   | $ | 123 |   | $ | 123 |   |
| Liabilities                           |   |                                  |   |                                 |   |   |   |   |   |   |   |   |   |
| Derivative                instruments |   | $                                     | (98    | )                                    | $      | (98 | ) | $ | (549 | ) | $ | (549 | ) |
|                                  |   | $                                     | 1,876  |                                 | $      | 1,876 |   | $ | (426 | ) | $ | (426 | ) |

**NOTE      5 - SUBSEQUENT EVENT**

| **ITEM                2.** | **MANAGEMENT’S                DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION** |
|----------------------------|--------------------------------------------------------------------------------------|
|                       | **OR                PLAN OF OPERATIONS                UNAUDITED)**                   |

**Forward-Looking      Statements**

----

**General**

**Results      of Operations**

|                                               |   | **Three                Months Ended** |   | **Nine                Months Ended** |   |
|----------------------------------------------------|--------|---------------------------------------|--------|--------------------------------------|--------|
|                                               |   | **September                30,**      |   | **September                30,**     |   |
|                                               |   | **2006**                              |   | **2005**                             |   | **2006** |   | **2005** |   |
|                                               |   |                                  |   |                                 |   |   |   |   |   |   |   |   |   |
| Production                revenues (in thousands): |   |                                  |   |                                 |   |   |   |   |   |   |   |   |   |
| Gas                                                |   | $                                     | 1,929  |                                 | $      | 1,780 |   | $ | 6,819 |   | $ | 4,846 |   |
| Oil                                                |   | $                                     | 148    |                                 | $      | 228 |   | $ | 354 |   | $ | 626 |   |
| Total                                              |   | $                                     | 2,077  |                                 | $      | 2,008 |   | $ | 7,173 |   | $ | 5,472 |   |
|                                               |   |                                  |   |                                 |   |   |   |   |   |   |   |   |   |
| Production                volumes:                 |   |                                  |   |                                 |   |   |   |   |   |   |   |   |   |
| Gas                (mcf/day) (2)                   |   |                                  | 2,451  |                                 |   | 2,694 |   |   | 2,599 |   |   | 2,476 |   |
| Oil                (bbls/day) (2)                  |   |                                  | 25     |                                 |   | 43 |   |   | 21 |   |   | 44 |   |
| Total                (mcfe/day) (2)                |   |                                  | 2,601  |                                 |   | 2,952 |   |   | 2,725 |   |   | 2,740 |   |
|                                               |   |                                  |   |                                 |   |   |   |   |   |   |   |   |   |
| Average                sales prices:               |   |                                  |   |                                 |   |   |   |   |   |   |   |   |   |
| Gas                (per mcf) (1) (2)               |   | $                                     | 8.56   |                                 | $      | 7.18 |   | $ | 9.61 |   | $ | 7.17 |   |
| Oil                (per bbl) (2)                   |   | $                                     | 64.92  |                                 | $      | 57.23 |   | $ | 62.86 |   | $ | 51.73 |   |
|                                               |   |                                  |   |                                 |   |   |   |   |   |   |   |   |   |
| Average                production costs:           |   |                                  |   |                                 |   |   |   |   |   |   |   |   |   |
| As                a percent of sales               |   |                                  | 21     | %                                    |   | 13 | % |   | 19 | % |   | 11 | % |
| Per                mcfe (2)                        |   | $                                     | 1.87   |                                 | $      | .96 |   | $ | 1.81 |   | $ | .81 |   |
|                                               |   |                                  |   |                                 |   |   |   |   |   |   |   |   |   |
| Depletion                per mcfe                  |   | $                                     | 4.07   |                                 | $      | 2.80 |   | $ | 4.20 |   | $ | 4.03 |   |

| (1)   | The                average sales price per mcf before the effects of hedging was $7.58                and                $8.73 for the three and nine months ended September 30, 2006,                respectively. There were no hedging transactions in the three and                nine                months ended September 30, 2005. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

**Natural      Gas Revenues**

**Oil      Revenues**

**Expenses.      **

----

**Liquidity      and Capital Resources. **

**Critical      Accounting Policies**

**Recently      Issued Financial Accounting Standards**

*Considering      the Effects of Prior Year Misstatements when Quantifying Misstatements in      Current Year Financial Statements*

*Fair      Value*
*Measurement*

----

**ITEM      3. CONTROLS AND PROCEDURES**

**Evaluation      of Disclosure Controls and Procedures**

**PART      II. OTHER INFORMATION**

**ITEM      6. Exhibits**

**EXHIBIT      INDEX**

| **Exhibit                No.** |   | **Description**                                                                                                                                                     |
|--------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                           |   |                                                                                                                                                                |
| 31.1                           |   | Certification                Pursuant to Rule 13a-14/15(d)-14                                                                                                       |
| 31.2                           |   | Certification                Pursuant to Rule 13a-14/15(d)-14                                                                                                       |
| 32.1                           |   | Certification                Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002 |
| 32.2                           |   | Certification                Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002 |

----

**SIGNATURES**

| Pursuant                to the requirements of the Securities of the Exchange Act of 1934,                the                registrant has duly caused this |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
| report                to be signed on its behalf by the undersigned, thereunto duly                authorized.                                               |
|                                                                                                                                                         |   |   |
|                                                                                                                                                         |   |   |
| Atlas                America Series 25-2004 (B) L.P.                                                                                                         |   |   |
|                                                                                                                                                         |   |   |
|                                                                                                                                                         |   | Atlas                Resources, LLC, Managing General Partner |
|                                                                                                                                                         |   |   |
| Date:                November 14, 2006                                                                                                                       |   | By:/s/                Freddie M. Kotek |
|                                                                                                                                                         |   | Freddie                M. Kotek, Chairman of the Board of Directors, Chief |
|                                                                                                                                                         |   | Executive                Officer and President |
|                                                                                                                                                         |   |   |
|                                                                                                                                                         |   |   |
| In                accordance with the Exchange Act, this report has been signed by                the                following persons on behalf of the      |
| registrant                and in the capacities and on the dates indicated.                                                                                  |
|                                                                                                                                                         |   |   |
|                                                                                                                                                         |   |   |
| Date:                November 14, 2006                                                                                                                       |   | By:/s/                Freddie M. Kotek |
|                                                                                                                                                         |   | Freddie                M. Kotek, Chairman of the Board of Directors, Chief |
|                                                                                                                                                         |   | Executive                Officer and President |
|                                                                                                                                                         |   |   |
|                                                                                                                                                         |   |   |
|                                                                                                                                                         |   |   |
|                                                                                                                                                         |   |   |
| Date:                November 14, 2006                                                                                                                       |   | By:/s/                Nancy J. McGurk |
|                                                                                                                                                         |   | Nancy                J. McGurk, Vice President, Chief Financial Officer and |
|                                                                                                                                                         |   | Chief                Accounting Officer |
|                                                                                                                                                         |   |   |
|                                                                                                                                                         |   |   |

----