|                        | **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 June 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 June 30, 2006 and December 31, 2005                  (Unaudited)                                | 3        |
|                          |   |                                                                                                                                  |     |
|                          |   | Statements                  of Operations for the Three and Six Months ended June 30, 2006                  and                  2005 |     |
|                          |   | (Unaudited)                                                                                                                           | 4        |
|                          |   |                                                                                                                                  |     |
|                          |   | Statement                  of Partners’ Capital Accounts for the Six Months ended June 30,                  2006                |     |
|                          |   | (Unaudited)                                                                                                                           | 5        |
|                          |   |                                                                                                                                  |     |
|                          |   | Statements                  of Cash Flows for the Six Months ended June 30, 2006 and                  2005                            |     |
|                          |   | (Unaudited)                                                                                                                           | 6        |
|                          |   |                                                                                                                                  |     |
|                          |   | Notes                  to Financial Statements (Unaudited)                                                                            | 7-11     |
|                          |   |                                                                                                                                  |     |
| Item                  2:      |   | Management’s                  Discussion and Analysis of Financial Condition or Plan of                  Operations             | 11-14    |
|                          |   |                                                                                                                                  |     |
| Item                  3:      |   | Controls                  and Procedures                                                                                              | 14       |
|                          |   |                                                                                                                                  |     |
| **PART                  II.** |   | **OTHER                  INFORMATION**                                                                                                |     |
|                          |   |                                                                                                                                  |     |
| Item                  6:      |   | Exhibits                                                                                                                              | 14       |
|                          |   |                                                                                                                                  |     |
|                          |   |                                                                                                                                  |     |
| **SIGNATURES**                | 15     |
|                          |   |                                                                                                                                  |     |
| **CERTIFICATIONS**            | 16-19  |

----

**PART        I**

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

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

**BALANCE        SHEETS**

**(Unaudited)**

|                                                         |   | **June                  30,** |       | **December                  31,** |   |
|--------------------------------------------------------------|--------|-------------------------------|------------|-----------------------------------|--------|
|                                                         |   | **2006**                      |       | **2005**                          |   |
|                                                         |   |                          |       |                              |   |   |   |
| **ASSETS**                                                   |   |                          |       |                              |   |   |   |
| Current                  Assets:                             |   |                          |       |                              |   |   |   |
| Cash                  and cash equivalents                   |   | $                             | 694,900    |                              | $      | 1,400 |   |
| Accounts                  receivable-affiliate               |   |                          | 2,079,400  |                              |   | 4,340,900 |   |
| Hedge                  receivable short-term-affiliate       |   |                          | 548,100    |                              |   | 122,700 |   |
| Total                  current assets                        |   |                          | 3,322,400  |                              |   | 4,465,000 |   |
|                                                         |   |                          |       |                              |   |   |   |
| Oil                  and gas properties, net            |   |                          | 35,512,900 |                              |   | 37,662,700 |   |
|                                                         |   |                          |       |                              |   |   |   |
| Hedge                  receivable long-term-affiliate   |   |                          | 737,100    |                              |   | ― |   |
|                                                         |   | $                             | 39,572,400 |                              | $      | 42,127,700 |   |
|                                                         |   |                          |       |                              |   |   |   |
| **LIABILITIES                  AND PARTNERS’ CAPITAL** |   |                          |       |                              |   |   |   |
| Current                  liabilities:                        |   |                          |       |                              |   |   |   |
| Accrued                  liabilities                    |   | $                             | 11,100     |                              | $      | 21,600 |   |
| Hedge                  liability short-term-affiliate        |   |                          | ―    |                              |   | 12,000 |   |
| Total                  current liabilities                   |   |                          | 11,100     |                              |   | 33,600 |   |
|                                                         |   |                          |       |                              |   |   |   |
| Asset                  retirement obligation            |   |                          | 1,474,000  |                              |   | 1,442,300 |   |
| Hedge                  liability long-term-affiliate    |   |                          | 909,000    |                              |   | 536,900 |   |
|                                                         |   |                          |       |                              |   |   |   |
|                                                         |   |                          |       |                              |   |   |   |
| Partners’                  capital:                    |   |                          |       |                              |   |   |   |
| Managing                  general partner                    |   |                          | 9,709,400  |                              |   | 10,647,000 |   |
| Limited                  partners (1,265.38 units)           |   |                          | 27,092,700 |                              |   | 29,894,100 |   |
| Accumulated                  comprehensive income (loss)     |   |                          | 376,200    |                              |   | (426,200 | ) |
|                                                         |   |                          | 37,178,300 |                              |   | 40,114,900 |   |
|                                                         |   | $                             | 39,572,400 |                              | $      | 42,127,700 |   |

----

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

**STATEMENTS        OF OPERATIONS**

**(Unaudited)**

|                                                       |   | **Three                  Months Ended** |      | **Six                  Months Ended** |   |
|------------------------------------------------------------|--------|-----------------------------------------|-----------|---------------------------------------|--------|
|                                                       |   | **June                  30,**           |      | **June                  30,**         |   |
|                                                       |   | **2006**                                |      | **2005**                              |   | **2006** |   | **2005** |   |
| **REVENUES:**                                              |   |                                    |      |                                  |   |   |   |   |   |   |   |   |   |
| Natural                  gas and oil sales                 |   | $                                       | 2,048,100 |                                  | $      | 2,240,600 |   | $ | 5,095,600 |   | $ | 3,463,800 |   |
| Total                  revenues                            |   |                                    | 2,048,100 |                                  |   | 2,240,600 |   |   | 5,095,600 |   |   | 3,463,800 |   |
|                                                       |   |                                    |      |                                  |   |   |   |   |   |   |   |   |   |
| **COSTS                  AND EXPENSES:**                   |   |                                    |      |                                  |   |   |   |   |   |   |   |   |   |
| Production                  expenses                  |   |                                    | 497,700   |                                  |   | 223,800 |   |   | 895,900 |   |   | 345,800 |   |
| Depletion                                             |   |                                    | 923,300   |                                  |   | 1,447,100 |   |   | 2,150,400 |   |   | 2,252,200 |   |
| Accretion                  of asset retirement obligation  |   |                                    | 15,800    |                                  |   | 15,000 |   |   | 31,700 |   |   | 29,900 |   |
| General                  and administrative expenses  |   |                                    | 45,900    |                                  |   | 44,500 |   |   | 87,300 |   |   | 67,700 |   |
| Total                  expenses                            |   |                                    | 1,482,700 |                                  |   | 1,730,400 |   |   | 3,165,300 |   |   | 2,695,600 |   |
|                                                       |   |                                    |      |                                  |   |   |   |   |   |   |   |   |   |
| **Net                  earnings**                     |   | $                                       | 565,400   |                                  | $      | 510,200 |   | $ | 1,930,300 |   | $ | 768,200 |   |
|                                                       |   |                                    |      |                                  |   |   |   |   |   |   |   |   |   |
| **Allocation                  of net earnings:**           |   |                                    |      |                                  |   |   |   |   |   |   |   |   |   |
| Managing                  general partner                  |   | $                                       | 356,800   |                                  | $      | 345,100 |   | $ | 1,046,400 |   | $ | 527,500 |   |
| Limited                  partners                          |   | $                                       | 208,600   |                                  | $      | 165,100 |   | $ | 883,900 |   | $ | 240,700 |   |
| Net                  earnings per limited partnership unit |   | $                                       | 165       |                                  | $      | 130 |   | $ | 699 |   | $ | 190 |   |

----

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

**STATEMENT        OF PARTNERS’ CAPITAL ACCOUNTS**

**FOR        SIX MONTHS ENDED June 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                  |   |         | 1,469,900  |         |   | 2,729,800                          |   |      | ―  |   |   | 4,199,700 |   |
| Depletion                                                 |   |         | (381,900   | )            |   | (1,768,500                         | )      |      | ―  |   |   | (2,150,400 | ) |
| Accretion                  of asset retirement obligation |   |         | (11,100    | )            |   | (20,600                            | )      |      | ―  |   |   | (31,700 | ) |
| General                  and administrative               |   |         | (30,500    | )            |   | (56,800                            | )      |      | ―  |   |   | (87,300 | ) |
| Net                  earnings                             |   |         | 1,046,400  |         |   | 883,900                            |   |      | ―  |   |   | 1,930,300 |   |
|                                                      |   |         |       |         |   |                               |   |      |     |   |   |   |   |
|                                                      |   |         |       |         |   |                               |   |      |     |   |   |   |   |
| Other                  comprehensive income               |   |         | ―    |         |   | ―                            |   |      | 802,400  |   |   | 802,400 |   |
|                                                      |   |         |       |         |   |                               |   |      |     |   |   |   |   |
|                                                      |   |         |       |         |   |                               |   |      |     |   |   |   |   |
| Distributions                  to partners                |   |         | (1,984,000 | )            |   | (3,685,300                         | )      |      | ―  |   |   | (5,669,300 | ) |
|                                                      |   |         |       |         |   |                               |   |      |     |   |   |   |   |
| **Balance                  at June 30, 2006**             |   | $            | 9,709,400  |         | $      | 27,092,700                         |   | $         | 376,200  |   | $ | 37,178,300 |   |

----

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

**STATEMENTS        OF CASH FLOWS**

**(Unaudited)**

|                                                                                                                  |   | **Six                  Months Ended** |       |
|-----------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|------------|
|                                                                                                                  |   | **June                  30,**         |       |
|                                                                                                                  |   | **2006**                              |       | **2005** |   |
| **Cash                  flows from operating activities:**                                                            |   |                                  |       |   |   |   |   |
| Net                  earnings                                                                                         |   | $                                     | 1,930,300  |   | $ | 768,200 |   |
| Adjustments                  to reconcile net earnings to net cash provided by operating                  activities: |   |                                  |       |   |   |   |   |
| Depletion                                                                                                             |   |                                  | 2,150,400  |   |   | 2,252,200 |   |
| Accretion                  of asset retirement obligation                                                             |   |                                  | 31,700     |   |   | 29,900 |   |
| Decrease                  (increase) in accounts receivable - affiliate                                               |   |                                  | 2,261,500  |   |   | (1,649,900 | ) |
| (Decrease)                  increase in accrued liabilities                                                           |   |                                  | (10,500    | ) |   | 12,500 |   |
| Net                  cash provided by operating activities                                                       |   |                                  | 6,363,400  |   |   | 1,412,900 |   |
|                                                                                                                  |   |                                  |       |   |   |   |   |
| **Cash                  flows from investing activities:**                                                            |   |                                  |       |   |   |   |   |
| Purchase                  of tangible equipment                                                                  |   |                                  | (1,800     | ) |   | ― |   |
| Sale                  of tangible equipment                                                                      |   |                                  | 1,200      |   |   |   |   |
| Net                  cash used in investing activities                                                           |   |                                  | (600       | ) |   | ― |   |
|                                                                                                                  |   |                                  |       |   |   |   |   |
| **Cash                  flows from financing activities:**                                                            |   |                                  |       |   |   |   |   |
| Distributions                  to partners                                                                            |   |                                  | (5,669,300 | ) |   | (1,412,900 | ) |
| Return                  of initial capital contribution to managing general                  partner                  |   |                                  | ―    |   |   | (100 | ) |
| Net                  cash used in financing activities                                                                |   |                                  | (5,669,300 | ) |   | (1,413,000 | ) |
|                                                                                                                  |   |                                  |       |   |   |   |   |
| Net                  increase (decrease) in cash and cash equivalents                                            |   |                                  | 693,500    |   |   | (100 | ) |
| Cash                  and cash equivalents at beginning of period                                                |   |                                  | 1,400      |   |   | 100 |   |
| Cash                  and cash equivalents at end of period                                                      |   | $                                     | 694,900    |   | $ | ― |   |
|                                                                                                                  |   |                                  |       |   |   |   |   |
| **Supplemental                  schedule of non-cash investing and financing                  activities:**           |   |                                  |       |   |   |   |   |
|                                                                                                                  |   |                                  |       |   |   |   |   |
| Tangible                  equipment costs contributed by the managing general                  partner                |   | $                                     | ―    |   | $ | 81,900 |   |

----

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

**NOTES        TO FINANCIAL STATEMENTS**

**June        30, 2006**

**(Unaudited)**

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

**Atlas        Resources, LLC Change in Fiscal Year End**

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

**Receivables**

**Revenue        Recognition**

----

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

**NOTES        TO FINANCIAL STATEMENTS**

**June        30, 2006**

**(Unaudited)**

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

**Reclassifications**

**Asset        Retirement Obligation**

|                                                                      |   | **Three                  Months** |      | **Six                  Months** |   |
|---------------------------------------------------------------------------|--------|-----------------------------------|-----------|---------------------------------|--------|
|                                                                      |   | **2006**                          |      | **2005**                        |   | **2006** |   | **2005** |   |
|                                                                      |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| Asset                  retirement obligation at beginning of period       |   | $                                 | 1,458,200 |                            | $      | 1,011,900 |   | $ | 1,442,300 |   | $ | 997,000 |   |
| Accretion                  expense                                        |   |                              | 15,800    |                            |   | 15,000 |   |   | 31,700 |   |   | 29,900 |   |
| Total                  asset retirement obligation at end of period  |   | $                                 | 1,474,000 |                            | $      | 1,026,900 |   | $ | 1,474,000 |   | $ | 1,026,900 |   |

**Concentration        of Credit Risk**

**Property        and Equipment**

| Oil                  and gas properties consist of the following at the dates                  indicated: |   | **June                  30,** |       | **December                  31,** |   |
|-----------------------------------------------------------------------------------------------------------|--------|-------------------------------|------------|-----------------------------------|--------|
|                                                                                                      |   | **2006**                      |       | **2005**                          |   |
| Capitalized                  costs of properties:                                                         |   |                          |       |                              |   |   |   |
| Proved                  properties                                                                        |   | $                             | 957,700    |                              | $      | 957,700 |   |
| Wells                  and related equipment                                                              |   |                          | 42,119,300 |                              |   | 42,118,700 |   |
|                                                                                                      |   |                          | 43,077,000 |                              |   | 43,076,400 |   |
| Accumulated                  depletion                                                                    |   |                          | (7,564,100 | )                                 |   | (5,413,700 | ) |
|                                                                                                      |   | $                             | 35,512,900 |                              | $      | 37,662,700 |   |

----

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

**NOTES        TO FINANCIAL STATEMENTS**

**June        30, 2006**

**(Unaudited)**

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

| ·   | Administrative                costs which are included in general and administrative expenses in                the                Partnership’s Statement of Operations are payable at $75 per well per                month. Administrative costs incurred for the three months ended June                30,                2006 and 2005 were $33,300 and $20,800, respectively; and $66,000                and                $34,300 for the six months ended June 30, 2006 and 2005,                respectively. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Monthly                well supervision fees which are included in production expenses in                the                Partnership’s Statement 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 June 30, 2006 and 2005 were $125,600                and $77,500, respectively; and $245,600 and $125,400 for the six                months                ended June 30, 2006 and 2005,                respectively. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Transportation                fees which are included in production expenses in the Partnership’s                Statement 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 June 30,                2006 and                2005 were $255,600 and $71,600, respectively; and $435,500 and $116,200                for the six months ended June 30, 2006 and 2005,                respectively. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Tangible                costs contributed by the managing general partner which are included                in                the Partnership’s Statement of Cash Flows for the six months ended June                30, 2005 were $81,900. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Comprehensive        Income**

|                                                          |   | **Three                  Months Ended** |      | **Six                  Months Ended** |   |
|---------------------------------------------------------------|--------|-----------------------------------------|-----------|---------------------------------------|--------|
|                                                          |   | **June                  30,**           |      | **June                  30,**         |   |
|                                                          |   | **2006**                                |      | **2005**                              |   | **2006** |   | **2005** |   |
|                                                          |   |                                    |      |                                  |   |   |   |   |   |   |   |   |   |
| Net                  earnings                                 |   | $                                       | 565,400   |                                  | $      | 510,200 |   | $ | 1,930,300 |   | $ | 768,200 |   |
| Other                  comprehensive income:                  |   |                                    |      |                                  |   |   |   |   |   |   |   |   |   |
| Unrealized                  holding gain on hedging contracts |   |                                    | 685,500   |                                  |   | ― |   |   | 1,162,400 |   |   | ― |   |
| Less:                  reclassification adjustment for (gain) |   |                                    |      |                                  |   |   |   |   |   |   |   |   |   |
| realized                  in net earnings                     |   |                                    | (202,900  | )                                     |   | ― |   |   | (360,000 | ) |   | ― |   |
|                                                          |   |                                    | 482,600   |                                  |   | ― |   |   | 802,400 |   |   | ― |   |
| Comprehensive                  income                         |   | $                                       | 1,048,000 |                                  | $      | 510,200 |   | $ | 2,732,700 |   | $ | 768,200 |   |

----

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

**NOTES        TO FINANCIAL STATEMENTS**

**June        30, 2006**

**(Unaudited)**

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

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

**NOTE        4 - DERIVATIVE INSTRUMENTS**

| **Natural                    Gas Fixed - Price Swaps** |   |               |    |                               |   |
|--------------------------------------------------------|--------|--------------------|---------|------------------------------------|--------|
|                                                   |   |               |    |                               |   |   |   |
| **Production**                                         |   |               |    | **Average**                        |   | **Fair                    Value** |   |
| **Period**                                             |   | **Volumes**        |    | **Fixed                    Price** |   | **Asset                    (Liability)****(2)** |   |
| **Ended                    June 30,**                  |   | **(MMBTU)****(1)** |    | **(per                    MMBTU)** |   | **(in                    thousands)** |   |
|                                                   |   |               |    |                               |   |   |   |
| 2007                                                   |   |               | 393,400 |                               | $      | 9.67 |   | $ | 548 |   |
| 2008                                                   |   |               | 857,100 |                               |   | 8.76 |   |   | (321 | ) |
| 2009                                                   |   |               | 713,100 |                               |   | 8.69 |   |   | 28 |   |
| 2010                                                   |   |               | 284,500 |                               |   | 8.61 |   |   | 121 |   |
|                                                   |   |               |    |                               |   |   |   |   |   |   |
| Total                    asset                         | $      | 376                |    |

----

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

**NOTES        TO FINANCIAL STATEMENTS**

**June        30, 2006**

**(Unaudited)**

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

| (1)   | MMBTU                represents million British Thermal Units. |
|-----------------|----------------------------------------------------------------|
| (2)   | Fair                value based on forward NYMEX natural gas prices, as                applicable. |
|-----------------|----------------------------------------------------------------------------------------------------|

|                                    |   | **June                  30, 2006** |   | **December                  31, 2005** |   |
|-----------------------------------------|--------|------------------------------------|--------|----------------------------------------|--------|
|                                    |   | **Book                  Value**    |   | **Fair                  Value**        |   | **Book                  Value** |   | **Fair                  Value** |   |
| Assets                                  |   |                               |   |                                   |   |   |   |   |   |   |   |   |   |
| Derivative                  instruments |   | $                                  | 1,285  |                                   | $      | 1,285 |   | $ | 123 |   | $ | 123 |   |
|                                    |   | $                                  | 1,285  |                                   | $      | 1,285 |   | $ | 123 |   | $ | 123 |   |
| Liabilities                             |   |                               |   |                                   |   |   |   |   |   |   |   |   |   |
| Derivative                  instruments |   | $                                  | (909   | )                                      | $      | (909 | ) | $ | (549 | ) | $ | (549 | ) |
|                                    |   | $                                  | 376    |                                   | $      | 376 |   | $ | (426 | ) | $ | (426 | ) |

**NOTE        5 - SUBSEQUENT EVENTS**

| **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** |   | **Six                  Months Ended** |   |
|------------------------------------------------------|--------|-----------------------------------------|--------|---------------------------------------|--------|
|                                                 |   | **June                  30,**           |   | **June                  30,**         |   |
|                                                 |   | **2006**                                |   | **2005**                              |   | **2006** |   | **2005** |   |
| Production                  revenues (in thousands): |   |                                    |   |                                  |   |   |   |   |   |   |   |   |   |
| Gas                                                  |   | $                                       | 1,940  |                                  | $      | 1,976 |   | $ | 4,890 |   | $ | 3,066 |   |
| Oil                                                  |   | $                                       | 108    |                                  | $      | 265 |   | $ | 206 |   | $ | 398 |   |
| Total                                                |   | $                                       | 2,048  |                                  | $      | 2,241 |   | $ | 5,096 |   | $ | 3,464 |   |
|                                                 |   |                                    |   |                                  |   |   |   |   |   |   |   |   |   |
| Production                  volumes:                 |   |                                    |   |                                  |   |   |   |   |   |   |   |   |   |
| Gas                  (mcf/day) (2)                   |   |                                    | 2,338  |                                  |   | 3,031 |   |   | 2,674 |   |   | 2,365 |   |
| Oil                  (bbls/day) (2)                  |   |                                    | 19     |                                  |   | 56 |   |   | 19 |   |   | 45 |   |
| Total                  (mcfe/day) (2)                |   |                                    | 2,452  |                                  |   | 3,367 |   |   | 2,788 |   |   | 2,635 |   |
|                                                 |   |                                    |   |                                  |   |   |   |   |   |   |   |   |   |
| Average                  sales prices:               |   |                                    |   |                                  |   |   |   |   |   |   |   |   |   |
| Gas                  (per mcf) (1) (2)               |   | $                                       | 9.12   |                                  | $      | 7.16 |   | $ | 10.10 |   | $ | 7.16 |   |
| Oil                  (per bbl) (2)                   |   | $                                       | 63.26  |                                  | $      | 51.79 |   | $ | 61.46 |   | $ | 49.03 |   |
|                                                 |   |                                    |   |                                  |   |   |   |   |   |   |   |   |   |
| Average                  production costs:           |   |                                    |   |                                  |   |   |   |   |   |   |   |   |   |
| As                  a percent of sales               |   |                                    | 24     | %                                     |   | 10 | % |   | 18 | % |   | 10 | % |
| Per                  mcfe (2)                        |   | $                                       | 2.24   |                                  | $      | .73 |   | $ | 1.78 |   | $ | .73 |   |
|                                                 |   |                                    |   |                                  |   |   |   |   |   |   |   |   |   |
| Depletion                  per mcfe             |   | $                                       | 4.15   |                                  | $      | 4.72 |   | $ | 4.27 |   | $ | 4.72 |   |

|   |   |
|--------|--------|
| (1)   | The                average sales price per mcf before the effects of hedging was $9.27                for                the six months ended June 30, 2006. There were no hedging transactions                in                the period ended June 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**

**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:                  August 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:                  August 14, 2006                                                                                                                             |   | By:/s/                  Freddie M. Kotek |
|                                                                                                                                                               |   | Freddie                  M. Kotek, Chairman of the Board of Directors, Chief |
|                                                                                                                                                               |   | Executive                  Officer and President |
|                                                                                                                                                               |   |   |
|                                                                                                                                                               |   |   |
|                                                                                                                                                               |   |   |
|                                                                                                                                                               |   |   |
| Date:                  August 14, 2006                                                                                                                             |   | By:/s/                  Nancy J. McGurk |
|                                                                                                                                                               |   | Nancy                  J. McGurk, Vice President, Chief Financial Officer and |
|                                                                                                                                                               |   | Chief                  Accounting Officer |
|                                                                                                                                                               |   |   |
|                                                                                                                                                               |   |   |

----