UNITED
STATES


SECURITIES AND EXCHANGE
COMMISSION
 
 Washington,
D.C. 20549
 
 FORM
10-Q
  x
                QUARTERLY
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934For
      the quarterly period ended March 31, 2008
  or
 
 o
              TRANSITION
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934For
      the transition period from
      _______________________to____________________________
 
 Commission
File Number 000-51267
 
 RIDGEWOOD
ENERGY L FUND, LLC
 (Exact
name of registrant as specified in its charter)
 
 
 Delaware
                (State
      or other jurisdiction of
                incorporation
      or organization)
              
              11-3719724
                (I.R.S.
      Employer
                Identification
      No.)
 
 1314
King Street, Wilmington, Delaware 19801
 (Address
of principal executive offices) (Zip code)
 
 (302)
888-7444
 (Registrant’s
telephone number, including area code)
 
 Securities
registered pursuant to Section 12(b) of the Act: None
 Securities
registered pursuant to Section 12(g) of the Act:
 
 Shares of
LLC Membership Interest
 
 Indicate
by check mark whether the registrant (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (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  xNo  o
 
 Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
definitions of “large accelerated filer,” “accelerated filer,” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
 
 Large
      accelerated filer
              o
              Accelerated
      filer
              oNon-accelerated
      filer
                (Do
      not check if a smaller reporting company)
              o
              Smaller
      reporting company
              x
 
 Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Act).  Yes o   No
x
 
 There is
no market for the shares.  As of May 14, 2008 there are 350.1081
shares outstanding.
  
 
  Table
      of ContentsPart
      I - FINANCIAL INFORMATION
                
                PageItem
      1.
                Financial
      Statements:Unaudited Condensed Balance Sheets as of March 31, 2008 and
      December 31, 2007
                
                3Unaudited Condensed Statements of Operations for the three
      months ended
                  March 31, 2008 and 2007
                
                4Unaudited Condensed Statements of Cash Flows for the three
      months ended
                  March 31, 2008 and 2007
                
                5Notes to Unaudited Condensed Financial
      Statements
                
                6Item 2.
                Management's Discussion and Analysis of Financial Condition and
      Results of Operations
                
                12Item 3.
                Quantitative and Qualitative Disclosures about Market
      Risk
                
                17Item 4.
                Controls and Procedures
                
                17Part
      II - OTHER INFORMATIONItem 1.
                Legal Proceedings
                
                17Item 1A.
                Risk Factors
                
                17Item 2.
                Unregistered  Sales of Equity Securities and Use of
      Proceeds
                
                17Item 3.
                Defaults Upon Senior Securities
                
                17Item 4.
                Submissions of Matters to a Vote of Security
      Holders
                
                17Item 5.
                Other Information
                
                17Item 6.
                Exhibits
                
                18SIGNATURES
                
                19
  
  2
 
  RIDGEWOOD
      ENERGY L FUND, LLCUNAUDITED
      CONDENSED BALANCE SHEETS(in
      thousands, except share data)March
      31, 2008
                  
                  
                  December
      31, 2007AssetsCurrent
      assets:Cash
      and cash equivalents
                  
                  $
                  7,133
                  
                  
                  $
                  8,506Production
      receivable
                  
                  
                  512
                  
                  
                  
                  220Due
      from affiliates (Note 6)
                  
                  
                  13
                  
                  
                  
                  497Other
      current assets
                  
                  
                  53
                  
                  
                  
                  189Total
      current assets
                  
                  
                  7,711
                  
                  
                  
                  9,412Salvage
      fund
                  
                  
                  1,174
                  
                  
                  
                  1,165Oil
      and gas properties:Unproved
      properties
                  
                  
                  2,663
                  
                  
                  
                  3,738Proved
      properties
                  
                  
                  17,698
                  
                  
                  
                  15,444Less:
      accumulated depletion and amortization
                  
                  
                  (13,494
                  )
                  
                  
                  (13,108
                  )Total
      oil and gas properties, net
                  
                  
                  6,867
                  
                  
                  
                  6,074Total
      assets
                  
                  $
                  15,752
                  
                  
                  $
                  16,651Liabilities
      and Members' CapitalCurrent
      liabilities:Due
      to operators
                  
                  $
                  1,022
                  
                  
                  $
                  1,184Accrued
      expenses payable
                  
                  
                  50
                  
                  
                  
                  80Total
      current liabilities
                  
                  
                  1,072
                  
                  
                  
                  1,264Asset
      retirement obligations
                  
                  
                  491
                  
                  
                  
                  417Total
      liabilities
                  
                  
                  1,563
                  
                  
                  
                  1,681Commitments
      and contingencies (Note 8)Members'
      capital:Manager:Distributions
                  
                  
                  (1,741
                  )
                  
                  
                  (1,651
                  )Retained
      earnings
                  
                  
                  1,171
                  
                  
                  
                  1,152Manager's
      total
                  
                  
                  (570
                  )
                  
                  
                  (499
                  )Shareholders:Capital
      contributions (670 shares authorized;  350.1081
                    issued
      and outstanding)
                  
                  
                  51,401
                  
                  
                  
                  51,401Syndication
      costs
                  
                  
                  (5,502
                  )
                  
                  
                  (5,502
                  )Distributions
                  
                  
                  (9,867
                  )
                  
                  
                  (9,356
                  )Accumulated
      deficit
                  
                  
                  (21,273
                  )
                  
                  
                  (21,074
                  )Shareholders'
      total
                  
                  
                  14,759
                  
                  
                  
                  15,469Total
      members' capital
                  
                  
                  14,189
                  
                  
                  
                  14,970Total
      liabilities and members' capital
                  
                  $
                  15,752
                  
                  
                  $
                  16,651The
      accompanying notes are an integral part of these unaudited condensed
      financial statements.
 3
  RIDGEWOOD
      ENERGY L FUND, LLCUNAUDITED
      CONDENSED STATEMENTS OF OPERATIONS(in
      thousands, except share data)Three
      months ended March 31,2008
                
                
                2007RevenueOil
      and gas revenue
                
                $
                765
                
                
                $
                436ExpensesDepletion
      and amortization
                
                
                386
                
                
                
                45Dry-hole
      costs
                
                
                5
                
                
                
                22Operating
      expenses
                
                
                533
                
                
                
                145Management
      fees to affiliate (Note 6)
                
                
                -
                
                
                
                231General
      and administrative expenses
                
                
                94
                
                
                
                140Total
      expenses
                
                
                1,018
                
                
                
                583Loss
      from operations
                
                
                (253
                )
                
                
                (147
                )Other
      IncomeInterest
      income
                
                
                73
                
                
                
                151Net
      (loss) income
                
                $
                (180
                )
                
                $
                4Manager
      interestNet
      income (loss)
                
                $
                19
                
                
                $
                (10
                )Shareholder
      interestNet
      (loss) income
                
                $
                (199
                )
                
                $
                14Net
      (loss) income per share
                
                $
                (568
                )
                
                $
                41The
      accompanying notes are an integral part of these unaudited condensed
      financial statements.
  4
  RIDGEWOOD
      ENERGY L FUND, LLCUNAUDITED
      CONDENSED STATEMENTS OF CASH FLOWS(in
      thousands)Three
      months ended March 31,2008
                
                
                2007Cash
      flows from operating activitiesNet
      (loss) income
                
                $
                (180
                )
                
                $
                4Adjustments
      to reconcile net (loss) income to net cash
                  provided
      by operating activities:Depletion
      and amortization
                
                
                386
                
                
                
                45Dry-hole
      costs
                
                
                5
                
                
                
                22Accretion
      expense
                
                
                5
                
                
                
                4Changes
      in assets and liabilities:Increase
      in production receivable
                
                
                (292
                )
                
                
                (102
                )Decrease
      in due from operators
                
                
                -
                
                
                
                247Increase
      in due from affiliate
                
                
                (7
                )
                
                
                -Decrease
      (increase) in other current assets
                
                
                24
                
                
                
                (15
                )Increase  in
      due to operators
                
                
                270
                
                
                
                33Increase
      in due to affiliates
                
                
                -
                
                
                
                17(Decrease)
      increase in accrued expenses payable
                
                
                (30
                )
                
                
                62Net
      cash provided by operating activities
                
                
                181
                
                
                
                317Cash
      flows from investing activitiesPayments
      to operators for working interests and expenditures
                
                
                -
                
                
                
                (20
                )Capital
      expenditures for oil and gas properties
                
                
                (1,435
                )
                
                
                (3,003
                )Proceeds
      from insurance receivable
                
                
                491
                
                
                
                -Salvage
      fund investments
                
                
                (9
                )
                
                
                (9
                )Net
      cash used in investing activities
                
                
                (953
                )
                
                
                (3,032
                )Cash
      flows from financing activitiesDistributions
      paid
                
                
                (601
                )
                
                
                (719
                )Net
      cash used in financing activities
                
                
                (601
                )
                
                
                (719
                )Net
      decrease in cash and cash equivalents
                
                
                (1,373
                )
                
                
                (3,434
                )Cash
      and cash equivalents, beginning of period
                
                
                8,506
                
                
                
                13,215Cash
      and cash equivalents, end of period
                
                $
                7,133
                
                
                $
                9,781The
      accompanying notes are an integral part of these unaudited condensed
      financial statements.
  5
  RIDGEWOOD
ENERGY L FUND, LLC
 NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
 
 
 1.
              Organization and
Purpose
 
 The
Ridgewood Energy L Fund, LLC (the “Fund”), a Delaware limited liability company,
was formed on May 27, 2004 and operates pursuant to a limited liability company
agreement (“LLC Agreement”) dated July 6, 2004 by and among Ridgewood Energy
Corporation (the “Manager”), and the shareholders of the Fund.  The
Fund was organized to acquire, drill, construct and develop oil and natural gas
properties located in the United States offshore waters of Texas, Louisiana, and
Alabama in the Gulf of Mexico.
 
 The
Manager performs, or arranges for the performance of, the management and
administrative services required for Fund operations. Such services include,
without limitation, the administration of shareholder accounts, shareholder
relations and the preparation, review and dissemination of tax and other
financial information.  In addition, the Manager provides office
space, equipment and facilities and other services necessary for Fund
operations.  The Manager also engages and manages the contractual
relations with outside custodians, depositories, accountants, attorneys,
broker-dealers, corporate fiduciaries, insurers, banks and others as required
(Notes 2, 6 and 8).
 
 2.
              Summary
      of Significant Accounting Policies
 
 Basis
of Presentation
 
 These
unaudited interim condensed financial statements have been prepared by the
Fund’s management, in accordance with accounting principles generally accepted
in the United States of America (“GAAP”) and in the opinion of management,
contain all adjustments (consisting of only normal recurring adjustments)
necessary to present fairly the Fund’s financial position, results of operations
and cash flows for the periods presented.  Certain information and
note disclosures normally included in annual financial statements prepared in
accordance with GAAP have been omitted in these unaudited interim condensed
financial statements.  The results of operations, financial position,
and cash flows for the periods presented herein are not necessarily indicative
of future financial results.  These unaudited interim condensed
financial statements should be read in conjunction with the annual financial
statements and the notes thereto for the year ended December 31, 2007 included
in the Fund’s Annual Report on Form 10-K (“Form 10-K”) filed with the Securities
and Exchange Commission (the “SEC”).
 
 Use
of Estimates
 
 The
preparation of financial statements in conformity with GAAP requires management
to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities as of the date
of the financial statements and the reported amounts of revenues and expenses
during the reporting period. On an ongoing basis, the Manager reviews its
estimates, including those related to amounts advanced to and billed by
operators, determination of proved reserves, impairments and asset retirement
obligations.  Actual results may differ from those estimates.
 
 Cash
and Cash Equivalents
 
 All
highly liquid investments with maturities when purchased of three months or less
are considered cash and cash equivalents. At times, bank deposits may be in
excess of federally insured limits.  At March 31, 2008 and December
31, 2007, bank balances, inclusive of the salvage fund, exceeded federally
insured limits by approximately $7.0 million and $5.3 million, respectively. The
Fund maintains bank deposits with accredited financial
institutions.
 
 Investment
in Marketable Securities
 
 At times
the Fund may invest in United States Treasury Bills and Notes.  These
investments are considered short-term when their maturities are greater than
three months and on year or less, and long-term when their maturities are in
excess of twelve months.  The Fund currently has short-term
investments that are classified as held-to-maturity.  Held-to-maturity
securities are those investments that the Fund has the ability and intent to
hold until maturity, and are
recorded at cost plus accrued income, adjusted for the amortization of premiums
and discounts, which approximate fair value.  At March 31, 2008 and
December 31, 2007, the Fund had held-to-maturity investments, inclusive of the
salvage fund, totaling $1.1 million, which mature in February 2012.
 
 6
  Salvage
Fund
 
 Pursuant
to the Fund’s LLC Agreement, the Fund deposits in a separate interest-bearing
account, or a salvage fund, money to provide for dismantling production
platforms and facilities, plugging and abandoning the wells and removing the
platforms, facilities and wells after their useful lives, in accordance with
applicable federal and state laws and regulations.
 
 Interest
earned on the account will become part of the salvage fund.  There are
no legal restrictions on withdrawals from the salvage fund.
 
 Oil
and Natural Gas Properties
 
 Investments
in oil and natural gas properties are operated by unaffiliated entities
(“Operators”) who are responsible for drilling, administering and producing
activities pursuant to the terms of the applicable operating agreements with
working interest owners.  The Fund's portion of exploration, drilling,
operating and capital equipment expenditures relating to the wells are advanced
and billed by Operators through authorization for expenditures.
 
 The
successful efforts method of accounting for oil and natural gas producing
activities is followed. Acquisition costs are capitalized when
incurred.  Other oil and natural gas exploration costs, excluding the
costs of drilling exploratory wells, are charged to expense as
incurred.  The costs of drilling exploratory wells are capitalized
pending the determination of whether the wells have discovered proved commercial
reserves.  If proved commercial reserves have not been found,
exploratory drilling costs are expensed to dry-hole expense.  Costs to
develop proved reserves, including the costs of all development wells and
related facilities and equipment used in the production of crude oil and natural
gas, are capitalized.  Expenditures for ongoing repairs and
maintenance of producing properties are expensed as incurred.
 
 Upon the
sale or retirement of a proved property, the cost and related accumulated
depletion and amortization will be eliminated from the property accounts, and
the resultant gain or loss is recognized.  On the sale or retirement
of an unproved property, gain or loss on the sale is recognized.  The
Manager does not currently intend to sell any of the Fund’s property
interests.
 
 Capitalized
acquisition costs of producing oil and natural gas properties are depleted by
the units-of-production method.
 
 As of
March 31, 2008, amounts recorded in due to operators totaling $0.7 million
related to the acquisition of oil and natural gas property, which was paid
during the second quarter of 2008.
 
 Advances
to Operators for Working Interests and Expenditures
 
 The
Fund’s acquisition of a working interest in a well or a project requires it to
make a payment to the seller for the Fund’s right, title and
interest.  The Fund is required to advance its share of estimated cash
expenditures for the succeeding month’s operation. The Fund accounts for such
payments as advances to operators for working interests and
expenditures.  As drilling costs are incurred, the advances are
transferred to unproved properties.
 
 Asset
Retirement Obligations
 
 For oil
and natural gas properties, there are obligations to perform removal and
remediation activities when the properties are retired.  When a
project reaches drilling depth and is determined to be either proved or dry, an
asset retirement obligation is recorded.  Plug and abandonment costs
associated with unsuccessful properties are expensed as dry-hole
costs.  The table below presents changes for the three months ended
March 31, 2008 and the year ended December 31, 2007.
  7
  March
      31, 2008
                
                
                December
      31, 2007(in
      thousands)Balance
      - Beginning of period
                
                $
                417
                
                
                $
                349Liabilities
      incurred
                
                
                69
                
                
                
                109Liabilities
      settled
                
                
                -
                
                
                
                (59
                )Accretion
      expense
                
                
                5
                
                
                
                18Balance
      - End of period
                
                $
                491
                
                
                $
                417
  As
indicated above, the Fund maintains a salvage fund to provide for the funding of
future asset retirement obligations.
 
 Syndication
Costs
 
 Direct
costs associated with offering the Fund’s shares including professional fees,
selling expenses and administrative costs payable to the Manager, an affiliate
of the Manager and outside brokers are reflected as a reduction of shareholders’
capital.
 
 Revenue
Recognition and Production Receivable
 
 Oil and
natural gas sales are recognized and a production receivable is recorded when
delivery is made by the Operator to the purchaser and title is transferred
(i.e., production has been delivered to a pipeline or transport
vehicle).
 
 The
volume of oil and natural gas sold on the Fund’s behalf may differ from the
volume of oil and natural gas the Fund is entitled. The Fund will account for
such oil and natural gas production imbalances by the entitlements method. Under
the entitlements method, the Fund will recognize a receivable from other working
interest owners for volumes oversold by other working interest
owners.  For volumes oversold by the Fund, a payable to other working
interest owners will be recorded. As of March 31, 2008 and December 31, 2007,
there were no material oil or natural gas balancing arrangements between the
Fund and other working interest owners.
 
 Impairment
of Long-Lived Assets
 
 In
accordance with the Statement of Financial Accounting Standards (“SFAS”) No.
144, “Accounting for the Impairment of Long-Lived Assets”, long-lived
assets, such as oil and natural gas properties, are evaluated when events or
changes in circumstances indicate the carrying value of such assets may not be
recoverable. The determination of whether impairment has occurred is made by
comparing the carrying values of long-lived assets to the estimated future
undiscounted cash flows attributable to the asset. The impairment loss
recognized is the excess of the carrying value over the future discounted cash
flows attributable to the asset or the estimated fair value of the asset.
 For the three months ended March 31, 2008 and 2007, no impairments have
been recorded.
 
 Depletion
and Amortization
 
 Depletion
and amortization of the cost of proved oil and natural gas properties are
calculated using the units-of-production method.  Proved developed
reserves are used as the base for depleting the cost of successful exploratory
drilling and development costs.  The sum of proved developed and
proved undeveloped reserves is used as the base for depleting, or amortizing,
leasehold acquisition costs.
 
 Income
Taxes
 
 No
provision is made for income taxes in the financial statements.  The
Fund is a limited liability company, and as such the Fund’s income or loss is
passed through and included in the tax returns of the Fund’s
shareholders.
  8
  Income
and Expense Allocation
  Profits
and losses are allocated 85% to shareholders in proportion to their relative
capital contributions and 15% to the Manager, except for items of expense, loss,
deduction and credit that are attributable to the expenditure of shareholders’
capital contributions, which are allocated 99% to shareholders and 1% to the
Manager.
 
 3.
              Recent
      Accounting Standards
 
 In
September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements,” (“SFAS
No.157”), which applies under most other accounting pronouncements that require
or permit fair value measurements. SFAS No. 157 provides a common definition of
fair value as the price that would be received to sell an asset or paid to
transfer a liability in a transaction between market participants. The new
standard also provides guidance on the methods used to measure fair value and
requires expanded disclosures related to fair value
measurements.  SFAS No. 157 had originally been effective for
financial statements issued for fiscal years beginning after November 15, 2007,
however the FASB has agreed on a one year deferral for all non-financial assets
and liabilities.   On January 1, 2008, the Fund adopted SFAS 157
for financial assets and liabilities.  See Note 7 for related
disclosure.
 
 4.
              Unproved
      Properties - Capitalized Exploratory Well
Costs
 
 Leasehold
acquisition and exploratory drilling costs are capitalized pending determination
of whether the well has found proved reserves.  Unproved properties
are assessed on a quarterly basis by evaluating and monitoring if sufficient
progress is made on accessing the reserves.
 
 The
following table reflects the net changes in unproved properties for the three
months ended March 31, 2008 and for the year ended December 31,
2007.  The Fund had one property, Vermilion 344, with capitalized
expenditures in excess of  one year.  This project has been
deemed a success, and production facilities are being completed, with production
expected during the second quarter of 2008. Capitalized costs related to this
project at March 31, 2008 and December 31, 2007 were $1.3 million and $0.9
million, respectively.
 
 March
      31, 2008
                
                
                December
      31, 2007(in
      thousands)Balance,
      beginning of the period
                
                $
                3,738
                
                
                $
                3,670Additions
      to capitalized exploratory well costs pending the
                  determination
      of proved reserves
                
                
                1,111
                
                
                
                5,873Reclassification
      to proved properties based on the
                  determination
      of proved reserves
                
                
                (2,186
                )
                
                
                (5,805
                )Capitalized
      exploratory well costs charged to dry-hole costs
                
                
                -
                
                
                
                -Balance,
      end of the period
                
                $
                2,663
                
                
                $
                3,738
  Capitalized
costs are expensed as dry-hole costs in the event that reserves are not found or
are not in sufficient quantities to complete the well and develop the
field.  During the three months ended March 31, 2008, the West Cameron
78/95 project received credits from the Operator upon review and audit of the
well costs.  Dry-hole costs are detailed in the table
below.
  Three
      months ended March 31,Lease
      Block
                
                2008
                
                
                2007(in
      thousands)Ship
      Shoal 81
                
                $
                6
                
                
                $
                -East
      Breaks 157
                
                
                1
                
                
                
                8Main
      Pass 155
                
                
                -
                
                
                
                1West
      Cameron 78/95
                
                
                (2
                )
                
                
                13$
                5
                
                
                $
                22
 
 5.
              Distributions
 
 Distributions
to shareholders are allocated in proportion to the number of shares
held.
  9
  The
Manager will determine whether available cash from operations, as defined in the
Fund's LLC Agreement, is to be distributed.  Such distributions would
be allocated 85% to the shareholders and 15% to the Manager, as defined in the
Fund's LLC Agreement.
 
 Available
cash from dispositions, as defined in the Fund's LLC Agreement, will be paid 99%
to shareholders and 1% to the Manager until the shareholders have received total
distributions equal to their capital contributions. After shareholders have
received distributions equal to their capital contributions, 85% of available
cash from dispositions will be distributed to shareholders and 15% to the
Manager.
 
 The
shareholders received distributions of $0.5 million and $0.6 million for the
three months ended March 31, 2008 and 2007, respectively.
 
 The
Manager received distributions of $0.1 million in each of the three months ended
March 31, 2008 and 2007.
 
 6.
              Related
      Parties
 
 The LLC
Agreement provides that the Manager render management, administrative and
advisory services.  For such services, prior to September 1, 2006, the
Manager received an annual management fee, payable monthly, of 2.5% of total
capital contributions.  Effective September 1, 2006, the Manager
changed its policy regarding the annual management fee whereby the management
fee was equal to 2.5% of the total shareholder capital contributions, net of
cumulative dry-hole costs incurred by the Fund.  Beginning on
September 1, 2007 and continuing for the remaining life of the Fund, the Manager
elected to waive its management fee.  Management fees of $0.2 million
were incurred for the three months ended March 31, 2007.  Upon the
waiver of the management fee, the Fund began recording costs relating to
services provided by the Manager for accounting and investor
relations.  Such costs totaled $20 thousand, which were included in
general and administrative expenses for the three months ended March 31,
2008.
 
 From time
to time, short-term payables and receivables, which do not bear interest, arise
from transactions with affiliates in the ordinary course of
business.  At March 31, 2008 and December 31, 2007, the Fund was owed
$13 thousand and $0.5 million, respectively, related to insurance proceeds and
revenue allocations.
 
 None of
the compensation to be received by the Manager has been derived as a result of
arm’s length negotiations.
 
 The Fund
has working interest ownership in certain projects to acquire and develop oil
and natural gas projects with other entities that are likewise managed by the
Manager.
 
 7.
              Fair
      Value of Financial Instruments and
Measurements
 
 As of
March 31, 2008 and December 31, 2007, the carrying values of cash and cash
equivalents, salvage fund, production receivable and accrued expenses
approximated fair value.
 
 In
accordance with SFAS 157, the Fund’s available-for-sale investments are measured
utilizing Level 1 inputs, which are quoted prices in active
markets.
 
 8.
              Commitments
      and Contingencies
 
 Capital
Commitments
 
 The Fund
has entered into multiple offshore operating agreements for the drilling and
development of its investment properties. The estimated capital expenditures
associated with these agreements vary depending on the stage of development on a
property-by-property basis. As of March 31, 2008, the Fund had committed to
spend an additional $0.6 million relating to the properties.
  10
 Environmental
Considerations
  The
exploration for and development of oil and natural gas involves the extraction,
production and transportation of materials which, under certain conditions, can
be hazardous or cause environmental pollution problems. TheManager
and the Operators are continually taking action they believe appropriate to
satisfy applicable federal, state and local environmental regulations and do not
currently anticipate that compliance with federal, state and local environmental
regulations will have a material adverse effect upon capital expenditures,
results of operations or the competitive position of the Fund in the oil and
natural gas industry.  However, due to the significant public and
governmental interest in environmental matters related to those activities, the
Manager cannot predict the effects of possible future legislation, rule changes,
or governmental or private claims.  At March 31, 2008 and December 31,
2007, there were no known environmental contingencies that required the Fund to
record a liability.
  Insurance
Coverage
  The Fund
is subject to all risks inherent in the exploration for and development of oil
and natural gas. Insurance coverage as is customary for entities engaged in
similar operations is maintained, but losses may occur from uninsurable risks or
amounts in excess of existing insurance coverage. The occurrence of an event
which is not insured or not fully insured could have an adverse impact upon
earnings and financial position.  Moreover, insurance is obtained as a
package covering all of the Manager’s investment programs.  Claims
made by other such programs can reduce or eliminate insurance for the
Fund.
  
 11
 
 ITEM
2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
 
 Cautionary
Statement Regarding Forward-Looking Statements
 
 Certain
statements in this quarterly report on Form 10-Q (“Quarterly Report”) and
the documents Ridgewood Energy L Fund, LLC (the “Fund”) has incorporated by
reference into this Quarterly Report, other than purely historical information,
including estimates, projections, statements relating to the Fund’s business
plans, strategies, objectives and expected operating results, and the
assumptions upon which those statements are based, are “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act
of 1995, Section 27A of the Securities Act of 1933, as amended (the
“Securities Act”) and Section 21E of the Securities Exchange Act of 1934
(the “Exchange Act”). These forward-looking statements generally are identified
by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,”
“strategy,” “plan,” “target,” “pursue,” “may,” “will,” “would,” “will be,” “will
continue,” “will likely result,” and similar expressions. Forward-looking
statements are based on current expectations and assumptions that are subject to
risks and uncertainties which may cause actual results to differ materially from
the forward-looking statements.  Examples of such events that could
cause actual results to differ materially from historical results or those
anticipated include weather conditions, such as hurricanes, changes in market
conditions affecting the pricing of oil and natural gas, the cost and
availability of equipment, and changes in governmental
regulations.  The Fund undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new information,
future events or otherwise.
 
 Critical
Accounting Policies and Estimates
 
 The
following discussion and analysis of the Fund’s financial condition and
operating results is based on the Fund’s financial statements.  The
preparation of this Quarterly Report requires the Fund to make estimates and
assumptions that affect the reported amount of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the Fund’s
financial statements, and the reported amount of revenue and expenses during the
reporting period. Actual results may differ from those estimates and
assumptions.  See “Notes to Unaudited Condensed Financial Statements”
in Part I of this Quarterly Report for a presentation of the Fund’s significant
accounting policies.   No changes have been made to the Fund’s
critical accounting policies and estimates disclosed in its 2007 Annual Report
on Form 10-K.
 
 Overview
of the Fund’s Business
 
 The Fund
is a Delaware limited liability company formed on May 27, 2004 to acquire
interests primarily in oil and natural gas projects located in the U.S. waters
of the Gulf of Mexico. Ridgewood Energy Corporation (“Ridgewood Energy” or the
“Manager”) a Delaware corporation, is the Manager. As the Manager, Ridgewood
Energy has direct and exclusive control over the management and control of Fund
operations. The Fund is an independent oil and natural gas producer. The
Fund’s primary investment objective is to generate cash flow for distribution to
the Fund’s shareholders through participation in oil and natural gas exploration
and development projects in the Gulf of Mexico.
 
 The
Manager performs certain duties on the Fund’s behalf including the evaluation of
potential projects for investment and ongoing management, administrative and
advisory services associated with these projects.  For these services,
the Manager has received an annual management fee, as of September 1,
2007, the Manager has elected to cease collecting its management fee for the
remainder of the life of the Fund. The Fund does not currently, nor is there any
plan to operate any project in which the Fund participates.  The
Manager enters into operating agreements with third-party operators (the
“Operators”) for the management of all exploration, development and producing
operations, as appropriate.  The Manager participates in
distributions.
 
 Business
Update
 
 The Fund
owns working interests and has participated in the drilling of fifteen wells.
Six
wells have been determined to be dry holes, eight wells have been determined
successful, and one well is currently drilling. Of the successful wells, three
wells are currently producing, four are expected to come on production during
2008 and one well has been fully depleted.
  12
  Successful
Properties / Currently Drilling
 
 High Island
138
 In March
2008, the Fund acquired a 2.5% working interest in the High Island 138
project, from LLOG Exploration Offshore, Inc. (“LLOG”), the
operator.  Through March 31, 2008, the Fund has spent $0.3 million
related to this property, for which the total estimated budget is $1.2
million.  Results for this project are expected in May
2008.
 
 Main
Pass 275
 In late
2006, the Fund acquired a 10% interest in the Main Pass 275 project from
Newfield, Inc. (“Newfield”).  In August 2007, Newfield sold its
interest in this property to McMoRan Exploration Co. (“McMoRan”).  At
that time, McMoRan assumed Newfield’s responsibilities as the operator of this
property.  The well was declared a commercial success in February 2007
and began producing in late April 2007.  The total cost of this
property was $1.9 million.
 
 Eugene
Island 337
 In 2006,
the Fund acquired a 13.33% ownership in Eugene Island 337 from Devon Energy
Corporation (“Devon”), the operator.  The property was determined to
be a commercial success in July 2006.  The total cost of this property
was $4.0 million, of which impairment costs totaling $3.3 million were recorded
during the year ended December 31, 2007.  No impairments were taken on
this well during the three months ended March 31, 2008 and 2007.
 
 South
Timbalier 77
 In 2004,
the Fund acquired from Millennium Offshore Group (“MOGI”) a 20% working interest
in the South Timbalier 77.  MOGI sold its interest to ATP Oil and Gas
Corporation (“ATP”), the operator.  The property was shut-in during
2007.  During the three months ended March 31, 2008, ATP completed a
workover, at a cost of $0.3 million, and South Timbalier 77 resumed production
in February 2008.  As of March 31, 2008 total unamortized costs
related to South Timbalier 77 were $0.2 million, which the Fund fully
anticipates to recover based upon current reserve estimates and prevailing
market prices.
 
 LLOG
Projects
 In
October 2006, the Fund acquired a 7.5% working interest in each of six
exploratory wells to be drilled by LLOG off the coast of
Louisiana.  Of the six wells, the Fund elected not to proceed with one
well and one well was determined to be a dry hole.
 
 The
remaining four LLOG wells have been determined to be successful, are undergoing
completion, and production is expected during the second and third quarters of
2008.  The total budget for these projects is approximately $6.6
million, of which $4.5 million has been spent at March 31, 2008.
 
 Results
of Operations
 
 The
following review of operations for the three months ended March 31, 2008 and
2007 should be read in conjunction with the Fund’s financial statements and the
notes thereto.
  13
  Three
      months ended March 31,2008
                
                
                2007(in
      thousands)RevenueOil
      and gas revenue
                
                $
                765
                
                
                $
                436ExpensesDepletion
      and amortization
                
                
                386
                
                
                
                45Dry-hole
      costs
                
                
                5
                
                
                
                22Operating
      expenses
                
                
                533
                
                
                
                145Management
      fees to affiliate
                
                
                -
                
                
                
                231General
      and administrative expenses
                
                
                94
                
                
                
                140Total
      expenses
                
                
                1,018
                
                
                
                583Loss
      from operations
                
                
                (253
                )
                
                
                (147
                )Other
      IncomeInterest
      income
                
                
                73
                
                
                
                151Net
      (loss) income
                
                $
                (180
                )
                
                $
                4
 
 Oil and
GasRevenue.During the three months
ended March 31, 2008, the Fund hadthree producing wells,
South Timbalier 77, Main Pass 275, and Eugene Island 337, which came onto
production in August 2005, April 2007 and November 2007,
respectively.  During the three months ended March 31, 2007, the Fund
had one producing well.  Oil and gas revenue for the three months
ended March 31, 2008 was $0.8 million, a $0.3 million increase from the three
months ended March 31, 2007.  The increase is attributable to a net
increase in production and sales volumes totaling $0.1 million and the impact of
increased average prices totaling $0.2 million.  The increase in
production volumes was attributable to an increase in gas volumes totaling $0.2
million, partially offset by a decrease in oil volumes totaling $0.1
million.
 
 Oil
prices during the three months ended March 31, 2008 averaged approximately $102
per barrel as compared to $59 per barrel for the three months ended March 31,
2007.  During the three months ended March 31, 2008, oil production
was 2,900 barrels compared to 3,900 barrels during the three months ended March
31, 2007.  The decrease was attributable to the South Timbalier 77
well, which was shut-in during the second half of 2007 and resumed production at
significantly reduced rates in 2008.   The South Timbalier 77
well is nearing the end of its production life and is expected to be fully
depleted during the second quarter 2008.
 
 During
the three months ended March 31, 2008, natural gas prices averaged approximately
$9.74 per mcf inclusive of processing revenues, compared to approximately $7.46
per mcf during the three months ended March 31, 2007.  Natural gas
production during the three months ended March 31, 2008 was approximately 48
thousand mcf, compared to 28 thousand mcf, during the three months ended March
31, 2007. The increase was primarily a result of the onset of production of Main
Pass 275 and Eugene Island 337,  partially offset by the declined
production of South Timbalier 77.
 
 Depletion and
Amortization.  Depletion and amortization for the three months
ended March 31, 2008 and 2007 was $0.4 million and $45 thousand,
respectively.  The increase in depletion and amortization resulted
from increased production due to the Main Pass 275 and Eugene Island 337 wells
coming on production in April 2007 and November 2007, respectively, partially
offset by a decline in production for the South Timbalier 77 well.
 
 Dry-holeCosts.Dry-hole costs are those
costs incurred to drill and develop a well that is ultimately found to be
incapable of producing either oil or natural gas in sufficient quantities to
justify completion of the well. The following table summarizes dry-hole costs
inclusive of plug and abandonment costs. During the three months ended
March 31, 2008, the West Cameron 78/95 project received credits from the
Operator upon review and audit of the well costs.
  14
  Three
      months ended March 31,Lease
      Block
                
                2008
                
                
                2007(in
      thousands)Ship
      Shoal 81
                
                $
                6
                
                
                $
                -East
      Breaks 157
                
                
                1
                
                
                
                8Main
      Pass 155
                
                
                -
                
                
                
                1West
      Cameron 78/95
                
                
                (2
                )
                
                
                13$
                5
                
                
                $
                22
 
 Operating
Expenses.  Operating expenses represent the cost of operating
and maintaining wells and related facilities, geological costs and accretion
expense. For the three months ended March 31, 2008 and 2007, operating expenses
were $0.5 million and $0.1 million, respectively.  The increase for
three months ended March 31, 2008 is attributable to $0.3 million of workover
costs associated with the South Timbalier 77 well as well as the onset
of  production of Main Pass 275 and Eugene Island 337.
 
 Management
Fee.Management fees
for the three months ended March 31, 2007 were $0.2
million.  Management fees are charged to cover expenses associated
with overhead incurred by the Manager for its ongoing management, administrative
and advisory services.  Such overhead expenses include but are not
limited to rent, payroll and benefits for employees of the Manager, and other
administrative costs. Beginning on September 1, 2007 and continuing for the
remaining life of the Fund, the Manager elected to waive  its
management fee.
 
 General and
Administrative Expenses.General and administrative expenses represent
costs specifically identifiable or allocable to the Fund as detailed in the
schedule below.
  Three
      months ended March 31,2008
                
                
                2007(in
      thousands)Accounting
      and legal fees
                
                $
                47
                
                
                $
                55Insurance
                
                
                23
                
                
                
                83Management
      reimbursement and other
                
                
                24
                
                
                
                2$
                94
                
                
                $
                140
  Accounting,
legal, and insurance expenses represent costs specifically identifiable or
allocable to the Fund. Accounting and legal fees represent annual audit and tax
preparation fees, quarterly reviews and filing fees of the
Fund.  Insurance expense represents premiums related to well control
insurance, which varies dependent upon drilling activity, and directors and
officers liability policy, which is allocated by the Manager to the Fund based
on capital raised by the Fund to total capital raised by all oil and natural gas
funds managed by the Manager.  The decrease in insurance expense for
the three months ended March 31, 2008 primarily relates to the timing of the
drilling activities of the LLOG projects, which primarily occurred in the first
quarter of 2007.  Management reimbursement and other expenses for
the three months ended March 31, 2008, relate to a reimbursement to the Manager
by the Fund for various administrative costs incurred by the Manager on the
Funds behalf, in addition to trust fees.
 
 Interest
Income.  Interest income is comprised of interest earned on
money market accounts and short-term investments in U.S. Treasury
securities.  Interest income for the three months ended March 31, 2008
and 2007 was $0.1 million and $0.2 million, respectively.  The
decrease was attributable to a decrease in the average outstanding balances
earning interest due to property expenditures during the period.
 
 Capital
Resources and Liquidity
 
 Operating
Cash Flows
 Cash
flows provided by operating activities for the three months ended March 31, 2008
were $0.2 million, primarily related to revenue receipts of $0.5 million,
interest received of $0.1 million and favorable working capital of $0.2 million,
which is principally attributable to unpaid operating expenses relating to the
South Timbalier 77 well.  These amounts were partially offset by
operating expenses of $0.5 million, and general and administrative expenses of
$0.1 million.
  15
  Cash
flows provided by operating activities for the three months ended March 31, 2007
were $0.3 million, primarily related to revenue receipts of $0.3 million and
interest received of $0.2 million and favorable working capital of $0.2 million,
partially offset by management fees of $0.2 million, operating expenses of $0.1
million, and general and administrative expenses of $0.1 million.
 
 Investing
Cash Flows
 Cash
flows used in investing activities for the three months ended March 31, 2008
were $1.0 million primarily related to capital expenditures for oil and gas
properties of $1.4 million, partially offset by the receipt of insurance
proceeds of $0.5 million.
 
 Cash
flows used in investing activities for the three months ended March 31, 2007
were $3.0 million primarily related to capital expenditures for oil and natural
gas properties.
 
 Financing
Cash Flows
 Cash
flows used in financing activities for three months ended March 31, 2008 were
$0.6 million related to distributions paid to the Manager and to the
Shareholders.
 
 Cash
flows used in financing activities for the three months ended March 31, 2007
were $0.7 million related to distributions paid to the Manager and to the
Shareholders.
 
 Estimated
Capital Expenditures
 
 The Fund
has entered into multiple offshore operating agreements for the drilling and
development of its investment properties.  The estimated capital
expenditures associated with these agreements can vary depending on the stage of
development on a property-by-property basis.  As of March 31, 2008,
the Fund had commitments related to authorizations for expenditures totaling
$0.6 million for properties.   If the properties were to be
successful, the Fund would make additional expenditures totaling $2.4 million
related to the completion of these properties.
 
 Liquidity
Needs
 
 The
Fund’s primary short-term liquidity needs are to fund its 2008 operations and
capital expenditures with existing cash on-hand and income earned from its
short-term investments and cash and cash equivalents.
 
 Distributions,
if any, are funded from cash flow from operations, and the frequency and amount
are within the Manager’s discretion subject to available cash from operations,
reserve requirements and Fund operations.
 
 The
capital raised by the Fund in its private placement is more than likely all the
capital it will be able to obtain for investments in projects. The number of
projects in which the Fund can invest will naturally be limited and each
unsuccessful project the Fund experiences, if any, will not only reduce its
ability to generate revenue, but also exhaust its limited supply of capital.
Typically the Manager seeks an investment portfolio that combines high and low
risk exploratory projects.
 
 When the
Manager makes a decision for participation in a particular project, it assumes
that the well will be successful and allocates enough capital to budget for the
completion of that well and the additional development wells that are
anticipated to be drilled. If the exploratory well is deemed a dry hole or if it
is un-economical, the capital allocated to the completion of that well and to
the development of additional wells is then reallocated to a new project or used
to make additional investments.
 
 Off-Balance
Sheet Arrangements
 
 The Fund
had no off-balance sheet arrangements as of March 31, 2008 and December 31, 2007
and does not anticipate the use of such arrangements in the future.
  16
  Contractual
Obligations
 
 The Fund
enters into operating agreements with operators.  On behalf of the Fund, an
operator enters into various contractual commitments pertaining to exploration,
development and production activities.  The Fund does not discuss or
negotiate any such contracts. No contractual obligations exist at March 31, 2008
and December 31, 2007 other than those discussed in “Estimated Capital
Expenditures” above.
 
 ITEM
3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
 
 Not
required.
 
 ITEM
4.  CONTROLS AND PROCEDURES
 
 In
accordance with Exchange Act Rules 13a-15 and 15d-15, the Fund carried out
an evaluation, under the supervision and with the participation of management,
including its Chief Executive Officer and Chief Financial Officer, of the
effectiveness of our disclosure controls and procedures as of the end of the
period covered by this report.  Based on that evaluation, our Chief
Executive Officer and Chief Financial Officer concluded that the Fund’s
disclosure controls and procedures were effective as of March 31,
2008.
  There has
been no change in the Fund’s  internal control over financial
reporting that occurred during the three months ended March 31, 2008 that has
materially affected, or is reasonably likely to materially affect, the Fund’s
internal control over financial reporting.
 
 Part
II.  OTHER INFORMATION
 
 ITEM
1. LEGAL PROCEEDINGS
 
 There
have been no changes to the legal proceedings disclosed in the Fund’s most
recent Annual Report on Form 10-K.
 
 ITEM
1A. RISK FACTORS
 
 Not
required.
 
 ITEM
2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS
 
 None.
 
 ITEM
3.  DEFAULTS UPON SENIOR SECURITIES
 
 None.
 
 ITEM
4. SUBMISSIONS OF MATTERS TO A VOTE OF SECURITY HOLDERS
 
 None.
 
 ITEM
5. OTHER INFORMATION
 
 None.
  17
 ITEM
6. EXHIBITS
 EXHIBITNUMBER
                
                TITLE OF
      EXHIBIT10.1
                
                Participation
      Agreement between LLOG Exploration Offshore, Inc. and Ridgewood Energy
      Corporation as Manager for High Island 138.31.1
                
                Certification
      of Robert E. Swanson, Chief Executive Officer, pursuant to Securities
      Exchange Act Rule 13a-14(a).31.2
                
                Certification
      of Kathleen P. McSherry, Chief Financial Officer, pursuant to Securities
      Exchange Act Rule 13a-14(a).32
                
                Certifications
      pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
      The Sarbanes-Oxley Act of 2002, signed by Robert E. Swanson, Chief
      Executive Officer of the Fund and Kathleen P. McSherry, Chief Financial
      Officer of the Fund.
    18
  SIGNATURES
  
 Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
caused this Form 10-Q to be signed on its behalf by the undersigned, thereunto
duly authorized.
 
 Dated:
              May
      14 , 2008
              
              
              
              RIDGEWOOD
      ENERGY L FUND, LLCBy:
              /s/
              
              ROBERT
      E. SWANSONName:
              
              Robert
      E. SwansonTitle:
              
              President
      and Chief Executive Officer(Principal
      Executive Officer)Dated:
              May 14 ,
      2008By:
              /s/
              
              KATHLEEN
      P. MCSHERRYName:
              
              Kathleen
      P. McSherryTitle:
              
              Executive
      Vice President and Chief Financial Officer(Principal
      Financial and Accounting Officer)
 
 
  19