**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE
      COMMISSION**





**Washington,
      D.C. 20549**





**FORM
      10-Q**





ý
            **QUARTERLY
              REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
              OF
              1934**For
                the quarterly period ended September 30, 2007


or





o
            **TRANSITION
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                ACT OF
                1934**For
                the transition period from
                _______________________to____________________________





**Commission
      File Number 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)


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  ýNo  o





Indicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, or non-accelerated filer.  See definition of
“accelerated filer and large accelerated filer” in Rule 12b-2 of the
      Exchange Act.  (Check one) :





Large
      accelerated filer  o                       Accelerated
      filer  o                       Non-accelerated
      filer  ý





Indicate
      by check mark whether the
      registrant is a shell company (as defined in Rule 12b-2 of the Exchange
      Act).  YesoNoý








As
      of
      November 14, 2007 there were 350.1081 shares of membership interest of the
      registrant outstanding.













**Table
                of Contents****Part
                I - FINANCIAL INFORMATION**
            
            **Page**Item
                1.  Financial Statements:Unaudited
                Condensed Balance Sheets as of September 30, 2007 and December 31,
                2006
            
            3Unaudited
                Condensed Statements of Operations for the three and nine months
                ended
              September
                30, 2007 and 2006
            
            4Unaudited
                Condensed Statements of Cash Flows for the nine months ended
              September
                30, 2007 and 2006
            
            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
            
            19Item
                4.  Controls and Procedures
            
            19**Part
                II - OTHER INFORMATION**Item
                1.  Legal Proceedings
            
            20Item
                1A. Risk Factors
            
            20Item
                2.  Unregistered  Sales of Equity Securities and Use
                of Proceeds
            
            20Item
                3.  Defaults Upon Senior Securities
            
            20Item
                4.  Submissions of Matters to a Vote of Security
                Holders
            
            20Item
                5.  Other Information
            
            20Item
                6.  Exhibits
            
            20SIGNATURES
            
            21




2




**RIDGEWOOD
                ENERGY L FUND, LLC****UNAUDITED
                CONDENSED BALANCE SHEETS****(in
                thousands, except share data)****September
                30, 2007**
            
            
            **December
                31, 2006****Assets**Current
                assets:Cash
                and cash equivalents
            
            $
            7,690
            
            
            $
            13,215Production
                receivable
            
            
            228
            
            
            
            251Insurance
                receivable
            
            
            1,511
            
            
            
            2,534Due
                from operators
            
            
            32
            
            
            
            247Due
                from affiliates (Note 5)
            
            
            -
            
            
            
            196Other
                current assets
            
            
            326
            
            
            
            14Total
                current assets
            
            
            9,787
            
            
            
            16,457Salvage
                fund
            
            
            1,151
            
            
            
            1,112Oil
                and gas properties:Proved
                properties
            
            
            13,420
            
            
            
            9,379Unproved
                properties
            
            
            2,226
            
            
            
            3,670Less:
                accumulated depletion and amortization-proved properties
            
            
            (9,546
            )
            
            
            (9,082
            )Total
                oil and gas properties, net
            
            
            6,100
            
            
            
            3,967Total
                assets
            
            $
            17,038
            
            
            $
            21,536**Liabilities
                and Members' Capital**Current
                liabilities:Due
                to operators
            
            $
            207
            
            
            $
            540Due
                to affiliates (Note 5)
            
            
            16
            
            
            
            -Accrued
                expenses payable
            
            
            55
            
            
            
            142Total
                current liabilities
            
            
            278
            
            
            
            682Asset
                retirement obligations
            
            
            413
            
            
            
            349Total
                liabilities
            
            
            691
            
            
            
            1,031Commitments
                and contingencies (Note 7)Members'
                capital:Manager:Distributions
            
            
            (1,651
            )
            
            
            (1,477
            )Retained
                earnings
            
            
            1,116
            
            
            
            1,092Manager's
                total
            
            
            (535
            )
            
            
            (385
            )Shareholders:Capital
                contributions (670 shares authorized;  350.1081
              issued
                and outstanding)
            
            
            51,401
            
            
            
            51,401Syndication
                costs
            
            
            (5,502
            )
            
            
            (5,502
            )Distributions
            
            
            (9,356
            )
            
            
            (8,371
            )Accumulated
                deficit
            
            
            (19,661
            )
            
            
            (16,638
            )Shareholders'
                total
            
            
            16,882
            
            
            
            20,890Total
                members' capital
            
            
            16,347
            
            
            
            20,505Total
                liabilities and members' capital
            
            $
            17,038
            
            
            $
            21,536The
                accompanying notes are an integral part of these unaudited condensed
                financial statements.




3





**RIDGEWOOD
                ENERGY L FUND, LLC****UNAUDITED
                CONDENSED STATEMENTS OF OPERATIONS****(in
                thousands, except share data)****For
                the three months ended September 30,**
            
            
            **For
                the nine months ended September 30,****2007**
            
            
            **2006**
            
            
            **2007**
            
            
            **2006****Revenue**Oil
                and gas revenue
            
            $
            366
            
            
            $
            820
            
            
            $
            1,653
            
            
            $
            5,209**Expenses**Dry-hole
                costs
            
            
            292
            
            
            
            236
            
            
            
            300
            
            
            
            7,088Depletion
                and amortization
            
            
            213
            
            
            
            476
            
            
            
            464
            
            
            
            4,173Impairment
                of proved property
            
            
            1,961
            
            
            
            -
            
            
            
            1,961
            
            
            
            -Casualty
                (gain) loss
            
            
            (111
            )
            
            
            -
            
            
            
            1,023
            
            
            
            -Lease
                operating expenses
            
            
            58
            
            
            
            128
            
            
            
            322
            
            
            
            433Management
                fees to affiliate (Note 5)
            
            
            151
            
            
            
            287
            
            
            
            613
            
            
            
            930Other
                operating expenses
            
            
            7
            
            
            
            4
            
            
            
            31
            
            
            
            11General
                and administrative expenses
            
            
            82
            
            
            
            89
            
            
            
            339
            
            
            
            190Total
                expenses
            
            
            2,653
            
            
            
            1,220
            
            
            
            5,053
            
            
            
            12,825Loss
                from operations
            
            
            (2,287
            )
            
            
            (400
            )
            
            
            (3,400
            )
            
            
            (7,616
            )**Other
                Income**Interest
                income
            
            
            119
            
            
            
            234
            
            
            
            401
            
            
            
            680**Net
                loss**
            
            $
            (2,168
            )
            
            $
            (166
            )
            
            $
            (2,999
            )
            
            $
            (6,936
            )**Manager
                Interest**Net
                (loss) income
            
            $
            (31
            )
            
            $
            43
            
            
            $
            24
            
            
            $
            443**Shareholder
                Interest**Net
                loss
            
            $
            (2,137
            )
            
            $
            (209
            )
            
            $
            (3,023
            )
            
            $
            (7,379
            )Net
                loss per share
            
            $
            (6,104
            )
            
            $
            (597
            )
            
            $
            (8,634
            )
            
            $
            (21,075
            )The
                accompanying notes are an integral part of these unaudited condensed
                financial statements.


4





**RIDGEWOOD
                ENERGY L FUND, LLC****UNAUDITED
                CONDENSED STATEMENTS OF CASH FLOWS****(in
                thousands)****For
                the nine months ended**
              **September
                30,****2007**
            
            
            **2006****Cash
                flows from operating activities**Net
                loss
            
            $
            (2,999
            )
            
            $
            (6,936
            )Adjustments
                to reconcile net loss to net  cash
              provided
                by operating activities:Dry-hole
                costs
            
            
            300
            
            
            
            7,088Depletion
                and amortization
            
            
            464
            
            
            
            4,173Impairment
                of proved property
            
            
            1,961
            
            
            
            -Accretion
                expense
            
            
            13
            
            
            
            11Casualty
                loss on oil and gas properties
            
            
            1,023
            
            
            
            -Changes
                in assets and liabilities:Decrease
                in production receivable
            
            
            23
            
            
            
            5,403Decrease
                in due from operators
            
            
            247
            
            
            
            -Increase
                in other current assets
            
            
            (81
            )
            
            
            (4
            )Decrease  in
                due to operators
            
            
            (18
            )
            
            
            -Increase
                (decrease) in due to affiliates, net
            
            
            16
            
            
            
            (5
            )(Decrease)
                increase in accrued expenses payable
            
            
            (87
            )
            
            
            38Net
                cash provided by operating activities
            
            
            862
            
            
            
            9,768**Cash
                flows from investing activities**Capital
                expenditures for oil and gas properties
            
            
            (5,189
            )
            
            
            (8,874
            )Salvage
                fund investments
            
            
            (39
            )
            
            
            (65
            )Net
                cash used in investing activities
            
            
            (5,228
            )
            
            
            (8,939
            )**Cash
                flows from financing activities**Distributions
                paid
            
            
            (1,159
            )
            
            
            (8,080
            )Net
                cash used in financing activities
            
            
            (1,159
            )
            
            
            (8,080
            )Net
                decrease in cash and cash equivalents
            
            
            (5,525
            )
            
            
            (7,251
            )Cash
                and cash equivalents, beginning of period
            
            
            13,215
            
            
            
            21,964Cash
                and cash equivalents, end of period
            
            $
            7,690
            
            
            $
            14,713**Supplemental
                schedule of non-cash investing activities**Advances
                used for capital expenditures in oil and
              gas
                properties reclassified to dry-hole costs
            
            $
            -
            
            
            $
            1,256The
                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
      Fund has devoted most of its efforts to raising capital and oil and natural
      gas
      exploration activities.





The
      Manager performs (or arranges for the performance of) the management,
      administrative and advisory 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, 5 and 7).





**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, 2006 included in the
      Fund’s Annual Report on Form 10-K filed with the Securities and Exchange
      Commission (“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, impairment allowances 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 federal insured limits.  At September 30, 2007 and December
      31, 2006, bank balances, inclusive of the salvage fund, exceeded federally
      insured limits by approximately $7.5 million and $13.0 million, respectively.
      The Fund maintains bank deposits with accredited financial
      institutions.





***Short-term
      Investment in Marketable Securities***


At
      times
      the Fund may purchase short-term investments comprised of US Treasury Notes
      with
      maturities greater than three months that are considered held-to-maturity
      investments.  Held-to-maturity securities are those investments that
      the Fund has the ability and intent to hold until
      maturity.  Held-to-maturity investments are recorded at cost plus
      accrued income, adjusted for the amortization of premiums and discounts, which
      approximate fair value.  Interest income is accrued as
      earned.  At September 30, 2007, the Fund had held-to-maturity
      investments, inclusive of the salvage fund of $1.1 million, which mature in
      January 2008.




6


***Salvage
      Fund***


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 the withdrawal 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 (i.e. a producing well), the cost and
      related accumulated depletion and amortization will be eliminated from the
      property accounts, and the resulting gain or loss is recognized.  On
      the sale or retirement of an unproved property, gain or loss on the sale is
      recognized.  Currently, it is not the Manager’s intention to sell any
      of the Fund’s property interests.





Capitalized
      acquisition costs of producing oil and natural gas properties after recognizing
      estimated salvage values are depleted by the unit-of-production
      method.





As
      of
      September 30, 2007 and December 31, 2006, amounts recorded in due to operators
      totaling approximately $0.2 million and $0.5 million, respectively, related
      to
      the acquisition of oil and gas property and/or drilling costs.  The
      balance at December 31, 2006 was paid during the first quarter of
      2007.





***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.  At September 30, 2007, the Fund
      had an advance to Operator of $231 thousand relating to Ship Shoal 81, which
      is
      included in other current assets, see Note 8 for further
      information.





***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 following table presents changes to the asset
      retirement obligations.





7




**For
                the nine months ended September 30,**
            
            
            **For
                the year ended December 31,****2007**
            
            
            **2006****(in
                thousands)**Balance
                - Beginning of period
            
            $
            349
            
            
            $
            333Liabilities
                incurred
            
            
            51
            
            
            
            237Liabilities
                settled
            
            
            -
            
            
            
            (237
            )Accretion
                expense
            
            
            13
            
            
            
            16Balance
                - End of period
            
            $
            413
            
            
            $
            349





***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 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).  At the time of transfer a production
      receivable is recorded.





The
      volume of oil and natural gas sold on the Fund’s behalf may differ from the
      volume of oil and natural gas to which 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
      September 30, 2007 and December 31, 2006, 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 provisions of Statement of Financial Accounting Standards
      No. 144, “Accounting for the Impairment of Long-Lived Assets” (“SFAS
      144”), 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.





At
      September 30, 2007, the Fund recorded an impairment of $2.0 million related
      to
      the Eugene Island 337 lease block based upon futures pricing at September 30,
      2007.  When the well began producing in November 2007, the production
      flow rate was lower than originally expected, as such, internal engineering
      estimates of the proved reserves were prepared.  Based upon these
      internal reserve estimates, the carrying value of the asset was in excess of
      the
      future discounted cash flows.  Under successful efforts
      accounting, reserve estimates are used to calculate cash flows as well
      as depletion rates.  Proved reserves and future net cash flows are
      estimated using sales prices estimated to be in effect as of the date of
      the reserve estimate calculation.  Oil and natural gas prices, which
      have fluctuated widely in recent years, affect the future revenue. Any
      estimates of natural gas and oil reserves and their values are inherently
      uncertain, including many factors beyond the Fund’s control.





Reservoir
      engineering is a subjective process of estimating underground accumulations
      of
      natural gas and oil that cannot be measured in an exact manner. The reserve
      estimates are based upon the quality of available data and engineering and
      geological interpretation and judgment.  Revisions to estimated
      reserves may result from actual production, results of future development and
      exploration activities, prevailing oil and natural gas prices, operating costs
      and other factors.  Revisions to estimated reserves could have a
      material affect on balances recorded as proved properties. In accordance with
      SFAS 144, the Fund recorded the impairment loss based upon the current reserve
      estimates. For the three and nine months ended September 30, 2006, no
      impairments were recorded.




8




***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, the costs to acquire proved properties and platform
      and pipeline costs.





***Income
      Taxes***


No
      provision is made for income taxes in the financial statements.  The
      Fund is a limited liability corporation, and as such, the Fund’s income or loss
      is passed through and included in the tax returns of the Fund’s
      shareholders.





***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 interest income and
      certain expenses, such as dry-hole costs, fiduciary fees, depletion and
      amortization, which are allocated 99% to shareholders and 1% to the
      Manager.





**3.**
            **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.  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.





The
      following table reflects the net changes in unproved properties for the periods
      ended September 30, 2007 and December 31, 2006.  At September 30,
      2007, the Fund had no capitalized exploratory well costs greater than one
      year.





**For
                the nine months ended September 30,**
            
            
            **For
                the year ended December 31,****2007**
            
            
            **2006****(in
                thousands)**Balance
                - Beginning of the period
            
            $
            3,670
            
            
            $
            197Additions
                to capitalized exploratory well costs pending the
              determination
                of proved reserves
            
            
            4,586
            
            
            
            3,542Reclassification
                to proved properties based on the
              determination
                of proved reserves
            
            
            (5,805
            )
            
            
            -Capitalized
                exploratory well costs charged to dry-hole costs
            
            $
            (225
            )
            
            $
            (69
            )Balance
                - End of the period
            
            $
            2,226
            
            
            $
            3,670Dry-hole
              costs are detailed in the table below.


9







**For
                the three months ended September 30,**
            
            
            **For
                the nine months ended September 30,****Lease
                Block**
            
            **2007**
            
            
            **2006**
            
            
            **2007**
            
            
            **2006****(in
                thousands)**West
                Cameron 103
            
            $
            -
            
            
            $
            -
            
            
            $
            -
            
            
            $
            4Main
                Pass 155
            
            
            -
            
            
            
            -
            
            
            
            (11
            )
            
            
            11East
                Cameron 48
            
            
            -
            
            
            
            60
            
            
            
            -
            
            
            
            89East
                Breaks 157
            
            
            -
            
            
            
            (5
            )
            
            
            8
            
            
            
            1,788Ship
                Shoal 81
            
            
            225
            
            
            
            -
            
            
            
            225
            
            
            
            -West
                Cameron 78/95
            
            
            67
            
            
            
            181
            
            
            
            78
            
            
            
            5,196$
            292
            
            
            $
            236
            
            
            $
            300
            
            
            $
            7,088








**4.**
            **Distributions**





Distributions
      to shareholders are allocated in proportion to the number of shares
      held.





The
      Manager will determine whether available cash from operations, as defined in
      the
      Fund's 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 Agreement.





Available
      cash from dispositions, as defined in the Fund's 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 approximately $1.0 million and $6.9
      million for the nine months ended September 30, 2007 and 2006,
      respectively.





The
      Manager received distributions of approximately $0.2 million and $1.2 million
      for the nine months ended September 30, 2007 and 2006,
      respectively.





**5.**
            **Related
                Parties**





The
      LLC
      Agreement provides that the Manager render management, administrative and
      advisory services.  For such services, the Manager originally 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.  On September 1, 2007, the
      Manager has elected to cease collecting its management fee for the
      remaining life of the Fund.  Management fees of $0.2 million and $0.6
      million were incurred for the three and nine months ended September 30, 2007,
      compared to approximately $0.3 million and $0.9 million for the three and nine
      months ended September 30, 2006, respectively.





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 September 30, 2007 and December 31, 2006, the Fund owed
      the Manager $16 thousand and nil, respectively.





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.


10




**6.**
            **Fair
                Value of Financial
                Instruments**  As
      of
      September 30, 2007 and December 31, 2006, the carrying values of cash and cash
      equivalents and salvage fund approximate fair value.





**7.**
            **Commitments
                and
                Contingencies**


***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. The Manager 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 September 30, 2007 and December
      31, 2006, 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.





On
      May
      22, 2006, the Fund reported a claim to its insurance carrier for costs related
      to insured damages to the West Cameron 78/95 project.  During the
      fourth quarter 2006, the Fund recorded $2.5 million for insurance recovery
      receivable related to the project.  On an ongoing basis, management
      reviews the collectibility of this insurance receivable.  During the
      second quarter 2007, the Fund, based upon discussions with its insurance carrier
      and currently known facts, revised its recovery receivable estimate for the
      project from $2.5 million to $1.4 million.  During the fourth quarter
      of 2007, the Fund reached a final settlement with its insurance carrier in
      the amount of $1.5 million resulting in a reduction of the receivable and a
      casualty gain of $0.1 million for the three months ended September 30, 2007
      and a total casualty loss of $1.0 million for the nine months ended September
      30, 2007.  Payment is expected during the fourth quarter of 2007. The
      Fund records receivables for insured losses when the expected insurance proceeds
      are probable and reasonably estimable based upon assumptions and estimates
      derived from currently known facts.





**8.**
            **Subsequent
                Events**


On
      October 15, 2007, the Fund was informed by its operator LLOG
      Exploration Company (“LLOG”), that the exploratory well being drilled by
      LLOG in the Ship Shoal 81 lease block did not have commercially productive
      quantities of either oil or natural gas and has therefore been deemed an
      unsuccessful well or dry hole.  The Fund owns a 7.5% working interest in
      Ship Shoal 81.





As a result of this dry
      hole, the Fund concluded a material charge for
      impairment of its working interest in the lease block was required. In
      addition, the well will be plugged and abandoned.  The abandonment and
      impairment resulted in charges of approximately $0.2 million in the third
      quarter of 2007 and there will be an additional charge in the fourth quarter
      of
      2007 of approximately $0.3 million.  The Fund does not expect
      this dry hole to result in or require any further significant cash
      expenditures.


11


I**tem
      2.  Management’s Discussion and Analysis of Financial Condition and Results
      of Operations**





**Cautionary
      Statement Regarding Forward-Looking Statements**





This
      Quarterly Report on Form 10-Q, including all documents incorporated by
      reference, includes "forward-looking" statements within the meaning of Section
      27A of the Securities Act of 1933, as amended (the "Securities Act") and Section
      21E of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) and
      the Private Securities Litigation Reform Act of 1995, and the "safe harbor"
      provisions thereof. These forward-looking statements are usually accompanied
      by
      the words "anticipates," "believes," "plan," "seek," "expects," "intends,"
      "estimates," "projects," "will likely result," "future" and similar terms and
      expressions or variations thereof.  The forward-looking statements in
      this Quarterly Report on Form 10-Q reflect Ridgewood Energy L Fund, LLC’s (the
“Fund”) current views with respect to future events and financial
      performance.  These forward-looking statements are subject to certain
      risks and uncertainties, including, among other things, the high-risk nature
      of
      oil and natural gas exploratory operations, the fact that the Fund’s drilling
      activities are managed by third parties, the volatility of natural gas prices
      and extraction, and those other risks and uncertainties discussed in the Fund’s
      2006 Annual Report on Form 10-K filed with the Securities and Exchange
      Commission that could cause actual results to differ materially from historical
      results or those anticipated.  Readers are urged to carefully consider
      all such factors.





In
      light
      of these risks and uncertainties, there can be no assurance that the
      forward-looking information contained in this Quarterly Report on Form 10-Q
      will
      in fact occur or prove to be accurate.  Readers should not place undue
      reliance on the forward-looking statements contained herein, which speak only
      as
      of the date of this filing.  The Fund undertakes no obligation to
      publicly revise these forward-looking statements to reflect events or
      circumstances that may arise after the date of this filing.  All
      subsequent written or oral forward-looking statements attributable to the Fund
      or persons acting on its behalf are expressly qualified in their entirety by
      this section.





**Critical
      Accounting Policies and Estimates**





The
      following discussion and analysis of the Fund’s financial condition and
      operating results is based on its financial statements.  The
      preparation of this Quarterly Report on Form 10-Q 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
      our
      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 on Form 10-Q 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 2006 Annual
      Report on Form 10-K.





**Overview
      of the Fund’s Business**





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.





Ridgewood
      Energy Corporation (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.
      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 (“Operators”) for the management of all exploration,
      development and producing operations, as appropriate. As compensation for the
      above duties, the Manager was paid an annual management fee, payable monthly,
      for ongoing administrative and advisory duties as well as reimbursement of
      expenses.  As of September 1, 2007 the Manager has elected to forgo
      its management fee for the remainder of the life of the Fund. The Manager also
      participates in distributions.





**Business
      Update**





As
      of the
      date of this filing, the Fund has participated in the drilling of thirteen
      wells, of which three wells were producing (two are currently awaiting a
      workover) and four wells were determined to have natural gas and oil reserves
      in
      commercial quantities such that these properties are in the process of being
      completed to facilitate production.  Six of the Fund’s wells were
      deemed dry-holes and are or will be plugged and abandoned.  The Fund
      has working interests in an additional new project expected to drill over the
      next three months.





12




**Recent
      Developments**





***LLOG
      Projects***


In
      October 2006, the Fund acquired a working interest in six exploratory wells
      to
      be drilled by LLOG Exploration Company (“LLOG”) off the coast of
      Louisiana.  During the first quarter of 2007, the Fund decided not to
      participate in the Galveston 248 project with LLOG due to a change in
      economics.  On October 15, 2007, the Fund was informed by
      LLOG that the exploratory well being drilled in the Ship Shoal 81 lease
      block did not have commercially productive quantities of either oil or natural
      gas and has therefore been deemed an unsuccessful well or dry hole.  The
      Fund owns a 7.5% working interest in Ship Shoal 81.





As a result of this dry
      hole, the Fund concluded a material charge for
      impairment of its working interest in the lease block was required. In
      addition, the well will be plugged and abandoned.  The abandonment and
      impairment resulted in charges of approximately $0.2 million in the third
      quarter of 2007 and there will be an additional charge in the fourth quarter
      of
      2007 of approximately $0.3 million.  The Fund does not
      expect this dry hole to result in or require any further significant cash
      expenditures.





Each
      of
      the projects is viewed as lower risk projects as they are being drilled in
      relatively shallow depths ranging from 10,000 to 13,000 feet and the projects
      reveal three dimensional seismic data indicative of producing fields in close
      proximity to the drilling sites.   Since the projects are not
      very deep, they can be drilled and completed quickly.  Construction of
      minimal facilities in order to tie the well to nearby production platforms
      also
      facilitates turning the project to production
      quickly.    During the first nine months of 2007, three of
      the projects operated by LLOG were determined to have successful discoveries.
      The Fund plans to participate in the remaining LLOG project with drilling
      expected within the next three months.  Below is a summary of the
      wells operated by LLOG:





**Well
                Name**
            **Offshore**
            **Working
                Interest %**
            **Drilling
                Risk (in thousands)**
            **Status**South
                Marsh Island 111
            LA
            7.50%
            n/a
            Successful
                - production expected 2nd quarter 2008Vermilion
                344
            LA
            7.50%
            n/a
            Successful
                - production expected 1st quarter 2008West
                Delta 68
            LA
            7.50%
            n/a
            Successful
                - production expected1st quarter 2008Ship
                Shoal 81
            LA
            7.50%
            n/a
            Dry
                Hole - October 2007West
                Delta 67
            LA
            7.50%
            $                   600
            4th
                quarter 2007 drilling date





***Eugene Island
      337***


The
      Fund’s 13.33% ownership in Eugene Island 337, operated by Devon Energy
      Corporation (“Devon”), was determined to be a commercial success in July 2006
      has been completed.  When the well began producing in November 2007,
      the production flow rate was lower than originally expected, as such,
      internal engineering estimates of the proved reserves were
      prepared.  Based upon these internal reserve estimates, the carrying
      value of the asset was in excess of the future discounted cash flows and an
      impairment was recorded at September 30, 2007 in the amount of $2.0 million
      based upon futures pricing at September 30, 2007. Natural gas and oil reserve
      quantities used to calculated impairment represent internal estimates
      only.  Under successful efforts accounting, reserve estimates are
      used to calculate cash flows as well as depletion
      rates.  Proved reserves and future net cash flows are estimated using
      sales prices estimated to be in effect as of the date of the reserve
      estimate calculation.  Oil and natural gas prices, which have
      fluctuated widely in recent years, affect the future revenues. Any
      estimates of natural gas and oil reserves and their values are inherently
      uncertain, including many factors beyond the Fund’s control.





13




Reservoir
      engineering is a subjective process of estimating underground accumulations
      of
      natural gas and oil that cannot be measured in an exact manner. The reserve
      estimates are based upon the quality of available data and engineering and
      geological interpretation and judgment.  Revisions to estimated
      reserves may result from actual production, results of future development and
      exploration activities, prevailing oil and natural gas prices, operating costs
      and other factors.  Revisions to estimated reserves could have a
      material affect on balances recorded as proved properties. In accordance with
      Statement of Financial Accounting Standards No. 144 “Accounting for the
      Impairment of Long-Lived Assets” (“SFAS 144”), the Fund recorded the impairment
      loss based upon the current reserve estimates.





***West
      Cameron 78/95 Dry Hole***


The
      Fund
      acquired a 20% working interest from the Operator, El Paso Production Company
      (“El Paso”).  The well began drilling on April 21,
      2006.  Drilling went according to plan until the well reached a depth
      of 10,781 feet on May 17, 2006 when the drill string became
      stuck.  The smaller drill pipe was recovered and the well was
      sidetracked (re-drilled) at a depth of 4,880 feet.  Drilling continued
      to 14,500 feet at which point the well was determined to be a
      dry-hole.  On July 6, 2006 the decision was made to plug and abandon
      the well.  Dry-hole costs including plug and abandonment expenses
      incurred by the Fund for the year ended December 31, 2006, totaled $2.9 million,
      net of insurance recovery amounts.  An insurance recovery receivable
      of $1.5 million is recorded at September 30, 2007, which is approximately $1.0
      million less than the Fund’s previous recorded receivable of $2.5 million at
      December 31, 2006.  The Fund records receivables for insured losses
      when the expected insurance proceeds are probable and reasonably estimable
      based
      upon assumptions and estimates derived from currently known facts.





**Producing
      Properties**





***Main Pass
      275***


In
      late
      2006 the Fund acquired a 10% interest in the Main Pass 275 project that was
      drilled by Newfield, Inc. (“Newfield”) from an existing production
      platform.  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 completed in March
      2007.  Due to the existing production platform, gas processing
      equipment and pipeline the well was put on production in late April
      2007.  Since it began producing, the Fund generated revenue
      approximating $0.5 million on approximately 47 thousand MCF of natural gas
      and
      1,966 barrels of oil.





***South
      Timbalier 77***


In
      2004,
      the Fund acquired from Millennium Offshore Group (“MOGI”) a 20% working interest
      in the South Timbalier 77 (“ST77”) field of which two wells were drilled and now
      operated by ATP Oil and Gas Corporation (“ATP”).  In the nine
      months of 2007, the #4 well had been the Funds’ primary producing
      well.  Production from the #4 well began to trail off at the end of
      2006.  Although production increased for the first four months of
      2007, it began to decline again in the later half of the second quarter and
      is
      currently offline pending a workover.  The operator, ATP, believes
      that the cause for the decline in production is due to a build-up of minerals
      on
      the walls of the production tubing that is preventing the flow of
      gas.





ST77
      well
      #5 is currently off production after depleting the first two intermediate depth
      reservoirs at 13,000 feet.  Well #5 will need to be recompleted in
      order to extract the remaining reserves in the reservoirs. Although
      budgeted costs have not been received from the Operator through the date of
      this
      filing, the Fund estimated approximately $0.4 million of capital
      expenditures will be required during the next twelve months.





As
      of
      September 30, 2007 total unamortized costs related to the ST77 project are
      approximately $0.2 million.  The Fund anticipates to fully recover
      these costs based upon current reserve estimates and prevailing market
      prices.





**Results
      of Operations**





The
      following review of operations for the three and nine months ended September
      30,
      2007 and 2006 should be read in conjunction with the Fund’s financial statements
      and the notes thereto.  The following table summarizes the Fund’s
      results of operations (in thousands):




14





**For
                  the three months ended September 30,**
              
              
              **For
                  the nine months ended September 30,****2007**
              
              
              **2006**
              
              
              **2007**
              
              
              **2006****Revenue**Oil
                  and gas revenue
              
              $
              366
              
              
              $
              820
              
              
              $
              1,653
              
              
              $
              5,209**Expenses**Dry-hole
                  costs
              
              
              292
              
              
              
              236
              
              
              
              300
              
              
              
              7,088Depletion
                  and amortization
              
              
              213
              
              
              
              476
              
              
              
              464
              
              
              
              4,173Impairment
                  of proved property
              
              
              1,961
              
              
              
              -
              
              
              
              1,961
              
              
              
              -Casualty
                  (gain) loss
              
              
              (111
              )
              
              
              -
              
              
              
              1,023
              
              
              
              -Lease
                  operating expenses
              
              
              58
              
              
              
              128
              
              
              
              322
              
              
              
              433Management
                  fees to affiliate
              
              
              151
              
              
              
              287
              
              
              
              613
              
              
              
              930Other
                  operating expenses
              
              
              7
              
              
              
              4
              
              
              
              31
              
              
              
              11General
                  and administrative expenses
              
              
              82
              
              
              
              89
              
              
              
              339
              
              
              
              190Total
                  expenses
              
              
              2,653
              
              
              
              1,220
              
              
              
              5,053
              
              
              
              12,825Loss
                  from operations
              
              
              (2,287
              )
              
              
              (400
              )
              
              
              (3,400
              )
              
              
              (7,616
              )**Other
                  Income**Interest
                  income
              
              
              119
              
              
              
              234
              
              
              
              401
              
              
              
              680**Net
                  loss**
              
              $
              (2,168
              )
              
              $
              (166
              )
              
              $
              (2,999
              )
              
              $
              (6,936
              )





***Operating
      Revenues.*******Oil and gas revenues for the three
      and nine months ended September 30, 2007 were approximately $0.4 million and
      $1.7 million, respectively.  Oil and gas revenues for the three and
      nine months ended September 30, 2006 were approximately $0.8 million and $5.2
      million, respectively.  The decrease in oil and gas revenues is due to
      a decline in the production from the ST77 #4 well.  The ST77 #5 well
      had minimal production during the first quarter of 2007 and in March 2007 ceased
      production completely.  ST77 well #5 will be brought back on
      production once it is recompleted into the third intermediate
      reservoir.  Declining production volumes for the ST77 wells were
      partially offset by the start-up of production for the Main Pass 275 well and
      higher gas prices.





Natural
      gas prices decreased during the third quarter of 2007 as compared to the third
      quarter of 2006, from approximately $6.93 per MCF to $6.30 per
      MCF.  Oil prices during the third quarter of 2007 averaged
      approximately $75.59 per barrel as compared to $70.62 per barrel for the
      third quarter of 2006.





**Operating
      and Other Expenses**





***Dry-hole******C******osts.*******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.





**For
                  the three months ended September 30,**
              
              
              **For
                  the nine months ended September 30,****Lease
                  Block**
              
              **2007**
              
              
              **2006**
              
              
              **2007**
              
              
              **2006****(in
                  thousands)**West
                  Cameron 103
              
              $
              -
              
              
              $
              -
              
              
              $
              -
              
              
              $
              4Main
                  Pass 155
              
              
              -
              
              
              
              -
              
              
              
              (11
              )
              
              
              11East
                  Cameron 48
              
              
              -
              
              
              
              60
              
              
              
              -
              
              
              
              89East
                  Breaks 157
              
              
              -
              
              
              
              (5
              )
              
              
              8
              
              
              
              1,788Ship
                  Shoal 81
              
              
              225
              
              
              
              -
              
              
              
              225
              
              
              
              -West
                  Cameron 78/95
              
              
              67
              
              
              
              181
              
              
              
              78
              
              
              
              5,196$
              292
              
              
              $
              236
              
              
              $
              300
              
              
              $
              7,088





***Depletion
      and Amortization.***  Depletion and amortization for the
      three and nine months ended September 30, 2007 was approximately $0.2 million
      and $0.5 million respectively.  Depletion and amortization for the
      three and nine months ended September 30, 2006 were approximately $0.5 million
      and $4.2 million respectively.  This decrease is the result of
      decreased production volumes for the ST77 wells in 2007 compared to 2006,
      partially offset by the commencement of depletion on the Main Pass 275
      well.




15




***Impairment
      of Proved Property***Impairment of proved properties for
      the three and nine months ended September 30, 2007 was $2.0 million relating
      to
      the Fund’s investment in the Eugene Island 337 lease block.  There
      were no impairments in the 2006 comparative periods.  Natural gas and
      oil reserve quantities used to calculated impairment represent internal
      estimates only.  Under successful efforts accounting, reserve
      estimates are used to calculate cash flows as well as depletion
      rates.  Proved reserves and future net cash flows are estimated using
      sales prices estimated to be in effect as of the date of the reserve
      estimate calculation.  Oil and natural gas prices, which have
      fluctuated widely in recent years, affect the future revenues. Any
      estimates of natural gas and oil reserves and their values are inherently
      uncertain, including many factors beyond the Fund’s control.





Reservoir
      engineering is a subjective process of estimating underground accumulations
      of
      natural gas and oil that cannot be measured in an exact manner. The reserve
      estimates are based upon the quality of available data and engineering and
      geological interpretation and judgment.  Revisions to estimated
      reserves may result from actual production, results of future development and
      exploration activities, prevailing oil and natural gas prices, operating costs
      and other factors.  Revisions to estimated reserves could have a
      material affect on balances recorded as proved properties. In accordance with
      SFAS 144, the Fund recorded impairment loss based upon the current reserve
      estimates.





***Casualty
      Loss.***For the three and nine months ended September 30,
      2007 the Fund recorded a casualty gain of $0.1 million and loss of $1.0 million,
      respectively, related to the West Cameron 78/95 insurance
      claim.  Based on prior discussions with its insurance carriers, the
      Fund had reduced its estimates related to the recoverability of certain of
      its
      costs associated with this claim.  To date, the Fund has recorded a
      total casualty loss of $1.2 million related to its portion of the deductible
      for
      casualty losses associated with West Cameron 78/95, as well as a revision to
      its
      estimate of recoverable costs.  The Fund incurred recovery expenses of
      $2.7 million for West Cameron 78/95, of which the Fund expects to recover $1.5
      million from its insurance carrier in the fourth quarter of 2007.





***Lease
      Operating Expenses.***  Lease operating expenses represent
      the day to day cost of operating and maintaining wells and related facilities.
      For the three and nine months ended September 30, 2007, lease operating expenses
      were approximately $0.1 million and $0.3 million, respectively.  For
      the three and nine months ended September 30, 2006 lease operating expenses
      were
      approximately $0.1 million and $0.4 million, respectively.





***Management
      Fee*****.**The Manager originally received
      an annual management fee, payable monthly, of 2.5% of total capital
      contributions.  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.  Effective September 1, 2006, the
      Manager changed its policy regarding the annual management fee whereby the
      management fee was be equal to 2.5% of the total shareholder capital
      contributions, net of cumulative dry-hole costs incurred by the
      Fund.  On September 1, 2007, the Manager has elected cease collecting
      their management fee for the remained of the life of the
      Fund.  Management fees for the three and nine months ended September
      30, 2007 were approximately $0.2 million and $0.6 million,
      respectively.  Management fees for the three and nine months ended
      September 30, 2006 were approximately $0.3 million and $0.9 million,
      respectively.





***General
      and Administrative Expenses.***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 and production
      insurance.  The directors and officers’ liability policy 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
      significant increase in insurance expense for the nine months ended September
      30, 2007 as compared to the same period in 2006 is a result of increased
      drilling activities of the Fund primarily related to Main Pass 275 and the
      LLOG
      projects.  There was a slight decrease in the insurance expense for
      the three months ended September 30, 2007, as compared to the prior year’s
      period as a result of the timing of drilling activities.





16




The
      following table summarizes general and administrative expenses.




**For
                the three months ended September 30,**
            
            
            **For
                the nine months ended September 30,****2007**
            
            
            **2006**
            
            
            **2007**
            
            
            **2006****(in
                thousands)**Accounting
                and legal fees
            
            $
            37
            
            
            $
            34
            
            
            $
            135
            
            
            $
            119Insurance
            
            
            42
            
            
            
            54
            
            
            
            199
            
            
            
            68Other
                general and administrative expenses
            
            
            3
            
            
            
            1
            
            
            
            5
            
            
            
            3$
            82
            
            
            $
            89
            
            
            $
            339
            
            
            $
            190





***Interest
      Income.***  Interest income for the three and nine months
      ended September 30, 2007 was approximately $0.1 million and $0.4 million,
      respectively.  Interest income for the three and nine months ended
      September 30, 2006 was approximately $0.2 million and $0.7 million,
      respectively.  Declining cash balances in 2007 offset by increased
      interest rates resulted in a decrease in interest income for the three and
      nine
      months ended September 30, 2007.





**Capital
      Resources and Liquidity**





***Operating
      Cash Flows***


Cash
      flows provided by operating activities for the nine months ended September
      30,
      2007 and 2006 were approximately $0.9 million and $9.8 million,
      respectively.  The nine months ended September 30, 2007 primarily
      related to production revenue received of $1.7 million, interest income of
      $0.4
      million and favorable working capital of $0.1 million, offset by management
      fees
      of $0.6 million, lease and other operating expenses of $0.4 million and general
      and administrative expenses of $0.3 million.  For the nine months
      ended September 30, 2006, cash revenue was approximately $10.6 million and
      interest income was $0.7 million, both of which were partially offset by
      management fees of $1.0 million and operating and general and administrative
      fees of $0.6 million.  The significant decrease in 2007 operating cash
      flows is primarily the result of lower production volumes causing a decrease
      in
      revenue receipts.





***Investing
      Cash Flows***


Cash
      flows used in investing activities for the nine months ended September 30,
      2007
      and 2006 were approximately $5.2 million and $8.9 million, respectively,
      primarily related to capital expenditures for oil and gas properties. Investing
      activities relate to the actual purchase of wells, infrastructure and other
      capital items unrelated to operating activities occurring after a well has
      begun
      producing.





***Financing
      Cash Flows***


Cash
      flows used in financing activities for the nine months ended September 30,
      2007
      and 2006 were approximately $1.2 million and $8.1 million, respectively, related
      to distributions to shareholders and the Manager.  The significant
      decrease in distributions is directly related to the decrease in production
      of
      the ST77 wells.





**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 September 30,
      2007, such estimated capital expenditures approximate $5.4 million, all of
      which
      is expected to be paid out of unspent cash within the following 12
      months.





The
      table
      below presents exploration and development capital expenditures incurred to
      date
      for projects currently drilling or expected to be drilled in the near future
      as
      well as their estimated budgeted amounts for the next twelve
      months.  Remaining unspent cash will be reallocated to one or more new
      unspecified projects.




17





**Lease
                Block**
            
            **Spent
                through September 30, 2007**
            
            
            **To
                be Spent Next 12 Months****(in
                thousands)**Eugene
                Island 337 (i)
            
            $
            3,985
            
            
            $
            875Ship
                Shoal 81(ii)
            
            
            456
            
            
            
            43South
                Marsh Island 111 (v)
            
            
            711
            
            
            
            1,704Vermilion
                344 (iv)
            
            
            647
            
            
            
            990West
                Delta 67 (iii)
            
            
            23
            
            
            
            1,072West
                Delta 68 (iv)
            
            
            845
            
            
            
            288South
                Timbalier 77 Recompletion
            
            
            -
            
            
            
            380$
            6,667
            
            
            $
            5,352





(i)
            
            Project
                successful, production expected 4th quarter of 2007.(ii)
            
            Dry
                hole, October 2007. Amounts spent through September 30, 2007
                inclusive of $0.2 million advance to Operator, included in other
                current
                assets.(iii)
            
            Drilling
                expected 4th quarter 2007.(iv)
            
            Project
                successful, production expected in 1st quarter 2008.(v)
            
            Project
                successful, production expected in 2nd quarter 2008.





**Liquidity
      Needs**





The
      Fund’s primary short-term liquidity needs are to fund its 2007 operations,
      including management fees and capital expenditures, with existing cash on-hand
      and income earned from its short-term investments and cash and cash
      equivalents.  The Manager is entitled to receive an annual management
      fee from the Fund regardless of whether the Fund is profitable in that year.
      Effective September 1, 2007, the Manager has elected to cease collecting their
      management fee for the remaining life of the Fund.





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 for a fund, 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 September 30, 2007 and December
      31,
      2006 and does not anticipate the use of such arrangements in the
      future.





**Contractual
      Obligations**





The
      Fund
      enters into operating agreements with Operators.  On behalf of the
      Fund, as well as the other working interest owners, the Operator will enter
      into various contractual commitments pertaining to exploration, development
      and
      production activities.  Pursuant to the terms of the operating
      agreement, the Operator has the authority to enter into such contracts and
      the
      Fund does not execute or negotiate any such contracts.  No contractual
      obligations exist at September 30, 2007 and December 31, 2006 pursuant to
      agreements executed directly by the Fund.





18




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





Projects
      drilled may not have commercially productive oil and natural gas reservoirs.
      In
      such an event, the Fund’s revenue, future results of operations and financial
      condition would be adversely impacted.





The
      Fund
      does not have or use, any derivative instruments nor does it have any plans
      to
      enter into such derivative arrangements. The Fund will generally invest cash
      in
      high-quality credit instruments consisting primarily of money market funds,
      bankers acceptance notes and government agency securities with maturities of
      six
      months or less. The Fund does not expect any material loss from cash equivalents
      and therefore believes its potential interest rate exposure is not material.
      The
      Fund has no plan to conduct any international activities and therefore believes
      it is not subject to foreign currency risk.





The
      principal market risks to which the Fund is exposed that may adversely impact
      the Fund's results of operations and financial position are changes in oil
      and
      natural gas prices.





Low
      commodity prices could have an adverse affect on the Fund’s future profitability
      and, in such an event the Fund may be required by accounting rules to write
      down
      the carrying value of the Fund’s projects.  Revenue to the Fund will
      be sensitive to changes in price to be received for oil and natural gas
      production. Prevailing market prices fluctuate in response to many factors
      that
      are outside of the Fund's control such as the supply and demand for oil and
      natural gas. Availability of alternative fuels as well as seasonal risks such
      as
      hurricanes can also impact the supply and demand.





High
      oil
      and natural gas prices have resulted in a strong demand for and a tight supply
      of drilling rigs necessary to drill new projects. The increased cost in daily
      rig rates could have a negative impact on the return to shareholders in the
      Fund. The shortage of drilling rigs could delay the application of capital
      to
      such projects and thus delay revenue from operations.





**Item
      4.  Controls and Procedures**





***Evaluation
      of Disclosure Controls and Procedures***


The
      Fund
      maintains "disclosure controls and procedures", as such term is defined under
      Securities and Exchange Act of 1934 (“Exchange Act”) Rule 13a-15(e), that
      are designed to ensure that information required to be disclosed in the Fund’s
      Exchange Act reports is recorded, processed, summarized and reported within
      the
      same time periods specified in the SEC's rules and forms, and that such
      information is accumulated and communicated to its management, including its
      Chief Executive Officer and Chief Financial Officer, as appropriate, to allow
      timely decisions regarding required disclosures. In designing and evaluating
      the
      disclosure controls and procedures, the Fund’s management recognized that any
      controls and procedures, no matter how well designed and operated, can provide
      only reasonable assurance of achieving the desired control objectives and its
      management necessarily was required to apply its judgment in evaluating the
      cost-benefit relationship of possible controls and procedures. The Fund has
      carried out an evaluation, as of September 30, 2007, under the supervision
      and
      with the participation of its management, including its Chief Executive Officer
      and Chief Financial Officer, of the effectiveness of the design and operation
      of
      the Fund’s disclosure controls and procedures.  Based upon their
      evaluation and subject to the foregoing, such procedures were
      effective.





Because
      the Fund is not an “Accelerated Filer” as defined in Rule 12b-2 of the Exchange
      Act, the Fund is not presently required to file Management’s annual report on
      internal control over financial reporting and the Attestation report of the
      registered public accounting firm required by Item 308(a) and (b) of Regulation
      S-K promulgated under the Securities Act.  Under current rules,
      because the Fund is neither a “large accelerated filer” nor an “accelerated
      filer”, the Fund is not required to provide management’s report on internal
      control over financial reporting until the Fund files its annual report for
      2007
      and compliance with the auditor’s attestation report requirement is not required
      until the Fund files its annual report for 2008.  The Fund currently
      expects to comply with these requirements at such time as the Fund is required
      to do so.





19




***Changes
      in Internal Controls over Financial Reporting***


In
      the
      course of the Fund’s initial evaluation of disclosure controls and procedures,
      management considered certain internal control areas in which the Fund has
      made
      and are continuing to make changes to improve and enhance
      controls.  Based upon that evaluation, the CEO and CFO concluded that
      there were no changes in the Fund’s internal control over financial reporting
      identified in connection with the evaluation required by paragraph (d) of
      Exchange Act Rules 13a-15 or 15d-15 that occurred during the quarter ended
      September 30, 2007 that have materially affected, or are 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**





For
      information regarding factors that could affect the Fund’s results of
      operations, financial condition and liquidity, see risk factors discussed under
      “Management’s Discussion and Analysis of Financial Condition and Results of
      Operations”  in Item 7 of the Fund’s 2006 Annual Report on Form
      10-K.  There have been no material changes from the risk factors
      previously disclosed in the Fund’s most recent Annual Report on Form
      10-K.





**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.





**Item
      6. EXHIBITS**


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.





20


**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:
            November 14,
                2007
            
            
            
            RIDGEWOOD
                ENERGY L FUND, LLCBy:
            /s/
            
            ROBERT
                E. SWANSONName:
            
            Robert
                E. SwansonTitle:
            
            President
                and Chief Executive Officer(Principal
                Executive Officer)Dated:
            November 14,
                2007By:
            /s/
            
            KATHLEEN
                P. MCSHERRYName:
            
            Kathleen
                P. McSherryTitle:
            
            Executive
                Vice President and Chief Financial Officer(Principal
                Financial and Accounting Officer)




21