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 March 31, 2011
 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 No. 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.)
 
 14 Philips Parkway, Montvale, NJ 07645
 (Address of principal executive offices) (Zip code)
 
 (800) 942-5550
 (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  xNo  o
 
 Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No  o
 
 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
 
 Large accelerated filer
o
Accelerated filer
oNon-accelerated filer

(Do not check if a smaller reporting company)
o
Smaller reporting company
x
 
 Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  o  No  x
 
 As of May 5, 2011 the Fund had 350.1081 shares of LLC Membership Interest outstanding.
 
 
 
 Table of Contents
 
 PAGEPART I - FINANCIAL INFORMATIONItem 1.
Financial Statements
1Unaudited Condensed Balance Sheets as of March 31, 2011 and December 31, 2010
1Unaudited Condensed Statements of Operations for the three months ended

March 31, 2011 and 2010
2Unaudited Condensed Statements of Cash Flows for the three months ended

March 31, 2011 and 2010
3Notes to Unaudited Condensed Financial Statements
4Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
9Item 3.
Quantitative and Qualitative Disclosures About Market Risk
13Item 4.
Controls and Procedures
13PART II - OTHER INFORMATIONItem 1.
Legal Proceedings
13Item 1A.
Risk Factors
13Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
13Item 3.
Defaults Upon Senior Securities
13Item 4.
(Removed and Reserved)
13Item 5.
Other Information
13Item 6.
Exhibits
14SIGNATURES
14
  Table of Contents
  PART I – FINANCIAL INFORMATION
 
 ITEM 1. FINANCIAL STATEMENTS
 
 RIDGEWOOD ENERGY L FUND, LLC
 UNAUDITED CONDENSED BALANCE SHEETS
 (in thousands, except share data)
 
 March 31,


December 31,2011


2010ASSETSCurrent assets:Cash and cash equivalents

$
591


$
590Production receivable


147



178Other current assets


51



24Total current assets


789



792Salvage fund


1,156



1,149Oil and gas properties:Advances to operators for working interests and expenditures


-



134Proved properties


9,371



9,249Less: accumulated depletion and amortization


(5,039
)


(4,856
)Total oil and gas properties, net


4,332



4,527Total assets

$
6,277


$
6,468LIABILITIES AND MEMBERS' CAPITALCurrent liabilities:Due to operators

$
93


$
128Asset retirement obligations


357



304Accrued expenses


58



70Total current liabilities


508



502Asset retirement obligations


462



515Total liabilities


970



1,017Commitments and contingencies (Note 8)Members' capital:Manager:Distributions


(2,453
)


(2,453
)Retained earnings


1,756



1,697Manager's total


(697
)


(756
)Shareholders:Capital contributions (670 shares authorized;

350.1081 issued and outstanding)


51,401



51,401Syndication costs


(5,502
)


(5,502
)Distributions


(14,638
)


(14,235
)Accumulated deficit


(25,257
)


(25,457
)Shareholders' total


6,004



6,207Total members' capital


5,307



5,451Total liabilities and members' capital

$
6,277


$
6,468
  The accompanying notes are an integral part of these unaudited condensed financial statements.
  1
 Table of Contents
  RIDGEWOOD ENERGY L FUND, LLC
 UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
 (in thousands, except per share data)
  Three months ended March 31,2011


2010RevenueOil and gas revenue

$
480


$
408ExpensesDepletion and amortization


183



193Dry-hole costs


(29
)


-Operating expenses


29



73General and administrative expenses


45



61Total expenses


228



327Income from operations


252



81Interest income


7



7Net income

$
259


$
88Manager InterestNet income

$
59


$
39Shareholder InterestNet income

$
200


$
49Net income per share

$
571


$
140
  The accompanying notes are an integral part of these unaudited condensed financial statements.
 
 2
 Table of Contents
  RIDGEWOOD ENERGY L FUND, LLC
 UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
 (in thousands)
 
 
 Three months ended March 31,2011


2010Cash flows from operating activitiesNet income

$
259


$
88Adjustments to reconcile net income to net

cash provided by operating activities:Depletion and amortization


183



193Dry-hole costs


(29
)


-Changes in assets and liabilities:Decrease in production receivable


31



27Decrease in other current assets


11



12(Decrease) increase in due to operators


(30
)


93(Decrease) increase in accrued expenses


(12
)


9Settlement of asset retirement obligations


-



(95
)Net cash provided by operating activities


413



327Cash flows from investing activitiesCapital expenditures for oil and gas properties


(2
)


(21
)Interest reinvested in salvage fund


(7
)


(7
)Net cash used in investing activities


(9
)


(28
)Cash flows from financing activitiesDistributions


(403
)


(274
)Net cash used in financing activities


(403
)


(274
)Net increase in cash and cash equivalents


1



25Cash and cash equivalents, beginning of period


590



1,947Cash and cash equivalents, end of period

$
591


$
1,972Supplemental schedule of non-cash investing activitiesAdvances used for capital expenditures in oil and gas properties 
reclassified to proved properties

$
134


$
-
 The accompanying notes are an integral part of these unaudited condensed financial statements.
  3
 Table of Contents
  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 (the “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 interests in oil and gas properties located in the United States offshore waters of Texas, Louisiana and Alabama in the Gulf of Mexico.
  The Manager has direct and exclusive control over the management of the Fund’s operations.  With respect to project investments, the Manager locates potential projects, conducts due diligence and negotiates and completes the transactions in which the investments are made.  The Manager performs, or arranges for the performance of, the management, advisory and administrative services required for Fund operations. Such services include, without limitation, the administration of shareholder accounts, shareholder relations and the preparation, review and dissemination of tax and other financial information.  In addition, the Manager provides office space, equipment and facilities and other services necessary for Fund operations.  The Manager also engages and manages the contractual relations with unaffiliated custodians, depositories, accountants, attorneys, broker-dealers, corporate fiduciaries, insurers, banks and others as required.  See Notes 2, 6 and 8.
  2.
Summary of Significant Accounting Policies
 
 Basis of Presentation
 These unaudited interim condensed financial statements have been prepared by the Fund’s management in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in the opinion of management, contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the Fund’s financial position, results of operations and cash flows for the periods presented.  Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted in these unaudited interim condensed financial statements.  The results of operations, financial position, and cash flows for the periods presented herein are not necessarily indicative of future financial results.  These unaudited interim condensed financial statements should be read in conjunction with the Fund’s December 31, 2010 financial statements and notes thereto included in the Fund’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”).  The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP.
 
 Use of Estimates
 The preparation of financial statements in accordance 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 revenue and expense during the reporting period. On an ongoing basis, the Manager reviews its estimates, including those related to property balances, determination of proved reserves, impairments and asset retirement obligations.  Actual results may differ from those estimates.
  Cash and Cash Equivalents
 All highly liquid investments with maturities, when purchased, of three months or less are considered cash and cash equivalents. At times, deposits may be in excess of federally insured limits, which are $250 thousand per insured financial institution.  At March 31, 2011, the Fund’s bank balances exceeded federally insured limits by $0.4 million, of which $0.1 million was invested in money market accounts that invest solely in U.S. Treasury bills and notes.
 
 Salvage Fund
 The Fund deposits in a separate interest-bearing account, or salvage fund, money to provide for the dismantling and removal of production platforms and facilities and plugging and abandoning its wells at the end of their useful lives, in accordance with applicable federal and state laws and regulations.  At March 31, 2011, the Fund had investments in U.S. Treasury securities within its salvage fund that are classified as held-to-maturity of $1.1 million, which mature in February 2012.  Held-to-maturity investments are those securities that the Fund has the ability and intent to hold until maturity, and are recorded at cost plus accrued income, adjusted for the amortization of premiums and discounts, which approximates fair value.  For all investments, interest income is accrued as earned and amortization of premium or discount, if any, is included in interest income. Interest earned on the account will become part of the salvage fund.  There are no restrictions on withdrawals from the salvage fund.
  4
 Table of Contents
  Oil and Gas Properties
 The Fund invests in oil and gas properties, which are operated by unaffiliated entities that 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 is billed by operators.
  The successful efforts method of accounting for oil and gas producing activities is followed.  Acquisition costs are capitalized when incurred.  Other oil and 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 as dry-hole costs.  Costs to develop proved reserves, including the costs of all development wells and related facilities and equipment used in the production of oil and gas, are capitalized.  Expenditures for ongoing repairs and maintenance of producing properties are expensed as incurred.
  Upon the sale or retirement of a proved property, the cost and related accumulated depletion and amortization will be eliminated from the property accounts, and the resultant gain or loss is recognized. Upon the sale or retirement of an unproved property, gain or loss on the sale is recognized.
  Capitalized acquisition costs of producing oil and gas properties are depleted by the units-of-production method.
  At March 31, 2011 and December 31, 2010 amounts recorded in due to operators totaling $0.1 million related to capital expenditures for oil and gas properties.
  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 rights, title and interest.  The Fund may be 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 reclassified to unproved or proved properties.
  Asset Retirement Obligations
 For oil and 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 incurred.  Plug and abandonment costs associated with unsuccessful projects are expensed as dry-hole costs.  As indicated above, the Fund maintains a salvage fund to provide for the funding of future asset retirement obligations.
 
 Syndication Costs
 Syndication costs are direct costs incurred by the Fund in connection with the offering of the Fund’s shares, including professional fees, selling expenses and administrative costs payable to the Manager, an affiliate of the Manager and unaffiliated broker-dealers, which are reflected on the Fund’s balance sheet as a reduction of shareholders’ capital.
  Revenue Recognition and Imbalances
 Oil and gas revenues are recognized when oil and gas is sold to a purchaser at a fixed or determinable price, when delivery has occurred and title has transferred, and if collectibility of the revenue is probable.  The Fund uses the sales method of accounting for gas production imbalances. The volumes of gas sold may differ from the volumes to which the Fund is entitled based on its interests in the properties. These differences create imbalances that are recognized as a liability only when the properties’ estimated remaining reserves net to the Fund will not be sufficient to enable the underproduced owner to recoup its entitled share through production. The Fund’s recorded liability, if any, would be reflected in other liabilities. No receivables are recorded for those wells where the Fund has taken less than its share of production.
  5
 Table of Contents
  Impairment of Long-Lived Assets
 The Fund reviews the value of its oil and gas properties whenever management determines that events and circumstances indicate that the recorded carrying value of properties may not be recoverable.  Impairments of producing properties are determined by comparing future net undiscounted cash flows to the net book value at the time of the review.  If the net book value exceeds the future net undiscounted cash flows, the carrying value of the property is written down to fair value, which is determined using net discounted future cash flows from the producing property.  The Fund provides for impairments on unproved properties when it determines that the property will not be developed or a permanent impairment in value has occurred.  The fair value determinations require considerable judgment and are sensitive to change.  Different pricing assumptions, reserve estimates or discount rates could result in a different calculated impairment.  Given the volatility of oil and natural gas prices, it is reasonably possible that the Fund’s estimate of discounted future net cash flows from proved oil and natural gas reserves could change in the near term.  If oil and natural gas prices decline significantly, even if only for a short period of time, it is possible that write-downs of oil and gas properties could occur.
 
 Depletion and Amortization
 Depletion and amortization of the cost of proved oil and gas properties are calculated using the units-of-production method.  Proved developed reserves are used as the base for depleting capitalized costs associated with successful exploratory well 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 company, 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, trust fees, depletion and amortization, which are allocated 99% to shareholders and 1% to the Manager.
 
 3.
Recent Accounting Standards
 
 In January 2010, the Financial Accounting Standards Board (“FASB”) issued guidance on improving disclosures about fair value measurements.  This guidance has new requirements for disclosures related to recurring or nonrecurring fair-value measurements including significant transfers into and out of Level 1 and Level 2 fair-value measurements and information on purchases, sales, issuances, and settlements in a rollforward reconciliation of Level 3 fair-value measurements. This guidance was effective beginning January 1, 2010.  The Level 3 reconciliation disclosures are effective for fiscal years beginning after December 15, 2010, which will be effective for the Fund’s financial statements for the year ending December 31, 2011. The adoption of the guidance is not expected to have a material impact.
 
 4.
Oil and Gas Properties
 
 Capitalized exploratory well 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.  At times, the Fund receives credits on certain wells from their respective operators upon review and audit of the wells’ costs.  The Fund recorded credits to dry-hole costs of $29 thousand for the three months ended March 31, 2011.  The Fund had no dry-hole costs for the three months ended March 31, 2010.
 
 5.
Distributions
 
 Distributions to shareholders are allocated in proportion to the number of shares held.  The Manager determines whether available cash from operations, as defined in the LLC Agreement, will be distributed.  Such distributions are allocated 85% to the shareholders and 15% to the Manager, as required by the LLC Agreement. Effective October 2010, the Manager elected to waive its right to distributions of available cash from operations for the remaining life of the Fund.
  6
 Table of Contents
  Available cash from dispositions, as defined in the LLC Agreement, will be paid 99% to shareholders and 1% to the Manager until the shareholders have received total distributions equal to their capital contributions. After shareholders have received distributions equal to their capital contributions, 85% of available cash from dispositions will be distributed to shareholders and 15% to the Manager.
 
 6.
Related Parties
 
 In accordance with the LLC Agreement, the Manager is entitled to an annual management fee, equal to 2.5% of the total shareholder capital.  During 2007, the Manager waived its management fee for the remaining life of the Fund.  Upon the waiver of the management fee, the Fund began recording costs relating to services provided by the Manager for accounting and investor relations.  Such costs totaled $10 thousand and $20 thousand for the three months ended March 31, 2011 and 2010, respectively, which were included in general and administrative expenses.
 
 The Manager is entitled to receive a 15% interest in cash distributions made by the Fund.  Effective October 2010, the Manager elected to waive its right to distributions of available cash from operations for the remaining life of the Fund.  Distributions paid to the Manager for the three months ended March 31, 2010 were $41 thousand.
 
 At times, short-term payables and receivables, which do not bear interest, arise from transactions with affiliates in the ordinary course of business.
 
 None of the compensation paid to the Manager has been derived as a result of arm’s length negotiations.
 
 The Fund has working interest ownership in certain projects to acquire and develop oil and natural gas projects with other entities that are likewise managed by the Manager.
 
 7.
Fair Value Measurements
 
 At March 31, 2011 and December 31, 2010, cash and cash equivalents, production receivable, salvage fund and accrued expenses approximate fair value.
 
 8.
Commitments and Contingencies
 
 Capital Commitments
 The Fund has entered into multiple agreements for the drilling and development of its investment properties. The estimated capital expenditures associated with these agreements vary depending on the stage of development on a property-by-property basis.The Fund has reached the end of its investment cycle.  At March 31, 2011, the Fund has commitments of $0.4 million that exceed its current available working capital by $0.1 million.  Based upon its current reserve estimates, the Fund expects cash flow from operations to be sufficient to cover these deficiencies, as well as ongoing operations.  Reserve estimates are projections based on engineering data that cannot be measured with precision, require substantial judgment, and are subject to frequent revision.  In the event of a temporary production stoppage, causing the Fund’s wells to not produce cash flow from operations, the Fund may borrow from the Manager until such time that production is resumed.  At such time the Manager determines that the Fund is no longer capable of continuing to fund its operations, the Manager would elect to dissolve the Fund.
  7
 Table of Contents
  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 operators of the Fund’s properties 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 gas industry.  However, due to the significant public and governmental interest in environmental matters related to those activities, the Manager cannot predict the effects of possible future legislation, rule changes, or governmental or private claims.  At March 31, 2011 and December 31, 2010, there were no known environmental contingencies that required the Fund to record a liability.
 
 In response to the April 2010 oil spill in the Gulf of Mexico, the United States Congress is considering a number of legislative proposals relating to the upstream oil and gas industry both onshore and offshore.  Such proposals could result in significant additional laws or regulations governing the Fund’s operations in the United States, including a proposal to raise or eliminate the cap on liability for oil spill cleanups under the Oil Pollution Act of 1990. Although it is not possible at this time to predict whether proposed legislation or regulations will be adopted as initially written, if at all, or how legislation or new regulation that may be adopted would impact our business, any such future laws and regulations could result in increased compliance costs or additional operating restrictions, which could have a material adverse effect on the Fund’s operating results and cash flows.
 
 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 that is not insured or not fully insured could have an adverse impact upon earnings and financial position.  Moreover, insurance is obtained as a package covering all of the funds managed by the Manager.  Claims made by other funds managed by the Manager can reduce or eliminate insurance for the Fund.
  9.    Subsequent Events
  The Fund has assessed the impact of subsequent events through the date of issuance of its financial statements, and has concluded that there were no such events that require adjustment to, or disclosure in, the notes to the financial statements.
  8
 Table of Contents
  ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
 Cautionary Statement Regarding Forward-Looking Statements
  Certain statements in this Quarterly Report on Form 10-Q (“Quarterly Report”) and the documents Ridgewood Energy L Fund, LLC (the “Fund”) has incorporated by reference into this Quarterly Report, other than purely historical information, including estimates, projections, statements relating to the Fund’s business plans, strategies, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995 that are based on current expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially from the forward-looking statements.  You are therefore cautioned against relying on any such forward-looking statements.  Forward-looking statements can generally be identified by words such as  “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “plan,” “target,” “pursue,” “may,” “will,”  “will likely result,” and similar expressions and references to future periods. Examples of events that could cause actual results to differ materially from historical results or those anticipated include weather conditions, such as hurricanes, changes in market conditions affecting the pricing of oil and natural gas, the cost and availability of equipment, and changes in governmental regulations.  Examples of forward-looking statements made herein include statements regarding future projects, investments and insurance.  Forward-looking statements made in this document speak only as of the date on which they are made.  The Fund undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
  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 requires the Fund to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the Fund’s financial statements, and the reported amount of revenue and expense during the reporting period.  Actual results may differ from those estimates and assumptions.  See “Notes to Unaudited Condensed Financial Statements” in Part I of this Quarterly Report for a presentation of the Fund’s significant accounting policies.   No changes have been made to the Fund’s critical accounting policies and estimates disclosed in its 2010 Annual Report on Form 10-K.
 
 Overview of the Fund’s Business
 
 The Fund is a Delaware limited liability company formed on May 27, 2004 to primarily acquire interests in oil and gas properties located in the United States offshore waters of Texas, Louisiana and Alabama in the Gulf of Mexico.  Ridgewood Energy Corporation (“Ridgewood Energy” or the “Manager”) a Delaware corporation, is the Manager. As the Manager, Ridgewood Energy has direct and exclusive control over the management of the Fund’s operations.  The Fund’s primary investment objective is to generate cash flow for distribution to its shareholders by generating returns across a portfolio of exploratory or development oil and natural gas projects.  However, the Fund is not required to make distributions to shareholders except as provided in the LLC Agreement.
 
 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 for the management of all exploration, development and producing operations, as appropriate.
  Revenues are subject to market pricing for oil and natural gas, which has been volatile, and is likely to continue to be volatile in the future. This volatility is caused by numerous factors and market conditions that the Fund cannot control or influence. Therefore, it is impossible to predict the future price of oil and natural gas with any certainty. Low commodity prices could have an adverse affect on the Fund’s future profitability.
  9
 Table of Contents
  Business Update
 
 Information regarding the Fund’s current projects, all of which are located in the offshore waters of the Gulf of Mexico, is provided in the following table.
  Total Spentthrough


TotalWorking


March 31,


FundLease Block

Interest


2011


Budget

Status(in thousands)Producing PropertiesEmerald Project well # 1


2.5%


$
1,639


$
1,639

Production commenced in 2009.Emerald Project well #2


2.5%


$
390


$
399

Production commenced July 2010.  Recompletion efforts to access behind the pipe reserves are planned for 2013 at an estimated cost of $9 thousand.Main Pass 275


10.0%


$
1,922


$
1,932

Production commenced in 2007.  Minor recompletion is planned for 2012 at an estimated cost of $10 thousand.South Marsh Island 111


7.5%


$
2,062


$
2,415

Production commenced in 2009.  Recompletion efforts to access behind the pipe reserves commenced in April 2011 at an estimated cost of $0.4 million.West Delta 67


7.5%


$
1,136


$
1,136

Production commenced in 2008.   Currently shut-in while evaluating recompletion alternatives.West Delta 68


7.5%


$
1,783


$
1,791

Production commenced in 2008. Recompletion planned for 2013 at an estimated cost of $8 thousand.
  Results of Operations
 
 The following table summarizes the Fund’s results of operations for the three months ended March 31, 2011 and 2010, and should be read in conjunction with the Fund’s financial statements and notes thereto included within Item 1. “Financial Statements” in Part I of this Quarterly Report.
  Three months ended March 31,2011


2010(in thousands)RevenueOil and gas revenue

$
480


$
408ExpensesDepletion and amortization


183



193Dry-hole costs


(29
)


-Operating expenses


29



73General and administrative expenses


45



61Total expenses


228



327Income from operations


252



81Interest income


7



7Net income

$
259


$
88
 Overview.  During the three months ended March 31, 2011, the Fund had six wells that produced for a total of 347 days, compared to five wells that produced for a total of 366 days during the three months ended March 31, 2010.  The decrease in total production days was primarily the result of an increase of the number of non-productive days related to maintenance activities, partially offset by the onset of production of the Emerald Project well #2 in July 2010. During the three months ended March 31, 2011, the Fund's wells' production rate averaged 226 mcfe/producing day, compared to 191 mcfe/producing day during the three months ended March 31, 2010.  The increase was related to the composite of the Fund’s wells, which have varying amounts of working interest ownership, partially offset by natural declines in well production.
  10
 Table of Contents
  Oil and Gas Revenue.Oil and gas revenue for the three months ended March 31, 2011 was $0.5 million, a $0.1 million increase from the three months ended March 31, 2010.  The increase is attributable to increased sales volumes coupled with the impact of increased average oil prices, partially offset by the impact of decreased average gas prices.
 
 Oil sales volumes were 2 thousand barrels and 1 thousand barrels for the three months ended March 31, 2011 and 2010, respectively.  The Fund’s oil prices averaged $97 per barrel during the three months ended March 31, 2011 compared to $75 per barrel during the three months ended March 31, 2010.
 
 Gas sales volumes were 63 thousand mcf and 55 thousand mcf for the three months ended March 31, 2011 and 2010, respectively.  The Fund’s gas prices averaged $4.15 per mcf during the three months ended March 31, 2011 compared to $5.22 per mcf during the three months ended March 31, 2010.
 
 The increases in oil and gas volumes were principally attributable to the onset of production of the Emerald Project well #2 coupled with an increase in the average mcfe/producing day.  See “Overview” above for additional information.
 
 Depletion and Amortization.  Depletion and amortization for the three months ended March 31, 2011 was $0.2 million, a decrease of $10 thousand from the three months ended March 31, 2010.  The decrease resulted from a decrease in average depletion rates totaling $0.1 million, partially offset by an increase in production volumes totaling $0.1 million.  The decrease in depletion rates was primarily the result of the composite of productive wells coupled with revisions to reserve estimates.
 
 Dry-hole Costs.  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.   At times, the Fund receives credits on certain wells from their respective operators upon review and audit of the wells’ costs.  The Fund recorded credits to dry-hole costs of $29 thousand for the three months ended March 31, 2011.  The Fund had no dry-hole costs for the three months ended March 31, 2010.
 
 Operating Expenses.  Operating expenses represent costs specifically identifiable or allocable to the Fund's wells, as detailed in the following table.
  Three months ended March 31,2011


2010(in thousands)Lease operating expense

$
29


$
69Other expense


-



4$
29


$
73
 
 Lease operating expense relates to the Fund’s producing properties during each period as outlined above in “Overview”.  The average production cost was $0.37 per mcfe during the three months ended March 31, 2011 compared to $1.17 per mcfe during the three months ended March 31, 2010.
 
 General and Administrative Expenses.General and administrative expenses represent costs specifically identifiable or allocable to the Fund as detailed in the following table.
  Three months ended March 31,2011


2010(in thousands)Accounting fees

$
26


$
30Insurance expense


9



20Management reimbursement and other


10



11$
45


$
61
 Accounting fees represent audit and tax preparation fees, quarterly reviews and filing fees incurred by the Fund.  Insurance expense represents premiums related to producing well and control of well insurance, which varies depending upon the number of wells producing or drilling, and directors’ and officers’ liability insurance.  Management reimbursement and other expenses relate primarily to reimbursements for various administrative costs incurred on the Fund’s behalf.
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  Interest Income.Interest income is comprised of interest earned on money market accounts and investments in U.S. Treasury securities.Interest income for each of the three months ended March 31, 2011 and 2010 was $7 thousand.
 
 Capital Resources and Liquidity
 
 Operating Cash Flows
 Cash flows provided by operating activities for the three months ended March 31, 2011 were $0.4 million, primarily related to revenue received of $0.5 million, partially offset operating expenses paid of $0.1 million.
  Cash flows provided by operating activities for the three months ended March 31, 2010 were $0.3 million, primarily related to revenue received of $0.4 million and favorable working capital of $0.1 million, partially offset by operating expenses of $0.1 million, general and administrative expenses of $0.1 million and the settlement of asset retirement obligations of $0.1 million.
 
 Investing Cash Flows
 Cash flows used in investing activities for the three months ended March 31, 2011 were $9 thousand.
 
 Cash flows used in investing activities for the three months ended March 31, 2010 were $28 thousand.
 
 Financing Cash Flows
 Cash flows used in financing activities for the three months ended March 31, 2011 were $0.4 million, related to shareholder distributions.
 
 Cash flows used in financing activities for the three months ended March 31, 2010 were $0.3 million, related to manager and shareholder distributions.
  Estimated Capital Expenditures
  The Fund has entered into multiple agreements for the drilling and development of its investment properties.  The estimated expenditures associated with these agreements can vary depending on the stage of development on a property-by-property basis.  As of March 31, 2011, the Fund had committed to spend an additional $0.4 million relating to its investment properties, principally all of which is expected to be spent during the next twelve months.
 
 Capital expenditures for investment properties were funded with the capital raised by the Fund in its private placement offering, which is all the capital it will obtain.  The number of projects in which the Fund can invest was limited and each unsuccessful project the Fund experienced reduced its ability to generate revenue and exhausted its capital.
  Liquidity Needs
  The Fund’s primary short-term liquidity needs are to fund its operations, inclusive of expenditures for its investment properties.  Operations are funded utilizing operating income, existing cash on-hand and income earned therefrom.  The Fund has reached the end of its investment cycle.  At March 31, 2011, the Fund has commitments of $0.4 million that exceed its current available working capital by $0.1 million.  Based upon its current reserve estimates, the Fund expects cash flow from operations to be sufficient to cover these deficiencies, as well as ongoing operations.  Reserve estimates are projections based on engineering data that cannot be measured with precision, require substantial judgment, and are subject to frequent revision.  In the event of a temporary production stoppage, causing the Fund’s wells to not produce cash flow from operations, the Fund may borrow from the Manager until such time that production is resumed.  At such time the Manager determines that the Fund is no longer capable of continuing to fund its operations, the Manager would elect to dissolve the Fund.
 
 Distributions, if any, are funded from available cash from operations, as defined in the LLC Agreement, and the frequency and amount are within the Manager’s discretion.
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  Off-Balance Sheet Arrangements
  The Fund had no off-balance sheet arrangements at March 31, 2011 and December 31, 2010 and does not anticipate the use of such arrangements in the future.
  Contractual Obligations
  The Fund enters into participation and joint operating agreements with operators.  On behalf of the Fund, an operator enters into various contractual commitments pertaining to exploration, development and production activities.  The Fund does not negotiate such contracts. No contractual obligations exist at March 31, 2011 and December 31, 2010 other than those discussed in “Estimated Capital Expenditures” above.
  Recent Accounting Pronouncements
 
 See Note 3 of Notes to Unaudited Condensed Financial Statements – “Recent Accounting Standards” contained in this Quarterly Report for a discussion of recent accounting pronouncements.
 
 ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 
 Not required.
 
 ITEM 4.  CONTROLS AND PROCEDURES
 
 In accordance with Rules 13a-15 and 15d-15 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Fund’s management, including its Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the Fund’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report.  Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Fund’s disclosure controls and procedures were effective as of March 31, 2011.
 
 There has been no change in the Fund’s internal control over financial reporting that occurred during the three months ended March 31, 2011 that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.
 
 PART II - OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
  None.
  ITEM 1A. RISK FACTORS
 
 Not required.
 
 ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 
 None.
 
 ITEM 3.  DEFAULTS UPON SENIOR SECURITIES
 
 None.
 
 ITEM 4. (REMOVED AND RESERVED)
 
 ITEM 5. OTHER INFORMATION
 
 None.
  13
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  ITEM 6. EXHIBITS
  EXHIBITNUMBER
TITLE OF EXHIBIT

METHOD OF FILING31.1
Certification of Robert E. Swanson, Chief Executive Officer of the Fund, pursuant to Exchange Act Rule 13a-14(a)

Filed herewith31.2
Certification of Kathleen P. McSherry, Executive Vice President and Chief Financial Officer of the Fund, pursuant to Exchange Act Rule 13a-14(a)

Filed herewith32
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, Executive Vice President and Chief Financial Officer of the Fund.

Filed herewith
 
  SIGNATURES
  Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 RIDGEWOOD ENERGY L FUND, LLCDated:
May 5, 2011
By:
/s/


ROBERT E. SWANSONName:


Robert E. SwansonTitle:


Chief Executive Officer(Principal Executive Officer)Dated:
May 5, 2011
By:
/s/


KATHLEEN P. MCSHERRYName:


Kathleen P. McSherryTitle:


Executive Vice President and Chief Financial Officer(Principal Financial Officer)
  14