|                                             | United      States                                                                            |
|--------------------------------------------------|-----------------------------------------------------------------------------------------------|
|                                             | Securities      and Exchange Commission                                                       |
|                                             | Washington,      D.C. 20549                                                                   |
|                                             |                                                                                          |
|                                             | Form      10-KSB                                                                              |
| (Mark      One)                                  |
|                                             |                                                                                          |
| R                                                | ANNUAL      REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF      1934     |
|                                             |                                                                                          |
| For      the fiscal year ended December 31, 2007 |
|                                             |                                                                                          |
| o                                                | TRANSITION      REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|                                             |                                                                                          |
|                                             |                                                                                          |
|                                             | For      the transition period from _____ to _____                                            |
|                                             |                                                                                          |
|                                             | Commission      file number 0-52615                                                           |
|                                             |                                                                                          |
|                                             | ATLAS      AMERICA SERIES 27-2006 L.P.                                                        |
|                                             | (Name      of small business issuer in itscharter)                                            |

| Delaware                                                                                                                         |   | 20-5242075                                     |
|----------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|
| (State      or other jurisdiction of                                                                                             |   | (I.R.S.      Employer                          |
| Incorporation      or organization)                                                                                              |   | Identification      No)                        |
|                                                                                                                             |   |                                           |
| Westpointe      Corporate Center One                                                                                             |   |                                           |
| 1550      Coraopolis Heights Road, 2nd Floor                                                                                     |   |                                           |
| Moon      Township, PA                                                                                                           |   | 15108                                          |
| (address      of principal executive offices)                                                                                    |   | (Zip      Code)                                |
|                                                                                                                             |   |                                           |
| Issuer’s      telephone number (412)      262-2830                                                                         |   |                                           |
|                                                                                                                             |   |                                           |
| Securities      registered under Section 12(b) of the Exchange Act.                                                              |
|                                                                                                                             |   |                                           |
| Title      of each class                                                                                                         |   | Name      of each exchange on which registered |
| None                                                                                                                             |   | None                                           |
|                                                                                                                             |   |                                           |
| Securities      registered under Section 12(g) of the Exchange Act Investor General      Partner Units and Limited Partner Units |
| (Title      of Class)                                                                                                            |

| PART      I                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | PAGE   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Item      1:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Description      of Business                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 3-5    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Item      2:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Description      of Properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 6-10   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Item      3:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Legal      Proceedings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 10     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Item      4:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Submission      of Matters to a Vote of Security Holders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 10     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| PART      II                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Item      5:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Market      for Registrant’s Common Equity and Related Security Holder      Matters                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 10-11  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Item      6:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Management’s      Discussion and Analysis of Financial Condition or Plan of      Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 11-16  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Item      7:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Financial      Statements                                                                                                                                    | 17-34  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Item      8:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 34     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Item      8A:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Controls      and      Procedures                                                                                                                            | 34-35  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Item      8B:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Other      Information                                                                                                                                       | 35     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| PART      III                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Item      9:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Directors,      Executive Officers and Significant Employees, Compliance with Section      (16a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | of      the Exchange      Act                                                                                                                                | 35-38  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Item      10:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Executive      Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 38     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Item      11:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Security      Ownership of Certain Beneficial Owners and Management                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 38     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Item      12:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Certain      Relationships and Related Party Transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 38-39  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Item      13:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Exhibits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 39     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Item      14:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Principal      Accountant Fees and Services                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 40     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| SIGNATURES                                                                                                                                                | 41     |

| ·   | well      tending, routine maintenance andadjustment; |
|--------------------|-------------------------------------------------------|

| ·   | reading      meters, recording production, pumping, maintaining appropriate books and      records; and |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | preparing      reports to us and to governmentagencies. |
|--------------------|---------------------------------------------------------|

| ·   | new      well permit and well registration requirements, procedures and      fees; |
|--------------------|------------------------------------------------------------------------------------|

| ·   | minimum      well spacing requirements; |
|--------------------|-----------------------------------------|

| ·   | restriction      on well locations and underground gasstorage; |
|--------------------|----------------------------------------------------------------|

| ·   | certain      well site restoration, groundwater protection and safety      measures; |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | landowner      notification requirements; |
|--------------------|-------------------------------------------|

| ·   | certain      bonding or other security measures; |
|--------------------|--------------------------------------------------|

| ·   | various      reporting requirements; |
|--------------------|--------------------------------------|

| ·   | well      plugging standards and procedures;and |
|--------------------|-------------------------------------------------|

| ·   | broad      enforcement powers. |
|--------------------|--------------------------------|

|                          |   | Development      Wells |   |
|-------------------------------|--------|------------------------|--------|
| Years      Ended December 31, |   | Productive      (1)    |   |   | Dry      (2) |   |
|                          |   | Gross      (3)         |   |   | Net      (4) |   |   | Gross      (3) |   |   | Net      (4) |   |
| 2007                          |   |                   | 248.00 |   |   |   | 198.12 |   |   |   | 2.00 |   |   |   | 1.25 |   |
| 2006                          |   |                   | 6.00   |   |   |   | 6.00 |   |   |   | — |   |   |   | — |   |
|                          |   |                   | 254.00 |   |   |   | 204.12 |   |   |   | 2.00 |   |   |   | 1.25 |   |

| (1)   | A      “productive well” generally means a well that is not a dry      hole. |
|-----------------|------------------------------------------------------------------------------------------|

| (2)   | A      “dry hole” generally means a well found to be incapable of producing      either oil or gas in sufficient quantities to justify completion as an oil      or gas well.  The term “completion” refers either to the      installation of permanent equipment for the production of oil or gas or,      in the case of a dry hole, to the reporting of the abandonment of the well      to the appropriate regulatoryagency. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | A      “gross” well is a well in which we have a working  interest. |
|-----------------|---------------------------------------------------------------------------------|

| (4)   | A      “net” well equals the actual working interest we own in one gross well      divided by one hundred. For example, a 50% working interest in a well is      one gross well, but a .50 net well. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Number      of Producing Wells |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Gross                          |   |   | Net |   |
| Gas                                                                                                   |   |                           | 246    |   |   |   | 197.31 |   |

|              |   |                     |    |   |                     |   |      | Average             |   |
|-------------------|--------|--------------------------|---------|--------|--------------------------|--------|-----------|---------------------|--------|
| Year              |   |                     |    |   |                     |   |      |                |   |   |   |   |   | Production      Cost |   |
| Ended             |   | Production               |    |   | Average      Sales Price |   |      | (Lifting      Cost) |   |
| December      31, |   | Oil      (bbls) (1) |    |   | Gas      (mcf) (1)       |   |      | per      bbl (1)    |   |   | per      mcf (1) |   |   | per      mcfe (1)      (2) |   |
| 2007              |   |                     | 3,200   |   |                     |   | 1,446,600 |                |   | $ | 66.93 |   |   | $ | 8.47 |   |   | $ | 1.68 |   |
| 2006              |   |                     | — |   |                     |   | 2,000     |                |   | $ | — |   |   | $ | 8.55 |   |   | $ | 1.04 |   |

| (1)   | “Mcf”      means one thousand cubic feet of natural gas.  “Mcfe” means a      thousand cubic feet equivalent.  Oil production is converted to      mcfe at the rate of six mcf per barrel(“bbl”). |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Lifting      costs include labor to operate the wells and related equipment, repairs      and maintenance, materials and supplies, property taxes, insurance and      gathering charges. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                               |   | December      31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                               |   | 2007              |   |   | 2006 |   |
| Natural      gas (per mcf)                                                                                                                                                                                                                                         |   | $                 | 7.35   |   |   | $ | 6.26 |   |
| Oil      ( per      bbl)                                        |   |              | 88.47  |   |   |   | 57.25 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | At      December 31, |       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2007                 |       |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 |       |   |   |   |
| Natural      gas reserves – Proved Reserves (Mcf) (1)(4):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                 |       |   |   |   |
| Proved      developed reserves      (2)                                                                                                                                       |   |                 | 10,981,700 |   |   |   | 2,841,800 |   |
| Total      proved reserves of natural      gas                                                                                                                                                    |   |                 | 10,981,700 |   |   |   | 2,841,800 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 |       |   |   |   |   |   |
| Oil      reserves – Proved Reserves (Bbl) (1)(4):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                 |       |   |   |   |   |   |
| Proved      developed reserves      (2)                                                                                                                                       |   |                 | 18,000     |   |   |   | 2,300 |   |
| Total      proved reserves of      oil                                                                                                                                                            |   |                 | 18,000     |   |   |   | 2,300 |   |
| Total      proved reserves      (Mcfe)                                                                                                     |   |                 | 11,089,700 |   |   |   | 2,855,600 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 |       |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 |       |   |   |   |   |   |
| PV-10      estimate of cash flows of proved reserves (3)(4):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 |       |   |   |   |   |   |
| Proved      developed      reserves                                                                                                                                           |   | $                    | 28,958,000 |   |   | $ | 5,273,800 |   |
| Total      PV-10      estimate                                                                                                                                                                    |   | $                    | 28,958,000 |   |   | $ | 5,273,800 |   |
| PV-10      estimate per investor partner unit      (5)                                                                                     |   | $                    | 6,872      |   |   | $ | 1,252 |   |
| Undiscounted      estimate per investor partner unit (5)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                    | 11,544     |   |   | $ | 2,150 |   |

| (1)   | “Proved      reserves” generally means the estimated quantities of crude oil, natural      gas, and natural gas liquids which geological and engineering data      demonstrate with reasonable certainty to be recoverable in future years      from known reservoirs under existing economic and operating conditions,      i.e., prices and costs as of the date the estimate is made. Prices include      consideration of changes in existing prices provided only by contractual      arrangements, but not on escalations based upon future      conditions.  Reservoirs are considered proved if economic      production is supported by either actual production or conclusive      formation test.  The area of a reservoir considered proved      includes:  that portion delineated by drilling and defined by      gas-oil and/or oil-water contacts, if any; and the immediately adjoining      portions not yet drilled, but which can be reasonably judged as      economically productive on the basis of available geological and      engineering data. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | “Proved      developed reserves” generally means reserves that can be expected to be      recovered through existing wells with existing equipment and operating      methods. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | The      present value of estimated future net cash flows is calculated by      discounting estimated future net cash flows by 10%    annually. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Please      see Regulation S-X rule 4-10 for complete definitions of each reserve      category. |
|-----------------|--------------------------------------------------------------------------------------------------|

| (5)   | This      value per $25,000 unit is determined by following the methodology used for      determining our proved reserves using the data discussed      above.  However, this value does not necessarily reflect the      fair market value of a unit, and each unit is illiquid.  Also,      the value of a unit for purposes of presentment of the unit to our MGP for      purchase is different, because it is calculated under a formula set forth      in the partnership agreement. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                  |   | Developed      Acreage |     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|----------|
| Location                                                                                                                                                                                                                                                                                                                                                                              |   | Gross      (1)         |     |   | Net      (2) |   |
| Pennsylvania                                                              |   |                   | 4,016.82 |   |   |   | 3,325.27 |   |
| Tennessee                                                                 |   |                   | 2,399.10 |   |   |   | 1,680.35 |   |
| New      York                                                             |   |                   | 200.00   |   |   |   | 200.00 |   |
| Total                                                                                                   |   |                   | 6,615.92 |   |   |   | 5,205.62 |   |

| (1)   | A      “gross” acre is an acre in which we own a working  interest. |
|-----------------|---------------------------------------------------------------------------------|

| (2)   | A      “net” acre equals the actual working interest we own in one gross acre      divided by one hundred.  For example, a 50% working interest in      an acre is one gross acre, but a .50 netacre. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our      managing general partner consent; |
|--------------------|--------------------------------------------|

| ·   | the      transfer not result in materially adverse tax consequences to us;      and |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | the      transfer not violate federal or state securities  laws. |
|--------------------|------------------------------------------------------------------|

| ·   | the      assignor gives the assignee theright; |
|--------------------|------------------------------------------------|

| ·   | our      MGP consents to the substitution; |
|--------------------|--------------------------------------------|

| ·   | the      assignee pays to us all costs and expenses incurred in connection with the      substitution; and |
|--------------------|------------------------------------------------------------------------------------------------------------|

| ·   | the      assignee executes and delivers the instruments, which our MGP requires to      effect the substitution and to confirm his or her agreement to be bound by      the terms of our partnershipagreement. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $3,289,800      to our limited partners; and |
|--------------------|----------------------------------------------|

| ·   | $1,591,200      to our managing general partner. |
|--------------------|--------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |              |   |   | For      the Period      |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|--------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |              |   |   | July      21, 2006       |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | For      the Year |   |   | (date      of formation) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Ended             |   |   | Through                  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | December      31, |   |   | December      31,        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2007              |   |   | 2006                     |   |
| Production      revenues (in thousands):                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |              |   |   |                     |   |
| Gas                                                                                                                                |   | $                 | 12,249 |   |                     | $      | 18 |   |
| Oil                                                                                                                                |   | $                 | 214    |   |                     | $      | — |   |
| Total                                                                                                                              |   | $                 | 12,463 |   |                     | $      | 18 |   |
| Production      volumes:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |              |   |   |                     |   |   |   |
| Gas      (mcf/day)      (2)                                                                                                        |   |              | 3,963  |   |                     |   | 98 |   |
| Oil      (bbls/day)      (2)                                                                                                       |   |              | 9      |   |                     |   | — |   |
| Total      (mcfe/day)      (2)                                                                                                     |   |              | 4,017  |   |                     |   | 98 |   |
| Average      sales price:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |              |   |   |                     |   |   |   |
| Gas      (per mcf) (1)      (2)                                                                                                    |   | $                 | 8.47   |   |                     | $      | 8.55 |   |
| Oil      (per bbl)      (2)                                                                                                        |   | $                 | 66.93  |   |                     | $      | — |   |
| Average      production costs:                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |              |   |   |                     |   |   |   |
| As      a percent of      sales                                                                                                    |   |              | 20     | %      |                     |   | 12 | % |
| Per      mcfe      (2)                                                                                                             |   | $                 | 1.68   |   |                     | $      | 1.04 |   |
| Depletion      per      mcfe                                                                              |   | $                 | 5.51   |   |                     | $      | 1.95 |   |

| (1)   | The      average sales price per mcf before the effects of hedging was $7.35 and      8.55 for the year ended December 31, 2007 and period ended December 31,      2006, respectively. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Fixed      Price Swaps |               |   |                 |      |   |             |   |   |                 |   |
|------------------------|--------------------|--------|----------------------|-----------|--------|------------------|--------|--------|----------------------|--------|
|                   | Twelve      Month  |   |                 |      |   | Average          |   |   | Fair      Value      |   |
|                   | Period      Ending |   | Volumes              |      |   | Fixed      Price |   |   | Asset/               |   |
|                   | December      31,  |   | (per      MMBTU) (1) |      |   | (per      MMBTU) |   |   | (Liability)      (2) |   |
|                   |               |   |                 |      |   |             |   |   |                 |   |
|                   | 2008               |   |                 | 1,330,100 |   |             | $      | 8.69   |                 |   | $ | 1,175,900 |   |
|                   | 2009               |   |                 | 1,290,700 |   |             |   | 8.31   |                 |   |   | (226,600 | ) |
|                   | 2010               |   |                 | 738,900   |   |             |   | 7.61   |                 |   |   | (645,200 | ) |
|                   | 2011               |   |                 | 394,100   |   |             |   | 7.37   |                 |   |   | (396,100 | ) |
|                   |               |   |                 |      |   |             |   |   |                 |   | $ | (92,000 | ) |

| Costless      Collars |               |   |                |   |                 |    |   |                 |               |   |                 |   |
|-----------------------|--------------------|--------|---------------------|--------|----------------------|---------|--------|----------------------|--------------------|--------|----------------------|--------|
|                  |               |   |                |   |                 |    |   |                 |               |   |                 |   |
|                  | Twelve      Month  |   |                |   |                 |    |   | Average              |               |   | Fair      Value      |   |
|                  | Period      Ending |   | Option              |   | Volumes              |    |   | Floor      & Cap |               |   | Asset/               |   |
|                  | December      31,  |   | Type                |   | (per      MMBTU) (1) |    |   | (per      MMBTU)     |               |   | (Liability)      (2) |   |
|                  |               |   |                |   |                 |    |   |                 |               |   |                 |   |
|                  | 2008               |   | Puts      purchased |   |                 | 128,100 |   |                 | $                  | 7.50   |                 |   | $ | 30,300 |   |
|                  | 2008               |   | Calls      sold     |   |                 | 128,100 |   |                 |               | 9.40   |                 |   |   | — |   |
|                  | 2010               |   | Puts      purchased |   |                 | 236,500 |   |                 |               | 7.75   |                 |   |   | — |   |
|                  | 2010               |   | Calls      sold     |   |                 | 236,500 |   |                 |               | 8.75   |                 |   |   | (77,900 | ) |
|                  | 2011               |   | Puts      purchased |   |                 | 591,100 |   |                 |               | 7.50   |                 |   |   | — |   |
|                  | 2011               |   | Calls      sold     |   |                 | 591,100 |   |                 |               | 8.45   |                 |   |   | (287,000 | ) |
|                  | 2012               |   | Puts      purchased |   |                 | 59,100  |   |                 |               | 7.00   |                 |   |   | — |   |
|                  | 2012               |   | Calls      sold     |   |                 | 59,100  |   |                 |               | 8.37   |                 |   |   | (38,600 | ) |
|                  |               |   |                |   |                 |    |   |                 |               |   |                 |   | $ | (373,200 | ) |
|                  |               |   |                |   |                 |    |   |                 |               |   |                 |   |   |   |   |
|                  |               |   |                |   |                 |    |   |                 | Net      Liability |   |                 | $      | (465,200 | ) |

| (1)   | MMBTU      represents million British ThermalUnits. |
|-----------------|-----------------------------------------------------|

| (2)   | Fair      value based on forward NYMEX natural gasprices. |
|-----------------|-----------------------------------------------------------|

opinion on these financial statements based on ouraudits.

audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. ThePartnership is not required to have, nor were we engaged to perform an 
audit of its internal control over financial reporting. Our 
audit included consideration of internal control over financialreporting as a basis for designing 
audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Partnership’s internalcontrol over financial reporting. Accordingly, we expressno such 
opinion. An 
audit also includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements, assessing theaccounting principles used and significant estimates made by management, as wellas evaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our 
opinion.

|                                                |   | 2007   |       |   | 2006   |   |
|-----------------------------------------------------|--------|--------|------------|--------|--------|--------|
| ASSETS                                              |   |   |       |   |   |   |
| Current      assets:                                |   |   |       |   |   |   |
| Cash      and cash equivalents                      |   | $      | 1,142,300  |   |   | $      | 100 |   |
| Accounts      receivable-affiliate                  |   |   | 3,806,400  |   |   |   | 65,345,700 |   |
| Short-term      hedge receivable due from affiliate |   |   | 1,235,400  |   |   |   | — |   |
| Total      current assets                           |   |   | 6,184,100  |   |   |   | 65,345,800 |   |
|                                                |   |   |       |   |   |   |   |   |
| Oil      and gas properties, net                    |   |   | 70,039,100 |   |   |   | 7,127,300 |   |
| Long-term      hedge receivable due from affiliate  |   |   | 184,700    |   |   |   | — |   |
|                                                |   | $      | 76,407,900 |   |   | $      | 72,473,100 |   |
|                                                |   |   |       |   |   |   |   |   |
|                                                |   |   |       |   |   |   |   |   |
| LIABILITIES      AND PARTNERS' CAPITAL              |   |   |       |   |   |   |   |   |
| Current      liabilities:                           |   |   |       |   |   |   |   |   |
| Accrued      liabilities                            |   | $      | 27,000     |   |   | $      | 12,000 |   |
| Short-term      hedge liability due to affiliate    |   |   | 29,200     |   |   |   | — |   |
| Total      current liabilities                      |   |   | 56,200     |   |   |   | 12,000 |   |
|                                                |   |   |       |   |   |   |   |   |
| Asset      retirement obligation                    |   |   | 1,690,100  |   |   |   | 333,400 |   |
| Long-term      hedge liability due to affiliate     |   |   | 1,856,100  |   |   |   | — |   |
|                                                |   |   |       |   |   |   |   |   |
|                                                |   |   |       |   |   |   |   |   |
| Partners'      capital:                             |   |   |       |   |   |   |   |   |
| Managing      general partner                       |   |   | 14,585,800 |   |   |   | 1,246,200 |   |
| Limited      partners (2,840 units)                 |   |   | 58,684,900 |   |   |   | 70,881,500 |   |
| Accumulated      other comprehensive loss           |   |   | (465,200   | )      |   |   | — |   |
| Total      partners' capital                        |   |   | 72,805,500 |   |   |   | 72,127,700 |   |
|                                                |   | $      | 76,407,900 |   |   | $      | 72,473,100 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2007   |       |   | 2006   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| REVENUES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |       |   |   |   |
| Natural      gas and      oil                                                                                          |   | $      | 12,462,800 |   |   | $      | 17,500 |   |
| Total      revenues                                                                                                                                                      |   |   | 12,462,800 |   |   |   | 17,500 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |       |   |   |   |   |   |
| COSTS      AND EXPENSES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |   |   |   |
| Production                                                                                                             |   |   | 2,468,300  |   |   |   | 2,100 |   |
| Depletion                                                                                                              |   |   | 8,074,200  |   |   |   | 4,000 |   |
| Impairment      of oil and gas properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 10,255,500 |   |   |   | — |   |
| Accretion      of asset retirement obligation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 110,400    |   |   |   | — |   |
| General      and administrative                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 195,100    |   |   |   | 12,100 |   |
| Total      expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 21,103,500 |   |   |   | 18,200 |   |
| Net      loss                                                                                                          |   | $      | (8,640,700 | )      |   | $      | (700 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |       |   |   |   |   |   |
| Allocation      of net earnings (loss):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |   |   |   |
| Managing      general partner                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $      | 266,100    |   |   | $      | 800 |   |
| Limited      partners                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $      | (8,906,800 | )      |   | $      | (1,500 | ) |
| Net      loss per limited partnership unit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $      | (3,136     | )      |   | $      | (1 | ) |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2007   |       |   | 2006   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |   |
| Net      loss                                                                                                                                      |   | $      | (8,640,700 | )      |   | $      | (700 | ) |
| Other      comprehensive loss:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |       |   |   |   |   |   |
| Unrealized      holding gain on hedging      contracts                                                                                             |   |   | 1,151,700  |   |   |   | — |   |
| Less:      reclassification adjustment for gains realized in net    earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | (1,616,900 | )      |   |   | — |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | (465,200   | )      |   |   | — |   |
| Comprehensive      loss                                                                                                                            |   | $      | (9,105,900 | )      |   | $      | (700 | ) |

|                                                                                                                                                                                                                                                                                                                                                                                                                     |   |     |       |   |     |   |       | Accumulated   |   |   |     |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|------------|--------|----------|--------|------------|---------------|--------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Managing |       |   |     |   |       | Other         |   |   |     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                     |   | General  |       |   | Limited  |   |       | Comprehensive |   |   |     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Partner  |       |   | Partners |   |       | Loss          |   |   | Total    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                     |   |     |       |   |     |   |       |          |   |   |     |   |
| Balance      at July 21, 2006                                                                                                                                                                                                                                                                                                                                                                                            |   | $        | —    |   |     | $      | —    |          |   | $      | —  |   |   | $ | — |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                     |   |     |       |   |     |   |       |          |   |   |     |   |   |   |   |   |
| Partners’      capital contributions cash                                                                                                                                                                                                                                                                                                                                                                          |   |     | 100        |   |     |   | 70,883,000 |          |   |   | —  |   |   |   | 70,883,100 |   |
| Syndication      and offering costs                                                                                                                                                                                                                                                                                                                                                                                      |   |     | 8,506,000  |   |     |   | —    |          |   |   | —  |   |   |   | 8,506,000 |   |
| Tangible      equipment/leasehold costs                                                                                                                                                                                                                                                                                                                                                                                  |   |     | 1,245,300  |   |     |   | —    |          |   |   | —  |   |   |   | 1,245,300 |   |
| Total      contributions                                                                 |   |     | 9,751,400  |   |     |   | 70,883,000 |          |   |   | —  |   |   |   | 80,634,400 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                     |   |     |       |   |     |   |       |          |   |   |     |   |   |   |   |   |
| Syndication      and offering costs, immediately                                                                                                                                                                                                                                                                                                                                                                         |   |     |       |   |     |   |       |          |   |   |     |   |   |   |   |   |
| charged      to      capital                                                                                      |   |     | (8,506,000 | )      |     |   | —    |          |   |   | —  |   |   |   | (8,506,000 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                     |   |     | 1,245,400  |   |     |   | 70,883,000 |          |   |   | —  |   |   |   | 72,128,400 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                     |   |     |       |   |     |   |       |          |   |   |     |   |   |   |   |   |
| Participation      in revenue and costs and expenses                                                                                                                                                                                                                                                                                                                                                                     |   |     |       |   |     |   |       |          |   |   |     |   |   |   |   |   |
| Net      production revenues                                                                                                                                                                                                                                                                                                                                                                                             |   |     | 5,000      |   |     |   | 10,400     |          |   |   | —  |   |   |   | 15,400 |   |
| Depletion                                                                                                                                                                                                                                                                                                                                                                                                                |   |     | (300       | )      |     |   | (3,700     | )             |   |   | —  |   |   |   | (4,000 | ) |
| General      and administrative                                                                                                                                                                                                                                                                                                                                                                                          |   |     | (3,900     | )      |     |   | (8,200     | )             |   |   | —  |   |   |   | (12,100 | ) |
| Net      earnings (loss)                                                                                                                                                                                                                                                                                                                                                                                                 |   |     | 800        |   |     |   | (1,500     | )             |   |   | —  |   |   |   | (700 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                     |   |     |       |   |     |   |       |          |   |   |     |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                     |   |     |       |   |     |   |       |          |   |   |     |   |   |   |   |   |
| Balance      at December 31, 2006                                                                                                                                                                                                                                                                                                                                                                                        |   | $        | 1,246,200  |   |     | $      | 70,881,500 |          |   | $      | —  |   |   | $ | 72,127,700 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                     |   |     |       |   |     |   |       |          |   |   |     |   |   |   |   |   |
| Participation      in revenue and costs and expenses                                                                                                                                                                                                                                                                                                                                                                     |   |     |       |   |     |   |       |          |   |   |     |   |   |   |   |   |
| Net      production revenues                                                                                                                                                                                                                                                                                                                                                                                             |   |     | 3,258,200  |   |     |   | 6,736,300  |          |   |   | —  |   |   |   | 9,994,500 |   |
| Depletion                                                                                                                                                                                                                                                                                                                                                                                                                |   |     | (1,274,200 | )      |     |   | (6,800,000 | )             |   |   | —  |   |   |   | (8,074,200 | ) |
| Impairment      of oil and gas properties                                                                                                                                                                                                                                                                                                                                                                                |   |     | (1,618,300 | )      |     |   | (8,637,200 | )             |   |   | —  |   |   |   | (10,255,500 | ) |
| Accretion      expense                                                                                                                                                                                                                                                                                                                                                                               |   |     | (36,000    | )      |     |   | (74,400    | )             |   |   | —  |   |   |   | (110,400 | ) |
| General      and administrative                                                                                                                                                                                                                                                                                                                                                            |   |     | (63,600    | )      |     |   | (131,500   | )             |   |   | —  |   |   |   | (195,100 | ) |
| Net      earnings (loss)                                                                                                                                                                                                                                                                                                                                                                                                 |   |     | 266,100    |   |     |   | (8,906,800 | )             |   |   | —  |   |   |   | (8,640,700 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                     |   |     |       |   |     |   |       |          |   |   |     |   |   |   |   |   |
| MGP asset      contribution                                                                                                                                                                                                                                                                                                                                                                          |   |     | 14,664,700 |   |     |   | —    |          |   |   | —  |   |   |   | 14,664,700 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                     |   |     |       |   |     |   |       |          |   |   |     |   |   |   |   |   |
| Other      comprehensive loss                                                                                                                                                                                                                                                                                                                                                                                            |   |     | —    |   |     |   | —    |          |   |   | (465,200 | )      |   |   | (465,200 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                     |   |     |       |   |     |   |       |          |   |   |     |   |   |   |   |   |
| Distributions      to partners                                                                                                                                                                                                                                                                                                                                                                                           |   |     | (1,591,200 | )      |     |   | (3,289,800 | )             |   |   | —  |   |   |   | (4,881,000 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                     |   |     |       |   |     |   |       |          |   |   |     |   |   |   |   |   |
| Balance      at December 31, 2007                                                                                                                                                                                                                                                                                                                                                                                        |   | $        | 14,585,800 |   |     | $      | 58,684,900 |          |   | $      | (465,200 | )      |   | $ | 72,805,500 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2007   |          |   | 2006   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------|--------|--------|--------|
| Cash      flows from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |          |   |   |   |
| Net      loss                                                                                                            |   | $      | (8,640,700    | )      |   | $      | (700 | ) |
| Adjustments      to reconcile net loss to net cash provided by operating      activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |          |   |   |   |   |   |
| Depletion                                                                                                                                         |   |   | 8,074,200     |   |   |   | 4,000 |   |
| Impairment      of oil and gas      properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 10,255,500    |   |   |   | — |   |
| Accretion      of asset retirement      obligation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 110,400       |   |   |   | — |   |
| Increase      in accrued liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 15,000        |   |   |   | 12,000 |   |
| Increase      in accounts receivable-affiliate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | (3,791,100    | )      |   |   | (15,300 | ) |
| Net      cash provided by operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 6,023,300     |   |   |   | — |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |          |   |   |   |   |   |
| Cash      flows from investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |          |   |   |   |   |   |
| Oil and gas well drilling contracts paid to      MGP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | —  |   |   |   | (70,883,000  | ) |
| Net      cash used in investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | —  |   |   |   | (70,883,000  | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |          |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |          |   |   |   |   |   |
| Cash      flows from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |          |   |   |   |   |   |
| Return      of initial capital contribution to managing generalpartner                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | (100          | )      |   |   | — |   |
| Distributions      to partners                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | (4,881,000    | )      |   |   | — |   |
| Initial      capital contributions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | —       |   |   |   | 70,883,100 |   |
| Net      cash (used in) provided by financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (4,881,100    | )      |   |   | 70,883,100 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |          |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |          |   |   |   |   |   |
| Net      increase in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 1,142,200     |   |   |   | 100 |   |
| Cash      and cash equivalents at beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 100           |   |   |   | — |   |
| Cash      and cash equivalents at end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $      | 1,142,300     |   |   | $      | 100 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |          |   |   |   |   |   |
| Supplemental Schedule      of non-cash investing and financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |          |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |          |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |          |   |   |   |   |   |
| Assets      contributed by the managing general partner:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |          |   |   |   |   |   |
| Tangible      equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $      | 10,500,000    |   |   | $      | 895,200 |   |
| Lease      costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 1,377,300     |   |   |   | 350,100 |   |
| Intangible      drilling costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 2,787,500     |   |   |   | — |   |
| Syndication      and offering costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | —       |   |   |   | 8,506,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $      | 14,664,800    |   |   | $      | 9,751,300 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |          |   |   |   |   |   |
| Asset      retirement obligation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $      | 1,246,300     |   |   | $      | 333,400 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | December      31, |        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2007              |        |   | 2006 |   |
| Mineral      interest in properties:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |              |        |   |   |   |
| Proved      properties                                                                                                                                    |   | $                 | 1,727,400   |   |   | $ | 350,100 |   |
| Wells      and related      equipment                                                                                                                     |   |              | 86,645,400  |   |   |   | 6,781,200 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |              | 88,372,800  |   |   |   | 7,131,300 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |              |        |   |   |   |   |   |
| Accumulated      depletion of oil and gas      properties                                                                                                 |   |              | (18,333,700 | ) |   |   | (4,000 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $                 | 70,039,100  |   |   | $ | 7,127,300 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |              |      |   | For      the Period      |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-----------|--------|--------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |              |      |   | July      21, 2006       |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | For      the Year |      |   | (date      of formation) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Ended             |      |   | Through                  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | December      31, |      |   | December      31,        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2007              |      |   | 2006                     |   |
| Asset      retirement obligation at beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $                 | 333,400   |   |                     | $      | — |   |
| Liabilities      incurred from drilling      wells                                                                                |   |              | 1,301,500 |   |                     |   | 333,400 |   |
| Revision      in      estimates                                                                                                   |   |              | (55,200   | )      |                     |   | — |   |
| Accretion      expense                                                                                                            |   |              | 110,400   |   |                     |   | — |   |
| Asset      retirement obligation at end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                 | 1,690,100 |   |                     | $      | 333,400 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | Managing |   |   |     |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | General  |   |   | Limited  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | Partner  |   |   | Partners |   |
| Organization      and offering      costs                                                                                                             |   |     | 100    | %      |     |   | 0 | % |
| Lease      costs                                                                                                                                      |   |     | 100    | %      |     |   | 0 | % |
| Revenues      (1)                                                                                                                                     |   |     | 32.60  | %      |     |   | 67.40 | % |
| Operating      costs, administrative costs, direct costs and all other operating costs      (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |     | 32.60  | %      |     |   | 67.40 | % |
| Intangible      drilling      costs                                                                                                                   |   |     | 4.19   | %      |     |   | 95.81 | % |
| Tangible      equipment      costs                                                                                                                    |   |     | 61.65  | %      |     |   | 38.35 | % |

| (1)   | Subject      to the MGP’s subordination obligation, substantially all partnership      revenues will be shared in the same percentage as capital contributions      are to the total partnership capital contributions, except that the MGP      will receive an additional 7% of the partnership revenues, which may not      exceed 40%. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | These      costs will be charged to the partners in the same ratio as the related      production revenues arecredited. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------|

| ·   | Drilling      contracts to      drill and complete wells for the Partnership are charged at cost plus      15%.  The cost of the wells includes reimbursement to the      Partnership's MGP of its general and administrative overhead cost ($15,000      per well) and all ordinary and actual costs of drilling, testing and      completing the wells. The Partnership paid $70,883,000 to its MGP in 2006      under the drilling contract, of which $5,552,600 had been used through      December 31, 2006, for drilling costs and the remaining $65,330,400 was      used through December 31, 2007, for drilling  costs. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Partnership's MGP contributed undeveloped leases necessary to cover each      of the Partnership’s prospects and for the year ended December 31, 2007      and period ended December 31, 2006, received a credit to its capital      account in the Partnership of $1,377,300 and $350,100,      respectively. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Administrative      costs which are included in general and administrative expenses in the      Partnership’s Statements of Operations are payable at $75 per well per      month. Administrative costs incurred in 2007 and 2006 were $116,100 and      $100, respectively. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Monthly      well supervision fees which are included in production expenses in the      Partnership's Statements of Operations are payable at $362 per well per      month in 2007 and 2006 for operating and maintaining the wells. Well      supervision fees incurred in 2007 and 2006 were $560,100 and $400,      respectively. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Transportation      fees which are included in production expenses in the Partnership's      Statements of Operations are payable at rates ranging from $.29-$.35 per      one thousand cubic feet ("Mcf") to 13% of the natural gas sales price.      Transportation fees incurred in 2007 and 2006 were $1,527,400 and $1,800,      respectively. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Direct      costs which are included in production and general administrative expenses      in the Partnership's Statements of Operations are payable to the MGP and      its affiliates as reimbursement for all costs expended on the      Partnership’s behalf. Direct costs incurred in 2007 and 2006 were $459,800      and $11,900, respectively. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Assets      contributed by the MGP which are disclosed on the Partnership's Statements      of Cash Flows as a non-cash investing activity for the year ended December      31, 2007 and period ended December 31, 2006 were $14,664,800 and      $9,751,300, respectively. Additional assets contributed by limited      partners which are disclosed on the Partnership's Statements of Cash Flows      as a non-cash activity for the year ended December 31, 2007 and the period      ended December 31 2006 were $65,330,400 and $5,552,600,      respectively. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      MGP received a credit to it's capital account of $8,506,000 in 2006 for      fees, commissions and reimbursement costs to organize the      Partnership. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Fixed      Price Swaps |               |   |                 |      |   |             |   |   |                 |   |
|------------------------|--------------------|--------|----------------------|-----------|--------|------------------|--------|--------|----------------------|--------|
|                   | Twelve      Month  |   |                 |      |   | Average          |   |   | Fair      Value      |   |
|                   | Period      Ending |   | Volumes              |      |   | Fixed      Price |   |   | Asset/               |   |
|                   | December      31,  |   | (per      MMBTU) (1) |      |   | (per      MMBTU) |   |   | (Liability)      (2) |   |
|                   |               |   |                 |      |   |             |   |   |                 |   |
|                   | 2008               |   |                 | 1,330,100 |   |             | $      | 8.69   |                 |   | $ | 1,175,900 |   |
|                   | 2009               |   |                 | 1,290,700 |   |             |   | 8.31   |                 |   |   | (226,600 | ) |
|                   | 2010               |   |                 | 738,900   |   |             |   | 7.61   |                 |   |   | (645,200 | ) |
|                   | 2011               |   |                 | 394,100   |   |             |   | 7.37   |                 |   |   | (396,100 | ) |
|                   |               |   |                 |      |   |             |   |   |                 |   | $ | (92,000 | ) |

| Costless      Collars |               |   |                |   |                 |    |   |                 |               |   |                 |   |
|-----------------------|--------------------|--------|---------------------|--------|----------------------|---------|--------|----------------------|--------------------|--------|----------------------|--------|
|                  |               |   |                |   |                 |    |   |                 |               |   |                 |   |
|                  | Twelve      Month  |   |                |   |                 |    |   | Average              |               |   | Fair      Value      |   |
|                  | Period      Ending |   | Option              |   | Volumes              |    |   | Floor      & Cap |               |   | Asset/               |   |
|                  | December      31,  |   | Type                |   | (per      MMBTU) (1) |    |   | (per      MMBTU)     |               |   | (Liability)      (2) |   |
|                  |               |   |                |   |                 |    |   |                 |               |   |                 |   |
|                  | 2008               |   | Puts      purchased |   |                 | 128,100 |   |                 | $                  | 7.50   |                 |   | $ | 30,300 |   |
|                  | 2008               |   | Calls      sold     |   |                 | 128,100 |   |                 |               | 9.40   |                 |   |   | — |   |
|                  | 2010               |   | Puts      purchased |   |                 | 236,500 |   |                 |               | 7.75   |                 |   |   | — |   |
|                  | 2010               |   | Calls      sold     |   |                 | 236,500 |   |                 |               | 8.75   |                 |   |   | (77,900 | ) |
|                  | 2011               |   | Puts      purchased |   |                 | 591,100 |   |                 |               | 7.50   |                 |   |   | — |   |
|                  | 2011               |   | Calls      sold     |   |                 | 591,100 |   |                 |               | 8.45   |                 |   |   | (287,000 | ) |
|                  | 2012               |   | Puts      purchased |   |                 | 59,100  |   |                 |               | 7.00   |                 |   |   | — |   |
|                  | 2012               |   | Calls      sold     |   |                 | 59,100  |   |                 |               | 8.37   |                 |   |   | (38,600 | ) |
|                  |               |   |                |   |                 |    |   |                 |               |   |                 |   | $ | (373,200 | ) |
|                  |               |   |                |   |                 |    |   |                 |               |   |                 |   |   |   |   |
|                  |               |   |                |   |                 |    |   |                 | Net      Liability |   |                 | $      | (465,200 | ) |

| (1)   | MMBTU      represents million British ThermalUnits. |
|-----------------|-----------------------------------------------------|

| (2)   | Fair      value based on forward NYMEX natural gasprices. |
|-----------------|-----------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                |   | December      31, 2007 |       |   | December      31, 2006 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|------------|--------|------------------------|--------|
|                                                                                                                                                                                                                                                                                                |   | Book      Value        |       |   | Fair      Value        |   |   | Book      Value |   |   | Fair      Value |   |
| Assets                                                                                                                                                                                                                                                                                              |   |                   |       |   |                   |   |   |   |   |   |   |   |
| Derivative      instruments                                             |   | $                      | 1,420,100  |   |                   | $      | 1,420,100 |   |   | $ | — |   |   | $ | — |   |
|                                                                                                                                                                                                                                                                                                |   | $                      | 1,420,100  |   |                   | $      | 1,420,100 |   |   | $ | — |   |   | $ | — |   |
| Liabilities                                                                                                                                                                                                                                                                                         |   |                   |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative      instruments                                             |   | $                      | (1,885,300 | )      |                   | $      | (1,885,300 | ) |   | $ | — |   |   | $ | — |   |
|                                                                                                                                                                                                                                                                                                |   | $                      | (465,200   | )      |                   | $      | (465,200 | ) |   | $ | — |   |   | $ | — |   |

| (1)   | Capitalized      Costs Related to Oil and Gas Producing  Activities |
|-----------------|---------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | At      December 31, |        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|-------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2007                 |        |   | 2006 |   |
| Mineral      interest in proved properties:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                    | 1,727,400   |   |   | $ | 350,100 |   |
| Wells      and related      equipment                                                                                          |   |                 | 86,645,400  |   |   |   | 6,781,200 |   |
| Accumulated      depletion                                                                                                     |   |                 | (18,333,700 | ) |   |   | (4,000 | ) |
| Net      capitalized      cost                                                                                                                                                             |   | $                    | 70,039,100  |   |   | $ | 7,127,300 |   |

| (2)   | Oil      and Gas Reserve Information |
|-----------------|--------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Natural      Gas |       |   | Oil    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|------------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | (Mcf)            |       |   | (Bbls) |   |
| Proved      developed reserves:                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |             |       |   |   |   |
| Beginning      of      period                                                                                     |   |             | —    |   |   |   | — |   |
| Extensions,      discoveries and other additions                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             | 2,843,800  |   |   |   | 2,300 |   |
| Production                                                                                                        |   |             | (2,000     | )      |   |   | — |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |             |       |   |   |   |   |   |
| Balance      at December 31, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             | 2,841,800  |   |   |   | 2,300 |   |
| Production                                                                                                        |   |             | (1,446,600 | )      |   |   | (3,200 | ) |
| Extensions,      discoveries and other additions                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             | 10,975,900 |   |   |   | — |   |
| Revisions      to previous      estimates                                                                         |   |             | (1,389,400 | )      |   |   | 18,900 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |             |       |   |   |   |   |   |
| Balance      at December 31, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             | 10,981,700 |   |   |   | 18,000 |   |

| NAME                    | AGE    | POSITION OR      OFFICE                                                             |
|-------------------------|--------|-------------------------------------------------------------------------------------|
|                    |   |                                                                                |
| Freddie      M. Kotek   | 52     | Chairman      of the Board of Directors, Chief Executive Officer and      President |
| Frank      P. Carolas   | 48     | Executive      Vice President – Land and Geology and a Director               |
| Jeffrey      C. Simmons | 49     | Executive      Vice President – Operations and a Director                     |
| Jack      L. Hollander  | 51     | Senior      Vice President – Direct Participation Programs                    |
| Nancy      J. McGurk    | 52     | Senior      Vice President, Chief Accounting Officer                                |
| Michael      L. Staines | 58     | Senior      Vice President, Secretary and a Director                                |
| Matthew      A. Jones   | 46     | Chief      Financial Officer                                                        |

| ·   | the      approximate amount of an individual’s professional time devoted to the      business and affairs of our MGP and Atlas America have been aggregated      because there is no reasonable method for them to distinguish their      activities between the two companies;and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | for      those individuals who also hold senior positions with other affiliates of      our MGP, if it is stated that they devote approximately 100% of their      professional time to our MGP and Atlas America, it is because either the      other affiliates are not currently active in drilling new wells, such as      Viking Resources or Resource Energy, and the individuals are not required      to devote a material amount of their professional time to the affiliates,      or there is no reasonable method to distinguish their activities between      our MGP and Atlas America as compared with the other affiliates of our      MGP, such as Viking Resources or Resource  Energy. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Description                                                                                                           | Location                                                |
|--------|-----------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|
|   |                                                                                                                  |                                                    |
| 4(a)   | Certificate      of Limited Partnership for Atlas AmericaAtlas      America Series 27-2006 L.P.                       | Previously      filed in our Form S-1 on August 9, 2005 |
|   |                                                                                                                  |                                                    |
| 4(b)   | Amended      and Restated Certificate and Agreement of Limited Partnership for Atlas      America Series 27-2006 L.P. | Previously      filed in our Form S-1 on August 9, 2005 |
|   |                                                                                                                  |                                                    |
| 4(c)   | Drilling      and Operating Agreement for Atlas AmericaAtlas      America Series 27-2006 L.P.                         | Previously      filed in our Form S-1 on August 9, 2005 |
|   |                                                                                                                  |                                                    |
| 31.1   | Rule      13a-14(a)/15(d) – 14 (a) Certification                                                                |                                                    |
|   |                                                                                                                  |                                                    |
| 31.2   | Rule      13a-14(a)/15(d) – 14 (a) Certification.                                                               |                                                    |
|   |                                                                                                                  |                                                    |
| 32.1   | Section      1350 Certification.                                                                                      |                                                    |
|   |                                                                                                                  |                                                    |
| 32.2   | Section      1350 Certification.                                                                                      |                                                    |

| In      accordance with Section 13 or 15(d) of the Exchange Act, the registrant      caused this report to be signed on its |
|-----------------------------------------------------------------------------------------------------------------------------|
| behalf      by the undersigned, thereunto duly authorized.                                                                  |
|                                                                                                                        |
|                                                                                                                        |
| Atlas      America Series 27-2006 L.P.                                                                                      |
|                                                                                                                        |   |   |
| Date:  March      31, 2008                                                                                        |   | Atlas      Resources, LLC, Managing General Partner |
|                                                                                                                        |   |   |
|                                                                                                                        |   | By: /s/ Freddie M.      Kotek |
|                                                                                                                        |   | Freddie      M. Kotek, Chairman of the Board of Directors, Chief    Executive |
|                                                                                                                        |   | Officer      and President |
|                                                                                                                        |   |   |
|                                                                                                                        |   |   |
|                                                                                                                        |   |   |
| In      accordance with the Exchange Act, this report has been signed by the      following persons on behalf of the        |
| registrant      and in the capacities and on the dates indicated.                                                           |
|                                                                                                                        |   |   |
|                                                                                                                        |   |   |
| Date:  March      31, 2008                                                                                        |   | By: /s/ Freddie M.      Kotek |
|                                                                                                                        |   | Freddie      M. Kotek, Chairman of the Board of Directors, Chief    Executive |
|                                                                                                                        |   | Officer      and President |
|                                                                                                                        |   |   |
|                                                                                                                        |   |   |
|                                                                                                                        |   |   |
| Date:  March      31, 2008                                                                                        |   | By: /s/ Frank P.      Carolas |
|                                                                                                                        |   | Frank      P. Carolas, Executive Vice President – Land and Geology |
|                                                                                                                        |   |   |
|                                                                                                                        |   |   |
|                                                                                                                        |   |   |
| Date:  March      31, 2008                                                                                        |   | By: /s/ Jeffrey C.      Simmons |
|                                                                                                                        |   | Jeffrey      C. Simmons, Executive Vice President – Operations |
|                                                                                                                        |   |   |
|                                                                                                                        |   |   |
|                                                                                                                        |   |   |
| Date:  March      31, 2008                                                                                        |   | By: /s/ Nancy J.      McGurk |
|                                                                                                                        |   | Nancy      J. McGurk, Vice President, Chief Accounting Officer |
|                                                                                                                        |   |   |
|                                                                                                                        |   |   |
|                                                                                                                        |   |   |
| Date:  March      31, 2008                                                                                        |   | By: /s/ Matthew A.      Jones |
|                                                                                                                        |   | Matthew      A. Jones, Chief Financial Officer |
|                                                                                                                        |   |   |
|                                                                                                                        |   |   |
|                                                                                                                        |   |   |