----

----

| West Virginia                                                  | 20-0547318                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

| Title of Each Class                                             |
|-----------------------------------------------------------------|
| Limited Partnership Interests and General Partnership Interests |

| Large accelerated filer     o | Accelerated filer     o         |
|--------------------------------------------------------|----------------------------------------------------------|
|                                                   |                                                     |
| Non-accelerated filer     o   | Smaller reporting company     x |

----

----

----

INDEX 

|                 |                                                                                                               | Page   |
|----------------------|--------------------------------------------------------------------------------------------------------------------|--------|
|                 | PART I                                                                                                             |   |
|                 |                                                                                                               |   |
|                 | Explanatory Note                                                                                                   | 1      |
| Item 1               | Business                                                                                                           | 5      |
| Item 1A              | Risk Factors                                                                                                       | 16     |
| Item 1B              | Unresolved Staff Comments                                                                                          | 23     |
| Item 2               | Properties                                                                                                         | 23     |
| Item 3               | Legal Proceedings                                                                                                  | 25     |
| Item 4               | Submission of Matters to a Vote of Security Holders                                                                | 25     |
|                 |                                                                                                               |   |
|                 | PART II                                                                                                            |   |
|                 |                                                                                                               |   |
| Item 5               | Market for Registrants’ Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 25     |
| Item 6               | Selected Financial Data                                                                                            | 27     |
| Item 7               | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        | 27     |
| Item 7A              | Quantitative and Qualitative Disclosures about Market Risk                                                         | 38     |
| Item 8               | Financial Statements and Supplementary Data                                                                        | 43     |
| Item 9               | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure                               | 44     |
| Item 9A(T)           | Controls and Procedures                                                                                            | 45     |
| Item 9B              | Other Information                                                                                                  | 48     |
|                 |                                                                                                               |   |
|                 | PART III                                                                                                           |   |
|                 |                                                                                                               |   |
| Item 10              | Directors, Executive Officers and Corporate Governance                                                             | 48     |
| Item 11              | Executive Compensation                                                                                             | 52     |
| Item 12              | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     | 52     |
| Item 13              | Certain Relationships and Related Transactions, and Director Independence                                          | 53     |
| Item 14              | Principal Accounting Fees and Services                                                                             | 54     |
|                 |                                                                                                               |   |
|                 | PART IV                                                                                                            |   |
|                 |                                                                                                               |   |
| Item 15              | Exhibits, Financial Statement Schedules                                                                            | 55     |
|                 |                                                                                                               |
| Signatures           | 58                                                                                                                 |
|                 |                                                                                                               |
| Financial Statements | F-1                                                                                                                |

----

Index

PART 

----

Index

| Errors                                                                                                         |   | Partners’ equity increase(decrease) |       |
|----------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|------------|
| Accounts receivable from oil and gas sales                                                                     |   | $                                         | 372,612    | (1) |
| Due to Managing General Partner – other, net                                                             |   |                                      | (57,410    | )(2) |
| Accumulated depreciation, depletion and amortization                                                           |   |                                      | (106,213   | )(3) |
| Accretion of asset retirement obligations                                                                      |   |                                      | (1,039     | )(4) |
| Increase to Partners’ equity as of January 1, 2005                                                       |   |                                      | 207,950    |   |
| Partners’ equity, as previously reported                                                                 |   |                                      | 20,360,509 |   |
|                                                                                                           |   |                                      |       |   |
| Partners’ equity, as restated                                                                            |   | $                                         | 20,568,459 |   |
|                                                                                                           |   |                                      |       |   |
| Increase to Partners’ equity per Investor Partner unit, as of January 1, 2005-900 units outstanding |   | $                                         | 215        |   |

| Accumulated other comprehensive income |   | $ | (14,291 | )(5) |
|----------------------------------------|--------|---|---------|------|

|   | (1) | The accounts receivable error related to unrecorded oil and gas sales revenue of $372,612 for the period from July 2, 2004 (date of inception) to December 31, 2004. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The Due to Managing General Partner – other, net error of $57,410 related to unrecorded production and operating costs of $41,361, under withheld production taxes of $14,714 and understated direct costs – general and administrative of $1,335 for the period from July 2, 2004 (date of inception) to December 31, 2004. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | The accumulated depreciation, depletion and amortization (DD&A) error related to the Partnership’s wells being assigned to a combined field instead of separate fields.  The calculation of DD&A using separate fields resulted in additional DD&A expense of $106,213 for the period from July 2, 2004 (date of inception) to December 31, 2004. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | The Partnership used an incorrect starting date for accretion of the Partnership’s asset retirement obligations resulting in an understatement of the cost of oil and gas properties of $84,059 and asset retirement obligations by $85,098 at December 31, 2004 and an understatement of accretion of assets of $1,039 for the period from July 2, 2004 (date of inception) to December 31, 2004. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | The accumulated other comprehensive income error at December 31, 2004 related to the Partnership’s erroneous recording of unrealized losses on derivatives in accordance with hedge accounting as a component of Accumulated Other Comprehensive Income.  The Partnership determined that its derivatives did not qualify for hedge accounting and unrealized gains or losses should be recognized in the Statementof Operations for the period from July 2, 2004 (date of inception) to December 31, 2004. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| Quarter ended March 31, 2005                                |   | Amount as Previously Reported |       |   | Unrealized Derivatives Gain (Loss), Net (1) |   |     | Oil & gas Sales (2) |   |   | Production and Operating Costs (3) |   |   | Oil and Gas Properties (4) |    |   | Accretion of Asset Retirement Obligations (5) |   |     | Reclassifications |   |   | December 31, 2004 Restatement of Partners' Equity |   |   | Restated Balance |     |
|-------------------------------------------------------------|--------|-------------------------------|------------|--------|---------------------------------------------|--------|----------|-------------------------|--------|--------|------------------------------------|--------|--------|----------------------------|---------|--------|-----------------------------------------------|--------|----------|-------------------|--------|--------|---------------------------------------------------|--------|--------|------------------|----------|
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |
| Statement of Operations                                     |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |
| Oil and gas sales                                           |   | $                             | 2,144,966  |   |                                        | $      | 35,355   |                    |   | $      | (108,607                           | )      |   | $                          | -       |   |                                          | $      | -        |              |   | $      | -                                                 |   |   | $                | -        |   |   | $ | - |   |   | $ | 2,071,714 |   |
| Oil and gas price risk management loss, net                 |   |                          | -          |   |                                        |   | (528,812 | )                       |   |   | -                                  |   |   |                       | -       |   |                                          |   | -        |              |   |   | -                                                 |   |   |             | -        |   |   |   | - |   |   |   | (528,812 | ) |
| Total revenues                                              |   |                          | 2,144,966  |   |                                        |   | (493,457 | )                       |   |   | (108,607                           | )      |   |                       | -       |   |                                          |   | -        |              |   |   | -                                                 |   |   |             | -        |   |   |   | - |   |   |   | 1,542,902 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Production and operating costs                              |   |                          | 287,021    |   |                                        |   | -        |                    |   |   | -                                  |   |   |                       | (84,735 | )      |                                          |   | -        |              |   |   | -                                                 |   |   |             | -        |   |   |   | - |   |   |   | 202,286 |   |
| Direct costs - general and administration                   |   |                          | 435        |   |                                        |   | -        |                    |   |   | -                                  |   |   |                       | -       |   |                                          |   | -        |              |   |   | -                                                 |   |   |             | -        |   |   |   | - |   |   |   | 435 |   |
| Accretion of assets                                         |   |                          | -          |   |                                        |   | -        |                    |   |   | -                                  |   |   |                       | -       |   |                                          |   | -        |              |   |   | 1,384                                             |   |   |             | -        |   |   |   | - |   |   |   | 1,384 |   |
| Depreciation, depletion and amortization                    |   |                          | 654,936    |   |                                        |   | -        |                    |   |   | -                                  |   |   |                       | -       |   |                                          |   | 250,045  |              |   |   | -                                                 |   |   |             | -        |   |   |   | - |   |   |   | 904,981 |   |
| Total costs and expenses                                    |   |                          | 942,392    |   |                                        |   | -        |                    |   |   | -                                  |   |   |                       | (84,735 | )      |                                          |   | 250,045  |              |   |   | 1,384                                             |   |   |             | -        |   |   |   | - |   |   |   | 1,109,086 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Income from operations                                      |   |                          | 1,202,574  |   |                                        |   | (493,457 | )                       |   |   | (108,607                           | )      |   |                       | 84,735  |   |                                          |   | (250,045 | )                 |   |   | (1,384                                            | )      |   |             | -        |   |   |   | - |   |   |   | 433,816 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Interest income                                             |   |                          | 263        |   |                                        |   | -        |                    |   |   | -                                  |   |   |                       | 1,484   |   |                                          |   | -        |              |   |   | -                                                 |   |   |             | -        |   |   |   | - |   |   |   | 1,747 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Net income                                                  |   | $                             | 1,202,837  |   |                                        | $      | (493,457 | )                       |   | $      | (108,607                           | )      |   | $                          | 86,219  |   |                                          | $      | (250,045 | )                 |   | $      | (1,384                                            | )      |   | $                | -        |   |   | $ | - |   |   | $ | 435,563 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Managing General Partner income                             |   | $                             | 240,567    |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   | $ | 87,113 |   |
| Investor Partner income                                     |   | $                             | 962,270    |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   | $ | 348,450 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Net income per Investor Partner unit                        |   | $                             | 1,069      |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   | $ | 387 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Balance Sheet                                               |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Cash                                                        |   | $                             | 21,655     |   |                                        | $      | -        |                    |   | $      | -                                  |   |   | $                          | -       |   |                                          | $      | -        |              |   | $      | -                                                 |   |   | $                | -        |   |   | $ | - |   |   | $ | 21,655 |   |
| Accounts receivable                                         |   |                          | 1,528,565  |   |                                        |   | 33,485   |                    |   |   | 24,215                             |   |   |                       | -       |   |                                          |   | -        |              |   |   | -                                                 |   |   |             | (886,304 | ) (6) |   |   | 372,612 |   |   |   | 1,072,573 |   |
| Due from Managing General Partner - derivatives, short term |   |                          | -          |   |                                        |   | 7,511    |                    |   |   | -                                  |   |   |                       | -       |   |                                          |   | -        |              |   |   | -                                                 |   |   |             | -        |   |   |   | - |   |   |   | 7,511 |   |
| Due from Managing General Partner-other, net                |   |                          | -          |   |                                        |   | (35,355  | )                       |   |   | (43,655                            | )      |   |                       | 86,052  |   |                                          |   | (33,919  | )                 |   |   | -                                                 |   |   |             | 917,307  | (6)(7) |   |   | (57,410 | ) |   |   | 833,020 |   |
| Total current assets                                        |   |                          | 1,550,220  |   |                                        |   | 5,641    |                    |   |   | (19,440                            | )      |   |                       | 86,052  |   |                                          |   | (33,919  | )                 |   |   | -                                                 |   |   |             | 31,003   |   |   |   | 315,202 |   |   |   | 1,934,759 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Oil and gas properties, net                                 |   |                          | 19,014,461 |   |                                        |   | -        |                    |   |   | -                                  |   |   |                       | -       |   |                                          |   | (216,126 | )                 |   |   | -                                                 |   |   |             | -        |   |   |   | (22,154 | ) |   |   | 18,776,181 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Due from Managing General Partner-derivatives, long term    |   |                          | -          |   |                                        |   | 9,983    |                    |   |   | -                                  |   |   |                       | -       |   |                                          |   | -        |              |   |   | -                                                 |   |   |             | -        |   |   |   | - |   |   |   | 9,983 |   |
| Total assets                                                |   | $                             | 20,564,681 |   |                                        | $      | 15,624   |                    |   | $      | (19,440                            | )      |   | $                          | 86,052  |   |                                          | $      | (250,045 | )                 |   | $      | -                                                 |   |   | $                | 31,003   |   |   | $ | 293,048 |   |   | $ | 20,720,923 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   | - |   |
| Accounts payable and accrued expenses                       |   | $                             | 100,314    |   |                                        | $      | (83,736  | )                       |   | $      | 89,167                             |   |   | $                          | -       |   |                                          | $      | -        |              |   | $      | -                                                 |   |   | $                | 31,003   | (6)(7) |   | $ | - |   |   | $ | 136,748 |   |
| Due to Managing General Partner-derivatives, short term     |   |                          | -          |   |                                        |   | 521,851  |                    |   |   | -                                  |   |   |                       | -       |   |                                          |   | -        |              |   |   | -                                                 |   |   |             | -        |   |   |   | - |   |   |   | 521,851 |   |
| Due to Managing General Partner-derivatives, long term      |   |                          | -          |   |                                        |   | 3,391    |                    |   |   | -                                  |   |   |                       | -       |   |                                          |   | -        |              |   |   | -                                                 |   |   |             | -        |   |   |   | - |   |   |   | 3,391 |   |
| Asset retirement obligations                                |   |                          | 11,317     |   |                                        |   | -        |                    |   |   | -                                  |   |   |                       | (167    | )      |                                          |   |     |              |   |   | 1,384                                             |   |   |             | -        |   |   |   | 85,098 |   |   |   | 97,632 |   |
| Total liabilities                                           |   |                          | 111,631    |   |                                        |   | 441,506  |                    |   |   | 89,167                             |   |   |                       | (167    | )      |                                          |   | -        |              |   |   | 1,384                                             |   |   |             | 31,003   |   |   |   | 85,098 |   |   |   | 759,622 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Accumulated other comprehensive income                      |   |                          | (81,866    | )      |                                        |   | 67,575   |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             | -        |   |   |   | 14,291 |   |   |   | - |   |
| Partners' equity                                            |   |                          | 20,534,916 |   |                                        |   | (493,457 | )                       |   |   | (108,607                           | )      |   |                       | 86,219  |   |                                          |   | (250,045 | )                 |   |   | (1,384                                            | )      |   |             | -        |   |   |   | 193,659 |   |   |   | 19,961,301 |   |
| Total liabilities and Partners' equity                      |   | $                             | 20,564,681 |   |                                        | $      | 15,624   |                    |   | $      | (19,440                            | )      |   | $                          | 86,052  |   |                                          | $      | (250,045 | )                 |   | $      | -                                                 |   |   | $                | 31,003   |   |   | $ | 293,048 |   |   | $ | 20,720,923 |   |

|   | (1) | The Partnership determined that there was an error in the Partnership’s accounting for derivatives for improperly using hedge accounting and for using an incorrect derivative valuation methodology.  Correction of this error required recognition in the statement of operations of an unrealized derivative loss of $528,812, and reversal of a realized loss of $35,355 previously included in oil and gassales during the first quarter of 2005.  The correction also resulted in changes to balance sheet captions as follows:  an increase in “Accounts receivable” of $33,485; a decrease in “Due from Managing General Partner – other, net” of $35,355; a decrease in Accounts payable and accrued expenses of $83,736; an increase in “Due from Managing General Partner – derivatives” (short term) of $7,511; an increase in “Due from Managing General Partner– derivatives” (long term) of $9,983; an increase in “Due to Managing General Partner – derivatives” (short term) of $521,851; an increase in “Due to Managing General Partner – derivatives” (long term) of $3,391; and a decrease in the “Accumulated other comprehensive loss” of $67,575. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The Partnership determined that oil and gas revenues had been overstated for the three month period ended March 31, 2005 by $108,607.  The reversal of the previously recorded incorrect oil and gas revenues accrual and the recording of the correct accrual resulted in changes to the Balance Sheet captions as follows:  an increase in “Accounts receivable” of $24,215; a reduction in “Duefrom Managing General Partner – other, net” of $43,655; and an increase in “Accounts payable and accrued expenses” of $89,167. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | (3) | PDC determined that it had also over-withheld production taxes from distributions to the limited partners of the Partnership during 2005.  The total error for the production tax over-withholding was $86,219, including $1,484 in forgone interest income, during the three month period ended March 31, 2005.  Properly recording these production taxes resulted in an increase in “Due from ManagingGeneral Partner – other, net” of $86,052 and a decrease in Asset Retirement obligations of $167. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | The  “Oil and gas properties” error related to Partnership’s wells being assigned to a combined field instead of separate fields and the failure to record drilling costs in excess of drilling advances as “Oil and gas properties”.  The calculation of DD&A using separate fields resulted in additional DD&A expense of $250,045 during the first quarter of 2005.  Inaddition, the amounts spent by PDC in excess of drilling advances of $33,919 were not recorded.  Recording these additional DD&A expenses and drilling costs in excess of advances resulted in changes in Balance Sheet captions as follows:  a decrease in “oil and gas properties, net” of $216,126; and a decrease in “Due from Managing General Partner – other, net” of $33,919. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | The Partnership also used an incorrect starting date for accretion of the asset retirement obligation resulting in an understatement of Asset Retirement obligations of $1,384.  Recording the additional accretion resulted in an increase to the Balance Sheet caption “Asset retirement obligations” of $1,384. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Represents the reclassification of $999,140 of “Accounts receivable” for undistributed oil and natural gas revenues collected by the Managing General Partner from the Partnership’s customers from “Accounts receivable” to “Due from Managing General Partner – other, net” offset by the reclassification of $112,836 previously recorded as a reduction to “Accounts receivable”to “Accounts payable and accrued expenses” to conform to the current year presentation. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | Represents the reclassification of $81,833 of “Accounts payable and accrued expenses” for production and operating costs to “Due from Managing General Partner – other, net” to conform to the current year presentation. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | · | changes in production volumes, worldwide demand, and commodity prices for oil and natural gas; |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | risks incident to the operation of natural gas and oil wells; |
|--------|--------|---------------------------------------------------------------|

|   | · | future production and development costs; |
|--------|--------|------------------------------------------|

|   | · | the availability of sufficient pipeline and other transportation facilities to carry Partnership production and the impact of these facilities on price; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the effect of existing and future laws, governmental regulations and the political and economic climate of the United States of America (“U.S.”) and the impact of the global economy; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the effect of natural gas and oil derivatives activities; |
|--------|--------|-----------------------------------------------------------|

|   | · | availability and cost of capital and conditions in the capital markets; and |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | losses possible from pending and/or future litigation and the costs incident thereto. |
|--------|--------|---------------------------------------------------------------------------------------|

| Item 1. | Business |
|---------|----------|

----

Index

|   | a)  | The cost of the prospect; and |
|--------|----------|-------------------------------|

|   | b) | The intangible well costs for each well completed and placed in production, an amount equal to the depth of the well in feet at its deepest penetration as recorded by the drilling contractor multiplied by the “intangible drilling and completion cost” in the D & O Agreement, plus the actual extra completion cost of zones completed in excess of the cost of the first zone and actual additional costsincurred in the event that an intermediate or third string of surface casing is run, rig mobilization and trucking costs, the additional cost for directional drilling and drill stem testing, sidetracking, fishing of drilling tools; and |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | The tangible costs of drilling and completing the partnership wells and of gathering pipelines necessary to connect the well to the nearest appropriate sales point or delivery point. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

----

Index

----

Index

----

Index

|                                                                                |   | Year Ended December 31, |       |
|-------------------------------------------------------------------------------------|--------|-------------------------|------------|
|                                                                                |   | 2007                    |       |   | 2006 |   |   | 2005 |   |
| Production                                                                          |   |                    |       |   |   |   |   |   |   |
| Oil (Bbls)                                                                          |   |                    | 12,961     |   |   |   | 22,657 |   |   |   | 48,105 |   |
| Natural gas (Mcf)                                                                   |   |                    | 463,307    |   |   |   | 659,530 |   |   |   | 967,654 |   |
| Natural gas equivalent (Mcfe)                                                       |   |                    | 541,073    |   |   |   | 795,472 |   |   |   | 1,256,284 |   |
|                                                                                |   |                    |       |   |   |   |   |   |   |   |   |   |
| Oil and Gas Sales                                                                   |   |                    |       |   |   |   |   |   |   |   |   |   |
| Oil sales                                                                           |   | $                       | 752,295    |   |   | $ | 1,446,810 |   |   | $ | 2,537,768 |   |
| Gas sales                                                                           |   |                    | 2,267,215  |   |   |   | 3,657,826 |   |   |   | 6,547,539 |   |
| Total oil and gas sales                                                             |   | $                       | 3,019,510  |   |   | $ | 5,104,636 |   |   | $ | 9,085,307 |   |
|                                                                                |   |                    |       |   |   |   |   |   |   |   |   |   |
| Realized Gain (Loss) on Derivatives, net                                            |   |                    |       |   |   |   |   |   |   |   |   |   |
| Oil derivatives - realized (loss)                                                   |   | $                       | (3,604     | ) |   | $ | (1,142 | ) |   | $ | (142,841 | ) |
| Natural gas derivatives - realized gain (loss)                                      |   |                    | 175,512    |   |   |   | 129,835 |   |   |   | (267,842 | ) |
| Total realized gain (loss) on derivatives, net                                      |   | $                       | 171,908    |   |   | $ | 128,693 |   |   | $ | (410,683 | ) |
|                                                                                |   |                    |       |   |   |   |   |   |   |   |   |   |
| Average Sales Price                                                                 |   |                    |       |   |   |   |   |   |   |   |   |   |
| Oil (per Bbl)                                                                       |   | $                       | 58.04      |   |   | $ | 63.86 |   |   | $ | 52.75 |   |
| Natural gas (per Mcf)                                                               |   |                    | 4.89       |   |   |   | 5.55 |   |   |   | 6.77 |   |
| Natural gas equivalent (per Mcfe)                                                   |   |                    | 5.58       |   |   |   | 6.42 |   |   |   | 7.23 |   |
|                                                                                |   |                    |       |   |   |   |   |   |   |   |   |   |
| Average Sales Price (including realized gain (loss) on derivatives)                 |   |                    |       |   |   |   |   |   |   |   |   |   |
| Oil (per Bbl)                                                                       |   |                    | 57.76      |   |   |   | 63.81 |   |   |   | 49.79 |   |
| Natural gas (per Mcf)                                                               |   |                    | 5.27       |   |   |   | 5.74 |   |   |   | 6.49 |   |
| Natural gas equivalent (per Mcfe)                                                   |   |                    | 5.90       |   |   |   | 6.58 |   |   |   | 6.90 |   |
|                                                                                |   |                    |       |   |   |   |   |   |   |   |   |   |
| Average Production Cost (Lifting Cost) per Mcfe       |   | $                  |  1.44 |   |   | $  |  1.04 |   |   | $  |  0.77 |   |

|   | · | Bbl – One barrel or 42 U.S. gallons liquid volume |
|--------|--------|---------------------------------------------------------|

|   | · | MBbl – One thousand barrels |
|--------|--------|-----------------------------------|

|   | · | Mcf – One thousand cubic feet |
|--------|--------|-------------------------------------|

|   | · | Mcfe – One thousand cubic feet of natural gas equivalents |
|--------|--------|-----------------------------------------------------------------|

|   | · | MMcf – One million cubic feet |
|--------|--------|-------------------------------------|

|   | · | MMcfe – One million cubic feet of natural gas equivalents |
|--------|--------|-----------------------------------------------------------------|

----

Index

|               |   | As of December 31, 2007 |   |
|--------------------|--------|-------------------------|--------|
|               |   | Oil (MBbl)              |   |   | Gas (MMcf) |   |   | Total (MMcfe) |   |
| Proved developed   |   |                    | 71     |   |   |   | 4,906 |   |   |   | 5,332 |   |
| Proved undeveloped |   |                    | 158    |   |   |   | 632 |   |   |   | 1,580 |   |
| Total Proved       |   |                    | 229    |   |   |   | 5,538 |   |   |   | 6,912 |   |

|                                                |   | Proved         |   |   | Proved         |   |   | Total          |   |
|-----------------------------------------------------|--------|----------------|--------|--------|----------------|--------|--------|----------------|--------|
|                                                |   | Developed      |   |   | Undeveloped    |   |   | Proved         |   |
|                                                |   | (in thousands) |   |   | (in thousands) |   |   | (in thousands) |   |
|                                                |   |           |   |
| Estimated future net cash flows                     |   | $              | 23,622 |   |           | $      | 12,455 |           |   | $ | 36,077 |   |
| Standardized measure of esitmated future cash flows |   |           | 12,888 |   |           |   | 5,511  |           |   |   | 18,399 |   |

----

Index

|   | 1. | Worker's compensation insurance in full compliance with the laws for the states in which the operator has employees; |
|--------|----|----------------------------------------------------------------------------------------------------------------------|

|   | 2. | Operator's bodily injury liability and property damage liability insurance, each with a limit of $1 million; |
|--------|----|--------------------------------------------------------------------------------------------------------------|

|   | 3. | Employer's liability insurance with a limit of not less than $1 million; |
|--------|----|--------------------------------------------------------------------------|

|   | 4. | Automobile public liability insurance with a limit of not less than $1 million per occurrence, covering all automobile equipment; and |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | Operator's umbrella liability insurance with a limit of $50 million for each well location and in the aggregate. |
|--------|----|------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

----

Index

| Item 1A.  | Risk Factors |
|----------------|--------------|

----

Index

----

Index

|   | · | PDC might sponsor additional drilling programs in the future that could conflict with the interests of the Partnership.  PDC and affiliates have the right to organize and manage oil and natural gas drilling programs in the future similar to the Partnership and to conduct production operations now and in the future on its own behalf or for other individual investor partners.  This situation couldlead to a conflict between the position of PDC as Managing General Partner of the Partnership and the position of PDC or its affiliates as managing general partner or sponsor of additional programs. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | PDC has a fiduciary duty as Managing General Partner to the Partnership.  PDC acts as managing general partner currently for 33 limited partnerships, including this Partnership, and is accountable to all of the partnerships as a fiduciary.  PDC therefore has a duty to exercise good faith and deal fairly with the investor partners of each partnership.  PDC’s actions taken on behalfof one or more of these partnerships could be disadvantageous to the Partnership and could fall short of the full exercise of its fiduciary duty to the Partnership. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | There are and will continue to be transactions between PDC, its affiliates and the Partnership.  PDC, as operator of the Partnership, has and will continue to provide drilling, completion and operation services to the Partnership’s wells.  Although the prices that PDC has charged, and will charge, to the Partnership for the supplies and services provided by PDC and affiliates to the Partnershipwill be competitive with the prices charged by unaffiliated persons for the same supplies and services, PDC will benefit financially from this relationship. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

----

Index

----

Index

----

Index

| Item 1B. | Unresolved Staff Comments |
|----------|---------------------------|

----

Index

| Item 2. | Properties |
|---------|------------|

----

Index

| Item 3. | Legal Proceedings |
|---------|-------------------|

| Item 4. | Submission of Matters to a Vote of Security Holders |
|---------|-----------------------------------------------------|

| Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
|---------|--------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

| Item 6. | Selected Financial Data |
|---------|-------------------------|

| Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|---------|---------------------------------------------------------------------------------------------|

----

Index

|                                                                     |   | Year Ended        |      |   | Year Ended        |   |      | Year Ended        |   |
|--------------------------------------------------------------------------|--------|-------------------|-----------|--------|-------------------|--------|-----------|-------------------|--------|
|                                                                     |   | December 31, 2007 |      |   | December 31, 2006 |   |      | December 31, 2005 |   |
| Number of producing wells (end of period)                                |   |              | 23        |   |              |   | 23        |              |   |   | 23 |   |
|                                                                     |   |              |      |   |              |   |      |              |   |   |   |   |
| Production:  (1)                                               |   |              |      |   |              |   |      |              |   |   |   |   |
| Oil (Bbl)                                                                |   |              | 12,961    |   |              |   | 22,657    |              |   |   | 48,105 |   |
| Natural gas (Mcf)                                                        |   |              | 463,307   |   |              |   | 659,530   |              |   |   | 967,654 |   |
| Natural gas equivalents (Mcfe)  (2)                            |   |              | 541,073   |   |              |   | 795,472   |              |   |   | 1,256,284 |   |
|                                                                     |   |              |      |   |              |   |      |              |   |   |   |   |
| Average Sales Price (excluding realized gain (loss), net on derivatives) |   |              |      |   |              |   |      |              |   |   |   |   |
| Oil (per Bbl)  (3)                                             |   | $                 | 58.04     |   |              | $      | 63.86     |              |   | $ | 52.75 |   |
| Natural gas (per Mcf)  (3)                                     |   |              | 4.89      |   |              |   | 5.55      |              |   |   | 6.77 |   |
| Natural gas equivalents (per Mcfe)  (3)                        |   |              | 5.58      |   |              |   | 6.42      |              |   |   | 7.23 |   |
|                                                                     |   |              |      |   |              |   |      |              |   |   |   |   |
| Average Sales Price (including realized gain (loss), net on derivatives) |   |              |      |   |              |   |      |              |   |   |   |   |
| Oil (per Bbl)                                                            |   | $                 | 57.76     |   |              | $      | 63.81     |              |   | $ | 49.79 |   |
| Natural gas (per Mcf)                                                    |   |              | 5.27      |   |              |   | 5.74      |              |   |   | 6.49 |   |
| Natural gas equivalents (per Mcfe)                                       |   |              | 5.90      |   |              |   | 6.58      |              |   |   | 6.90 |   |
|                                                                     |   |              |      |   |              |   |      |              |   |   |   |   |
| Average cost per Mcfe                                                    |   |              |      |   |              |   |      |              |   |   |   |   |
| Production and operating costs  (4)                            |   | $                 | 1.44      |   |              | $      | 1.04      |              |   | $ | 0.77 |   |
| Depreciation, depletion and amortization                                 |   |              | 2.57      |   |              |   | 2.38      |              |   |   | 2.49 |   |
|                                                                     |   |              |      |   |              |   |      |              |   |   |   |   |
| Revenues:                                                                |   |              |      |   |              |   |      |              |   |   |   |   |
| Oil and gas sales                                                        |   | $                 | 3,019,510 |   |              | $      | 5,104,636 |              |   | $ | 9,085,307 |   |
| Oil and gas price risk management (loss) gain, net                       |   |              | (171,459  | )      |              |   | 620,894   |              |   |   | (583,868 | ) |
| Total revenues                                                           |   | $                 | 2,848,051 |   |              | $      | 5,725,530 |              |   | $ | 8,501,439 |   |
|                                                                     |   |              |      |   |              |   |      |              |   |   |   |   |
| Realized Gain (Loss) on Derivatives, Net                                 |   |              |      |   |              |   |      |              |   |   |   |   |
| Oil derivatives - realized loss                                          |   | $                 | (3,604    | )      |              | $      | (1,142    | )                 |   | $ | (142,841 | ) |
| Natural gas derivatives - realized gain (loss)                           |   |              | 175,512   |   |              |   | 129,835   |              |   |   | (267,842 | ) |
| Total realized gain (loss) on derivatives, net                           |   | $                 | 171,908   |   |              | $      | 128,693   |              |   | $ | (410,683 | ) |
|                                                                     |   |              |      |   |              |   |      |              |   |   |   |   |
| Operating costs and expenses:                                            |   |              |      |   |              |   |      |              |   |   |   |   |
| Production and operating costs                                           |   | $                 | 776,600   |   |              | $      | 831,111   |              |   | $ | 969,093 |   |
| Direct costs - general and administrative                                |   |              | 49,037    |   |              |   | 103,481   |              |   |   | 16,821 |   |
| Depreciation, depletion and amortization                                 |   |              | 1,388,803 |   |              |   | 1,895,542 |              |   |   | 3,128,442 |   |
| Accretion of asset retirement obligations                                |   |              | 8,304     |   |              |   | 5,881     |              |   |   | 5,655 |   |
| Total operating costs and expenses                                       |   | $                 | 2,222,744 |   |              | $      | 2,836,015 |              |   | $ | 4,120,011 |   |
|                                                                     |   |              |      |   |              |   |      |              |   |   |   |   |
| Income from operations                                                   |   | $                 | 625,307   |   |              | $      | 2,889,515 |              |   | $ | 4,381,428 |   |
|                                                                     |   |              |      |   |              |   |      |              |   |   |   |   |
| Interest income                                                          |   |              | 49,440    |   |              |   | 47,159    |              |   |   | 16,670 |   |
|                                                                     |   |              |      |   |              |   |      |              |   |   |   |   |
| Net income                                                               |   | $                 | 674,747   |   |              | $      | 2,936,674 |              |   | $ | 4,398,098 |   |
|                                                                     |   |              |      |   |              |   |      |              |   |   |   |   |
| Cash distributions                                                       |   | $                 | 2,395,447 |   |              | $      | 5,255,124 |              |   | $ | 6,464,811 |   |

|   | (1) | Production is net and determined by multiplying the gross production volume of properties in which we have an interest by the average percentage of the leasehold or other property interest the Partnership owns. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | A ratio of energy content of natural gas and oil (six Mcf of natural gas equals one Bbl of oil) was used to obtain a conversion factor to convert oil production into equivalent Mcf of natural gas. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | (3) | The Partnership utilizes commodity based derivative instruments to manage a portion of the Partnership’s exposure to price volatility of our natural gas and oil sales.  This amount excludes realized and unrealized gains and losses on commodity based derivative instruments. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Production costs represent oil and gas operating expenses which include production taxes. |
|--------|-----|-------------------------------------------------------------------------------------------|

|   | · | Bbl – One barrel or 42 U.S. gallons liquid volume |
|--------|--------|---------------------------------------------------------|

|   | · | MBbl – One thousand barrels |
|--------|--------|-----------------------------------|

|   | · | Mcf – One thousand cubic feet |
|--------|--------|-------------------------------------|

|   | · | MMcf – One million cubic feet |
|--------|--------|-------------------------------------|

|   | · | Mcfe – One thousand cubic feet of natural gas equivalents, based on a ratio of 6 Mcf for each barrel of oil, which reflects the relative energy content |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | MMcfe – One million cubic feet of natural gas equivalents |
|--------|--------|-----------------------------------------------------------------|

|                    |   | 2007           |   |   | 2006   |   |   | 2005     |   |   |           |   |   |   |   |
|-------------------------|--------|----------------|--------|--------|--------|--------|--------|----------|--------|--------|----------------|--------|--------|--------|--------|
|                    |   | Sales          |   |   |   |   |   |     |   |   | Sales          |   |   |   |   |   |   |   |   | Sales |   |   |   |   |   |   |   |
| Total                   |   | (in thousands) |   |   | MMcfe  |   |   | per Mcfe |   |   | (in thousands) |   |   | MMcfe  |   |   | per Mcfe |   |   | (in thousands) |   |   | MMcfe |   |   | per Mcfe |   |
| Jan-Mar                 |   | $              | 902    |   |   |   | 156    |     |   | $      | 5.79           |   |   | $      | 1,564  |   |   |   | 206 |   |   | $ | 7.62 |   |   | $ | 2,071 | * |   |   | 336 | * |   | $ | 6.16 | * |
| Apr-Jun                 |   |           | 812    |   |   |   | 146    |     |   |   | 5.55           |   |   |   | 1,413  |   |   |   | 225 |   |   |   | 6.27 |   |   |   | 2,274 |   |   |   | 352 |   |   |   | 6.46 |   |
| Jul-Sep                 |   |           | 655    |   |   |   | 133    |     |   |   | 4.93           |   |   |   | 1,201  |   |   |   | 196 |   |   |   | 6.12 |   |   |   | 2,265 |   |   |   | 314 |   |   |   | 7.22 |   |
| Oct-Dec                 |   |           | 651    |   |   |   | 106    |     |   |   | 6.13           |   |   |   | 927    |   |   |   | 168 |   |   |   | 5.50 |   |   |   | 2,475 |   |   |   | 254 |   |   |   | 9.73 |   |
| Total                   |   | $              | 3,020  |   |   |   | 541    |     |   | $      | 5.58           |   |   | $      | 5,105  |   |   |   | 795 |   |   | $ | 6.42 |   |   | $ | 9,085 |   |   |   | 1,256 |   |   | $ | 7.23 |   |
| Change (year over year) |   |           | -41    | %      |   |   | -32    | %        |   |   | -13            | %      |   |   | -44    | % |   |   | -37 | % |   |   | -11 | % |   |   |   |   |   |   |   |   |   |   |   |   |

|                    |   | 2007           |   |   | 2006   |   |   | 2005    |   |   |           |   |   |   |   |
|-------------------------|--------|----------------|--------|--------|--------|--------|--------|---------|--------|--------|----------------|--------|--------|--------|--------|
|                    |   | Sales          |   |   |   |   |   |    |   |   | Sales          |   |   |   |   |   |   |   |   | Sales |   |   |   |   |   |   |   |
| Oil                     |   | (in thousands) |   |   | MBbl   |   |   | per Bbl |   |   | (in thousands) |   |   | MBbl   |   |   | per Bbl |   |   | (in thousands) |   |   | MBbl |   |   | per Bbl |   |
| Jan-Mar                 |   | $              | 165    |   |   |   | 4      |    |   | $      | 44.60          |   |   | $      | 384    |   |   |   | 6 |   |   | $ | 60.87 |   |   | $ | 791 | * |   |   | 16 | * |   | $ | 48.42 | * |
| Apr-Jun                 |   |           | 184    |   |   |   | 3      |    |   |   | 54.20          |   |   |   | 448    |   |   |   | 7 |   |   |   | 67.84 |   |   |   | 695 |   |   |   | 14 |   |   |   | 49.62 |   |
| Jul-Sep                 |   |           | 202    |   |   |   | 3      |    |   |   | 64.08          |   |   |   | 351    |   |   |   | 5 |   |   |   | 68.18 |   |   |   | 602 |   |   |   | 10 |   |   |   | 60.19 |   |
| Oct-Dec                 |   |           | 201    |   |   |   | 3      |    |   |   | 74.35          |   |   |   | 264    |   |   |   | 5 |   |   |   | 57.39 |   |   |   | 450 |   |   |   | 8 |   |   |   | 57.95 |   |
| Total                   |   | $              | 752    |   |   |   | 13     |    |   | $      | 58.04          |   |   | $      | 1,447  |   |   |   | 23 |   |   | $ | 63.86 |   |   | $ | 2,538 |   |   |   | 48 |   |   | $ | 52.75 |   |
| Change (year over year) |   |           | -48    | %      |   |   | -43    | %       |   |   | -9             | %      |   |   | -43    | % |   |   | -53 | % |   |   | 21 | % |   |   |   |   |   |   |   |   |   |   |   |   |

|                    |   | 2007           |   |   | 2006   |   |   | 2005    |   |   |           |   |   |   |   |
|-------------------------|--------|----------------|--------|--------|--------|--------|--------|---------|--------|--------|----------------|--------|--------|--------|--------|
|                    |   | Sales          |   |   |   |   |   |    |   |   | Sales          |   |   |   |   |   |   |   |   | Sales |   |   |   |   |   |   |   |
| Gas                     |   | (in thousands) |   |   | MMcf   |   |   | per Mcf |   |   | (in thousands) |   |   | MMcf   |   |   | per Mcf |   |   | (in thousands) |   |   | MMcf |   |   | per Mcf |   |
| Jan-Mar                 |   | $              | 737    |   |   |   | 133    |    |   | $      | 5.52           |   |   | $      | 1,180  |   |   |   | 168 |   |   | $ | 7.05 |   |   | $ | 1,280 | * |   |   | 238 | * |   | $ | 5.38 | * |
| Apr-Jun                 |   |           | 628    |   |   |   | 126    |    |   |   | 4.99           |   |   |   | 965    |   |   |   | 186 |   |   |   | 5.19 |   |   |   | 1,579 |   |   |   | 268 |   |   |   | 5.89 |   |
| Jul-Sep                 |   |           | 453    |   |   |   | 114    |    |   |   | 3.98           |   |   |   | 850    |   |   |   | 165 |   |   |   | 5.14 |   |   |   | 1,663 |   |   |   | 254 |   |   |   | 6.56 |   |
| Oct-Dec                 |   |           | 450    |   |   |   | 90     |    |   |   | 5.00           |   |   |   | 663    |   |   |   | 141 |   |   |   | 4.71 |   |   |   | 2,025 |   |   |   | 208 |   |   |   | 9.75 |   |
| Total                   |   | $              | 2,268  |   |   |   | 463    |    |   | $      | 4.89           |   |   | $      | 3,658  |   |   |   | 660 |   |   | $ | 5.55 |   |   | $ | 6,547 |   |   |   | 968 |   |   | $ | 6.77 |   |
| Change (year over year) |   |           | -38    | %      |   |   | -30    | %       |   |   | -12            | %      |   |   | -44    | % |   |   | -32 | % |   |   | -18 | % |   |   |   |   |   |   |   |   |   |   |   |   |

----

Index

----

Index

|                                                |   | Three months ended |     |   |          |   |
|-----------------------------------------------------|--------|--------------------|----------|--------|---------------|--------|
|                                                |   | March 31, 2007     |     |   | June 30, 2007 |   |   | September 30, 2007 |   |   | December 31, 2007 |   |   | Year Ended Total |   |
| Realized gains (losses)                             |   |               |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Oil                                                 |   | $                  | (1,422   | )      |          | $      | (1,552 | ) |   | $ | (449 | ) |   | $ | (181 | ) |   | $ | (3,604 | ) |
| Natural Gas                                         |   |               | (6,228   | )      |          |   | 53,992 |   |   |   | 99,166 |   |   |   | 28,582 |   |   |   | 175,512 |   |
| Total realized (loss) gain                          |   |               | (7,650   | )      |          |   | 52,440 |   |   |   | 98,717 |   |   |   | 28,401 |   |   |   | 171,908 |   |
| Unrealized (loss) gain                              |   |               | (141,498 | )      |          |   | 54,023 |   |   |   | (21,128 | ) |   |   | (234,764 | ) |   |   | (343,367 | ) |
| Oil and gas price risk management, (loss) gain, net |   | $                  | (149,148 | )      |          | $      | 106,463 |   |   | $ | 77,589 |   |   | $ | (206,363 | ) |   | $ | (171,459 | ) |

|                                        |   | Three months ended |    |   |          |   |
|---------------------------------------------|--------|--------------------|---------|--------|---------------|--------|
|                                        |   | March 31, 2006     |    |   | June 30, 2006 |   |   | September 30, 2006 |   |   | December 31, 2006 |   |   | Year Ended Total |   |
| Realized gains (losses)                     |   |               |    |   |          |   |   |   |   |   |   |   |   |   |   |
| Oil                                         |   | $                  | -       |   |          | $      | - |   |   | $ | - |   |   | $ | (1,142 | ) |   | $ | (1,142 | ) |
| Natural Gas                                 |   |               | 97,081  |   |          |   | 7,956 |   |   |   | 6,479 |   |   |   | 18,319 |   |   |   | 129,835 |   |
| Total realized gain                         |   |               | 97,081  |   |          |   | 7,956 |   |   |   | 6,479 |   |   |   | 17,177 |   |   |   | 128,693 |   |
| Unrealized gain                             |   |               | 285,623 |   |          |   | 80,909 |   |   |   | 64,170 |   |   |   | 61,499 |   |   |   | 492,201 |   |
| Oil and gas price risk management gain, net |   | $                  | 382,704 |   |          | $      | 88,865 |   |   | $ | 70,649 |   |   | $ | 78,676 |   |   | $ | 620,894 |   |

|                                                |   | Three months ended                |     |   |          |   |
|-----------------------------------------------------|--------|-----------------------------------|----------|--------|---------------|--------|
|                                                |   |  March 31, 2005(as restated) |     |   | June 30, 2005 |   |   | September 30, 2005 |   |   | December 31, 2005 |   |   | Year Ended Total |   |
| Realized gains (losses)                             |   |                              |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Oil                                                 |   | $                                 | (35,355  | )      |          | $      | (34,177 | ) |   | $ | (45,218 | ) |   | $ | (28,091 | ) |   | $ | (142,841 | ) |
| Natural Gas                                         |   |                              | -        |   |          |   | (57,767 | ) |   |   | (75,022 | ) |   |   | (135,053 | ) |   |   | (267,842 | ) |
| Total realized loss                                 |   |                              | (35,355  | )      |          |   | (91,944 | ) |   |   | (120,240 | ) |   |   | (163,144 | ) |   |   | (410,683 | ) |
| Unrealized (loss) gain                              |   |                              | (493,457 | )      |          |   | 224,486 |   |   |   | (605,632 | ) |   |   | 701,418 |   |   |   | (173,185 | ) |
| Oil and gas price risk management, (loss) gain, net |   | $                                 | (528,812 | )      |          | $      | 132,542 |   |   | $ | (725,872 | ) |   | $ | 538,274 |   |   | $ | (583,868 | ) |

|    |   | 2007       |    |   | 2006   |   |    | 2005     |   |
|---------|--------|------------|---------|--------|--------|--------|---------|----------|--------|
|    |   | Prod Costs |    |   | Mcfe's |   |    | per Mcfe |   |   | Prod Costs |   |   | Mcfe's |   |   | per Mcfe |   |   | Prod Costs |   |   | Mcfe's |   |   | per Mcfe |   |
| Jan-Mar |   | $          | 195,397 |   |   |   | 155,517 |     |   | $ | 1.26 |   |   | $ | 180,049 |   |   |   | 205,236 |   |   | $ | 0.88 |   |   | $ | 202,286 | * |   |   | 336,208 |   |   | $ | 0.60 |   |
| Apr-Jun |   |       | 193,665 |   |   |   | 146,279 |     |   |   | 1.32 |   |   |   | 253,342 |   |   |   | 225,456 |   |   |   | 1.12 |   |   |   | 251,379 |   |   |   | 352,303 |   |   |   | 0.71 |   |
| Jul-Sep |   |       | 208,557 |   |   |   | 132,937 |     |   |   | 1.57 |   |   |   | 213,397 |   |   |   | 196,402 |   |   |   | 1.09 |   |   |   | 248,660 |   |   |   | 313,519 |   |   |   | 0.79 |   |
| Oct-Dec |   |       | 178,981 |   |   |   | 106,340 |     |   |   | 1.68 |   |   |   | 184,323 |   |   |   | 168,378 |   |   |   | 1.09 |   |   |   | 266,768 |   |   |   | 254,254 |   |   |   | 1.05 |   |
| Total   |   | $          | 776,600 |   |   |   | 541,073 |     |   | $ | 1.44 |   |   | $ | 831,111 |   |   |   | 795,472 |   |   | $ | 1.04 |   |   | $ | 969,093 |   |   |   | 1,256,284 |   |   | $ | 0.77 |   |

----

Index

|    |   | 2007     |      |   | 2006   |   |    | 2005     |   |
|---------|--------|----------|-----------|--------|--------|--------|---------|----------|--------|
|    |   | DD&A |      |   | Mcfe's |   |    | per Mcfe |   |   | DD&A |   |   | Mcfe's |   |   | per Mcfe |   |   | DD&A |   |   | Mcfe's |   |   | per Mcfe |   |
| Jan-Mar |   | $        | 389,979   |   |   |   | 155,517 |     |   | $ | 2.51 |   |   | $ | 484,879 |   |   |   | 205,236 |   |   | $ | 2.36 |   |   | $ | 904,981 |   |   |   | 336,208 |   |   | $ | 2.69 |   |
| Apr-Jun |   |     | 360,868   |   |   |   | 146,279 |     |   |   | 2.47 |   |   |   | 517,115 |   |   |   | 225,456 |   |   |   | 2.29 |   |   |   | 882,851 |   |   |   | 352,303 |   |   |   | 2.51 |   |
| Jul-Sep |   |     | 319,661   |   |   |   | 132,937 |     |   |   | 2.40 |   |   |   | 456,706 |   |   |   | 196,402 |   |   |   | 2.33 |   |   |   | 744,041 |   |   |   | 313,519 |   |   |   | 2.37 |   |
| Oct-Dec |   |     | 318,295   |   |   |   | 106,340 |     |   |   | 2.99 |   |   |   | 436,842 |   |   |   | 168,378 |   |   |   | 2.59 |   |   |   | 596,569 |   |   |   | 254,254 |   |   |   | 2.35 |   |
| Total   |   | $        | 1,388,803 |   |   |   | 541,073 |     |   | $ | 2.57 |   |   | $ | 1,895,542 |   |   |   | 795,472 |   |   | $ | 2.38 |   |   | $ | 3,128,442 |   |   |   | 1,256,284 |   |   | $ | 2.49 |   |

----

Index

|            |   | As of          |      |
|-----------------|--------|----------------|-----------|
|            |   | March 31, 2007 |      |   | June 30, 2007 |   |   | September 30, 2007 |   |   | December 31, 2007 |   |
|            |   |           |      |   |   |   |   |   |   |   |   |   |
| Working capital |   | $              | 1,450,306 |   |   | $ | 1,503,645 |   |   | $ | 1,421,595 |   |   | $ | 1,155,245 |   |

|            |   | As of          |      |
|-----------------|--------|----------------|-----------|
|            |   | March 31, 2006 |      |   | June 30, 2006 |   |   | September 30, 2006 |   |   | December 31, 2006 |   |
|            |   |           |      |   |   |   |   |   |   |   |   |   |
| Working capital |   | $              | 1,854,220 |   |   | $ | 1,692,554 |   |   | $ | 1,603,266 |   |   | $ | 1,531,215 |   |

|            |   | As of                      |      |
|-----------------|--------|----------------------------|-----------|
|            |   | March 31, 2005(as retated) |      |   | June 30, 2005 |   |   | September 30, 2005 |   |   | December 31, 2005 |   |
|            |   |                       |      |   |   |   |   |   |   |   |   |   |
| Working capital |   | $                          | 1,276,160 |   |   | $ | 1,704,648 |   |   | $ | 1,176,536 |   |   | $ | 2,014,830 |   |

----

Index

|    |   | Managing        |      |   | Investor      |   |      |          |   |
|---------|--------|-----------------|-----------|--------|---------------|--------|-----------|---------------|--------|
|    |   | General Partner |      |   | Partners      |   |      | Total         |   |
|    |   | Distributions   |      |   | Distributions |   |      | Distributions |   |
|    |   |            |      |   |          |   |      |          |   |
| 2007    |   |            |      |   |          |   |      |          |   |
| Jan-Mar |   | $               | 129,948   |   |          | $      | 519,794   |          |   | $ | 649,742 |   |
| Apr-Jun |   |            | 118,300   |   |          |   | 492,530   |          |   |   | 610,830 |   |
| Jul-Sep |   |            | 123,010   |   |          |   | 492,043   |          |   |   | 615,053 |   |
| Oct-Dec |   |            | 103,964   |   |          |   | 415,858   |          |   |   | 519,822 |   |
|    |   | $               | 475,222   |   |          | $      | 1,920,225 |          |   | $ | 2,395,447 |   |
|    |   |            |      |   |          |   |      |          |   |   |   |   |
| 2006    |   |            |      |   |          |   |      |          |   |   |   |   |
| Jan-Mar |   | $               | 373,023   |   |          | $      | 1,492,093 |          |   | $ | 1,865,116 |   |
| Apr-Jun |   |            | 284,573   |   |          |   | 1,138,293 |          |   |   | 1,422,866 |   |
| Jul-Sep |   |            | 215,538   |   |          |   | 862,153   |          |   |   | 1,077,691 |   |
| Oct-Dec |   |            | 177,890   |   |          |   | 711,561   |          |   |   | 889,451 |   |
|    |   | $               | 1,051,024 |   |          | $      | 4,204,100 |          |   | $ | 5,255,124 |   |
|    |   |            |      |   |          |   |      |          |   |   |   |   |
| 2005    |   |            |      |   |          |   |      |          |   |   |   |   |
| Jan-Mar |   | $               | 208,544   |   |          | $      | 834,177   |          |   | $ | 1,042,721 |   |
| Apr-Jun |   |            | 350,873   |   |          |   | 1,403,494 |          |   |   | 1,754,367 |   |
| Jul-Sep |   |            | 370,222   |   |          |   | 1,480,890 |          |   |   | 1,851,112 |   |
| Oct-Dec |   |            | 363,322   |   |          |   | 1,453,289 |          |   |   | 1,816,611 |   |
|    |   | $               | 1,292,961 |   |          | $      | 5,171,850 |          |   | $ | 6,464,811 |   |

|   | · | Decrease in oil and gas sale revenues of 41%, partially offset by an approximately $0.04 million increase in realized oil and gas price risk management gains, and further offset by decreases in production and operating costs of 7% and direct costs – general and administrative of 53%. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increase in “Due from Managing General Partner, net” due to increased collections by PDC in the fourth quarter of 2007 as compared to the same quarter in 2006. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | · | Decrease in oil and gas sale revenues of 44% and an increase in direct cost – general and administrative of $0.1 million, partially offset by an increase of $0.5 million in realized oil and gas price risk management gain (loss), a decrease of $0.8 million in accounts receivable and a decrease in production and operating cost of 14%. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Decrease in “Due from Managing General Partner, net” due to decreased collections by PDC in the fourth quarter of 2006 as compared to same quarter in 2005. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |   | 2007          |    |
|--------------------------------------|--------|---------------|---------|
|                                 |   | Quarter ended |    |   | Quarter ended |   |   | Quarter ended |   |   | Quarter ended |   |
|                                 |   | March 31,     |    |   | June 30, |   |   | September 30, |   |   | December 31, |   |
|                                 |   |          |    |   |   |   |   |   |   |   |   |   |
| Cash flows from operating activities |   | $             | 654,524 |   |   | $ | 614,471 |   |   | $ | 618,547 |   |   | $ | 519,731 |   |

|                                 |   | 2006          |      |
|--------------------------------------|--------|---------------|-----------|
|                                 |   | Quarter ended |      |   | Quarter ended |   |   | Quarter ended |   |   | Quarter ended |   |
|                                 |   | March 31,     |      |   | June 30, |   |   | September 30, |   |   | December 31, |   |
|                                 |   |          |      |   |   |   |   |   |   |   |   |   |
| Cash flows from operating activities |   | $             | 1,877,202 |   |   | $ | 1,425,251 |   |   | $ | 1,076,743 |   |   | $ | 901,511 |   |

|                                 |   | 2005          |      |
|--------------------------------------|--------|---------------|-----------|
|                                 |   | Quarter ended |      |   |   |   |   |   |   |   |   |   |
|                                 |   | March 31,     |      |   | Quarter ended |   |   | Quarter ended |   |   | Quarter ended |   |
|                                 |   | (as restated) |      |   | June 30, |   |   | September 30, |   |   | December 31, |   |
|                                 |   |          |      |   |   |   |   |   |   |   |   |   |
| Cash flows from operating activities |   | $             | 1,042,716 |   |   | $ | 1,742,380 |   |   | $ | 1,848,767 |   |   | $ | 1,815,386 |   |

----

Index

|                                               |   | Payments due by period |    |
|----------------------------------------------------|--------|------------------------|---------|
| Contractual Obligations and Contingent Commitments |   | Total                  |    |   | Less than 1 year |   |   | 1-3 years |   |   | 3-5 years |   |   | More than 5 years |   |
|                                               |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2007                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized loss on derivative contracts            |   | $                      | 68,645  |   |   | $ | 68,645 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Asset retirement obligations                       |   |                   | 152,707 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 152,707 |   |
|                                               |   | $                      | 221,352 |   |   | $ | 68,645 |   |   | $ | - |   |   | $ | - |   |   | $ | 152,707 |   |

|                                               |   | Payments due by period |    |
|----------------------------------------------------|--------|------------------------|---------|
| Contractual Obligations and Contingent Commitments |   | Total                  |    |   | Less than 1 year |   |   | 1-3 years |   |   | 3-5 years |   |   | More than 5 years |   |
|                                               |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2006                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized loss on derivative contracts            |   | $                      | 102     |   |   | $ | 102 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Asset retirement obligations                       |   |                   | 144,403 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 144,403 |   |
|                                               |   | $                      | 144,505 |   |   | $ | 102 |   |   | $ | - |   |   | $ | - |   |   | $ | 144,403 |   |

|                                               |   | Payments due by period |    |
|----------------------------------------------------|--------|------------------------|---------|
| Contractual Obligations and Contingent Commitments |   | Total                  |    |   | Less than 1 year |   |   | 1-3 years |   |   | 3-5 years |   |   | More than 5 years |   |
|                                               |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2005                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized loss on derivative contracts            |   | $                      | 282,645 |   |   | $ | 241,884 |   |   | $ | 40,761 |   |   | $ | - |   |   | $ | - |   |
| Asset retirement obligations                       |   |                   | 101,903 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 101,903 |   |
|                                               |   | $                      | 384,548 |   |   | $ | 241,884 |   |   | $ | 40,761 |   |   | $ | - |   |   | $ | 101,903 |   |

----

Index

----

Index

| Item 7A. | Quantitative and Qualitative Disclosures about Market Risk |
|----------|------------------------------------------------------------|

----

Index

|   | · | For “swap” instruments, if the market price is below the fixed contract price, PDC, as Managing General Partner, receives the market price from the purchaser and receives the difference between the market price and the fixed contract price from the counterparty.  If the market price is above the fixed contract price, PDC, as Managing General Partner, receives the market price from the purchaserand pays the difference between the market price and the fixed contract price to the counterparty. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | “Basis protection swaps” are arrangements that guarantee a price differential for natural gas valued at a specified pricing point, or hub.  For CIG basis protection swaps that have a negative pricing differential to NYMEX, PDC, as Managing General Partner, receives a payment from the counterparty if the price differential is greater than the stated terms of the contract and pays the counterpartyif the price differential is less than the stated terms of the contract. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | “Collars” contain a fixed floor price (put) and ceiling price (call).  If the market price exceeds the fixed call strike price, PDC, as Managing General Partner, receives the market price from the purchaser and pays the difference between the call strike price and market price to the counterparty.  If the market falls below the fixed put strike price, PDC, as Managing General Partner,receives the market price from the purchaser and receives the difference between the put strike price and market price from the counterparty.  If the market price is between the call and the put strike price, no payments are due from either party. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | · | “Floors” contain a floor price (put) whereby PDC, as Managing General Partner, receives the market price from the purchaser and the difference between the market price and floor price from the counterparty if the commodity market price falls below the floor strike price, but receives no payment when the commodity market price exceeds the floor price. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                      |   |              |        |   |              |   |        |              |   |
|-------------------------------------------|--------|-------------------|-------------|--------|-------------------|--------|-------------|-------------------|--------|
|                                      |   | Year Ended        |        |   | Year Ended        |   |        | Year Ended        |   |
| Average index closing price               |   | December 31, 2007 |        |   | December 31, 2006 |   |        | December 31, 2005 |   |
| Natural gas (per MMbtu) - CIG             |   | $                 | 3.97        |   |              | $      | 5.63        |              |   | $ | 6.95 |   |
| Oil (per Barrel) - NYMEX                  |   |              | 69.79       |   |              |   | 64.73       |              |   |   | 55.34 |   |
|                                      |   |              |        |   |              |   |        |              |   |   |   |   |
| Average sales price                       |   |              |        |   |              |   |        |              |   |   |   |   |
| Natural gas (per Mcf)                     |   | $                 | 4.89        |   |              | $      | 5.55        |              |   | $ | 6.77 |   |
|     Oil (per Barrel)  |   |              |  58.04 |   |              |   |  63.86 |              |   |   |  52.75 |   |

----

Index

|                           |   | Floors                      |   |   | Ceilings                      |   |   | Swaps (Fixed Prices)        |   |   | Basis Protection Contracts    |   |   |                        |   |
|--------------------------------|--------|-----------------------------|--------|--------|-------------------------------|--------|--------|-----------------------------|--------|--------|-------------------------------|--------|--------|-----------------------------|--------|
| Commodity/Index/Operating Area |   | Quantity(Gas-MMbtuOil-Bbls) |   |   | Weighted AverageContractPrice |   |   | Quantity(Gas-MMbtuOil-Bbls) |   |   | Weighted AverageContractPrice |   |   | Quantity(Gas-MMbtuOil-Bbls) |   |   | Weighted AverageContractPrice |   |   | Quantity(Gas-MMbtuOil-Bbls) |   |   | Weighted AverageContractPrice |   |   | Fair Value AtJune 30,2009 |   |
|                           |   |                        |   |   |                          |   |   |                        |   |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural Gas                    |   |                        |   |   |                          |   |   |                        |   |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rocky Mountain Region          |   |                        |   |   |                          |   |   |                        |   |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CIG                            |   |                        |   |   |                          |   |   |                        |   |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 3Q 2009                        |   |                        | 75,689 |   |                          | $      | 5.75   |                        |   |   | 75,689                        |   |   | $                           | 8.90   |   |   |   | - |   |   | $ | - |   |   |   | - |   |   | $ | - |   |   | $ | 225,647 |   |
| 4Q 2009                        |   |                        | 53,256 |   |                          |   | 6.67   |                        |   |   | 53,256                        |   |   |                        | 10.21  |   |   |   | 19,688 |   |   |   | 9.20 |   |   |   | - |   |   |   | - |   |   |   | 262,375 |   |
| 2010                           |   |                        | 61,366 |   |                          |   | 6.63   |                        |   |   | 61,366                        |   |   |                        | 10.79  |   |   |   | 29,531 |   |   |   | 9.20 |   |   |   | 181,049 |   |   |   | 1.88 |   |   |   | 70,475 |   |
| 2011                           |   |                        | 28,989 |   |                          |   | 4.75   |                        |   |   | 28,989                        |   |   |                        | 9.45   |   |   |   | - |   |   |   | - |   |   |   | 215,684 |   |   |   | 1.88 |   |   |   | (189,872 | ) |
| 2012                           |   |                        | -      |   |                          |   | -      |                        |   |   | -                             |   |   |                        | -      |   |   |   | - |   |   |   | - |   |   |   | 227,950 |   |   |   | 1.88 |   |   |   | (189,981 | ) |
| 2013                           |   |                        | -      |   |                          |   | -      |                        |   |   | -                             |   |   |                        | -      |   |   |   | - |   |   |   | - |   |   |   | 211,754 |   |   |   | 1.88 |   |   |   | (159,416 | ) |
|                           |   |                        |   |   |                          |   |   |                        |   |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NYMEX                          |   |                        |   |   |                          |   |   |                        |   |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2010                           |   |                        | 7,747  |   |                          |   | 5.75   |                        |   |   | 7,747                         |   |   |                        | 8.30   |   |   |   | 160,968 |   |   |   | 5.62 |   |   |   | - |   |   |   | - |   |   |   | (57,737 | ) |
| 2011                           |   |                        | 10,537 |   |                          |   | 5.75   |                        |   |   | 10,537                        |   |   |                        | 8.30   |   |   |   | 58,166 |   |   |   | 6.96 |   |   |   | - |   |   |   | - |   |   |   | 592 |   |
| 2012                           |   |                        | -      |   |                          |   | -      |                        |   |   | -                             |   |   |                        | -      |   |   |   | 61,041 |   |   |   | 6.96 |   |   |   | - |   |   |   | - |   |   |   | (11,549 | ) |
| Total Natural Gas              |   |                        |   |   |                          |   |   |                        |   |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (49,466 | ) |
|                           |   |                        |   |   |                          |   |   |                        |   |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil                            |   |                        |   |   |                          |   |   |                        |   |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rocky Mountain Region          |   |                        |   |   |                          |   |   |                        |   |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NYMEX                          |   |                        |   |   |                          |   |   |                        |   |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 3Q 2009                        |   |                        | -      |   |                          |   | -      |                        |   |   | -                             |   |   |                        | -      |   |   |   | 1,414 |   |   |   | 90.52 |   |   |   | - |   |   |   | - |   |   |   | 27,549 |   |
| 4Q 2009                        |   |                        | -      |   |                          |   | -      |                        |   |   | -                             |   |   |                        | -      |   |   |   | 1,414 |   |   |   | 90.52 |   |   |   | - |   |   |   | - |   |   |   | 24,913 |   |
| 2010                           |   |                        | -      |   |                          |   | -      |                        |   |   | -                             |   |   |                        | -      |   |   |   | 4,906 |   |   |   | 92.96 |   |   |   | - |   |   |   | - |   |   |   | 84,957 |   |
| Total Oil                      |   |                        |   |   |                          |   |   |                        |   |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 137,419 |   |
|                           |   |                        |   |   |                          |   |   |                        |   |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                          |   |                        |   |   |                          |   |   |                        |   |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 87,953 |   |

|                     |   |      |   |            |   | Floors                                        |   |   | Ceilings |   |   | Swaps (Fixed Prices)                          |   |
|--------------------------|--------|-----------|--------|-----------------|--------|-----------------------------------------------|--------|--------|----------|--------|--------|-----------------------------------------------|--------|
| Commodity/Index/Area     |   | Month Set |   | Month           |   | Monthly Quantity (Gas –MMbtu Oil -Bbls) |   |   | Price    |   |   | Monthly Quantity (Gas –MMbtu Oil -Bbls) |   |   | Price |   |   | Monthly Quantity (Gas-MMbtu Oil -Bbls) |   |   | Price |   |
| Natural Gas - (CIG) |   |
| Piceance Basin           |   |      |   |            |   |                                          |   |   |     |   |   |                                          |   |   |   |   |   |   |   |   |   |   |
|                     |   | Dec-06    |   | Jan 08 - Mar 08 |   |                                          | 6,907  |   |     | $      | 5.25   |                                          |   |   | - |   |   | $ | - |   |   |   | - |   |   | $ | - |   |
|                     |   | Jan-07    |   | Jan 08 - Mar 08 |   |                                          | 6,907  |   |     |   | 5.25   |                                          |   |   | 6,907 |   |   |   | 9.80 |   |   |   | - |   |   |   | - |   |
|                     |   | May-07    |   | Apr 08 - Oct 08 |   |                                          | 13,631 |   |     |   | 5.50   |                                          |   |   | 13,631 |   |   |   | 10.35 |   |   |   | - |   |   |   | - |   |
|                     |   |      |   |            |   |                                          |   |   |     |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wattenberg Field         |   |      |   |            |   |                                          |   |   |     |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   | Jan-07    |   | Jan 08 - Mar 08 |   |                                          | 1,257  |   |     |   | 5.25   |                                          |   |   | 1,257 |   |   |   | 9.80 |   |   |   | - |   |   |   | - |   |
|                     |   | May-07    |   | Apr 08 - Oct 08 |   |                                          | 3,017  |   |     |   | 5.50   |                                          |   |   | 3,017 |   |   |   | 10.35 |   |   |   | - |   |   |   | - |   |
|                     |   |      |   |            |   |                                          |   |   |     |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil - NYMEX              |   |      |   |            |   |                                          |   |   |     |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wattenberg Field         |   |      |   |            |   |                                          |   |   |     |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   | Oct-07    |   | Jan 08 - Dec 08 |   |                                          | -      |   |     |   | -      |                                          |   |   | - |   |   |   | - |   |   |   | 642 |   |   |   | 84.20 |   |

----

Index

|                     |   |      |   |            |   | Floors                                        |   |   | Ceilings |   |
|--------------------------|--------|-----------|--------|-----------------|--------|-----------------------------------------------|--------|--------|----------|--------|
| Commodity/Index/Area     |   | Month Set |   | Month           |   | Monthly Quantity (Gas –MMbtu Oil -Bbls) |   |   | Price    |   |   | Monthly Quantity (Gas -MMbtu Oil -Bbls) |   |   | Price |   |
| Natural Gas - (CIG) |   |
| Piceance Basin           |   |      |   |            |   |                                          |   |   |     |   |   |   |   |   |   |   |
|                     |   | Jul-05    |   | Jan 07 - Mar 07 |   |                                          | 5,759  |   |     | $      | 6.00 |   |   |   | 2,879 |   |   | $ | 8.40 |   |
|                     |   | Feb-06    |   | Jan 07 - Mar 07 |   |                                          | 12,340 |   |     |   | 6.50 |   |   |   | - |   |   |   | - |   |
|                     |   | Feb-06    |   | Apr 07 - Oct 07 |   |                                          | 9,049  |   |     |   | 5.50 |   |   |   | - |   |   |   | - |   |
|                     |   | Sep-06    |   | Jan 07 - Mar 07 |   |                                          | 21,801 |   |     |   | 4.00 |   |   |   | - |   |   |   | - |   |
|                     |   | Sep-06    |   | Apr 07 - Oct 07 |   |                                          | 30,850 |   |     |   | 4.50 |   |   |   | - |   |   |   | - |   |
|                     |   | Dec-06    |   | Nov 07 - Mar 08 |   |                                          | 15,631 |   |     |   | 5.25 |   |   |   | - |   |   |   | - |   |
|                     |   |      |   |            |   |                                          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
|                     |   |      |   |            |   |                                          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
|                     |   |      |   |            |   |                                          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Oil - NYMEX              |   |      |   |            |   |                                          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Wattenberg Field         |   |      |   |            |   |                                          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
|                     |   | Sep-06    |   | Jan 07 - Oct 07 |   |                                          | 562    |   |     |   | 50.00 |   |   |   | - |   |   |   | - |   |

|                     |   |      |   |            |   | Floors                                        |   |   | Ceilings |   |
|--------------------------|--------|-----------|--------|-----------------|--------|-----------------------------------------------|--------|--------|----------|--------|
| Commodity/Index/Area     |   | Month Set |   | Month           |   | Monthly Quantity (Gas –MMbtu Oil -Bbls) |   |   | Price    |   |   | Monthly Quantity (Gas –MMbtu Oil -Bbls) |   |   | Price |   |
| Natural Gas - (CIG) |   |
| Piceance Basin           |   |      |   |            |   |                                          |   |   |     |   |   |   |   |   |   |   |
|                     |   | Jan-05    |   | Jan 06 - Mar 06 |   |                                          | 19,454 |   |     | $      | 4.50 |   |   |   | 9,727 |   |   | $ | 7.15 |   |
|                     |   | Jul-05    |   | Jan 06 - Mar 06 |   |                                          | 11,348 |   |     |   | 6.50 |   |   |   | 5,674 |   |   |   | 8.27 |   |
|                     |   | Sep-05    |   | Jan 06 - Mar 06 |   |                                          | 32,424 |   |     |   | 9.00 |   |   |   | - |   |   |   | - |   |
|                     |   | Mar-05    |   | Apr 06 - Oct 06 |   |                                          | 16,212 |   |     |   | 4.50 |   |   |   | 8,106 |   |   |   | 7.25 |   |
|                     |   | Jul-05    |   | Apr 06 - Oct 06 |   |                                          | 11,348 |   |     |   | 5.50 |   |   |   | 5,674 |   |   |   | 7.63 |   |
|                     |   | Jul-05    |   | Nov 06 - Mar 07 |   |                                          | 11,348 |   |     |   | 6.00 |   |   |   | 5,674 |   |   |   | 8.40 |   |

----

Index

| Item 8.  | Financial Statements and Supplementary Data |
|---------------|---------------------------------------------|

----

Index

| Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
|---------|--------------------------------------------------------------------------------------|

|   | 1. | The following material weaknesses in internal control over financial reporting were identified related to the year ended December 31, 2005, and the subsequent period through December 28, 2007, as follows: |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The Registrant did not have effective policies and procedures, or personnel with sufficient technical expertise to properly account for derivative transactions in accordance with generally accepted accounting principles. Specifically, the Registrant's policies and procedures relating to derivatives transactions were not designed effectively such that each of the requirements for hedge accounting were evaluated appropriatelywith respect to the Registrant's commodity based derivatives. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The Registrant did not have effective policies and procedures, or personnel with sufficient technical expertise to ensure compliance with appropriate accounting principles for its oil and gas properties. Specifically, the Registrant's policies and procedures were not designed effectively to ensure that the calculation of depreciation and depletion and the determination of impairments were performed in accordancewith the applicable authoritative accounting guidance. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The Registrant did not have effective policies and procedures, or personnel with sufficient technical expertise to ensure that its accounting for asset retirement obligations complied with generally accepted accounting principles. Specifically, the Registrant's policies and procedures regarding the estimate of the fair value of the asset retirement obligations were not designed effectively to ensure that it was estimatedin accordance with SFAS No. 143, Asset Retirement Obligations. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The Registrant did not have effective policies and procedures to ensure the timely reconciliation, review and adjustment of significant balance sheet and income statement accounts, which resulted in the identification of material misstatements in certain significant balance sheet and income statement accounts during the Registrant's closing process. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | 2. | In connection with KPMG's audit of the Managing General Partner's 2006 financial statements, the Managing General Partner, identified that the Managing General Partner had over-withheld production taxes from revenue distributions made to its 75 drilling partnerships' limited partners, including the limited partners of the Registrant.  See Explanatory Note onPage 1 for discussion concerning the over-withholding of production taxes by PDC. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Item 

|   | (a) | Evaluation of Disclosure Controls and Procedures |
|--------|-----|--------------------------------------------------|

----

Index

|   | · | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the issuer; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America and that receipts and expenditures of the issuer are being made only in accordance with authorizations of management and directors of the issuer; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the issuer’s assets that could have a material effect on the financial statements of the issuer. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The support for the Partnership’s general ledger depends in part on the effectiveness of controls of the Managing General Partner’s spreadsheets.  The overall ineffectiveness of the Managing General Partner's spreadsheet controls could have a material effect on the Partnership’s financial statements.  The Partnership did not maintain effective controls to ensure the completeness,accuracy, and validity of key financial statement spreadsheets generated by the Managing General Partner.  These spreadsheets are utilized by the Partnership to support significant balance sheet and income statement accounts. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The support for the Partnership’s derivative calculations depends in part on the effectiveness of controls of the Managing General Partner’s process.  The overall ineffectiveness of the Managing General Partner's derivative controls could have a material effect on the Partnership’s financial statements.  The Partnership did not maintain effective controls to ensure that the ManagingGeneral Partner had policies and procedures, or personnel with sufficient technical expertise to record derivative activities in accordance with generally accepted accounting principles. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | · | For the transactions that are directly related to and processed by the Partnership, the Partnership failed to maintain sufficient documentation to adequately assess the operating effectiveness of internal control over financial reporting.  More specifically, the Partnership’s financial close and reporting narrative failed to adequately describe the process, identify key controls and assess segregationof duties. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The Partnership did not have effective policies and procedures, or personnel with sufficient technical expertise to ensure compliance with appropriate accounting principles for its oil and gas properties.  Specifically, the Partnership’s policies and procedures were not designed effectively to ensure that the calculation of depreciation and depletion and the determination of impairments were performedin accordance with the applicable authoritative accounting guidance.  This material weakness was remediated as of December 31, 2007. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The Partnership did not have effective policies and procedures to ensure the timely reconciliation, review and adjustment of significant balance sheet and income statement accounts, which resulted in the identification of material misstatements in certain significant balance sheet and income statement accounts during the Partnership’s closing process.  This material weakness was remediated as of December31, 2007. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The support for the Partnership’s general ledger depends in part on the effectiveness of controls of the Managing General Partner’s spreadsheets.  The overall ineffectiveness of the Managing General Partner's spreadsheet controls could have a material effect on the Partnership’s financial statements.  The Partnership did not maintain effective controls to ensure the completeness,accuracy, and validity of key financial statement spreadsheets generated by the Managing General Partner.  These spreadsheets are utilized by the Partnership to support significant balance sheet and income statement accounts. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The support for the Partnership’s derivative calculations depends in part on the effectiveness of controls of the Managing General Partner’s process.  The overall effectiveness of the Managing General Partner's derivative controls could have a material effect on the Partnership’s financial statements.  The Partnership did not maintain effective controls to ensure that the ManagingGeneral Partner had policies and procedures, or personnel with sufficient technical expertise to record derivative activities in accordance with generally accepted accounting principles. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

Item 

Item 

----

Index

----

Index

| Name                    |   | Age    |   | Positions andOffices Held                                 |   | DirectorSince |   | DirectorshipTerm Expires |
|-------------------------|--------|--------|--------|-----------------------------------------------------------|--------|---------------|--------|--------------------------|
|                    |   |   |   |                                                      |   |          |   |                     |
| Richard W McCullough    |   | 57     |   | Chairman, Chief Executive Officer, President and Director |   | 2007          |   | 2010                     |
|                    |   |   |   |                                                      |   |          |   |                     |
| Gysle R. Shellum        |   | 57     |   | Chief Financial Officer                                   |   | -             |   | -                        |
|                    |   |   |   |                                                      |   |          |   |                     |
| R. Scott Meyers         |   | 34     |   | Chief Accounting Officer                                  |   | -             |   | -                        |
|                    |   |   |   |                                                      |   |          |   |                     |
| Daniel W. Amidon        |   | 48     |   | General Counsel and Secretary                             |   | -             |   | -                        |
|                    |   |   |   |                                                      |   |          |   |                     |
| Barton R. Brookman, Jr. |   | 46     |   | Senior Vice President Exploration and Production          |   | -             |   | -                        |
|                    |   |   |   |                                                      |   |          |   |                     |
| Vincent F. D'Annunzio   |   | 56     |   | Director                                                  |   | 1989          |   | 2010                     |
|                    |   |   |   |                                                      |   |          |   |                     |
| Jeffrey C. Swoveland    |   | 54     |   | Director                                                  |   | 1991          |   | 2011                     |
|                    |   |   |   |                                                      |   |          |   |                     |
| Kimberly Luff Wakim     |   | 51     |   | Director                                                  |   | 2003          |   | 2012                     |
|                    |   |   |   |                                                      |   |          |   |                     |
| David C. Parke          |   | 42     |   | Director                                                  |   | 2003          |   | 2011                     |
|                    |   |   |   |                                                      |   |          |   |                     |
| Anthony J. Crisafio     |   | 56     |   | Director                                                  |   | 2006          |   | 2012                     |
|                    |   |   |   |                                                      |   |          |   |                     |
| Joseph E. Casabona      |   | 65     |   | Director                                                  |   | 2007          |   | 2011                     |
|                    |   |   |   |                                                      |   |          |   |                     |
| Larry F. Mazza     |   | 48     |   |  Director                                            |   | 2007          |   | 2010                     |

----

Index

----

Index

Item 

| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
|----------|------------------------------------------------------------------------------------------------|

----

Index

| Item 13. | Certain Relationships and Related Transactions, and Director Independence |
|----------|---------------------------------------------------------------------------|

----

Index

| Item 14. | Principal Accountant Fees and Services |
|----------|----------------------------------------|

----

Index

Item 

|           |   |                                                                                                                                                                                                                                                                  |   | Incorporated by Reference |   |
|----------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|
| Exhibit Number |   | Exhibit Description                                                                                                                                                                                                                                                   |   | Form                      |   | SEC File Number |   | Exhibit |   | Filing Date |   | Filed Herewith |
| 3.1            |   | Limited Partnership Agreement                                                                                                                                                                                                                                         |   |                      |   |   |   |   |   |   |   | X |
|           |   |                                                                                                                                                                                                                                                                  |   |                      |   |   |   |   |   |   |   |   |
| 3.2            |   | Certificate of limited partnership which reflects the organization of the Partnership under West Virginia law                                                                                                                                                         |   |                      |   |   |   |   |   |   |   | X |
|           |   |                                                                                                                                                                                                                                                                  |   |                      |   |   |   |   |   |   |   |   |
| 10.1           |   | Drilling and operating agreement between PDC as Managing General Partner of the Partnership                                                                                                                                                                           |   |                      |   |   |   |   |   |   |   | X |
|           |   |                                                                                                                                                                                                                                                                  |   |                      |   |   |   |   |   |   |   |   |
| 10.2           |   | Form of assignment of leases to the Partnership                                                                                                                                                                                                                       |   |                      |   |   |   |   |   |   |   | X |
|           |   |                                                                                                                                                                                                                                                                  |   |                      |   |   |   |   |   |   |   |   |
| 10.3           |   | Audited Consolidated Financial Statements for the year ended December 31, 2008 of Petroleum Development Corporation and its subsidiaries, as Managing General Partner of the Partnership                                                                              |   | 10-K                      |   | 000-07246 |   |   |   | 02/27/2009 |   |   |
|           |   |                                                                                                                                                                                                                                                                  |   |                      |   |   |   |   |   |   |   |   |
| 10.4           |   | Gas Purchase and Processing Agreement between Duke Energy Field Services, Inc.; United States Exploration, Inc.; and Petroleum Development Corporation, dated October 28, 1999 (filed by PDC as Managing General Partner for Rockies Region 2007 Limited Partnership) |   | 10-12G/A Amend 3          |   | 000-53201 |   | 10.3 |   | 03/31/2009 |   |   |

----

Index

|   |   |   |   | Incorporated by Reference |   |
|--------|--------|--------|--------|---------------------------|--------|

| Exhibit Number |   | Exhibit Description                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Form             |   | SEC File Number |   | Exhibit |   | Filing Date |   | Filed Herewith |
|----------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|-----------------|--------|---------|--------|-------------|--------|----------------|
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |             |   |            |   |    |   |        |   |           |
| 10.5           |   | Gas Purchase and Processing Agreement between Natural Gas Associates, a Colorado partnership, and Aceite Energy Corporation, Walker Exploratory Program 1982-A Limited and Cattle Creek Company, dated October 14, 1983 (filed by PDC as Managing General Partner for Rockies Region 2007 Limited Partnership)                                                                                                                                                                  |   | 10-12G/A Amend 3 |   | 000-53201       |   | 10.4    |   | 03/31/2009  |   |           |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |             |   |            |   |    |   |        |   |           |
| 10.6           |   | Gas Purchase and Processing Agreement between Natural Gas Associates, a Colorado partnership, and SHF Partnership, a Colorado general partnership, Trailblazer Oil and Gas, Inc., Alfa Resources, Inc., Pulsar Oil and Gas, Inc., Overthrust Oil Royalty Corporation, Corvette Petroleum Ltd., Robert Lanari, an individual, and Toby A Martinez, anindividual, dated September 21, 1983 (filed by PDC as Managing General Partner for Rockies Region 2007 Limited Partnership) |   | 10-12G/A Amend 3 |   | 000-53201       |   | 10.5    |   | 03/31/2009  |   |           |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |             |   |            |   |    |   |        |   |           |
| 10.7           |   | Domestic Crude Oil Purchase Agreement with ConocoPhillips Company, dated January 1, 1993, as amended by agreements with Teppco Crude Oil, LLC dated August 2, 2007; September 24, 2007; October 17, 2007; January 7, 2008; January 15, 2008; and April 17, 2008 (filed by PDC as Managing General Partner for Rockies Region 2007 Limited Partnership)                                                                                                                          |   | 10-12G/A Amend 3 |   | 000-53201       |   | 10.6    |   | 03/31/2009  |   |           |

----

Index

|           |   |                                                                                                                                                                                                                                             |   | Incorporated by Reference |   |
|----------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|
| Exhibit Number |   | Exhibit Description                                                                                                                                                                                                                              |   | Form                      |   | SEC File Number |   | Exhibit |   | Filing Date |   | Filed Herewith |
|           |   |                                                                                                                                                                                                                                             |   |                      |   |   |   |   |   |   |   |   |
| 10.8           |   | Gas Purchase Agreement between Williams Production RMT Company, Riley Natural Gas Company and Petroleum Development Corporation, dated as of June 1, 2006 (filed by PDC as Managing General Partner for Rockies Region 2007 Limited Partnership) |   | 10-12G/A Amend 3          |   | 000-53201 |   | 10.7 |   | 03/31/2009 |   |   |
|           |   |                                                                                                                                                                                                                                             |   |                      |   |   |   |   |   |   |   |   |
| 23.1           |   | Consent of Ryder Scott Company, L.P., Petroleum Consultants                                                                                                                                                                                      |   |                      |   |   |   |   |   |   |   | X |
|           |   |                                                                                                                                                                                                                                             |   |                      |   |   |   |   |   |   |   |   |
| 23.2           |   | Consent of Wright & Company, Inc., Petroleum Consultants                                                                                                                                                                                     |   |                      |   |   |   |   |   |   |   | X |
|           |   |                                                                                                                                                                                                                                             |   |                      |   |   |   |   |   |   |   |   |
| 31.1           |   | Rule 13a-14(a)/15d-14(c) Certification of Chief Executive Officer of Petroleum Development Corporation, the Managing General Partner of the Partnership.                                                                                         |   |                      |   |   |   |   |   |   |   | X |
|           |   |                                                                                                                                                                                                                                             |   |                      |   |   |   |   |   |   |   |   |
| 31.2           |   | Rule 13a-14(a)/15d-14(c) Certification of Chief Financial Officer of Petroleum Development Corporation, the Managing General Partner of the Partnership.                                                                                         |   |                      |   |   |   |   |   |   |   | X |
|           |   |                                                                                                                                                                                                                                             |   |                      |   |   |   |   |   |   |   |   |
| 32.1           |   | Title 18 U.S.C. Section 1350 (Section 906 of Sarbanes-Oxley Act of 2002) Certifications by Chief Executive Officer and Chief Financial Officer of Petroleum Development Corporation, the Managing General Partner of the Partnership.            |   |                      |   |   |   |   |   |   |   | X |

----

Index

SIGNATURES

| Signature                 |   | Title                                      |   | Date          |
|---------------------------|--------|--------------------------------------------|--------|---------------|
|                      |   |                                       |   |          |
| /s/ Richard W. McCullough |   | Chairman and Chief Executive Officer       |   | July 31, 2009 |
| Richard W. McCullough     |   | Petroleum Development Corporation          |   |          |
|                      |   | Managing General Partner of the Registrant |   |          |
|                      |   | (Principal executive officer)              |   |          |
|                      |   |                                       |   |          |
| /s/ Gysle R. Shellum      |   | Chief Financial Officer                    |   | July 31, 2009 |
| Gysle R. Shellum          |   | Petroleum Development Corporation          |   |          |
|                      |   | Managing General Partner of the Registrant |   |          |
|                      |   | (Principal financial officer)              |   |          |
|                      |   |                                       |   |          |
| /s/ R. Scott Meyers       |   | Chief Accounting Officer                   |   | July 31, 2009 |
| R. Scott Meyers           |   | Petroleum Development Corporation          |   |          |
|                      |   | Managing General Partner of the Registrant |   |          |
|                      |   | (Principal accounting officer)             |   |          |
|                      |   |                                       |   |          |
| /s/ Kimberly Luff Wakim   |   | Director                                   |   | July 31, 2009 |
| Kimberly Luff Wakim       |   | Petroleum Development Corporation          |   |          |
|                      |   | Managing General Partner of the Registrant |   |          |
|                      |   |                                       |   |          |
| /s/ Anthony J. Crisafio   |   | Director                                   |   | July 31, 2009 |
| Anthony J. Crisafio       |   | Petroleum Development Corporation          |   |          |
|                      |   | Managing General Partner of the Registrant |   |          |
|                      |   |                                       |   |          |
| /s/ Jeffrey C. Swoveland  |   | Director                                   |   | July 31, 2009 |
| Jeffrey C. Swoveland      |   | Petroleum Development Corporation          |   |          |
|                      |   | Managing General Partner of the Registrant |   |          |
|                      |   |                                       |   |          |
| /s/ Joseph E. Casabona    |   | Director                                   |   | July 31, 2009 |
| Joseph E. Casabona        |   | Petroleum Development Corporation          |   |          |
|                      |   | Managing General Partner of the Registrant |   |          |

----

Index

Index 

| Report of Independent Registered Public Accounting Firm                                    | F-2    |
|--------------------------------------------------------------------------------------------|--------|
|                                                                                       |   |
| Balance Sheets – December 31, 2007, 2006 and 2005                                    | F-3    |
|                                                                                       |   |
| Statements of Operations – For the Years Ended December 31, 2007, 2006 and 2005      | F-4    |
|                                                                                       |   |
| Statements of Partners' Equity –For the Years Ended December 31, 2007, 2006 and 2005 | F-5    |
|                                                                                       |   |
| Statements of Cash Flows – For the Years Ended December 31, 2007, 2006 and 2005      | F-6    |
|                                                                                       |   |
| Notes to Financial Statements                                                              | F-7    |
|                                                                                       |   |
| Supplemental Oil and Gas Information − Unaudited                                     | F-28   |
|                                                                                       |   |
| Unaudited Condensed Quarterly Financial Statements                                         |   |
|                                                                                       |   |
| Balance Sheets - 2007                                                                      | F-32   |
| Balance Sheets - 2006                                                                      | F-33   |
| Balance Sheets - 2005                                                                      | F-34   |
|                                                                                       |   |
| Statements of Operations - 2007                                                            | F-35   |
| Statements of Operations - 2006                                                            | F-36   |
| Statements of Operations - 2005                                                            | F-37   |
|                                                                                       |   |
| Statements of Cash Flows - 2007                                                            | F-38   |
| Statements of Cash Flows - 2006                                                            | F-39   |
| Statements of Cash Flows - 2005                                                            | F-40   |
|                                                                                       |   |
| Notes to Unaudited Condensed Quarterly Financial Statements                                | F-41   |

----

Index

----

Index

| Balance Sheets                                             |   |
|------------------------------------------------------------|--------|
| As of December 31, 2007, 2006 and 2005                |   |
|                                                       |   |   |   |   |   |   |   |   |   |
|                                                       |   |   |   |   |   |   |   |   |   |
| Assets                                                     |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                       |   |   |   |   |   |   |   |   |   |
| Current assets:                                            |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                  |   | $ | 43,507 |   |   | $ | 31,681 |   |   | $ | 6,098 |   |
| Accounts receivable                                        |   |   | 365,136 |   |   |   | 620,310 |   |   |   | 1,462,226 |   |
| Due from Managing General Partner-derivatives              |   |   | 30,002 |   |   |   | 274,070 |   |   |   | 84,390 |   |
| Due from Managing General Partner-other, net               |   |   | 821,800 |   |   |   | 614,917 |   |   |   | 869,973 |   |
| Total current assets                                       |   |   | 1,260,445 |   |   |   | 1,540,978 |   |   |   | 2,422,687 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil and gas properties, successful efforts method          |   |   | 20,135,900 |   |   |   | 20,135,900 |   |   |   | 20,092,160 |   |
| Drilling advances to Managing General Partner              |   |   | - |   |   |   | - |   |   |   | 1,271 |   |
| Oil and gas properties, at cost                            |   |   | 20,135,900 |   |   |   | 20,135,900 |   |   |   | 20,093,431 |   |
| Less: Accumulated depreciation, depletion and amortization |   |   | (6,758,975 | ) |   |   | (5,370,172 | ) |   |   | (3,474,630 | ) |
| Oil and gas properties, net                                |   |   | 13,376,925 |   |   |   | 14,765,728 |   |   |   | 16,618,801 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Due from Managing General Partner-derivatives              |   |   | - |   |   |   | 30,756 |   |   |   | 10,779 |   |
| Due from Managing General Partner-other, net               |   |   | 83,133 |   |   |   | - |   |   |   | - |   |
| Total noncurrent assets                                    |   |   | 13,460,058 |   |   |   | 14,796,484 |   |   |   | 16,629,580 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Assets                                               |   | $ | 14,720,503 |   |   | $ | 16,337,462 |   |   | $ | 19,052,267 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Partners' Equity                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Current liabilities:                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                      |   | $ | 36,555 |   |   | $ | 9,661 |   |   | $ | 165,973 |   |
| Due to Managing General Partner-derivatives                |   |   | 68,645 |   |   |   | 102 |   |   |   | 241,884 |   |
| Total current liabilities                                  |   |   | 105,200 |   |   |   | 9,763 |   |   |   | 407,857 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Due to Managing General Partner-derivatives                |   |   | - |   |   |   | - |   |   |   | 40,761 |   |
| Asset retirement obligations                               |   |   | 152,707 |   |   |   | 144,403 |   |   |   | 101,903 |   |
| Total liabilities                                          |   |   | 257,907 |   |   |   | 154,166 |   |   |   | 550,521 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Commitments and contingencies                              |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners' equity:                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Managing General Partner                                   |   |   | 2,896,389 |   |   |   | 3,236,662 |   |   |   | 3,700,351 |   |
| Limited Partners - 899.94 units issued and outstanding     |   |   | 11,566,207 |   |   |   | 12,946,634 |   |   |   | 14,801,395 |   |
| Total Partners' equity                                     |   |   | 14,462,596 |   |   |   | 16,183,296 |   |   |   | 18,501,746 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Liabilities and Partners' Equity                     |   | $ | 14,720,503 |   |   | $ | 16,337,462 |   |   | $ | 19,052,267 |   |

----

Index

| Statements of Operations                              |   |
|-------------------------------------------------------|--------|
| For the Years Ended December 31, 2007, 2006 and 2005  |   |
|                                                  |   |   |   |   |   |   |   |   |   |
|                                                  |   |   |   |   |   |   |
|                                                  |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Revenues:                                             |   |   |   |   |   |   |   |   |   |
| Oil and gas sales                                     |   | $ | 3,019,510 |   |   | $ | 5,104,636 |   |   | $ | 9,085,307 |   |
| Oil and gas price risk management (loss) gain, net    |   |   | (171,459 | ) |   |   | 620,894 |   |   |   | (583,868 | ) |
| Total revenues                                        |   |   | 2,848,051 |   |   |   | 5,725,530 |   |   |   | 8,501,439 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating costs and expenses:                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Production and operating costs                        |   |   | 776,600 |   |   |   | 831,111 |   |   |   | 969,093 |   |
| Direct costs - general and administrative             |   |   | 49,037 |   |   |   | 103,481 |   |   |   | 16,821 |   |
| Depreciation, depletion and amortization              |   |   | 1,388,803 |   |   |   | 1,895,542 |   |   |   | 3,128,442 |   |
| Accretion of asset retirement obligations             |   |   | 8,304 |   |   |   | 5,881 |   |   |   | 5,655 |   |
| Total operating costs and expenses                    |   |   | 2,222,744 |   |   |   | 2,836,015 |   |   |   | 4,120,011 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from operations                                |   |   | 625,307 |   |   |   | 2,889,515 |   |   |   | 4,381,428 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                       |   |   | 49,440 |   |   |   | 47,159 |   |   |   | 16,670 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                            |   | $ | 674,747 |   |   | $ | 2,936,674 |   |   | $ | 4,398,098 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income allocated to partners                      |   | $ | 674,747 |   |   | $ | 2,936,674 |   |   | $ | 4,398,098 |   |
| Less: Managing General Partner interest in net income |   |   | 134,949 |   |   |   | 587,335 |   |   |   | 879,620 |   |
| Net income allocated to Investor Partners             |   | $ | 539,798 |   |   | $ | 2,349,339 |   |   | $ | 3,518,478 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income per Investor Partner unit                  |   | $ | 600 |   |   | $ | 2,611 |   |   | $ | 3,910 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Investor Partner units outstanding                    |   |   | 899.94 |   |   |   | 899.94 |   |   |   | 899.94 |   |

----

Index

| Statements of Partners' Equity                       |   |
|------------------------------------------------------|--------|
| For the Years Ended December 31, 2007, 2006 and 2005 |   |
|                                                 |   | Investor Partners |   |   | Managing General Partner |   |   | Accumulated Other Comprehensive Income (Loss) |   |   | Total |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, January 1, 2005 (as previously reported)    |   | $ | 16,299,840 |   |   | $ | 4,074,960 |   |   | $ | (14,291 | ) |   | $ | 20,360,509 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Restatement (Note 9)                                 |   |   | 154,927 |   |   |   | 38,732 |   |   |   | 14,291 |   |   |   | 207,950 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, January 1, 2005 (restated)                  |   |   | 16,454,767 |   |   |   | 4,113,692 |   |   |   | - |   |   |   | 20,568,459 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions to Partners                            |   |   | (5,171,850 | ) |   |   | (1,292,961 | ) |   |   |   |   |   |   | (6,464,811 | ) |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                           |   |   | 3,518,478 |   |   |   | 879,620 |   |   |   |   |   |   |   | 4,398,098 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2005                           |   |   | 14,801,395 |   |   |   | 3,700,351 |   |   |   | - |   |   |   | 18,501,746 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions to Partners                            |   |   | (4,204,100 | ) |   |   | (1,051,024 | ) |   |   |   |   |   |   | (5,255,124 | ) |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                           |   |   | 2,349,339 |   |   |   | 587,335 |   |   |   |   |   |   |   | 2,936,674 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2006                           |   |   | 12,946,634 |   |   |   | 3,236,662 |   |   |   | - |   |   |   | 16,183,296 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions to Partners                            |   |   | (1,920,225 | ) |   |   | (475,222 | ) |   |   |   |   |   |   | (2,395,447 | ) |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                           |   |   | 539,798 |   |   |   | 134,949 |   |   |   |   |   |   |   | 674,747 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2007                           |   | $ | 11,566,207 |   |   | $ | 2,896,389 |   |   | $ | - |   |   | $ | 14,462,596 |   |

----

Index

| Statements of Cash Flows                                                             |   |
|--------------------------------------------------------------------------------------|--------|
| For the Years Ended December 31, 2007, 2006 and 2005                                 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                 |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Cash flows from operating activities:                                                |   |   |   |   |   |   |   |   |   |
| Net income                                                                           |   | $ | 674,747 |   |   | $ | 2,936,674 |   |   | $ | 4,398,098 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:    |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation, depletion and amortization                                             |   |   | 1,388,803 |   |   |   | 1,895,542 |   |   |   | 3,128,442 |   |
| Accretion of asset retirement obligations                                            |   |   | 8,304 |   |   |   | 5,881 |   |   |   | 5,655 |   |
| Unrealized loss (gain) on derivative transactions                                    |   |   | 343,367 |   |   |   | (492,201 | ) |   |   | 173,185 |   |
| Changes in operating assets and liabilities:                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Decrease (increase) in accounts receivable                                           |   |   | 255,174 |   |   |   | 841,916 |   |   |   | (265,305 | ) |
| Increase (decrease) in accounts payable and accrued expenses                         |   |   | 26,894 |   |   |   | (156,312 | ) |   |   | 21,267 |   |
| (Increase) decrease in due from/to Managing General Partner                          |   |   | (290,016 | ) |   |   | 249,207 |   |   |   | (1,012,093 | ) |
| Net cash provided by operating activities                                            |   |   | 2,407,273 |   |   |   | 5,280,707 |   |   |   | 6,449,249 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions to Partners                                                            |   |   | (2,395,447 | ) |   |   | (5,255,124 | ) |   |   | (6,464,811 | ) |
| Net cash used in financing activities                                                |   |   | (2,395,447 | ) |   |   | (5,255,124 | ) |   |   | (6,464,811 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                 |   |   | 11,826 |   |   |   | 25,583 |   |   |   | (15,562 | ) |
| Cash and cash equivalents, beginning of year                                         |   |   | 31,681 |   |   |   | 6,098 |   |   |   | 21,660 |   |
| Cash and cash equivalents, end of year                                               |   | $ | 43,507 |   |   | $ | 31,681 |   |   | $ | 6,098 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental disclosure of non-cash activity:                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset retirement obligation, with corresponding increase to oil and gas properties   |   | $ | - |   |   | $ | 36,619 |   |   | $ | - |   |
| Due from/to Managing General Partner related to investment in oil and gas properties |   |   | - |   |   |   | 5,850 |   |   |   | - |   |
| Total non-cash activity                                                              |   | $ | - |   |   | $ | 42,469 |   |   | $ | - |   |

----

Index

----

Index

----

Index

----

Index

----

Index

|   | Production Tax Liability |
|--------|--------------------------|

|   | Use of Estimates |
|--------|------------------|

----

Index

----

Index

|   | · | FSP No. FAS 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly (“FSP 157-4”) |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FSP No. FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments (“FSP 107-1/APB 28-1”) |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

----

Index

|                                           |   | Year Ended December 31, |          |
|------------------------------------------------|--------|-------------------------|---------------|
|                                           |   | 2007                    |          |   | 2006 |   |   | 2005 |   |
|                                           |   |                    |          |   |   |   |   |   |   |
| Well charges (1)                               |   | $                       | 129,988       |   |   | $ | 130,375 |   |   | $ | 125,477 |   |
| Supplies and maintenance (2)                   |   |                    | 257,179       |   |   |   | 404,588 |   |   |   | 205,274 |   |
| Gathering, compression and processing fees (3) |   |                    | 137,180       |   |   |   | 97,699 |   |   |   | 35,127 |   |
| Direct costs - general and administrative (4)  |   |                    | 49,037        |   |   |   | 103,481 |   |   |   | 16,821 |   |
| Cash distributions (5)                         |   |                    |  479,277 |   |   |   |  1,054,528 |   |   |   |  1,292,961 |   |

|   | a) | The cost of the prospect; and |
|--------|----|-------------------------------|

|   | b) | The intangible well costs for each well completed and placed in production, an amount equal to the depth of the well in feet at its deepest penetration as recorded by the drilling contractor multiplied by the “intangible drilling and completion cost” in the D & O Agreement, plus the actual extra completion cost of zones completed in excess of the cost of the first zone and actual additional costsincurred in the event that an intermediate or third string of surface casing is run, rig mobilization and trucking costs, the additional cost for directional drilling and drill stem testing, sidetracking, fishing of drilling tools; and |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | The tangible costs of drilling and completing the partnership wells and of gathering pipelines necessary to connect the well to the nearest appropriate sales point or delivery point. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | reimbursement at actual cost for all direct expenses incurred on behalf of the Partnership; |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | · | monthly well operating charges for operating and maintaining the wells during producing operations at a competitive rate; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

|   | · | monthly administration charge for Partnership activities. |
|--------|--------|-----------------------------------------------------------|

|   | · | well tending, routine maintenance, and adjustment; |
|--------|--------|----------------------------------------------------|

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

|   | · | preparing production related reports to the Partnership and government agencies. |
|--------|--------|----------------------------------------------------------------------------------|

----

Index

|   | · | the purchase or repairs of equipment, materials, or third-party services; |
|--------|--------|---------------------------------------------------------------------------|

|   | · | the cost of compression and third-party gathering services, or gathering costs; |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | brine disposal; and |
|--------|--------|---------------------|

|   | · | rebuilding of access roads. |
|--------|--------|-----------------------------|

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Index

|   | · | For “swap” instruments, if the market price is below the fixed contract price, PDC, as Managing General Partner, receives the market price from the purchaser and receives the difference between the market price and the fixed contract price from the counterparty.  If the market price is above the fixed contract price, PDC, as Managing General Partner, receives the market price from the purchaserand pays the difference between the market price and the fixed contract price to the counterparty. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | “Basis protection swaps” are arrangements that guarantee a price differential for natural gas valued at a specified pricing point, or hub.  For CIG basis protection swaps that have a negative pricing differential to NYMEX, PDC, as Managing General Partner, receives a payment from the counterparty if the price differential is greater than the stated terms of the contract and pays the counterpartyif the price differential is less than the stated terms of the contract. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Index

|   | · | “Collars” contain a fixed floor price (put) and ceiling price (call).  If the market price exceeds the fixed call strike price, PDC, as Managing General Partner, receives the market price from the purchaser and pays the difference between the call strike price and market price to the counterparty.  If the market falls below the fixed put strike price, PDC, as Managing General Partner,receives the market price from the purchaser and receives the difference between the put strike price and market price from the counterparty.  If the market price is between the call and the put strike price, no payments are due from either party. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | “Floors” contain a floor price (put) whereby PDC, as Managing General Partner, receives the market price from the purchaser and the difference between the market price and floor price from the counterparty if the commodity market price falls below the floor strike price, but receives no payment when the commodity market price exceeds the floor price. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                |   | 2007       |    |   | 2006      |   |   | 2005   |   |
|---------------------|--------|------------|---------|--------|-----------|--------|--------|--------|--------|
|                |   | Short-term |    |   | Long-term |   |   | Total  |   |   | Short-term |   |   | Long-term |   |   | Total |   |   | Short-term |   |   | Long-term |   |   | Total |   |
| Natural gas floors  |   | $          | 697     |   |      | $      | -      |   |   | $ | 697 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Natural gas collars |   |       | 27,758  |   |      |   | -      |   |   |   | 27,758 |   |   |   | 270,728 |   |   |   | 30,756 |   |   |   | 301,484 |   |   |   | (157,494 | ) |   |   | (29,982 | ) |   |   | (187,476 | ) |
| Oil floors          |   |       | -       |   |      |   | -      |   |   |   | - |   |   |   | 3,240 |   |   |   | - |   |   |   | 3,240 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Oil swaps           |   |       | (67,098 | )      |      |   | -      |   |   |   | (67,098 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                |   | $          | (38,643 | )      |      | $      | -      |   |   | $ | (38,643 | ) |   | $ | 273,968 |   |   | $ | 30,756 |   |   | $ | 304,724 |   |   | $ | (157,494 | ) |   | $ | (29,982 | ) |   | $ | (187,476 | ) |

|                                                          |   | For the year ended December 31, |     |
|---------------------------------------------------------------|--------|---------------------------------|----------|
|                                                          |   | 2007                            |     |   | 2006 |   |   | 2005 |   |
| Oil and gas price risk management gain (loss), net            |   |                            |     |   |   |   |   |   |   |
| Realized gain (loss)                                          |   |                            |     |   |   |   |   |   |   |
| Oil                                                           |   | $                               | (3,604   | ) |   | $ | (1,142 | ) |   | $ | (142,841 | ) |
| Gas                                                           |   |                            | 175,512  |   |   |   | 129,835 |   |   |   | (267,842 | ) |
| Total realized gain (loss)                                    |   |                            | 171,908  |   |   |   | 128,693 |   |   |   | (410,683 | ) |
| Unrealized (loss) gain                                        |   |                            | (343,367 | ) |   |   | 492,201 |   |   |   | (173,185 | ) |
| Oil and gas price risk management  (loss) gain, net |   | $                               | (171,459 | ) |   | $ | 620,894 |   |   | $ | (583,868 | ) |

----

Index

|                     |   |      |   |            |   | Floors                                        |   |   | Ceilings |   |
|--------------------------|--------|-----------|--------|-----------------|--------|-----------------------------------------------|--------|--------|----------|--------|
| Commodity/Index/Area     |   | Month Set |   | Month           |   | Monthly Quantity (Gas –MMbtu Oil -Bbls) |   |   | Price    |   |   | Monthly Quantity (Gas –MMbtu Oil -Bbls) |   |   | Price |   |
| Natural Gas - (CIG) |   |
| Piceance Basin           |   |      |   |            |   |                                          |   |   |     |   |   |   |   |   |   |   |
|                     |   | Jan-05    |   | Jan 06 - Mar 06 |   |                                          | 19,454 |   |     | $      | 4.50 |   |   |   | 9,727 |   |   | $ | 7.15 |   |
|                     |   | Jul-05    |   | Jan 06 - Mar 06 |   |                                          | 11,348 |   |     |   | 6.50 |   |   |   | 5,674 |   |   |   | 8.27 |   |
|                     |   | Sep-05    |   | Jan 06 - Mar 06 |   |                                          | 32,424 |   |     |   | 9.00 |   |   |   | - |   |   |   | - |   |
|                     |   | Mar-05    |   | Apr 06 - Oct 06 |   |                                          | 16,212 |   |     |   | 4.50 |   |   |   | 8,106 |   |   |   | 7.25 |   |
|                     |   | Jul-05    |   | Apr 06 - Oct 06 |   |                                          | 11,348 |   |     |   | 5.50 |   |   |   | 5,674 |   |   |   | 7.63 |   |
|                     |   | Jul-05    |   | Nov 06 - Mar 07 |   |                                          | 11,348 |   |     |   | 6.00 |   |   |   | 5,674 |   |   |   | 8.40 |   |

|                     |   |      |   |            |   | Floors                                        |   |   | Ceilings |   |
|--------------------------|--------|-----------|--------|-----------------|--------|-----------------------------------------------|--------|--------|----------|--------|
| Commodity/Index/Area     |   | Month Set |   | Month           |   | Monthly Quantity (Gas –MMbtu Oil -Bbls) |   |   | Price    |   |   | Monthly Quantity (Gas –MMbtu Oil -Bbls) |   |   | Price |   |
| Natural Gas - (CIG) |   |
| Piceance Basin           |   |      |   |            |   |                                          |   |   |     |   |   |   |   |   |   |   |
|                     |   | Jul-05    |   | Jan 07 - Mar 07 |   |                                          | 5,759  |   |     | $      | 6.00 |   |   |   | 2,879 |   |   | $ | 8.40 |   |
|                     |   | Feb-06    |   | Jan 07 - Mar 07 |   |                                          | 12,340 |   |     |   | 6.50 |   |   |   | - |   |   |   | - |   |
|                     |   | Feb-06    |   | Apr 07 - Oct 07 |   |                                          | 9,049  |   |     |   | 5.50 |   |   |   | - |   |   |   | - |   |
|                     |   | Sep-06    |   | Jan 07 - Mar 07 |   |                                          | 21,801 |   |     |   | 4.00 |   |   |   | - |   |   |   | - |   |
|                     |   | Sep-06    |   | Apr 07 - Oct 07 |   |                                          | 30,850 |   |     |   | 4.50 |   |   |   | - |   |   |   | - |   |
|                     |   | Dec-06    |   | Nov 07 - Mar 08 |   |                                          | 15,631 |   |     |   | 5.25 |   |   |   | - |   |   |   | - |   |
|                     |   |      |   |            |   |                                          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
|                     |   |      |   |            |   |                                          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Oil - NYMEX              |   |      |   |            |   |                                          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Wattenberg Field         |   |      |   |            |   |                                          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
|                     |   | Sep-06    |   | Jan 07 - Oct 07 |   |                                          | 562    |   |     |   | 50.00 |   |   |   | - |   |   |   | - |   |

----

Index

|                     |   |      |   |            |   | Floors                                        |   |   | Ceilings |   |   | Swaps (Fixed Prices)                          |   |
|--------------------------|--------|-----------|--------|-----------------|--------|-----------------------------------------------|--------|--------|----------|--------|--------|-----------------------------------------------|--------|
| Commodity/Index/Area     |   | Month Set |   | Month           |   | Monthly Quantity (Gas –MMbtu Oil -Bbls) |   |   | Price    |   |   | Monthly Quantity (Gas –MMbtu Oil -Bbls) |   |   | Price |   |   | Monthly Quantity (Gas-MMbtu Oil -Bbls) |   |   | Price |   |
| Natural Gas - (CIG) |   |
| Piceance Basin           |   |      |   |            |   |                                          |   |   |     |   |   |                                          |   |   |   |   |   |   |   |   |   |   |
|                     |   | Dec-06    |   | Jan 08 - Mar 08 |   |                                          | 6,907  |   |     | $      | 5.25   |                                          |   |   | - |   |   | $ | - |   |   |   | - |   |   | $ | - |   |
|                     |   | Jan-07    |   | Jan 08 - Mar 08 |   |                                          | 6,907  |   |     |   | 5.25   |                                          |   |   | 6,907 |   |   |   | 9.80 |   |   |   | - |   |   |   | - |   |
|                     |   | May-07    |   | Apr 08 - Oct 08 |   |                                          | 13,631 |   |     |   | 5.50   |                                          |   |   | 13,631 |   |   |   | 10.35 |   |   |   | - |   |   |   | - |   |
|                     |   |      |   |            |   |                                          |   |   |     |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wattenberg Field         |   |      |   |            |   |                                          |   |   |     |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   | Jan-07    |   | Jan 08 - Mar 08 |   |                                          | 1,257  |   |     |   | 5.25   |                                          |   |   | 1,257 |   |   |   | 9.80 |   |   |   | - |   |   |   | - |   |
|                     |   | May-07    |   | Apr 08 - Oct 08 |   |                                          | 3,017  |   |     |   | 5.50   |                                          |   |   | 3,017 |   |   |   | 10.35 |   |   |   | - |   |   |   | - |   |
|                     |   |      |   |            |   |                                          |   |   |     |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   |      |   |            |   |                                          |   |   |     |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil - NYMEX              |   |      |   |            |   |                                          |   |   |     |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wattenberg Field         |   |      |   |            |   |                                          |   |   |     |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   | Oct-07    |   | Jan 08 - Dec 08 |   |                                          | -      |   |     |   | -      |                                          |   |   | - |   |   |   | - |   |   |   | 642 |   |   |   | 84.20 |   |

|                  |   | Floors     |   |   | Ceilings |   |   | Swaps (Fixed Prices) |   |   | Basis Protection Contracts |   |
|-----------------------|--------|------------|--------|--------|----------|--------|--------|----------------------|--------|--------|----------------------------|--------|
|                  |   |       |   |   | Weighted |   |   |                 |   |   | Weighted                   |   |   |   |   |   | Weighted |   |   |   |   |   | Weighted |   |
| Commodity/            |   | Quantity   |   |   | Average  |   |   | Quantity             |   |   | Average                    |   |   | Quantity |   |   | Average |   |   | Quantity |   |   | Average |   |
| Index/                |   | (Gas-MMbtu |   |   | Contract |   |   | (Gas-MMbtu           |   |   | Contract                   |   |   | (Gas-MMbtu |   |   | Contract |   |   | (Gas-MMbtu |   |   | Contract |   |
| Operating Area        |   | Oil-Bbls)  |   |   | Price    |   |   | Oil-Bbls)            |   |   | Price                      |   |   | Oil-Bbls) |   |   | Price |   |   | Oil-Bbls) |   |   | Price |   |
|                  |   |       |   |   |     |   |   |                 |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural Gas           |   |       |   |   |     |   |   |                 |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rocky Mountain Region |   |       |   |   |     |   |   |                 |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CIG                   |   |       |   |   |     |   |   |                 |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 3Q 2009               |   |       | 75,689 |   |     | $      | 5.75   |                 |   |   | 75,689                     |   |   | $ | 8.90 |   |   |   | - |   |   | $ | - |   |   |   | - |   |   | $ | - |   |
| 4Q 2009               |   |       | 53,256 |   |     |   | 6.67   |                 |   |   | 53,256                     |   |   |   | 10.21 |   |   |   | 19,688 |   |   |   | 9.20 |   |   |   | - |   |   |   | - |   |
| 2010                  |   |       | 61,366 |   |     |   | 6.63   |                 |   |   | 61,366                     |   |   |   | 10.79 |   |   |   | 29,531 |   |   |   | 9.20 |   |   |   | 181,049 |   |   |   | 1.88 |   |
| 2011                  |   |       | 28,989 |   |     |   | 4.75   |                 |   |   | 28,989                     |   |   |   | 9.45 |   |   |   | - |   |   |   | - |   |   |   | 215,684 |   |   |   | 1.88 |   |
| 2012                  |   |       | -      |   |     |   | -      |                 |   |   | -                          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 227,950 |   |   |   | 1.88 |   |
| 2013                  |   |       | -      |   |     |   | -      |                 |   |   | -                          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 211,754 |   |   |   | 1.88 |   |
|                  |   |       |   |   |     |   |   |                 |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NYMEX                 |   |       |   |   |     |   |   |                 |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2010                  |   |       | 7,747  |   |     |   | 5.75   |                 |   |   | 7,747                      |   |   |   | 8.30 |   |   |   | 160,968 |   |   |   | 5.62 |   |   |   | - |   |   |   | - |   |
| 2011                  |   |       | 10,537 |   |     |   | 5.75   |                 |   |   | 10,537                     |   |   |   | 8.30 |   |   |   | 58,166 |   |   |   | 6.96 |   |   |   | - |   |   |   | - |   |
| 2012                  |   |       | -      |   |     |   | -      |                 |   |   | -                          |   |   |   | - |   |   |   | 61,041 |   |   |   | 6.96 |   |   |   | - |   |   |   | - |   |
|                  |   |       |   |   |     |   |   |                 |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                  |   |       |   |   |     |   |   |                 |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil                   |   |       |   |   |     |   |   |                 |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rocky Mountain Region |   |       |   |   |     |   |   |                 |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NYMEX                 |   |       |   |   |     |   |   |                 |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 3Q 2009               |   |       | -      |   |     |   | -      |                 |   |   | -                          |   |   |   | - |   |   |   | 1,414 |   |   |   | 90.52 |   |   |   | - |   |   |   | - |   |
| 4Q 2009               |   |       | -      |   |     |   | -      |                 |   |   | -                          |   |   |   | - |   |   |   | 1,414 |   |   |   | 90.52 |   |   |   | - |   |   |   | - |   |
| 2010                  |   |       | -      |   |     |   | -      |                 |   |   | -                          |   |   |   | - |   |   |   | 4,906 |   |   |   | 92.96 |   |   |   | - |   |   |   | - |   |

----

Index

|                                                         |   |     |   |   | Managing |   |
|--------------------------------------------------------------|--------|----------|--------|--------|----------|--------|
|                                                         |   | Investor |   |   | General  |   |
|                                                         |   | Partners |   |   | Partner  |   |
| Partnership Revenue:                                         |   |     |   |   |     |   |
| Oil and gas sales                                            |   |     | 80     | %      |     |   | 20 | % |
| Preferred cash distributions (a)                             |   |     | 100    | %      |     |   | 0 | % |
| Oil and gas price risk management gain (loss)                |   |     | 80     | %      |     |   | 20 | % |
| Sale of productive properties                                |   |     | 80     | %      |     |   | 20 | % |
| Sale of equipment                                            |   |     | 0      | %      |     |   | 100 | % |
| Sale of undeveloped leases                                   |   |     | 80     | %      |     |   | 20 | % |
| Interest income                                              |   |     | 80     | %      |     |   | 20 | % |
|                                                         |   |     |   |   |     |   |   |   |
| Partnership Costs:                                           |   |     |   |   |     |   |   |   |
| Organization costs (b)                                       |   |     | 0      | %      |     |   | 100 | % |
| Broker-dealer commissions and expenses/syndication costs (b) |   |     | 100    | %      |     |   | 0 | % |
| Cost of oil and gas properties: (c)                          |   |     |   |   |     |   |   |   |
| Undeveloped lease costs                                      |   |     | 0      | %      |     |   | 100 | % |
| Tangible well costs                                          |   |     | 0      | %      |     |   | 100 | % |
| Intangible drilling costs                                    |   |     | 100    | %      |     |   | 0 | % |
| Other costs and expenses:                                    |   |     |   |   |     |   |   |   |
| Management fee (d)                                           |   |     | 100    | %      |     |   | 0 | % |
| Production and operating costs (e)                           |   |     | 80     | %      |     |   | 20 | % |
| Depreciation, depletion and amortization expense             |   |     | 80     | %      |     |   | 20 | % |
| Accretion of asset retirement obligations                    |   |     | 80     | %      |     |   | 20 | % |
| Direct costs - general and administrative (f)                |   |     | 80     | %      |     |   | 20 | % |

|   | (a) | To the extent that Investor Partners receive preferred cash distributions, the allocations for Investor Partners will be increased accordingly and the allocation for the Managing General Partner will likewise be decreased.  See Performance Standard Obligation of Managing General Partner below. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The Managing General Partner paid all legal, accounting, printing, and filing fees associated with the organization of the Partnership and the offering of units and is allocated 100% of these costs.  The Investor Partners paid all dealer manager commissions, discounts, and due diligence reimbursements and are allocated 100% of these costs. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | These allocations are for tax reporting purposes and do not impact cash distributions or Partners’ equity. |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

|   | (d) | Represents a one-time fee paid to the Managing General Partner on the day the Partnership was funded equal to 1-1/2% of total investor subscriptions. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Represents operating costs incurred after the completion of productive wells, including monthly per-well charges paid to the Managing General Partner. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | The Managing General Partner receives monthly reimbursement from the Partnership for direct costs – general and administrative costs incurred by the Managing General Partner on behalf of the Partnership. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|                                                                                                        |   | Year Ended December 31, |    |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|
|                                                                                                        |   | 2007                    |    |   | 2006 |   |   | 2005 |   |
|                                                                                                        |   |                    |    |   |   |   |   |   |   |
| Managing General Partner interest in net income 20% of net income allocated to the Managing General Partner |   | $                       | 134,949 |   |   | $ | 587,335 |   |   | $ | 879,620 |   |
|                                                                                                        |   |                    |    |   |   |   |   |   |   |   |   |   |
| Investor Partner interest in net income 80% of net income allocated to the Investor Partners                |   |                    | 539,798 |   |   |   | 2,349,339 |   |   |   | 3,518,478 |   |
|                                                                                                        |   |                    |    |   |   |   |   |   |   |   |   |   |
| Net income allocated to Partners                                                                            |   | $                       | 674,747 |   |   | $ | 2,936,674 |   |   | $ | 4,398,098 |   |

----

Index

|                                                       |   | 2007   |       |   | 2006   |   |       | 2005   |   |
|------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                                       |   |   |       |   |   |   |       |   |   |
| Leasehold costs                                            |   | $      | 240,400    |   |   | $      | 240,400    |   |   | $ | 240,400 |   |
| Development costs                                          |   |   | 19,895,500 |   |   |   | 19,895,500 |   |   |   | 19,851,760 |   |
| Oil and gas properties, successful efforts method          |   |   | 20,135,900 |   |   |   | 20,135,900 |   |   |   | 20,092,160 |   |
| Drilling advances to Managing General Partner              |   |   | -          |   |   |   | -          |   |   |   | 1,271 |   |
| Oil and gas properties at cost                             |   |   | 20,135,900 |   |   |   | 20,135,900 |   |   |   | 20,093,431 |   |
| Less: Accumulated depreciation, depletion and amortization |   |   | (6,758,975 | )      |   |   | (5,370,172 | )      |   |   | (3,474,630 | ) |
| Oil and gas properties, net                                |   | $      | 13,376,925 |   |   | $      | 14,765,728 |   |   | $ | 16,618,801 |   |

|                                               |   | 2007   |    |   | 2006   |   |    | 2005   |   |
|----------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                               |   |   |    |   |   |   |    |   |   |
| Balance at beginning of period                     |   | $      | 144,403 |   |   | $      | 101,903 |   |   | $ | 96,248 |   |
| New liabilities incurred due to estimate revisions |   |   | -       |   |   |   | 36,619  |   |   |   | - |   |
| Accretion expense                                  |   |   | 8,304   |   |   |   | 5,881   |   |   |   | 5,655 |   |
| Balance at end of period                           |   | $      | 152,707 |   |   | $      | 144,403 |   |   | $ | 101,903 |   |

----

Index

----

Index

| Errors                                                                                                    |   | Partners’ equity increase (decrease) |       |
|-----------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|------------|
| Accounts receivable from oil and gas sales                                                                |   | $                                          | 372,612    | (1) |
| Due to Managing General Partner – other, net                                                        |   |                                       | (57,410    | )(2) |
| Accumulated depreciation, depletion and amortization                                                      |   |                                       | (106,213   | )(3) |
| Accretion of asset retirement obligations                                                                 |   |                                       | (1,039     | )(4) |
| Increase to Partners’ equity as of January 1, 2005                                                  |   |                                       | 207,950    |   |
| Partners’ equity, as previously reported                                                            |   |                                       | 20,360,509 |   |
|                                                                                                      |   |                                       |       |   |
| Partners’ equity, as restated                                                                       |   | $                                          | 20,568,459 |   |
|                                                                                                      |   |                                       |       |   |
| Increase to Partners’ equity per Investor Partner unit, as of January 1, 2005-900 units outstanding |   | $                                          | 215        |   |

| Accumulated other comprehensive income |   | $ | (14,291 | )(5) |
|----------------------------------------|--------|---|---------|------|

|   | (1) | The accounts receivable error related to unrecorded oil and gas sales revenue of $372,612 for the period from July 2, 2004 (date of inception) to December 31, 2004. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The Due to Managing General Partner – other, net error of $57,410 related to unrecorded production and operating costs of $41,361, under withheld production taxes of $14,714 and understated direct costs – general and administrative of $1,335 for the period from July 2, 2004 (date of inception) to December 31, 2004. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | The accumulated depreciation, depletion and amortization (DD&A) error related to the Partnership’s wells being assigned to a combined field instead of separate fields.  The calculation of DD&A using separate fields resulted in additional DD&A expense of $106,213 for the period from July 2, 2004 (date of inception) to December 31, 2004. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | The Partnership used an incorrect starting date for accretion of the Partnership’s asset retirement obligations resulting in an understatement of the cost of oil and gas properties of $84,059 and asset retirement obligations by $85,098 at December 31, 2004 and an understatement of accretion of assets of $1,039 for the period from July 2, 2004 (date of inception) to December 31, 2004. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | (5) | The accumulated other comprehensive income error at December 31, 2004 related to the Partnership’s erroneous recording of unrealized losses on derivatives in accordance with hedge accounting as a component of Accumulated Other Comprehensive Income.  The Partnership determined that its derivatives did not qualify for hedge accounting and unrealized gains or losses should be recognized in the Statementof Operations for the period from July 2, 2004 (date of inception) to December 31, 2004. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

|                            |   |   |   |   | Oil (MBbls) |   |   |   |   |
|---------------------------------|--------|--------|--------|--------|-------------|--------|--------|--------|--------|
|                            |   | 2007   |   |   | 2006        |   |   | 2005   |   |
| Proved reserves:                |   |   |   |   |        |   |   |   |   |
| Beginning of year               |   |   | 223    |   |        |   | 283    |   |   |   | 355 |   |
| Revisions of previous estimates |   |   | 19     |   |        |   | (37    | )      |   |   | (24 | ) |
| Production                      |   |   | (13    | )      |        |   | (23    | )      |   |   | (48 | ) |
| End of Year                     |   |   | 229    |   |        |   | 223    |   |   |   | 283 |   |

|                            |   |   |   |   | Gas (MMcf) |   |   |   |   |
|---------------------------------|--------|--------|--------|--------|------------|--------|--------|--------|--------|
|                            |   | 2007   |   |   | 2006       |   |   | 2005   |   |
| Proved reserves:                |   |   |   |   |       |   |   |   |   |
| Beginning of year               |   |   | 5,936  |   |       |   | 7,755  |   |   |   | 9,193 |   |
| Revisions of previous estimates |   |   | 65     |   |       |   | (1,160 | )      |   |   | (470 | ) |
| Production                      |   |   | (463   | )      |       |   | (659   | )      |   |   | (968 | ) |
| End of Year                     |   |   | 5,538  |   |       |   | 5,936  |   |   |   | 7,755 |   |

|                      |   | As of December 31, |   |
|---------------------------|--------|--------------------|--------|
| Proved Developed Reserves |   | 2007               |   |   | 2006 |   |   | 2005 |   |
|                      |   |               |   |   |   |   |   |   |   |
| Oil (MBbl)                |   |               | 71     |   |   |   | 114 |   |   |   | 146 |   |
| Natural Gas (MMcf)        |   |               | 4,906  |   |   |   | 5,386 |   |   |   | 7,030 |   |

|   | · | Bbl – One barrel or 42 U.S. gallons liquid volume |
|--------|--------|---------------------------------------------------------|

|   | · | MBbl – One thousand barrels |
|--------|--------|-----------------------------------|

|   | · | Mcf – One thousand cubic feet |
|--------|--------|-------------------------------------|

|   | · | Mcfe – One thousand cubic feet of gas equivalents, based on a ratio of 6 Mcf for each barrel of oil, which reflects the relative energy content |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | MMcf – One million cubic feet |
|--------|--------|-------------------------------------|

|   | · | MMcfe – One million cubic feet of gas equivalents |
|--------|--------|---------------------------------------------------------|

----

Index

|                                                               |   | As of December 31, |    |
|--------------------------------------------------------------------|--------|--------------------|---------|
|                                                               |   | 2007               |    |   | 2006 |   |   | 2005 |   |
|                                                               |   | (in thousands)     |    |   | (in thousands) |   |   | (in thousands) |   |
|                                                               |   |               |    |   |   |   |   |   |   |
| Future estimated revenues                                          |   | $                  | 54,777  |   |   | $ | 38,905 |   |   | $ | 77,700 |   |
| Future estimated production costs                                  |   |               | (15,848 | ) |   |   | (12,634 | ) |   |   | (16,618 | ) |
| Future estimated development costs                                 |   |               | (2,852  | ) |   |   | (3,057 | ) |   |   | (2,125 | ) |
| Future net cash flows                                              |   |               | 36,077  |   |   |   | 23,214 |   |   |   | 58,957 |   |
| 10% annual discount for estimated timing of cash flows             |   |               | (17,678 | ) |   |   | (10,717 | ) |   |   | (31,230 | ) |
| Standardized measure of discounted future estimated net cash flows |   | $                  | 18,399  |   |   | $ | 12,497 |   |   | $ | 27,727 |   |

|                                                     |   | As of December 31, |   |
|----------------------------------------------------------|--------|--------------------|--------|
|                                                     |   | 2007               |   |   | 2006 |   |   | 2005 |   |
|                                                     |   | (in thousands)     |   |   | (in thousands) |   |   | (in thousands) |   |
|                                                     |   |               |   |   |   |   |   |   |   |
| Sales of oil and gas production, net of production costs |   | $                  | (2,243 | ) |   | $ | (4,274 | ) |   | $ | (8,116 | ) |
| Net changes in prices and production costs               |   |               | 7,312  |   |   |   | (12,522 | ) |   |   | 10,106 |   |
| Revisions of previous quantity estimates                 |   |               | 820    |   |   |   | (2,277 | ) |   |   | (2,142 | ) |
| Accretion of discount                                    |   |               | 1,120  |   |   |   | 2,476 |   |   |   | 2,036 |   |
| Timing and other                                         |   |               | (1,107 | ) |   |   | 1,367 |   |   |   | (1,900 | ) |
| Net change                                               |   | $                  | 5,902  |   |   | $ | (15,230 | ) |   | $ | (16 | ) |

----

Index

| As of December 31, |   | Oil    |   |   | Gas    |   |
|--------------------|--------|--------|--------|--------|--------|--------|
| 2007               |   | $      | 80.12  |   |   | $      | 6.58 |   |
| 2006               |   |   | 58.32  |   |   |   | 4.36 |   |
| 2005               |   |   | 58.52  |   |   |   | 7.88 |   |

----

Index

|                                                       |   | As of     |       |
|------------------------------------------------------------|--------|-----------|------------|
|                                                       |   | March 31, |       |   | June 30, |   |   | September 30, |   |   | December 31, |   |
| Assets                                                     |   | 2007      |       |   | 2007 |   |   | 2007 |   |   | 2007* |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |
| Current assets:                                            |   |      |       |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                  |   | $         | 36,463     |   |   | $ | 40,104 |   |   | $ | 43,598 |   |   | $ | 43,507 |   |
| Accounts receivable                                        |   |      | 338,104    |   |   |   | 310,039 |   |   |   | 210,305 |   |   |   | 365,136 |   |
| Due from Managing General Partner-derivatives              |   |      | 233,897    |   |   |   | 237,295 |   |   |   | 203,936 |   |   |   | 30,002 |   |
| Due from Managing General Partner-other, net               |   |      | 994,838    |   |   |   | 1,040,246 |   |   |   | 1,039,740 |   |   |   | 821,800 |   |
| Total current assets                                       |   |      | 1,603,302  |   |   |   | 1,627,684 |   |   |   | 1,497,579 |   |   |   | 1,260,445 |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil and gas properties, successful efforts method          |   |      | 20,135,900 |   |   |   | 20,135,900 |   |   |   | 20,135,900 |   |   |   | 20,135,900 |   |
| Less: Accumulated depreciation, depletion and amortization |   |      | (5,760,151 | ) |   |   | (6,121,019 | ) |   |   | (6,440,680 | ) |   |   | (6,758,975 | ) |
| Oil and gas properties, net                                |   |      | 14,375,749 |   |   |   | 14,014,881 |   |   |   | 13,695,220 |   |   |   | 13,376,925 |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due from Managing General Partner-derivatives              |   |      | -          |   |   |   | 63,233 |   |   |   | 14,553 |   |   |   | - |   |
| Due from Managing General Partner-other, net               |   |      | 31,627     |   |   |   | 60,138 |   |   |   | 83,133 |   |   |   | 83,133 |   |
| Total noncurrent assets                                    |   |      | 14,407,376 |   |   |   | 14,138,252 |   |   |   | 13,792,906 |   |   |   | 13,460,058 |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                               |   | $         | 16,010,678 |   |   | $ | 15,765,936 |   |   | $ | 15,290,485 |   |   | $ | 14,720,503 |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Partners' Equity                           |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current liabilities:                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                      |   | $         | 82,325     |   |   | $ | 74,660 |   |   | $ | 58,713 |   |   | $ | 36,555 |   |
| Due to Managing General Partner-derivatives                |   |      | 70,671     |   |   |   | 49,379 |   |   |   | 17,271 |   |   |   | 68,645 |   |
| Total current liabilities                                  |   |      | 152,996    |   |   |   | 124,039 |   |   |   | 75,984 |   |   |   | 105,200 |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due to Managing General Partner-derivatives                |   |      | -          |   |   |   | 33,900 |   |   |   | 5,097 |   |   |   | - |   |
| Asset retirement obligations                               |   |      | 146,479    |   |   |   | 148,555 |   |   |   | 150,631 |   |   |   | 152,707 |   |
| Total liabilities                                          |   |      | 299,475    |   |   |   | 306,494 |   |   |   | 231,712 |   |   |   | 257,907 |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners' equity:                                          |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Managing General Partner                                   |   |      | 3,142,244  |   |   |   | 3,095,758 |   |   |   | 3,015,624 |   |   |   | 2,896,389 |   |
| Limited Partners - 899.94 units issued and outstanding     |   |      | 12,568,959 |   |   |   | 12,363,684 |   |   |   | 12,043,149 |   |   |   | 11,566,207 |   |
| Total Partners' equity                                     |   |      | 15,711,203 |   |   |   | 15,459,442 |   |   |   | 15,058,773 |   |   |   | 14,462,596 |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Liabilities and Partners' Equity                     |   | $         | 16,010,678 |   |   | $ | 15,765,936 |   |   | $ | 15,290,485 |   |   | $ | 14,720,503 |   |

----

Index

|                                                       |   | As of     |       |
|------------------------------------------------------------|--------|-----------|------------|
|                                                       |   | March 31, |       |   | June 30, |   |   | September 30, |   |   | December 31, |   |
| Assets                                                     |   | 2006      |       |   | 2006 |   |   | 2006 |   |   | 2006* |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |
| Current assets:                                            |   |      |       |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                  |   | $         | 18,184     |   |   | $ | 20,569 |   |   | $ | 19,621 |   |   | $ | 31,681 |   |
| Accounts receivable                                        |   |      | 698,341    |   |   |   | 704,089 |   |   |   | 383,618 |   |   |   | 620,310 |   |
| Due from Managing General Partner-derivatives              |   |      | 98,451     |   |   |   | 176,967 |   |   |   | 172,513 |   |   |   | 274,070 |   |
| Due from Managing General Partner-other, net               |   |      | 1,172,026  |   |   |   | 886,297 |   |   |   | 1,065,651 |   |   |   | 614,917 |   |
| Total current assets                                       |   |      | 1,987,002  |   |   |   | 1,787,922 |   |   |   | 1,641,403 |   |   |   | 1,540,978 |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil and gas properties, successful efforts method          |   |      | 20,092,158 |   |   |   | 20,098,740 |   |   |   | 20,099,281 |   |   |   | 20,135,900 |   |
| Drilling advances to Managing General Partner              |   |      | 1,273      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Oil and gas properties, at cost                            |   |      | 20,093,431 |   |   |   | 20,098,740 |   |   |   | 20,099,281 |   |   |   | 20,135,900 |   |
| Less: Accumulated depreciation, depletion and amortization |   |      | (3,959,509 | ) |   |   | (4,476,624 | ) |   |   | (4,933,330 | ) |   |   | (5,370,172 | ) |
| Oil and gas properties, net                                |   |      | 16,133,922 |   |   |   | 15,622,116 |   |   |   | 15,165,951 |   |   |   | 14,765,728 |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due from Managing General Partner-derivatives              |   |      | 42,745     |   |   |   | 36,607 |   |   |   | 70,712 |   |   |   | 30,756 |   |
| Total noncurrent assets                                    |   |      | 16,176,667 |   |   |   | 15,658,723 |   |   |   | 15,236,663 |   |   |   | 14,796,484 |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                               |   | $         | 18,163,669 |   |   | $ | 17,446,645 |   |   | $ | 16,878,066 |   |   | $ | 16,337,462 |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Partners' Equity                           |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current liabilities:                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                      |   | $         | 89,732     |   |   | $ | 60,849 |   |   | $ | 38,137 |   |   | $ | 9,661 |   |
| Due to Managing General Partner-derivatives                |   |      | 43,050     |   |   |   | 34,519 |   |   |   | - |   |   |   | 102 |   |
| Total current liabilities                                  |   |      | 132,782    |   |   |   | 95,368 |   |   |   | 38,137 |   |   |   | 9,763 |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset retirement obligations                               |   |      | 103,368    |   |   |   | 104,854 |   |   |   | 106,319 |   |   |   | 144,403 |   |
| Total liabilities                                          |   |      | 236,150    |   |   |   | 200,222 |   |   |   | 144,456 |   |   |   | 154,166 |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners' equity:                                          |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Managing General Partner                                   |   |      | 3,585,506  |   |   |   | 3,449,287 |   |   |   | 3,346,724 |   |   |   | 3,236,662 |   |
| Limited Partners - 899.94 units issued and outstanding     |   |      | 14,342,013 |   |   |   | 13,797,136 |   |   |   | 13,386,886 |   |   |   | 12,946,634 |   |
| Total Partners' equity                                     |   |      | 17,927,519 |   |   |   | 17,246,423 |   |   |   | 16,733,610 |   |   |   | 16,183,296 |   |
|                                                       |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Liabilities and Partners' Equity                     |   | $         | 18,163,669 |   |   | $ | 17,446,645 |   |   | $ | 16,878,066 |   |   | $ | 16,337,462 |   |

----

Index

|                                                       |   | As of         |       |
|------------------------------------------------------------|--------|---------------|------------|
|                                                       |   | March 31,     |       |   |   |   |   |   |   |   |   |   |
|                                                       |   | 2005          |       |   | June 30, |   |   | September 30, |   |   | December 31, |   |
|                                                       |   | (as restated) |       |   | 2005 |   |   | 2005 |   |   | 2005* |   |
| Assets                                                     |   |          |       |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |          |       |   |   |   |   |   |   |   |   |   |   |
| Current assets:                                            |   |          |       |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                  |   | $             | 21,655     |   |   | $ | 9,668 |   |   | $ | 7,323 |   |   | $ | 6,098 |   |
| Accounts receivable                                        |   |          | 1,072,573  |   |   |   | 1,026,994 |   |   |   | 1,171,153 |   |   |   | 1,462,226 |   |
| Due from Managing General Partner-derivatives              |   |          | 7,511      |   |   |   | 7,224 |   |   |   | 76,761 |   |   |   | 84,390 |   |
| Due from Managing General Partner-other, net               |   |          | 833,020    |   |   |   | 1,080,873 |   |   |   | 928,798 |   |   |   | 869,973 |   |
| Total current assets                                       |   |          | 1,934,759  |   |   |   | 2,124,759 |   |   |   | 2,184,035 |   |   |   | 2,422,687 |   |
|                                                       |   |          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil and gas properties, successful efforts method          |   |          | 18,047,693 |   |   |   | 20,030,604 |   |   |   | 20,087,363 |   |   |   | 20,092,160 |   |
| Wells in progress                                          |   |          | 1,979,657  |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Drilling advances to Managing General Partner              |   |          | -          |   |   |   | - |   |   |   | - |   |   |   | 1,271 |   |
| Oil and gas properties, at cost                            |   |          | 20,027,350 |   |   |   | 20,030,604 |   |   |   | 20,087,363 |   |   |   | 20,093,431 |   |
| Less: Accumulated depreciation, depletion and amortization |   |          | (1,251,169 | ) |   |   | (2,134,020 | ) |   |   | (2,878,061 | ) |   |   | (3,474,630 | ) |
| Oil and gas properties, net                                |   |          | 18,776,181 |   |   |   | 17,896,584 |   |   |   | 17,209,302 |   |   |   | 16,618,801 |   |
|                                                       |   |          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due from Managing General Partner-derivatives              |   |          | 9,983      |   |   |   | 4,082 |   |   |   | 20,960 |   |   |   | 10,779 |   |
| Total noncurrent assets                                    |   |          | 18,786,164 |   |   |   | 17,900,666 |   |   |   | 17,230,262 |   |   |   | 16,629,580 |   |
|                                                       |   |          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                               |   | $             | 20,720,923 |   |   | $ | 20,025,425 |   |   | $ | 19,414,297 |   |   | $ | 19,052,267 |   |
|                                                       |   |          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Partners' Equity                           |   |          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current liabilities:                                       |   |          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                      |   | $             | 136,748    |   |   | $ | 152,252 |   |   | $ | 148,242 |   |   | $ | 165,973 |   |
| Due to Managing General Partner-derivatives                |   |          | 521,851    |   |   |   | 267,859 |   |   |   | 859,257 |   |   |   | 241,884 |   |
| Total current liabilities                                  |   |          | 658,599    |   |   |   | 420,111 |   |   |   | 1,007,499 |   |   |   | 407,857 |   |
|                                                       |   |          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due to Managing General Partner-derivatives                |   |          | 3,391      |   |   |   | 26,709 |   |   |   | 127,358 |   |   |   | 40,761 |   |
| Asset retirement obligations                               |   |          | 97,632     |   |   |   | 99,035 |   |   |   | 100,459 |   |   |   | 101,903 |   |
| Total liabilities                                          |   |          | 759,622    |   |   |   | 545,855 |   |   |   | 1,235,316 |   |   |   | 550,521 |   |
|                                                       |   |          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners' equity:                                          |   |          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Managing General Partner                                   |   |          | 3,992,261  |   |   |   | 3,895,915 |   |   |   | 3,635,797 |   |   |   | 3,700,351 |   |
| Limited Partners - 899.94 units issued and outstanding     |   |          | 15,969,040 |   |   |   | 15,583,655 |   |   |   | 14,543,184 |   |   |   | 14,801,395 |   |
| Total Partners' equity                                     |   |          | 19,961,301 |   |   |   | 19,479,570 |   |   |   | 18,178,981 |   |   |   | 18,501,746 |   |
|                                                       |   |          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Liabilities and Partners' Equity                     |   | $             | 20,720,923 |   |   | $ | 20,025,425 |   |   | $ | 19,414,297 |   |   | $ | 19,052,267 |   |

----

Index

|                                                         |   | Quarter Ended |     |
|--------------------------------------------------------------|--------|---------------|----------|
|                                                         |   | March 31,     |     |   | June 30, |   |   | September 30, |   |   | December 31, |   |
|                                                         |   | 2007          |     |   | 2007 |   |   | 2007 |   |   | 2007* |   |
|                                                         |   |          |     |   |   |   |   |   |   |   |   |   |   |
| Revenues:                                                    |   |          |     |   |   |   |   |   |   |   |   |   |   |
| Oil and gas sales                                            |   | $             | 900,910  |   |   | $ | 812,178 |   |   | $ | 655,037 |   |   | $ | 651,385 |   |
| Oil and gas price risk management (loss) gain, net           |   |          | (149,148 | ) |   |   | 106,463 |   |   |   | 77,589 |   |   |   | (206,363 | ) |
| Total revenues                                               |   |          | 751,762  |   |   |   | 918,641 |   |   |   | 732,626 |   |   |   | 445,022 |   |
|                                                         |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating costs and expenses:                                |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Production and operating costs                               |   |          | 195,397  |   |   |   | 193,665 |   |   |   | 208,557 |   |   |   | 178,981 |   |
| Direct costs - general and administrative                    |   |          | -        |   |   |   | 15,239 |   |   |   | - |   |   |   | 33,798 |   |
| Depreciation, depletion and amortization                     |   |          | 389,979  |   |   |   | 360,868 |   |   |   | 319,661 |   |   |   | 318,295 |   |
| Accretion of asset retirement obligations                    |   |          | 2,076    |   |   |   | 2,076 |   |   |   | 2,076 |   |   |   | 2,076 |   |
| Total operating costs and expenses                           |   |          | 587,452  |   |   |   | 571,848 |   |   |   | 530,294 |   |   |   | 533,150 |   |
|                                                         |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from operations                                |   |          | 164,310  |   |   |   | 346,793 |   |   |   | 202,332 |   |   |   | (88,128 | ) |
|                                                         |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                              |   |          | 13,339   |   |   |   | 12,276 |   |   |   | 12,052 |   |   |   | 11,773 |   |
|                                                         |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                            |   | $             | 177,649  |   |   | $ | 359,069 |   |   | $ | 214,384 |   |   | $ | (76,355 | ) |
|                                                         |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) allocated to Partners                      |   | $             | 177,649  |   |   | $ | 359,069 |   |   | $ | 214,384 |   |   | $ | (76,355 | ) |
| Less: Managing General Partner interest in net income (loss) |   |          | 35,530   |   |   |   | 71,814 |   |   |   | 42,876 |   |   |   | (15,271 | ) |
| Net income (loss) allocated to Investor Partners             |   | $             | 142,119  |   |   | $ | 287,255 |   |   | $ | 171,508 |   |   | $ | (61,084 | ) |
|                                                         |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) per Investor Partner unit                  |   | $             | 158      |   |   | $ | 319 |   |   | $ | 191 |   |   | $ | (68 | ) |
|                                                         |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investor Partner units outstanding                           |   |          | 899.94   |   |   |   | 899.94 |   |   |   | 899.94 |   |   |   | 899.94 |   |

----

Index

|                                                  |   | Quarter Ended |      |
|-------------------------------------------------------|--------|---------------|-----------|
|                                                  |   | March 31,     |      |   | June 30, |   |   | September 30, |   |   | December 31, |   |
|                                                  |   | 2006          |      |   | 2006 |   |   | 2006 |   |   | 2006* |   |
|                                                  |   |          |      |   |   |   |   |   |   |   |   |   |   |
| Revenues:                                             |   |          |      |   |   |   |   |   |   |   |   |   |   |
| Oil and gas sales                                     |   | $             | 1,563,087 |   |   | $ | 1,413,170 |   |   | $ | 1,201,462 |   |   | $ | 926,917 |   |
| Oil and gas price risk management gain, net           |   |          | 382,704   |   |   |   | 88,865 |   |   |   | 70,649 |   |   |   | 78,676 |   |
| Total revenues                                        |   |          | 1,945,791 |   |   |   | 1,502,035 |   |   |   | 1,272,111 |   |   |   | 1,005,593 |   |
|                                                  |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating costs and expenses:                         |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Production and operating costs                        |   |          | 180,049   |   |   |   | 253,342 |   |   |   | 213,397 |   |   |   | 184,323 |   |
| Direct costs - general and administrative             |   |          | 260       |   |   |   | 488 |   |   |   | 47,491 |   |   |   | 55,242 |   |
| Depreciation, depletion and amortization              |   |          | 484,879   |   |   |   | 517,115 |   |   |   | 456,706 |   |   |   | 436,842 |   |
| Accretion of asset retirement obligations             |   |          | 1,465     |   |   |   | 1,486 |   |   |   | 1,465 |   |   |   | 1,465 |   |
| Total operating costs and expenses                    |   |          | 666,653   |   |   |   | 772,431 |   |   |   | 719,059 |   |   |   | 677,872 |   |
|                                                  |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from operations                                |   |          | 1,279,138 |   |   |   | 729,604 |   |   |   | 553,052 |   |   |   | 327,721 |   |
|                                                  |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                       |   |          | 11,751    |   |   |   | 12,166 |   |   |   | 11,826 |   |   |   | 11,416 |   |
|                                                  |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net  income                                 |   | $             | 1,290,889 |   |   | $ | 741,770 |   |   | $ | 564,878 |   |   | $ | 339,137 |   |
|                                                  |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income allocated to Partners                      |   | $             | 1,290,889 |   |   | $ | 741,770 |   |   | $ | 564,878 |   |   | $ | 339,137 |   |
| Less: Managing General Partner interest in net income |   |          | 258,178   |   |   |   | 148,354 |   |   |   | 112,975 |   |   |   | 67,828 |   |
| Net income allocated to Investor Partners             |   | $             | 1,032,711 |   |   | $ | 593,416 |   |   | $ | 451,903 |   |   | $ | 271,309 |   |
|                                                  |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income per Investor Partner unit                  |   | $             | 1,148     |   |   | $ | 659 |   |   | $ | 502 |   |   | $ | 301 |   |
|                                                  |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investor Partner units outstanding                    |   |          | 899.94    |   |   |   | 899.94 |   |   |   | 899.94 |   |   |   | 899.94 |   |

----

Index

|                                                  |   | Quarter Ended |      |
|-------------------------------------------------------|--------|---------------|-----------|
|                                                  |   | March 31,     |      |   |   |   |   |   |   |   |   |   |
|                                                  |   | 2005          |      |   | June 30, |   |   | September 30, |   |   | December 31, |   |
|                                                  |   | (as restated) |      |   | 2005 |   |   | 2005 |   |   | 2005* |   |
|                                                  |   |          |      |   |   |   |   |   |   |   |   |   |   |
| Revenues:                                             |   |          |      |   |   |   |   |   |   |   |   |   |   |
| Oil and gas sales                                     |   | $             | 2,071,714 |   |   | $ | 2,274,242 |   |   | $ | 2,264,781 |   |   | $ | 2,474,570 |   |
| Oil and gas price risk management (loss) gain, net    |   |          | (528,812  | ) |   |   | 132,542 |   |   |   | (725,872 | ) |   |   | 538,274 |   |
| Total revenues                                        |   |          | 1,542,902 |   |   |   | 2,406,784 |   |   |   | 1,538,909 |   |   |   | 3,012,844 |   |
|                                                  |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating costs and expenses:                         |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Production and operating costs                        |   |          | 202,286   |   |   |   | 251,379 |   |   |   | 248,660 |   |   |   | 266,768 |   |
| Direct costs - general and administrative             |   |          | 435       |   |   |   | - |   |   |   | 111 |   |   |   | 16,275 |   |
| Depreciation, depletion and amortization              |   |          | 904,981   |   |   |   | 882,851 |   |   |   | 744,041 |   |   |   | 596,569 |   |
| Accretion of asset retirement obligations             |   |          | 1,384     |   |   |   | 1,403 |   |   |   | 1,424 |   |   |   | 1,444 |   |
| Total operating costs and expenses                    |   |          | 1,109,086 |   |   |   | 1,135,633 |   |   |   | 994,236 |   |   |   | 881,056 |   |
|                                                  |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from operations                                |   |          | 433,816   |   |   |   | 1,271,151 |   |   |   | 544,673 |   |   |   | 2,131,788 |   |
|                                                  |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                       |   |          | 1,747     |   |   |   | 1,485 |   |   |   | 5,850 |   |   |   | 7,588 |   |
|                                                  |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                            |   | $             | 435,563   |   |   | $ | 1,272,636 |   |   | $ | 550,523 |   |   | $ | 2,139,376 |   |
|                                                  |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income allocated to Partners                      |   | $             | 435,563   |   |   | $ | 1,272,636 |   |   | $ | 550,523 |   |   | $ | 2,139,376 |   |
| Less: Managing General Partner interest in net income |   |          | 87,113    |   |   |   | 254,527 |   |   |   | 110,104 |   |   |   | 427,876 |   |
| Net income allocated to Investor Partners             |   | $             | 348,450   |   |   | $ | 1,018,109 |   |   | $ | 440,419 |   |   | $ | 1,711,500 |   |
|                                                  |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income per Investor Partner unit                  |   | $             | 387       |   |   | $ | 1,131 |   |   | $ | 489 |   |   | $ | 1,902 |   |
|                                                  |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investor Partner units outstanding                    |   |          | 899.94    |   |   |   | 899.94 |   |   |   | 899.94 |   |   |   | 899.94 |   |

----

Index

|                                                                              |   | Three months ended March 31, 2007 |     |   | Six months ended June 30, 2007 |   |       | Nine months ended September 30, 2007 |   |
|-----------------------------------------------------------------------------------|--------|-----------------------------------|----------|--------|--------------------------------|--------|------------|--------------------------------------|--------|
| Cash flows from operating activities:                                             |   |                              |     |   |                           |   |       |                                 |   |
| Net income                                                                        |   | $                                 | 177,649  |   |                           | $      | 536,718    |                                 |   | $ | 751,102 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                              |     |   |                           |   |       |                                 |   |   |   |   |
| Depreciation, depletion and amortization                                          |   |                              | 389,979  |   |                           |   | 750,847    |                                 |   |   | 1,070,508 |   |
| Accretion of asset retirement obligations                                         |   |                              | 2,076    |   |                           |   | 4,152      |                                 |   |   | 6,228 |   |
| Unrealized loss on derivative transactions                                        |   |                              | 141,498  |   |                           |   | 87,475     |                                 |   |   | 108,603 |   |
| Changes in operating assets and liabilities:                                      |   |                              |     |   |                           |   |       |                                 |   |   |   |   |
| Decrease in accounts receivable                                                   |   |                              | 282,206  |   |                           |   | 310,271    |                                 |   |   | 410,005 |   |
| Increase in accounts payable                                                      |   |                              | 72,664   |   |                           |   | 64,999     |                                 |   |   | 49,052 |   |
| Increase in due from/to Managing General Partner                                  |   |                              | (411,548 | )      |                           |   | (485,467   | )                                    |   |   | (507,956 | ) |
| Net cash provided by operating activities                                         |   |                              | 654,524  |   |                           |   | 1,268,995  |                                 |   |   | 1,887,542 |   |
|                                                                              |   |                              |     |   |                           |   |       |                                 |   |   |   |   |
| Distributions to Partners                                                         |   |                              | (649,742 | )      |                           |   | (1,260,572 | )                                    |   |   | (1,875,625 | ) |
| Net cash used in financing activities                                             |   |                              | (649,742 | )      |                           |   | (1,260,572 | )                                    |   |   | (1,875,625 | ) |
|                                                                              |   |                              |     |   |                           |   |       |                                 |   |   |   |   |
| Net increase in cash and cash equivalents                                         |   |                              | 4,782    |   |                           |   | 8,423      |                                 |   |   | 11,917 |   |
| Cash and cash equivalents, beginning of period                                    |   |                              | 31,681   |   |                           |   | 31,681     |                                 |   |   | 31,681 |   |
| Cash and cash equivalents, end of period                                          |   | $                                 | 36,463   |   |                           | $      | 40,104     |                                 |   | $ | 43,598 |   |

----

Index

|                                                                                 |   | Three months ended March 31, 2006 |       |   | Six months ended June 30, 2006 |   |       | Nine months ended September 30, 2006 |   |
|--------------------------------------------------------------------------------------|--------|-----------------------------------|------------|--------|--------------------------------|--------|------------|--------------------------------------|--------|
| Cash flows from operating activities:                                                |   |                              |       |   |                           |   |       |                                 |   |
| Net income                                                                           |   | $                                 | 1,290,889  |   |                           | $      | 2,032,659  |                                 |   | $ | 2,597,537 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:    |   |                              |       |   |                           |   |       |                                 |   |   |   |   |
| Depreciation, depletion and amortization                                             |   |                              | 484,879    |   |                           |   | 1,001,994  |                                 |   |   | 1,458,700 |   |
| Accretion of asset retirement obligations                                            |   |                              | 1,465      |   |                           |   | 2,951      |                                 |   |   | 4,416 |   |
| Unrealized gain on derivative transactions                                           |   |                              | (285,623   | )      |                           |   | (366,532   | )                                    |   |   | (430,702 | ) |
| Changes in operating assets and liabilities:                                         |   |                              |       |   |                           |   |       |                                 |   |   |   |   |
| Decrease in accounts receivable                                                      |   |                              | 763,885    |   |                           |   | 758,137    |                                 |   |   | 1,078,608 |   |
| Decrease in accounts payable                                                         |   |                              | (76,241    | )      |                           |   | (105,124   | )                                    |   |   | (127,836 | ) |
| Increase in due from/to Managing General Partner                                     |   |                              | (302,052   | )      |                           |   | (21,632    | )                                    |   |   | (201,527 | ) |
| Net cash provided by operating activities                                            |   |                              | 1,877,202  |   |                           |   | 3,302,453  |                                 |   |   | 4,379,196 |   |
|                                                                                 |   |                              |       |   |                           |   |       |                                 |   |   |   |   |
| Distributions to Partners                                                            |   |                              | (1,865,116 | )      |                           |   | (3,287,982 | )                                    |   |   | (4,365,673 | ) |
| Net cash used in financing activities                                                |   |                              | (1,865,116 | )      |                           |   | (3,287,982 | )                                    |   |   | (4,365,673 | ) |
|                                                                                 |   |                              |       |   |                           |   |       |                                 |   |   |   |   |
| Net increase in cash and cash equivalents                                            |   |                              | 12,086     |   |                           |   | 14,471     |                                 |   |   | 13,523 |   |
| Cash and cash equivalents, beginning of period                                       |   |                              | 6,098      |   |                           |   | 6,098      |                                 |   |   | 6,098 |   |
| Cash and cash equivalents, end of period                                             |   | $                                 | 18,184     |   |                           | $      | 20,569     |                                 |   | $ | 19,621 |   |
|                                                                                 |   |                              |       |   |                           |   |       |                                 |   |   |   |   |
| Supplemental disclosure of non-cash activity:                                        |   |                              |       |   |                           |   |       |                                 |   |   |   |   |
| Due from/to Managing General Partner related to investment in oil and gas properties |   | $                                 | -          |   |                           | $      | 5,309      |                                 |   | $ | 5,850 |   |
| Total non-cash activity                                                              |   | $                                 | -          |   |                           | $      | 5,309      |                                 |   | $ | 5,850 |   |

----

Index

|                                                                              |   | Three months ended March 31, 2005 (asrestated) |       |   | Six months ended June 30, 2005 |   |       | Nine months ended September 30, 2005 |   |
|-----------------------------------------------------------------------------------|--------|------------------------------------------------|------------|--------|--------------------------------|--------|------------|--------------------------------------|--------|
| Cash flows from operating activities:                                             |   |                                           |       |   |                           |   |       |                                 |   |
| Net income                                                                        |   | $                                              | 435,563    |   |                           | $      | 1,708,199  |                                 |   | $ | 2,258,722 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                                           |       |   |                           |   |       |                                 |   |   |   |   |
| Depreciation, depletion and amortization                                          |   |                                           | 904,981    |   |                           |   | 1,787,832  |                                 |   |   | 2,531,873 |   |
| Accretion of asset retirement obligations                                         |   |                                           | 1,384      |   |                           |   | 2,787      |                                 |   |   | 4,211 |   |
| Unrealized loss on derivative transactions                                        |   |                                           | 493,457    |   |                           |   | 268,971    |                                 |   |   | 874,603 |   |
| Changes in operating assets and liabilities:                                      |   |                                           |       |   |                           |   |       |                                 |   |   |   |   |
| Decrease in accounts receivable                                                   |   |                                           | 124,348    |   |                           |   | 169,927    |                                 |   |   | 25,768 |   |
| Increase in accounts payable                                                      |   |                                           | (7,958     | )      |                           |   | 7,546      |                                 |   |   | 3,536 |   |
| Increase in due from/to Managing General Partner                                  |   |                                           | (909,059   | )      |                           |   | (1,160,166 | )                                    |   |   | (1,064,850 | ) |
| Net cash provided by operating activities                                         |   |                                           | 1,042,716  |   |                           |   | 2,785,096  |                                 |   |   | 4,633,863 |   |
|                                                                              |   |                                           |       |   |                           |   |       |                                 |   |   |   |   |
| Distributions to Partners                                                         |   |                                           | (1,042,721 | )      |                           |   | (2,797,088 | )                                    |   |   | (4,648,200 | ) |
| Net cash used in financing activities                                             |   |                                           | (1,042,721 | )      |                           |   | (2,797,088 | )                                    |   |   | (4,648,200 | ) |
|                                                                              |   |                                           |       |   |                           |   |       |                                 |   |   |   |   |
| Net decrease in cash and cash equivalents                                         |   |                                           | (5         | )      |                           |   | (11,992    | )                                    |   |   | (14,337 | ) |
| Cash and cash equivalents, beginning of period                                    |   |                                           | 21,660     |   |                           |   | 21,660     |                                 |   |   | 21,660 |   |
| Cash and cash equivalents, end of period                                          |   | $                                              | 21,655     |   |                           | $      | 9,668      |                                 |   | $ | 7,323 |   |

----

Index

----

Index

|                                       |   | Quarter Ended  |    |
|--------------------------------------------|--------|----------------|---------|
|                                       |   | March 31, 2007 |    |   | June 30, 2007 |   |   | September 30, 2007 |   |   | December 31, 2007 |   |
| Transaction                                |   |           |    |   |   |   |   |   |   |   |   |   |
| Well charges                               |   | $              | 32,594  |   |   | $ | 32,594 |   |   | $ | 32,194 |   |   | $ | 32,606 |   |
| Supplies and maintenance                   |   |           | 39,469  |   |   |   | 46,799 |   |   |   | 85,125 |   |   |   | 85,786 |   |
| Gathering, compression and processing fees |   |           | 41,009  |   |   |   | 39,612 |   |   |   | 32,525 |   |   |   | 24,034 |   |
| Direct costs- general and administrative   |   |           | -       |   |   |   | 15,239 |   |   |   | - |   |   |   | 33,798 |   |
| Cash distributions*                        |   |           | 130,382 |   |   |   | 118,711 |   |   |   | 123,420 |   |   |   | 106,764 |   |
|                                       |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   | Quarter Ended  |    |
|                                       |   | March 31, 2006 |    |   | June 30, 2006 |   |   | September 30, 2006 |   |   | December 31, 2006 |   |
| Transaction                                |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Well charges                               |   | $              | 32,594  |   |   | $ | 32,594 |   |   | $ | 32,594 |   |   | $ | 32,593 |   |
| Supplies and maintenance                   |   |           | 47,415  |   |   |   | 150,044 |   |   |   | 107,701 |   |   |   | 99,428 |   |
| Gathering, compression and processing fees |   |           | 10,307  |   |   |   | 9,856 |   |   |   | 34,894 |   |   |   | 42,642 |   |
| Direct costs- general and administrative   |   |           | 260     |   |   |   | 488 |   |   |   | 47,491 |   |   |   | 55,242 |   |
| Cash distributions*                        |   |           | 374,266 |   |   |   | 285,522 |   |   |   | 216,257 |   |   |   | 178,483 |   |
|                                       |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   | Quarter Ended  |    |
|                                       |   | March 31, 2005 |    |   | June 30, 2005 |   |   | September 30, 2005 |   |   | December 31, 2005 |   |
| Transaction                                |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Well charges                               |   | $              | 27,697  |   |   | $ | 32,593 |   |   | $ | 32,594 |   |   | $ | 32,593 |   |
| Supplies and maintenance                   |   |           | 36,503  |   |   |   | 54,636 |   |   |   | 55,955 |   |   |   | 58,180 |   |
| Gathering, compression and processing fees |   |           | 1,338   |   |   |   | 11,898 |   |   |   | 11,869 |   |   |   | 10,022 |   |
| Direct costs- general and administrative   |   |           | 435     |   |   |   | - |   |   |   | 111 |   |   |   | 16,275 |   |
| Cash distributions*                        |   |           | 208,544 |   |   |   | 350,873 |   |   |   | 370,222 |   |   |   | 363,322 |   |

----

Index

|                |   | As of          |    |
|---------------------|--------|----------------|---------|
|                |   | March 31, 2007 |    |   | June 30, 2007 |   |   | September 30, 2007 |   |
|                |   | Short-term     |    |   | Long-term |   |   | Total |   |   | Short-term |   |   | Long-term |   |   | Total |   |   | Short-term |   |   | Long-term |   |   | Total |   |
| Natural gas floors  |   | $              | 204,987 |   |   | $ | - |   |   | $ | 204,987 |   |   | $ | 37,616 |   |   | $ | - |   |   | $ | 37,616 |   |   | $ | 60,130 |   |   | $ | - |   |   | $ | 60,130 |   |
| Natural gas collars |   |           | (42,402 | ) |   |   | - |   |   |   | (42,402 | ) |   |   | 150,202 |   |   |   | 29,333 |   |   |   | 179,535 |   |   |   | 126,529 |   |   |   | 9,456 |   |   |   | 135,985 |   |
| Oil floors          |   |           | 641     |   |   |   | - |   |   |   | 641 |   |   |   | 98 |   |   |   | - |   |   |   | 98 |   |   |   | 6 |   |   |   | - |   |   |   | 6 |   |
| Total               |   | $              | 163,226 |   |   | $ | - |   |   | $ | 163,226 |   |   | $ | 187,916 |   |   | $ | 29,333 |   |   | $ | 217,249 |   |   | $ | 186,665 |   |   | $ | 9,456 |   |   | $ | 196,121 |   |

|                |   | As of          |   |
|---------------------|--------|----------------|--------|
|                |   | March 31, 2006 |   |   | June 30, 2006 |   |   | September 30, 2006 |   |
|                |   | Short-term     |   |   | Long-term |   |   | Total |   |   | Short-term |   |   | Long-term |   |   | Total |   |   | Short-term |   |   | Long-term |   |   | Total |   |
| Natural gas floors  |   | $              | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 169,038 |   |   | $ | 70,032 |   |   | $ | 239,070 |   |
| Natural gas collars |   |           | 55,401 |   |   |   | 42,745 |   |   |   | 98,146 |   |   |   | 142,448 |   |   |   | 36,607 |   |   |   | 179,055 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Oil floors          |   |           | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,475 |   |   |   | 680 |   |   |   | 4,155 |   |
| Total               |   | $              | 55,401 |   |   | $ | 42,745 |   |   | $ | 98,146 |   |   | $ | 142,448 |   |   | $ | 36,607 |   |   | $ | 179,055 |   |   | $ | 172,513 |   |   | $ | 70,712 |   |   | $ | 243,225 |   |

|                      |   | As of          |     |
|---------------------------|--------|----------------|----------|
|                      |   | March 31, 2005 |     |   | June 30, 2005 |   |   | September 30, 2005 |   |
|                      |   | Short-term     |     |   | Long-term |   |   | Total |   |   | Short-term |   |   | Long-term |   |   | Total |   |   | Short-term |   |   | Long-term |   |   | Total |   |
|  Natural gas collars |   | $              | (336,235 | ) |   | $ | 6,592 |   |   | $ | (329,643 | ) |   | $ | (166,198 | ) |   | $ | (22,627 | ) |   | $ | (188,825 | ) |   | $ | (731,727 | ) |   | $ | (106,398 | ) |   | $ | (838,125 | ) |
| Oil floors                |   |           | 695      |   |   |   | - |   |   |   | 695 |   |   |   | 44 |   |   |   | - |   |   |   | 44 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Oil ceilings              |   |           | (178,800 | ) |   |   | - |   |   |   | (178,800 | ) |   |   | (94,481 | ) |   |   | - |   |   |   | (94,481 | ) |   |   | (50,769 | ) |   |   | - |   |   |   | (50,769 | ) |
| Total                     |   | $              | (514,340 | ) |   | $ | 6,592 |   |   | $ | (507,748 | ) |   | $ | (260,635 | ) |   | $ | (22,627 | ) |   | $ | (283,262 | ) |   | $ | (782,496 | ) |   | $ | (106,398 | ) |   | $ | (888,894 | ) |

----

Index

|                                                |   | Three months ended |     |
|-----------------------------------------------------|--------|--------------------|----------|
|                                                |   | March 31, 2007     |     |   | June 30, 2007 |   |   | September 30, 2007 |   |   | December 31, 2007 |   |
| Realized gains (losses)                             |   |               |     |   |   |   |   |   |   |   |   |   |
| Oil                                                 |   | $                  | (1,422   | ) |   | $ | (1,552 | ) |   | $ | (449 | ) |   | $ | (181 | ) |
| Natural Gas                                         |   |               | (6,228   | ) |   |   | 53,992 |   |   |   | 99,166 |   |   |   | 28,582 |   |
| Total realized (loss) gain                          |   |               | (7,650   | ) |   |   | 52,440 |   |   |   | 98,717 |   |   |   | 28,401 |   |
| Unrealized (loss) gain                              |   |               | (141,498 | ) |   |   | 54,023 |   |   |   | (21,128 | ) |   |   | (234,764 | ) |
| Oil and gas price risk management, (loss) gain, net |   | $                  | (149,148 | ) |   | $ | 106,463 |   |   | $ | 77,589 |   |   | $ | (206,363 | ) |

|                                        |   | Three months ended |    |
|---------------------------------------------|--------|--------------------|---------|
|                                        |   | March 31, 2006     |    |   | June 30, 2006 |   |   | September 30, 2006 |   |   | December 31, 2006 |   |
| Realized gains (losses)                     |   |               |    |   |   |   |   |   |   |   |   |   |
| Oil                                         |   | $                  | -       |   |   | $ | - |   |   | $ | - |   |   | $ | (1,142 | ) |
| Natural Gas                                 |   |               | 97,081  |   |   |   | 7,956 |   |   |   | 6,479 |   |   |   | 18,319 |   |
| Total realized gain                         |   |               | 97,081  |   |   |   | 7,956 |   |   |   | 6,479 |   |   |   | 17,177 |   |
| Unrealized gain                             |   |               | 285,623 |   |   |   | 80,909 |   |   |   | 64,170 |   |   |   | 61,499 |   |
| Oil and gas price risk management gain, net |   | $                  | 382,704 |   |   | $ | 88,865 |   |   | $ | 70,649 |   |   | $ | 78,676 |   |

|                                                |   | Three months ended          |     |
|-----------------------------------------------------|--------|-----------------------------|----------|
|                                                |   | March 31, 2005(as restated) |     |   | June 30, 2005 |   |   | September 30, 2005 |   |   | December 31, 2005 |   |
| Realized gains (losses)                             |   |                        |     |   |   |   |   |   |   |   |   |   |
| Oil                                                 |   | $                           | (35,355  | ) |   | $ | (34,177 | ) |   | $ | (45,218 | ) |   | $ | (28,091 | ) |
| Natural Gas                                         |   |                        | -        |   |   |   | (57,767 | ) |   |   | (75,022 | ) |   |   | (135,053 | ) |
| Total realized loss                                 |   |                        | (35,355  | ) |   |   | (91,944 | ) |   |   | (120,240 | ) |   |   | (163,144 | ) |
| Unrealized (loss) gain                              |   |                        | (493,457 | ) |   |   | 224,486 |   |   |   | (605,632 | ) |   |   | 701,418 |   |
| Oil and gas price risk management, (loss) gain, net |   | $                           | (528,812 | ) |   | $ | 132,542 |   |   | $ | (725,872 | ) |   | $ | 538,274 |   |

----

Index

----

Index

----

Index

| Errors                                                                                                    |   | Partners’ equity increase(decrease) |       |
|-----------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|------------|
| Accounts receivable from oil and gas sales                                                                |   | $                                         | 372,612    |   |
| Due to Managing General Partner – other, net                                                        |   |                                      | (57,410    | ) |
| Accumulated depreciation, depletion and amortization                                                      |   |                                      | (106,213   | ) |
| Accretion of asset retirement obligations                                                                 |   |                                      | (1,039     | ) |
| Increase to Partners’ equity as of January 1, 2005                                                  |   |                                      | 207,950    |   |
| Partners’ equity, as previously reported                                                            |   |                                      | 20,360,509 |   |
|                                                                                                      |   |                                      |       |   |
| Partners’ equity, as restated                                                                       |   | $                                         | 20,568,459 |   |
|                                                                                                      |   |                                      |       |   |
| Increase to Partners’ equity per Investor Partner unit, as of January 1, 2005-900 units outstanding |   | $                                         | 215        |   |

| Accumulated other comprehensive income |   | $ | (14,291 | ) |
|----------------------------------------|--------|---|---------|---|

----

Index

| Quarter ended March 31, 2005                           |   | Amount as Previously Reported |       |   | Unrealized Derivatives Gain (Loss), Net (1) |   |     | Oil & gas Sales (2) |   |   | Production and Operating Costs (3) |   |   | Oil and Gas Properties (4) |    |   | Accretion of Asset Retirement Obligations (5) |   |     | Reclassifications |   |   | December 31, 2004 Restatement of Partners' Equity |   |   | Restated Balance |     |
|-------------------------------------------------------------|--------|-------------------------------|------------|--------|---------------------------------------------|--------|----------|-------------------------|--------|--------|------------------------------------|--------|--------|----------------------------|---------|--------|-----------------------------------------------|--------|----------|-------------------|--------|--------|---------------------------------------------------|--------|--------|------------------|----------|
| Statement of Operations                                     |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |
| Oil and gas sales                                           |   | $                             | 2,144,966  |   |                                        | $      | 35,355   |                    |   | $      | (108,607                           | )      |   | $                          | -       |   |                                          | $      | -        |              |   | $      | -                                                 |   |   | $                | -        |   |   | $ | - |   |   | $ | 2,071,714 |   |
| Oil and gas price risk management loss, net                 |   |                          | -          |   |                                        |   | (528,812 | )                       |   |   | -                                  |   |   |                       | -       |   |                                          |   | -        |              |   |   | -                                                 |   |   |             | -        |   |   |   | - |   |   |   | (528,812 | ) |
| Total revenues                                              |   |                          | 2,144,966  |   |                                        |   | (493,457 | )                       |   |   | (108,607                           | )      |   |                       | -       |   |                                          |   | -        |              |   |   | -                                                 |   |   |             | -        |   |   |   | - |   |   |   | 1,542,902 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Production and operating costs                              |   |                          | 287,021    |   |                                        |   | -        |                    |   |   | -                                  |   |   |                       | (84,735 | )      |                                          |   | -        |              |   |   | -                                                 |   |   |             | -        |   |   |   | - |   |   |   | 202,286 |   |
| Direct costs - general and administration                   |   |                          | 435        |   |                                        |   | -        |                    |   |   | -                                  |   |   |                       | -       |   |                                          |   | -        |              |   |   | -                                                 |   |   |             | -        |   |   |   | - |   |   |   | 435 |   |
| Accretion of assets                                         |   |                          | -          |   |                                        |   | -        |                    |   |   | -                                  |   |   |                       | -       |   |                                          |   | -        |              |   |   | 1,384                                             |   |   |             | -        |   |   |   | - |   |   |   | 1,384 |   |
| Depreciation, depletion and amortization                    |   |                          | 654,936    |   |                                        |   | -        |                    |   |   | -                                  |   |   |                       | -       |   |                                          |   | 250,045  |              |   |   | -                                                 |   |   |             | -        |   |   |   | - |   |   |   | 904,981 |   |
| Total costs and expenses                                    |   |                          | 942,392    |   |                                        |   | -        |                    |   |   | -                                  |   |   |                       | (84,735 | )      |                                          |   | 250,045  |              |   |   | 1,384                                             |   |   |             | -        |   |   |   | - |   |   |   | 1,109,086 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Income from operations                                      |   |                          | 1,202,574  |   |                                        |   | (493,457 | )                       |   |   | (108,607                           | )      |   |                       | 84,735  |   |                                          |   | (250,045 | )                 |   |   | (1,384                                            | )      |   |             | -        |   |   |   | - |   |   |   | 433,816 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Interest income                                             |   |                          | 263        |   |                                        |   | -        |                    |   |   | -                                  |   |   |                       | 1,484   |   |                                          |   | -        |              |   |   | -                                                 |   |   |             | -        |   |   |   | - |   |   |   | 1,747 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Net income                                                  |   | $                             | 1,202,837  |   |                                        | $      | (493,457 | )                       |   | $      | (108,607                           | )      |   | $                          | 86,219  |   |                                          | $      | (250,045 | )                 |   | $      | (1,384                                            | )      |   | $                | -        |   |   | $ | - |   |   | $ | 435,563 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Managing General Partner income                             |   | $                             | 240,567    |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   | $ | 87,113 |   |
| Investor Partner income                                     |   | $                             | 962,270    |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   | $ | 348,450 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Net income per Investor Partner unit                        |   | $                             | 1,069      |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   | $ | 387 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Balance Sheet                                               |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Cash                                                        |   | $                             | 21,655     |   |                                        | $      | -        |                    |   | $      | -                                  |   |   | $                          | -       |   |                                          | $      | -        |              |   | $      | -                                                 |   |   | $                | -        |   |   | $ | - |   |   | $ | 21,655 |   |
| Accounts receivable                                         |   |                          | 1,528,565  |   |                                        |   | 33,485   |                    |   |   | 24,215                             |   |   |                       | -       |   |                                          |   | -        |              |   |   | -                                                 |   |   |             | (886,304 | )(6) |   |   | 372,612 |   |   |   | 1,072,573 |   |
| Due from Managing General Partner - derivatives, short term |   |                          | -          |   |                                        |   | 7,511    |                    |   |   | -                                  |   |   |                       | -       |   |                                          |   | -        |              |   |   | -                                                 |   |   |             | -        |   |   |   | - |   |   |   | 7,511 |   |
| Due from Managing General Partner-other, net                |   |                          | -          |   |                                        |   | (35,355  | )                       |   |   | (43,655                            | )      |   |                       | 86,052  |   |                                          |   | (33,919  | )                 |   |   | -                                                 |   |   |             | 917,307  | (6)(7) |   |   | (57,410 | ) |   |   | 833,020 |   |
| Total current assets                                        |   |                          | 1,550,220  |   |                                        |   | 5,641    |                    |   |   | (19,440                            | )      |   |                       | 86,052  |   |                                          |   | (33,919  | )                 |   |   | -                                                 |   |   |             | 31,003   |   |   |   | 315,202 |   |   |   | 1,934,759 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Oil and gas properties, net                                 |   |                          | 19,014,461 |   |                                        |   | -        |                    |   |   | -                                  |   |   |                       | -       |   |                                          |   | (216,126 | )                 |   |   | -                                                 |   |   |             | -        |   |   |   | (22,154 | ) |   |   | 18,776,181 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Due from Managing General Partner-derivatives, long term    |   |                          | -          |   |                                        |   | 9,983    |                    |   |   | -                                  |   |   |                       | -       |   |                                          |   | -        |              |   |   | -                                                 |   |   |             | -        |   |   |   | - |   |   |   | 9,983 |   |
| Total assets                                                |   | $                             | 20,564,681 |   |                                        | $      | 15,624   |                    |   | $      | (19,440                            | )      |   | $                          | 86,052  |   |                                          | $      | (250,045 | )                 |   | $      | -                                                 |   |   | $                | 31,003   |   |   | $ | 293,048 |   |   | $ | 20,720,923 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   | - |   |
| Accounts payable and accrued expenses                       |   | $                             | 100,314    |   |                                        | $      | (83,736  | )                       |   | $      | 89,167                             |   |   | $                          | -       |   |                                          | $      | -        |              |   | $      | -                                                 |   |   | $                | 31,003   | (6)(7) |   | $ | - |   |   | $ | 136,748 |   |
| Due to Managing General Partner-derivatives, short term     |   |                          | -          |   |                                        |   | 521,851  |                    |   |   | -                                  |   |   |                       | -       |   |                                          |   | -        |              |   |   | -                                                 |   |   |             | -        |   |   |   | - |   |   |   | 521,851 |   |
| Due to Managing General Partner-derivatives, long term      |   |                          | -          |   |                                        |   | 3,391    |                    |   |   | -                                  |   |   |                       | -       |   |                                          |   | -        |              |   |   | -                                                 |   |   |             | -        |   |   |   | - |   |   |   | 3,391 |   |
| Asset retirement obligations                                |   |                          | 11,317     |   |                                        |   | -        |                    |   |   | -                                  |   |   |                       | (167    | )      |                                          |   |     |              |   |   | 1,384                                             |   |   |             | -        |   |   |   | 85,098 |   |   |   | 97,632 |   |
| Total liabilities                                           |   |                          | 111,631    |   |                                        |   | 441,506  |                    |   |   | 89,167                             |   |   |                       | (167    | )      |                                          |   | -        |              |   |   | 1,384                                             |   |   |             | 31,003   |   |   |   | 85,098 |   |   |   | 759,622 |   |
|                                                        |   |                          |       |   |                                        |   |     |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Accumulated other comprehensive income                      |   |                          | (81,866    | )      |                                        |   | 67,575   |                    |   |   |                               |   |   |                       |    |   |                                          |   |     |              |   |   |                                              |   |   |             | -        |   |   |   | 14,291 |   |   |   | - |   |
| Partners' equity                                            |   |                          | 20,534,916 |   |                                        |   | (493,457 | )                       |   |   | (108,607                           | )      |   |                       | 86,219  |   |                                          |   | (250,045 | )                 |   |   | (1,384                                            | )      |   |             | -        |   |   |   | 193,659 |   |   |   | 19,961,301 |   |
| Total liabilities and Partners' equity                      |   | $                             | 20,564,681 |   |                                        | $      | 15,624   |                    |   | $      | (19,440                            | )      |   | $                          | 86,052  |   |                                          | $      | (250,045 | )                 |   | $      | -                                                 |   |   | $                | 31,003   |   |   | $ | 293,048 |   |   | $ | 20,720,923 |   |

|   | (1) | The Partnership determined that there was an error in the Partnership’s accounting for derivatives for improperly using hedge accounting and for using an incorrect derivative valuation methodology.  Correction of this error required recognition in the statement of operations of an unrealized derivative loss of $528,812, including a realized loss of $35,355 previously included in oil and gas salesduring the first quarter of 2005.  The correction also resulted in changes to balance sheet captions as follows:  an increase in “Accounts receivable” of $33,485; a decrease in “Due from Managing General Partner – other, net” of $35,355; a decrease in Accounts payable and accrued expenses of $83,736; an increase in “Due from Managing General Partner – derivatives” (short term) of $7,511; an increase in “Due from Managing General Partner– derivatives” (long term) of $9,983; an increase in “Due to Managing General Partner – derivatives” (short term) of $521,851; an increase in “Due to Managing General Partner – derivatives” (long term) of $3,391; and a decrease in the “Accumulated other comprehensive loss” of $67,575. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The Partnership determined that oil and gas revenues had been overstated for the three month period ended March 31, 2005 by $108,607.  The reversal of the previously recorded incorrect oil and gas revenues accrual and the recording of the correct accrual resulted in changes to the Balance Sheet captions as follows:  an increase in “Accounts receivable” of $24,215; a reduction in “Duefrom Managing General Partner – other, net” of $43,655; and an increase in “Accounts payable and accrued expenses” of $89,167. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | PDC determined that it had also over-withheld production taxes from distributions to the limited partners of the Partnership during 2005.  The total error for the production tax over-withholding was $86,219, including $1,484 in forgone interest income, during the three month period ended March 31, 2005.  Properly recording these production taxes resulted in an increase in “Due from ManagingGeneral Partner – other, net” of $86,052 and a decrease in Asset Retirement obligations of $167. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | (4) | The “Oil and gas properties” error related to Partnership’s wells being assigned to a combined field instead of separate fields and the failure to record drilling costs in excess of drilling advances as “Oil and gas properties”.  The calculation of DD&A using separate fields resulted in additional DD&A expense of $250,045 during the first quarter of 2005.  Inaddition, the amounts spent by PDC in excess of drilling advances of $33,919 were not recorded.  Recording these additional DD&A expenses and drilling costs in excess of advances resulted in changes in Balance Sheet captions as follows:  a decrease in “oil and gas properties, net” of $216,126; and a decrease in “Due from Managing General Partner – other, net” of $33,919. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | The Partnership also used an incorrect starting date for accretion of the asset retirement obligation resulting in an understatement of Asset Retirement obligations of $1,384.  Recording the additional accretion resulted in an increase to the Balance Sheet caption “Asset retirement obligations” of $1,384. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Represents the reclassification of $999,140 of “Accounts receivable” for undistributed oil and natural gas revenues collected by the Managing General Partner from the Partnership’s customers from “Accounts receivable” to “Due from Managing General Partner – other, net” offset by the reclassification of $112,836 previously recorded as a reduction to “Accounts receivable”to “Accounts payable and accrued expenses” to conform to the current year presentation. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | Represents the reclassification of $81,833 of “Accounts payable and accrued expenses” for production and operating costs to “Due from Managing General Partner – other, net” to conform to the current year presentation. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----