----

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| West Virginia                                                  | 38-3648762                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

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

|   | Large accelerated filer      ̈ | Accelerated filer      ̈    |
|--------|-------------------------------------------------------------|----------------------------------------------------------|
|   |                                                        |                                                     |
|   | Non-accelerated filer      ̈   | Smaller reporting company     T |

----

----

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PDC 2002

|                 |                                                                                                               | Page   |
|----------------------|--------------------------------------------------------------------------------------------------------------------|--------|
|                 |                                                                                                               |   |
|                 | PART I                                                                                                             |   |
|                 |                                                                                                               |   |
|                 | Explanatory Note to This Comprehensive Annual Report                                                               | 1      |
|                 | Special Note Regarding Forward Looking Statements                                                                  | 8      |
| Item 1               | Business                                                                                                           | 9      |
| Item 1A              | Risk Factors                                                                                                       | 23     |
| Item 1B              | Unresolved Staff Comments                                                                                          | 31     |
| Item 2               | Properties                                                                                                         | 32     |
| Item 3               | Legal Proceedings                                                                                                  | 33     |
| Item 4               | [Removed  and Reserved]                                                                                  | 33     |
|                 |                                                                                                               |   |
|                 | PART II                                                                                                            |   |
|                 |                                                                                                               |   |
| Item 5               | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 34     |
| Item 6               | Selected Financial Data                                                                                            | 36     |
| Item 7               | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        | 37     |
| Item 7A              | Quantitative and Qualitative Disclosures About Market Risk                                                         | 52     |
| Item 8               | Financial Statements and Supplementary Data                                                                        | 56     |
| Item 9               | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure                               | 56     |
| Item 9A              | Controls and Procedures                                                                                            | 58     |
| Item 9B              | Other Information                                                                                                  | 62     |
|                 |                                                                                                               |   |
|                 | PART III                                                                                                           |   |
|                 |                                                                                                               |   |
| Item 10              | Directors, Executive Officers and Corporate Governance                                                             | 63     |
| Item 11              | Executive Compensation                                                                                             | 67     |
| Item 12              | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     | 67     |
| Item 13              | Certain Relationships and Related Transactions, and Director Independence                                          | 68     |
| Item 14              | Principal Accountant Fees and Services                                                                             | 69     |
|                 |                                                                                                               |   |
|                 | PART IV                                                                                                            |   |
|                 |                                                                                                               |   |
| Item 15              | Exhibits and Financial Statement Schedules                                                                         | 70     |
|                 |                                                                                                               |
| Signatures           | 73                                                                                                                 |
|                 |                                                                                                               |
| Financial Statements | F-1                                                                                                                |

----

Index

Expl

----

Index

|                                                                                     | Errors                                                                                                          |   | Partners’ equity increase (decrease) |      |
|------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|-----------|
|                                                                                     | Accounts receivable from oil and gas sales                                                                      |   | $                                          | 98,751    | (1) |
|                                                                                     | Due from Managing General Partner – other, net                                                            |   |                                       | 72,239    | (2) |
|                                                                                     | Accumulated depreciation, depletion and amortization                                                            |   |                                       | (664,998  | )(3) |
|                                                                                     | Accounts payable and accrued expenses                                                                           |   |                                       | 81,347    | (4) |
|                                                                                     | Due to Managing General Partner – derivatives                                                             |   |                                       | (81,783   | )(5) |
|                                                                                     | Asset retirement obligations                                                                                    |   |                                       | (52,864   | )(6) |
|                                                                                     | Decrease to Partners’ equity as of January 1, 2005                                                        |   |                                       | (547,308  | ) |
|                                                                                     | Partners’ equity, as previously reported                                                                  |   |                                       | 9,637,386 |   |
|                                                                                     |                                                                                                            |   |                                       |      |   |
|                                                                                     | Partners’ equity, as restated                                                                             |   | $                                          | 9,090,078 |   |
|                                                                                     |                                                                                                            |   |                                       |      |   |
|                                                                                     | Decrease to Partners’ equity per Investor Partner unit,as of January 1, 2005 for 559.02 units outstanding |   | $                                          | (979      | ) |
|                                                                                     |                                                                                                            |   |                                       |      |   |
| Additionally, the following error did not impact Partner's equity as of January 1, 2005: |                                                                                                            |   |                                       |      |
|                                                                                     |                                                                                                            |   |                                       |      |   |
|                                                                                     | Accumulated other comprehensive income                                                                          |   | $                                          | (48,210   | )(7) |

|   | (1) | The accounts receivable error of $98,751 related to an adjustment to record actual for previously estimated natural gas and oil sales revenue of $131,888 offset by the reclassification of unrealized derivative gains of $33,137 to Due to Managing General Partner – derivatives at December 31, 2004. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The Due to Managing General Partner – other, net error of $72,239 related to the correction of over withheld production taxes of $213,077 recorded to natural gas and oil production costs together with $7,323 of accrued interest income thereon offset by the accrual of natural gas and oil production costs of $148,161 at December 31, 2004. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | The accumulated depreciation, depletion and amortization (DD&A) error resulted in an increase in DD&A expense of $664,998 related to the Partnership’s wells being erroneously assigned to one combined field instead of two separate fields. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | The accounts payable and accrued expenses error of $81,347 is related to the reclassification of unrealized losses from accounts payable and accrued expenses to Due to Managing General Partner – Derivatives at December 31, 2004. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | The Due to Managing General Partner – derivatives, error of $81,783 is related to a reclassification of $33,137 from accounts receivable and $81,347 from accounts payable to Due from Managing General Partner – derivatives, and recording realized derivative losses of $33,573 at December 31, 2004. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | The asset retirement obligations error of $52,864 related to the Partnership’s use of an incorrect starting date for accretion resulting in an understatement of accretion asset retirement obligations of $6,459 and by the understatement of the cost of natural gas and oil properties of $46,405 at December 31, 2004. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | (7) | The accumulated other comprehensive income error of $48,210 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 (AOCI).  The Partnership determined that its derivatives did not qualify for hedge accounting and unrealized gains or losses should be recognized in the Statement of Operations at December 31, 2004.  Upon restatement of the balance sheet at December 31, 2004, AOCI is eliminated and changes in fair value of open derivative positions are recorded in retained earnings. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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) |   |   | Depreciation, Depletion & Amortization (4) |    |   | Asset Retirement Obligations (5) |   |    | Reclassification (6) |   |   | December 31, 2004 Restatement of Partners' Equity |   |   | Restated Balance |     |
|-------------------------------------------------------------|--------|-------------------------------|-----------|--------|---------------------------------------------|--------|---------|-------------------------|--------|--------|------------------------------------|--------|--------|------------------------------------------------|---------|--------|----------------------------------|--------|---------|----------------------|--------|--------|--------------------------------------------------------|--------|--------|------------------|----------|
| Statement of Operations                                     |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                 |   |   |                                                   |   |   |             |     |
| Oil and gas sales                                           |   | $                             | 468,455   |   |                                        | $      | 40,361  |                    |   | $      | (27,690                            | )      |   | $                                              | -       |   |                             | $      | -       |                 |   | $      | -                                                      |   |   |             |     |   |   |   |   | $ | 481,126 |   |
| Oil and gas price risk management gain (loss), net          |   |                          | -         |   |                                        |   | (57,238 | )                       |   |   | -                                  |   |   |                                           | -       |   |                             |   | -       |                 |   |   | -                                                      |   |   |             |     |   |   |   |   |   | (57,238 | ) |
| Total revenues                                              |   |                          | 468,455   |   |                                        |   | (16,877 | )                       |   |   | (27,690                            | )      |   |                                           | -       |   |                             |   | -       |                 |   |   | -                                                      |   |   |             |     |   |   |   |   |   | 423,888 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                 |   |   |                                                   |   |   |             |     |   |   |   |   |   |   |   |
| Production and operating costs                              |   |                          | 125,332   |   |                                        |   | -       |                    |   |   | (37,589                            | )      |   |                                           | (34,425 | )      |                             |   | -       |                 |   |   | -                                                      |   |   |             |     |   |   |   |   |   | 53,318 |   |
| Direct costs - general and administration                   |   |                          | 105       |   |                                        |   | -       |                    |   |   | -                                  |   |   |                                           | -       |   |                             |   | -       |                 |   |   | (105                                                   | )      |   |             |     |   |   |   |   |   | - |   |
| Depreciation, depletion and amortization                    |   |                          | 198,530   |   |                                        |   | -       |                    |   |   | -                                  |   |   |                                           | -       |   |                             |   | 28,010  |                 |   |   | -                                                      |   |   |             |     |   |   |   |   |   | 226,540 |   |
| Accretion of asset retirement obligations                   |   |                          | -         |   |                                        |   | -       |                    |   |   | -                                  |   |   |                                           | -       |   |                             |   | -       |                 |   |   | 860                                                    |   |   |             |     |   |   |   |   |   | 860 |   |
| Total costs and expenses                                    |   |                          | 323,967   |   |                                        |   | -       |                    |   |   | (37,589                            | )      |   |                                           | (34,425 | )      |                             |   | 28,010  |                 |   |   | 755                                                    |   |   |             |     |   |   |   |   |   | 280,718 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                 |   |   |                                                   |   |   |             |     |   |   |   |   |   |   |   |
| Income from operations                                      |   |                          | 144,488   |   |                                        |   | (16,877 | )                       |   |   | 9,899                              |   |   |                                           | 34,425  |   |                             |   | (28,010 | )                    |   |   | (755                                                   | )      |   |             |     |   |   |   |   |   | 143,170 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                 |   |   |                                                   |   |   |             |     |   |   |   |   |   |   |   |
| Interest income                                             |   |                          | 409       |   |                                        |   | -       |                    |   |   | -                                  |   |   |                                           | 3,377   |   |                             |   | -       |                 |   |   | -                                                      |   |   |             |     |   |   |   |   |   | 3,786 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                 |   |   |                                                   |   |   |             |     |   |   |   |   |   |   |   |
| Net income (loss)                                           |   | $                             | 144,897   |   |                                        | $      | (16,877 | )                       |   | $      | 9,899                              |   |   | $                                              | 37,802  |   |                             | $      | (28,010 | )                    |   | $      | (755                                                   | )      |   |             |     |   |   |   |   | $ | 146,956 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                 |   |   |                                                   |   |   |             |     |   |   |   |   |   |   |   |
| Managing General Partner income                             |   | $                             | 28,979    |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                 |   |   |                                                   |   |   |             |     |   |   |   |   | $ | 29,391 |   |
| Investor Partner income                                     |   |                          | 115,918   |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                 |   |   |                                                   |   |   |             |     |   |   |   |   |   | 117,565 |   |
| Total                                                       |   | $                             | 144,897   |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                 |   |   |                                                   |   |   |             |     |   |   |   |   | $ | 146,956 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                 |   |   |                                                   |   |   |             |     |   |   |   |   |   |   |   |
| Net income per Investor Partner unit                        |   | $                             | 207       |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                 |   |   |                                                   |   |   |             |     |   |   |   |   | $ | 210 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                 |   |   |                                                   |   |   |             |     |   |   |   |   |   |   |   |
| Balance Sheet                                               |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                 |   |   |                                                   |   |   |             |     |   |   |   |   |   |   |   |
| Cash                                                        |   | $                             | 1,588     |   |                                        | $      | -       |                    |   | $      | -                                  |   |   | $                                              | -       |   |                             | $      | -       |                 |   | $      | -                                                      |   |   | $                | -        |   |   | $ | - |   |   | $ | 1,588 |   |
| Accounts receivable                                         |   |                          | 377,524   |   |                                        |   | 38,549  |                    |   |   | (50,521                            | )      |   |                                           | -       |   |                             |   | -       |                 |   |   | -                                                      |   |   |             | (239,649 | ) |   |   | 98,751 |   |   |   | 224,654 |   |
| Due from Managing General Partner - derivatives, short term |   |                          | -         |   |                                        |   | 1,903   |                    |   |   | -                                  |   |   |                                           | -       |   |                             |   | -       |                 |   |   | -                                                      |   |   |             | -        |   |   |   | (436 | ) |   |   | 1,467 |   |
| Due from Managing General Partner-other, net                |   |                          | 711       |   |                                        |   | (6,786  | )                       |   |   | 109,015                            |   |   |                                           | 37,802  |   |                             |   | -       |                 |   |   | -                                                      |   |   |             | 194,828  |   |   |   | 72,239 |   |   |   | 407,809 |   |
| Total current assets                                        |   |                          | 379,823   |   |                                        |   | 33,666  |                    |   |   | 58,494                             |   |   |                                           | 37,802  |   |                             |   | -       |                 |   |   | -                                                      |   |   |             | (44,821  | ) |   |   | 170,554 |   |   |   | 635,518 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                 |   |   |                                                   |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Oil and gas properties, net                                 |   |                          | 9,089,626 |   |                                        |   | -       |                    |   |   | -                                  |   |   |                                           | -       |   |                             |   | (28,010 | )                    |   |   | -                                                      |   |   |             | -        |   |   |   | (664,998 | ) |   |   | 8,396,618 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                 |   |   |                                                   |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Due from Managing General Partner-derivatives, long term    |   |                          |      |   |                                        |   | 1,953   |                    |   |   | -                                  |   |   |                                           | -       |   |                             |   | -       |                 |   |   | -                                                      |   |   |             | -        |   |   |   | - |   |   |   | 1,953 |   |
| Total assets                                                |   | $                             | 9,469,449 |   |                                        | $      | 35,619  |                    |   | $      | 58,494                             |   |   | $                                              | 37,802  |   |                             | $      | (28,010 | )                    |   | $      | -                                                      |   |   | $                | (44,821  | ) |   | $ | (494,444 | ) |   | $ | 9,034,089 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                 |   |   |                                                   |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                       |   | $                             | 47,195    |   |                                        | $      | 44,548  |                    |   | $      | 48,595                             |   |   | $                                              | -       |   |                             | $      | -       |                 |   | $      | -                                                      |   |   | $                | (44,821  | ) |   | $ | (81,347 | ) |   | $ | 14,170 |   |
| Due to Managing General Partner-derivatives, short term     |   |                          | -         |   |                                        |   | 20,071  |                    |   |   | -                                  |   |   |                                           | -       |   |                             |   | -       |                 |   |   | -                                                      |   |   |             | -        |   |   |   | 81,347 |   |   |   | 101,418 |   |
| Due to Managing General Partner-derivatives, long term      |   |                          | -         |   |                                        |   | 663     |                    |   |   | -                                  |   |   |                                           | -       |   |                             |   | -       |                 |   |   | -                                                      |   |   |             | -        |   |   |   | - |   |   |   | 663 |   |
| Asset retirement obligations                                |   |                          | 7,101     |   |                                        |   | -       |                    |   |   | -                                  |   |   |                                           | -       |   |                             |   | -       |                 |   |   | 755                                                    |   |   |             | -        |   |   |   | 52,864 |   |   |   | 60,720 |   |
| Total liabilities                                           |   |                          | 54,296    |   |                                        |   | 65,282  |                    |   |   | 48,595                             |   |   |                                           | -       |   |                             |   | -       |                 |   |   | 755                                                    |   |   |             | (44,821  | ) |   |   | 52,864 |   |   |   | 176,971 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                 |   |   |                                                   |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Accumulated other comprehensive income                      |   |                          | (35,424   | )      |                                        |   | (12,786 | )                       |   |   | -                                  |   |   |                                           | -       |   |                             |   | -       |                 |   |   | -                                                      |   |   |             | -        |   |   |   | 48,210 |   |   |   | - |   |
| Partners' equity                                            |   |                          | 9,450,577 |   |                                        |   | (16,877 | )                       |   |   | 9,899                              |   |   |                                           | 37,802  |   |                             |   | (28,010 | )                    |   |   | (755                                                   | )      |   |             | -        |   |   |   | (595,518 | ) |   |   | 8,857,118 |   |
| Total liabilities and Partners' equity                      |   | $                             | 9,469,449 |   |                                        | $      | 35,619  |                    |   | $      | 58,494                             |   |   | $                                              | 37,802  |   |                             | $      | (28,010 | )                    |   | $      | -                                                      |   |   | $                | (44,821  | ) |   | $ | (494,444 | ) |   | $ | 9,034,089 |   |

|   | (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 a realized and an unrealized derivative loss of $57,238, and reclassification of a realized loss of $40,361 previously included in natural gas and oil sales during the first quarter of 2005.  The correction also resulted in changes to balance sheet captions as follows:  an increase in “Accounts receivable” of $38,549; an increase in “Due from Managing General Partner – derivatives” (short term) of $1,903; a decrease in “Due from Managing General Partner – other, net” of $6,786; an increase in “Due from Managing General Partner – derivatives” (long term) of $1,953; an increase in “Accounts payable and accrued expenses” of $44,548; an increase in “Due to Managing General Partner – derivatives” (short term) of $20,071; an increase in “Due to Managing General Partner – derivatives” (long term) of $663; and an increase in the “Accumulated other comprehensive loss” of $12,786. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | (2) | The Partnership determined that natural gas and oil revenues had been overstated for the three month period ended March 31, 2005 by $27,690 and production and operating costs were overstated by $37,589.  The reversal of the previously recorded incorrect natural gas and oil revenues accrual and the recording of the correct accrual resulted in changes to the Balance Sheet captions as follows:  a decrease in “Accounts receivable” of $50,521; an increase in “Due from Managing General Partner – other, net” of $109,015; and an increase in “Accounts payable and accrued expenses” of $48,595. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (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 $37,802, including $3,377 in forgone interest income, during the three month period ended March 31, 2005.  Properly recording these costs resulted in an increase in “Due from Managing General Partner – other, net” of $37,802. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | The “Depreciation, depletion and amortization” error related to Partnership’s wells being assigned to one combined field instead of two separate fields.  The revised calculation of DD&A using two fields resulted in additional DD&A expense of $28,010 during the first quarter of 2005 with a corresponding decrease in “Natural gas and oil properties, net” at March 31, 2005 of $28,010. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | The Partnership also used an incorrect starting date for accretion of the asset retirement obligation resulting in an understatement of “Accretion of asset retirement obligations” of $860 offset by a reduction in “Direct costs – general and administration” of $105.  Recording the additional accretion resulted in an increase to the Balance Sheet caption “Asset retirement obligations” of $755. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Represents the reclassification of $239,649 of “Accounts receivable” for undistributed natural gas and oil 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 $44,821 of “Accounts payable and accrued expenses” for natural gas and oil production costs to “Due from Managing General Partner – other, net” to conform to the 2007 current year presentation. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| Quarter ended June 30, 2005                            |   | Amount as Previously Reported |      |   | Unrealized Derivatives Gain (Loss), Net (1) |   |    | Oil & gas Sales (2) |   |   | Production and Operating Costs (3) |   |   | Depreciation, Depletion & Amortization (4) |    |   | Accretion of Asset Retirement Obligations (5) |   |    | Reclassification (6) |   |   | December 31, 2004 Restatement of Partners' Equity |   |   | March 31, 2005 Restatement |     |   | Restated Balance |   |
|-------------------------------------------------------------|--------|-------------------------------|-----------|--------|---------------------------------------------|--------|---------|-------------------------|--------|--------|------------------------------------|--------|--------|------------------------------------------------|---------|--------|-----------------------------------------------|--------|---------|----------------------|--------|--------|--------------------------------------------------------|--------|--------|---------------------------------|----------|--------|------------------|--------|
| Statement of Operations                                     |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                 |   |   |                                                   |   |   |                            |     |   |             |   |
| Oil and gas sales                                           |   | $                             | 452,959   |   |                                        | $      | 18,629  |                    |   | $      | 26,581                             |   |   | $                                              | -       |   |                                          | $      | -       |                 |   | $      | -                                                      |   |   |                            |     |   |             |   |   |   |   |   |   | $ | 498,169 |   |
| Oil and gas price risk management gain (loss), net          |   |                          | -         |   |                                        |   | 23,280  |                    |   |   | -                                  |   |   |                                           | -       |   |                                          |   | -       |                 |   |   | -                                                      |   |   |                            |     |   |             |   |   |   |   |   |   |   | 23,280 |   |
| Total revenues                                              |   |                          | 452,959   |   |                                        |   | 41,909  |                    |   |   | 26,581                             |   |   |                                           | -       |   |                                          |   | -       |                 |   |   | -                                                      |   |   |                            |     |   |             |   |   |   |   |   |   |   | 521,449 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                 |   |   |                                                   |   |   |                            |     |   |             |   |   |   |   |   |   |   |   |   |
| Production and operating costs                              |   |                          | 86,665    |   |                                        |   | -       |                    |   |   | 16,126                             |   |   |                                           | (33,857 | )      |                                          |   | -       |                 |   |   | -                                                      |   |   |                            |     |   |             |   |   |   |   |   |   |   | 68,934 |   |
| Direct costs - general and administration                   |   |                          | 105       |   |                                        |   | -       |                    |   |   | -                                  |   |   |                                           | -       |   |                                          |   | -       |                 |   |   | (105                                                   | )      |   |                            |     |   |             |   |   |   |   |   |   |   | - |   |
| Depreciation, depletion and amortization                    |   |                          | 185,778   |   |                                        |   | -       |                    |   |   | -                                  |   |   |                                           | -       |   |                                          |   | 24,246  |                 |   |   | -                                                      |   |   |                            |     |   |             |   |   |   |   |   |   |   | 210,024 |   |
| Accretion of asset retirement obligations                   |   |                          | -         |   |                                        |   | -       |                    |   |   | -                                  |   |   |                                           | -       |   |                                          |   | -       |                 |   |   | 873                                                    |   |   |                            |     |   |             |   |   |   |   |   |   |   | 873 |   |
| Total costs and expenses                                    |   |                          | 272,548   |   |                                        |   | -       |                    |   |   | 16,126                             |   |   |                                           | (33,857 | )      |                                          |   | 24,246  |                 |   |   | 768                                                    |   |   |                            |     |   |             |   |   |   |   |   |   |   | 279,831 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                 |   |   |                                                   |   |   |                            |     |   |             |   |   |   |   |   |   |   |   |   |
| Income from operations                                      |   |                          | 180,411   |   |                                        |   | 41,909  |                    |   |   | 10,455                             |   |   |                                           | 33,857  |   |                                          |   | (24,246 | )                    |   |   | (768                                                   | )      |   |                            |     |   |             |   |   |   |   |   |   |   | 241,618 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                 |   |   |                                                   |   |   |                            |     |   |             |   |   |   |   |   |   |   |   |   |
| Interest income                                             |   |                          | 813       |   |                                        |   | -       |                    |   |   | -                                  |   |   |                                           | 3,322   |   |                                          |   | -       |                 |   |   | -                                                      |   |   |                            |     |   |             |   |   |   |   |   |   |   | 4,135 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                 |   |   |                                                   |   |   |                            |     |   |             |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                           |   | $                             | 181,224   |   |                                        | $      | 41,909  |                    |   | $      | 10,455                             |   |   | $                                              | 37,179  |   |                                          | $      | (24,246 | )                    |   | $      | (768                                                   | )      |   |                            |     |   |             |   |   |   |   |   |   | $ | 245,753 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                 |   |   |                                                   |   |   |                            |     |   |             |   |   |   |   |   |   |   |   |   |
| Managing General Partner income                             |   | $                             | 36,245    |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                 |   |   |                                                   |   |   |                            |     |   |             |   |   |   |   |   |   | $ | 49,150 |   |
| Investor Partner income                                     |   |                          | 144,979   |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                 |   |   |                                                   |   |   |                            |     |   |             |   |   |   |   |   |   |   | 196,603 |   |
| Total                                                       |   | $                             | 181,224   |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                 |   |   |                                                   |   |   |                            |     |   |             |   |   |   |   |   |   | $ | 245,753 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                 |   |   |                                                   |   |   |                            |     |   |             |   |   |   |   |   |   |   |   |   |
| Net income per Investor Partner unit                        |   | $                             | 259       |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                 |   |   |                                                   |   |   |                            |     |   |             |   |   |   |   |   |   | $ | 352 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                 |   |   |                                                   |   |   |                            |     |   |             |   |   |   |   |   |   |   |   |   |
| Balance Sheet                                               |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                 |   |   |                                                   |   |   |                            |     |   |             |   |   |   |   |   |   |   |   |   |
| Cash                                                        |   | $                             | 3,113     |   |                                        | $      | -       |                    |   | $      | -                                  |   |   | $                                              | -       |   |                                          | $      | -       |                 |   | $      | -                                                      |   |   | $                               | -        |   |             | $      | - |   |   | $ | - |   |   | $ | 3,113 |   |
| Accounts receivable                                         |   |                          | 374,712   |   |                                        |   | 11,170  |                    |   |   | 25,506                             |   |   |                                           | -       |   |                                          |   | -       |                 |   |   | -                                                      |   |   |                            | (261,090 | )      |             |   | 98,751 |   |   |   | (11,972 | ) |   |   | 237,077 |   |
| Due from Managing General Partner - derivatives, short term |   |                          | -         |   |                                        |   | 6,629   |                    |   |   | -                                  |   |   |                                           | -       |   |                                          |   | -       |                 |   |   | -                                                      |   |   |                            | -        |   |             |   | (436 | ) |   |   | (4,884 | ) |   |   | 1,309 |   |
| Due from Managing General Partner-other, net                |   |                          | -         |   |                                        |   | (18,627 | )                       |   |   | (12,711                            | )      |   |                                           | 37,179  |   |                                          |   | -       |                 |   |   | -                                                      |   |   |                            | 217,962  |   |             |   | 72,239 |   |   |   | 146,817 |   |   |   | 442,859 |   |
| Total current assets                                        |   |                          | 377,825   |   |                                        |   | (828    | )                       |   |   | 12,795                             |   |   |                                           | 37,179  |   |                                          |   | -       |                 |   |   | -                                                      |   |   |                            | (43,128  | )      |             |   | 170,554 |   |   |   | 129,961 |   |   |   | 684,358 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                 |   |   |                                                   |   |   |                            |     |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Oil and gas properties, net                                 |   |                          | 8,903,848 |   |                                        |   | -       |                    |   |   | -                                  |   |   |                                           | -       |   |                                          |   | (24,246 | )                    |   |   | -                                                      |   |   |                            | -        |   |             |   | (664,998 | ) |   |   | (28,010 | ) |   |   | 8,186,594 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                 |   |   |                                                   |   |   |                            |     |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Due from Managing General Partner-derivatives, long term    |   |                          | -         |   |                                        |   | (1,215  | )                       |   |   | -                                  |   |   |                                           | -       |   |                                          |   | -       |                 |   |   | -                                                      |   |   |                            | -        |   |             |   | - |   |   |   | 1,953 |   |   |   | 738 |   |
| Total assets                                                |   | $                             | 9,281,673 |   |                                        | $      | (2,043  | )                       |   | $      | 12,795                             |   |   | $                                              | 37,179  |   |                                          | $      | (24,246 | )                    |   | $      | -                                                      |   |   | $                               | (43,128  | )      |             | $      | (494,444 | ) |   | $ | 103,904 |   |   | $ | 8,871,690 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                 |   |   |                                                   |   |   |                            |     |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                       |   | $                             | 68,070    |   |                                        | $      | (22,000 | )                       |   | $      | 2,340                              |   |   | $                                              | -       |   |                                          | $      | -       |                 |   | $      | -                                                      |   |   | $                               | (43,128  | )      |             | $      | (81,347 | ) |   | $ | 93,143 |   |   | $ | 17,078 |   |
| Due to Managing General Partner-derivatives, short term     |   |                          | -         |   |                                        |   | (47,446 | )                       |   |   | -                                  |   |   |                                           | -       |   |                                          |   | -       |                 |   |   | -                                                      |   |   |                            | -        |   |             |   | 81,347 |   |   |   | 20,071 |   |   |   | 53,972 |   |
| Due to Managing General Partner-derivatives, long term      |   |                          | -         |   |                                        |   | 4,165   |                    |   |   | -                                  |   |   |                                           | -       |   |                                          |   | -       |                 |   |   | -                                                      |   |   |                            | -        |   |             |   | - |   |   |   | 662 |   |   |   | 4,827 |   |
| Asset retirement obligations                                |   |                          | 7,206     |   |                                        |   | -       |                    |   |   | -                                  |   |   |                                           | -       |   |                                          |   | -       |                 |   |   | 768                                                    |   |   |                            | -        |   |             |   | 52,864 |   |   |   | 755 |   |   |   | 61,593 |   |
| Total liabilities                                           |   |                          | 75,276    |   |                                        |   | (65,281 | )                       |   |   | 2,340                              |   |   |                                           | -       |   |                                          |   | -       |                 |   |   | 768                                                    |   |   |                            | (43,128  | )      |             |   | 52,864 |   |   |   | 114,631 |   |   |   | 137,470 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                 |   |   |                                                   |   |   |                            |     |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated other comprehensive income                      |   |                          | (56,753   | )      |                                        |   | 21,329  |                    |   |   | -                                  |   |   |                                           | -       |   |                                          |   | -       |                 |   |   | -                                                      |   |   |                            | -        |   |             |   | 48,210 |   |   |   | (12,786 | ) |   |   | - |   |
| Partners' equity                                            |   |                          | 9,263,150 |   |                                        |   | 41,909  |                    |   |   | 10,455                             |   |   |                                           | 37,179  |   |                                          |   | (24,246 | )                    |   |   | (768                                                   | )      |   |                            | -        |   |             |   | (595,518 | ) |   |   | 2,059 |   |   |   | 8,734,220 |   |
| Total liabilities and Partners' equity                      |   | $                             | 9,281,673 |   |                                        | $      | (2,043  | )                       |   | $      | 12,795                             |   |   | $                                              | 37,179  |   |                                          | $      | (24,246 | )                    |   | $      | -                                                      |   |   | $                               | (43,128  | )      |             | $      | (494,444 | ) |   | $ | 103,904 |   |   | $ | 8,871,690 |   |

|   | (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 a realized and an unrealized derivative gain of $23,280, and reclassification of a realized loss of $18,629 previously included in natural gas and oil sales during the second quarter of 2005.  The correction also resulted in changes to balance sheet captions as follows:  an increase in “Accounts receivable” of $11,170; an increase in “Due from Managing General Partner – derivatives” (short term) of $6,629; a decrease in “Due from Managing General Partner – other, net” of $18,627; a decrease in “Due from Managing General Partner – derivatives” (long term) of $1,215; a decrease in “Accounts payable and accrued expenses” of $22,000; a decrease in “Due to Managing General Partner – derivatives” (short term) of $47,446; an increase in “Due to Managing General Partner – derivatives” (long term) of $4,165; and a decrease in the “Accumulated other comprehensive loss” of $21,329. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | (2) | The Partnership determined that natural gas and oil revenues had been understated for the three month period ended June 30, 2005 by $26,581 and production and operating costs were understated by $16,126.  The reversal of the previously recorded incorrect natural gas and oil 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 $25,506; a decrease in “Due from Managing General Partner – other, net” of $12,711; and an increase in “Accounts payable and accrued expenses” of $2,340. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | PDC determined that it had 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 $37,179, including $3,322 in forgone interest income, during the three month period ended June 30, 2005.  Properly recording these costs resulted in an increase in “Due from Managing General Partner – other, net” of $37,179. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | The “Depreciation, depletion and amortization” error related to Partnership’s wells being assigned to one combined field instead of two separate fields.  The revised calculation of DD&A using two fields resulted in an increase to DD&A expense of $24,246 during the second quarter of 2005 with a corresponding decrease in “Natural gas and oil properties, net” at June 30, 2005 of $24,246. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | The Partnership also used an incorrect starting date for accretion of the asset retirement obligation resulting in an understatement of “Accretion of asset retirement obligations” of $873 offset by a decrease in “Direct costs – general and administration” $105.  Recording the additional accretion resulted in an increase to the Balance Sheet caption “Asset retirement obligations” of $768. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Represents the reclassification of $261,090 of “Accounts receivable” for undistributed natural gas and oil revenues collected by the Managing General Partner from the Partnership’s customers from “Accounts receivable” to “Due from Managing General Partner – other, net” accompanied by the reclassification of $43,128 from “Accounts payable and accrued expenses” for production and operating costs to “Due from Managing General Partner – other, net” to conform to the 2007 presentation. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

Spec

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

|   | · | changes in estimates of proved reserves; |
|--------|--------|------------------------------------------|

|   | · | declines in the values of the Partnership’s natural gas and oil properties resulting from impairments; |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | · | the timing and extent of the Partnership’s success in further developing and producing the Partnership’s natural gas and oil reserves; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the Managing General Partner’s ability to acquire drilling rig services, supplies and services at reasonable prices; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------|

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

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

|   | · | the availability of Partnership future cash flows for investor distributions or funding of Well Refracturing Plan activities; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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, or U.S.; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes in environmental laws and the regulations and enforcement related to those laws; |
|--------|--------|------------------------------------------------------------------------------------------|

|   | · | the identification of and severity of environmental events and governmental responses to the events; |
|--------|--------|------------------------------------------------------------------------------------------------------|

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

|   | · | the availability of funding for the consideration payable by PDC and its wholly-owned subsidiary to consummate the prospective mergers under the Acquisition Plan, and the timing of consummating any such mergers if at all; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | conditions in the capital markets; and |
|--------|--------|----------------------------------------|

|   | · | losses possible from pending or future litigation. |
|--------|--------|----------------------------------------------------|

----

Index

| 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 costs incurred 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 |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | 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

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

|   | · | “Collars” contain a fixed floor price (put) and ceiling price (call).  If the index price 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 the index price from the counterparty.  If the index 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 the index price to the counterparty.  If the index price is between the call and put strike price, no payments are due to or from the counterparty. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | “Swaps” are arrangements that guarantee a fixed price.  If the index 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 index price and the fixed contract price from the counterparty.  If the index price is above the fixed contract price, PDC, as Managing General Partner, receives the market price from the purchaser and pays the difference between the index price and the fixed contract price to the counterparty.  If the index price and contract price are the same, no payment is due to or from the counterparty. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

----

Index

|                                                                      |   | Year Ended December 31, |    |
|---------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                      |   | 2007                         |    |   | 2006 |   |   | 2005 |   |
| Production (1)                                                            |   |                         |    |   |   |   |   |   |   |
| Oil (Bbls)                                                                |   |                         | 4,852   |   |   |   | 6,831 |   |   |   | 9,150 |   |
| Natural gas (Mcf)                                                         |   |                         | 123,705 |   |   |   | 168,348 |   |   |   | 241,086 |   |
| Natural gas equivalent (Mcfe)                                             |   |                         | 152,817 |   |   |   | 209,334 |   |   |   | 295,986 |   |
|                                                                      |   |                         |    |   |   |   |   |   |   |   |   |   |
| Natural Gas and Oil Sales                                                 |   |                         |    |   |   |   |   |   |   |   |   |   |
| Oil sales                                                                 |   | $                            | 278,209 |   |   | $ | 439,102 |   |   | $ | 463,139 |   |
| Gas sales                                                                 |   |                         | 623,816 |   |   |   | 966,584 |   |   |   | 1,727,864 |   |
| Total oil and gas sales                                                   |   | $                            | 902,025 |   |   | $ | 1,405,686 |   |   | $ | 2,191,003 |   |
|                                                                      |   |                         |    |   |   |   |   |   |   |   |   |   |
| Realized Gain (Loss) on Derivatives, net (2)                              |   |                         |    |   |   |   |   |   |   |   |   |   |
| Oil derivatives - realized loss                                           |   | $                            | (1,802  | ) |   | $ | (287 | ) |   | $ | (38,790 | ) |
| Natural gas derivatives - realized gain (loss)                            |   |                         | 44,542  |   |   |   | 27,769 |   |   |   | (58,419 | ) |
| Total realized gain (loss) on derivatives, net                            |   | $                            | 42,740  |   |   | $ | 27,482 |   |   | $ | (97,209 | ) |
|                                                                      |   |                         |    |   |   |   |   |   |   |   |   |   |
|  Average Sales Price (excluding realized gain (loss) on derivatives) |   |                         |    |   |   |   |   |   |   |   |   |   |
| Oil (per Bbl)                                                             |   | $                            | 57.34   |   |   | $ | 64.28 |   |   | $ | 50.62 |   |
| Natural gas (per Mcf)                                                     |   |                         | 5.04    |   |   |   | 5.74 |   |   |   | 7.17 |   |
| Natural gas equivalent (per Mcfe)                                         |   |                         | 5.90    |   |   |   | 6.72 |   |   |   | 7.40 |   |
|                                                                      |   |                         |    |   |   |   |   |   |   |   |   |   |
|  Average Sales Price (including realized gain (loss) on derivatives) |   |                         |    |   |   |   |   |   |   |   |   |   |
| Oil (per Bbl)                                                             |   |                         | 56.97   |   |   |   | 64.24 |   |   |   | 46.38 |   |
| Natural gas (per Mcf)                                                     |   |                         | 5.40    |   |   |   | 5.91 |   |   |   | 6.92 |   |
| Natural gas equivalent (per Mcfe)                                         |   |                         | 6.18    |   |   |   | 6.85 |   |   |   | 7.07 |   |
|                                                                      |   |                         |    |   |   |   |   |   |   |   |   |   |
| Average Production Cost (Lifting) Cost (per Mcfe) (3)                     |   | $                            | 2.99    |   |   | $ | 1.26 |   |   | $ | 0.88 |   |

|   | (1) | Production as shown in the table is determined by multiplying the gross production volume of properties in which the Partnership has an interest by the percentage of the leasehold or other property interest the Partnership owns. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The Partnership utilizes commodity based derivative instruments to manage a portion of its exposure to commodity price volatility of its natural gas and oil sales. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Production costs represent natural gas and oil operating expenses which include severance and ad valorem taxes as reflected in the Partnership’s financial statements.  See Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations – Production and Operating Costs. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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, based on a ratio of 6 Mcf for each barrel of oil, which reflect the relative energy content |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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   |   |                         | 39     |   |   |   | 806 |   |   |   | 1,040 |   |
| Proved undeveloped |   |                         | 59     |   |   |   | 490 |   |   |   | 844 |   |
| Total Proved       |   |                         | 98     |   |   |   | 1,296 |   |   |   | 1,884 |   |

|                                                               |   | Proved Developed    |   |   | Proved Undeveloped  |   |   | Total Proved        |   |
|--------------------------------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|--------|---------------------|--------|
|                                                               |   | (in thousands) |   |   | (in thousands) |   |   | (in thousands) |   |
|                                                               |   |                |   |   |                |   |   |                |   |
| Estimated future net cash flows                                    |   | $                   | 4,703  |   |                | $      | 5,645  |                |   | $ | 10,348 |   |
| Standardized measure of discounted future estimated net cash flows |   |                | 3,076  |   |                |   | 2,728  |                |   |   | 5,804 |   |

----

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 PDC owned or leased 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

----

Index

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

----

Index

----

Index

----

Index

|   | · | The U.S. Environmental Protection Agency, or EPA, has recently focused on citizen concerns about the risk of water contamination and public health problems from drilling and hydraulic fracturing activities.  The EPA has held public meetings around the country on this issue that have been well publicized and well attended.  This renewed focus could lead to additional federal and state laws and regulations affecting the Partnership’s well refracturings and operations.  Additional laws, regulations or other changes could significantly reduce the Partnership’s future Codell formation development opportunities, increase the Partnership’s costs of operations, and reduce the Partnership’s distributable cash flows, in addition to undermining the demand for the natural gas and oil the Partnership produces. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | · | Several bills in Congress, if passed, would establish a "cap and trade" system regarding greenhouse gas emissions.  Companies would be assigned emission "allowances" under these bills which would decline each year.  In addition, new EPA greenhouse gas monitoring and reporting regulations may affect us and the third parties that process our natural gas and oil. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | New or increased severance taxes have been proposed in several states, which could adversely affect the existing operations in these states and the economic viability of future well completions. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In July 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) was signed into law.  The Dodd-Frank Act regulates derivative transactions, including the Partnership’s natural gas and oil hedging swaps.  These swaps are broadly defined to include most of the Partnership’s hedging instruments.  The law requires the issuance of new regulations and administrative procedures related to derivatives within one year.  The effect of such future regulations on the Partnership’s business is currently uncertain.  In particular, note the following: |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i. | The Dodd-Frank Act may decrease the Managing General Partner’s ability to enter into hedging transactions which would expose the Partnership to additional risks related to commodity price volatility.  Commodity price decreases could then have an immediate significant adverse affect on the Partnership’s revenues and impair the Partnership’s ability to have certainty with respect to a portion of the Partnership’s distributable cash flows.  A reduction in cash flows may lead to decreased Investor Partner cash distributions or fewer well s and therefore, decreased Partnership’s proved reserves and future production. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | The Managing General Partner expects that the cost to hedge will increase as a result of fewer counterparties in the market and the pass-through of increased counterparty costs.  The Partnership’s derivative counterparties may be subject to significant new capital, margin and business conduct requirements imposed as a result of the new legislation. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iii. | The Dodd-Frank Act contemplates that most swaps will be required to be cleared through a registered clearing facility and traded on a designated exchange or swap execution facility.  There are some exceptions to these requirements for entities that use swaps to hedge or mitigate commercial risk.  While the Partnership may ultimately be eligible for such exceptions, the scope of these exceptions currently is somewhat uncertain, pending further definition through rulemaking proceedings. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iv. | The above factors could also affect the pricing of derivatives and make it more difficult for the Managing General Partner to enter into hedging transactions on behalf of the Partnership, on favorable terms. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | · | the estimates of reserves; |
|--------|--------|----------------------------|

|   | · | the economically recoverable quantities of natural gas and oil attributable to the Partnership’s properties; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

|   | · | future depreciation, depletion and amortization ("DD&A") rates and amounts; |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | impairments in the value of Partnership assets; |
|--------|--------|-------------------------------------------------|

|   | · | estimates of the future net cash flows; and |
|--------|--------|---------------------------------------------|

|   | · | timing of the Partnership’s Wattenberg Field wells. |
|--------|--------|-----------------------------------------------------------|

----

Index

----

Index

|   | · | PDC has no plans through 2010 or beyond to sponsor additional drilling programs; however joint ventures arrangements could conflict with the interests of the Partnership.  PDC and affiliates have the right to organize and manage natural gas and oil joint venture arrangements, whose business purpose is generally similar to the Partnership, and to conduct production operations now and in the future on its own behalf or for joint venture partners.  This situation could lead to a conflict between the position of PDC as Managing General Partner of the Partnership and the position of PDC or its affiliates as a capital contributing partner to joint venture natural gas and oil properties development entity. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | PDC has a fiduciary duty as Managing General Partner to the Partnership.  PDC acts as managing general partner currently for 29 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 behalf of 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 Partnership will be competitive with the prices charged by unaffiliated persons for the same supplies and services, PDC will benefit financially from this relationship. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In operating the Partnership, the Managing General Partner and its affiliates could take actions which benefit themselves and which do not benefit the Partnership.  These actions could result in the Partnership being less profitable.  In that event, Investor Partners could anticipate a reduction of cash distributions. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | PDC, the managing general partner of various public limited partnerships, has disclosed its intention to pursue the acquisition, within the next three years beginning in the fall of 2010, of the remaining non-affiliated Investor Partner interests in the limited partnerships which PDC has sponsored, which includes the Partnership.  Any such transaction, if proposed, will also be subject to PDC having sufficient available capital.  Should a purchase offer from PDC be proposed, approved by a majority of the respective partnership’s unaffiliated limited partners, and consummated, the purchase transaction would result in a liquidating cash distribution to all partners and termination of the existence of that partnership.  There is no assurance that any such acquisition of any or all of PDC’s sponsored drilling program partnerships will occur. For additional information regarding PDC’s disclosed partnership acquisition intensions, see Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations−PDC Sponsored Drilling Program Acquisition Plan. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

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

----

Index

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

----

Index

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

| Item 4. | [Removed and Reserved] |
|---------|------------------------|

----

Index

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

----

Index

| Period                                                               |   | Cash Distributions |      |
|----------------------------------------------------------------------|--------|--------------------|-----------|
|                                                                 |   |               |      |
| For the year ended December 31, 2007                                 |   | $                  | 513,555   |   |
| For the year ended December 31, 2006                                 |   |               | 1,460,182 |   |
| For the year ended December 31, 2005                                 |   |               | 1,505,538 |   |
|                                                                 |   |               |      |   |
| For the period from the Partnership's inception to December 31, 2007 |   | $                  | 7,460,472 |   |

----

Index

| Unit repurchase program period |   | Units Repurchased During Month Ended |   |   | Average Price Paid per Unit |   |
|--------------------------------|--------|--------------------------------------|--------|--------|-----------------------------|--------|
|                           |   |                                 |   |   |                        |   |
| November 1−30, 2006      |   |                                 | 1.25   |   |                        | $      | 8,736 |   |
|                           |   |                                 |   |   |                        |   |   |   |
| February 1−28, 2007      |   |                                 | 5.00   |   |                        |   | 8,014 |   |
| May 1−31, 2007           |   |                                 | 0.25   |   |                        |   | 5,720 |   |
| June 1−30, 2007          |   |                                 | 1.25   |   |                        |   | 5,048 |   |
| July 1−31, 2007          |   |                                 | 0.28   |   |                        |   | 4,782 |   |
| October 1−31, 2007       |   |                                 | 0.50   |   |                        |   | 4,050 |   |
| November 1−30, 2007      |   |                                 | 0.50   |   |                        |   | 3,290 |   |
| December 1−31, 2007      |   |                                 | 0.25   |   |                        |   | 4,060 |   |
|                           |   |                                 |   |   |                        |   |   |   |
| April 1−30, 2008         |   |                                 | 0.25   |   |                        |   | 2,460 |   |
| July 1−31, 2008          |   |                                 | 5.35   |   |                        |   | 2,457 |   |
|                           |   |                                 |   |   |                        |   |   |   |
| April 1−30, 2009         |   |                                 | 0.75   |   |                        |   | 3,727 |   |
| June 1−30, 2009          |   |                                 | 0.25   |   |                        |   | 4,040 |   |
| September 1−30, 2009     |   |                                 | 2.00   |   |                        |   | 3,735 |   |
| October 1−31, 2009       |   |                                 | 5.00   |   |                        |   | 3,538 |   |

| Negotiated-basis repurchase period |   | Units Repurchased During Month Ended |   |   | Average Price Paid per Unit |   |
|------------------------------------|--------|--------------------------------------|--------|--------|-----------------------------|--------|
|                               |   |                                 |   |   |                        |   |
| August 1−31, 2005            |   |                                 | 0.75   |   |                        | $      | 8,696 |   |
| October 1−31, 2005           |   |                                 | 0.25   |   |                        |   | 8,380 |   |
|                               |   |                                 |   |   |                        |   |   |   |
| January 1−31, 2006           |   |                                 | 1.00   |   |                        |   | 7,925 |   |

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

----

Index

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

----

Index

----

Index

|                                                                |   | Year Ended             |       |
|---------------------------------------------------------------------|--------|------------------------|------------|
|                                                                |   | December 31, 2007 |       |   | December 31, 2006 |   |   | December 31, 2005 |   |
| Number of producing wells (end of period)                           |   |                   | 14         |   |   |   | 14 |   |   |   | 14 |   |
|                                                                |   |                   |       |   |   |   |   |   |   |   |   |   |
| Production:  (1)                                          |   |                   |       |   |   |   |   |   |   |   |   |   |
| Oil (Bbl)                                                           |   |                   | 4,852      |   |   |   | 6,831 |   |   |   | 9,150 |   |
| Natural gas (Mcf)                                                   |   |                   | 123,705    |   |   |   | 168,348 |   |   |   | 241,086 |   |
| Natural gas equivalents (Mcfe)  (2)                       |   |                   | 152,817    |   |   |   | 209,334 |   |   |   | 295,986 |   |
|                                                                |   |                   |       |   |   |   |   |   |   |   |   |   |
| Average Sales Price (excluding realized gain (loss) on derivatives) |   |                   |       |   |   |   |   |   |   |   |   |   |
| Oil (per Bbl)                                                       |   | $                      | 57.34      |   |   | $ | 64.28 |   |   | $ | 50.62 |   |
| Natural gas (per Mcf)                                               |   |                   | 5.04       |   |   |   | 5.74 |   |   |   | 7.17 |   |
| Natural gas equivalents (per Mcfe)                                  |   |                   | 5.90       |   |   |   | 6.72 |   |   |   | 7.40 |   |
|                                                                |   |                   |       |   |   |   |   |   |   |   |   |   |
| Realized Gain (Loss) on Derivatives, net                            |   |                   |       |   |   |   |   |   |   |   |   |   |
| Oil derivatives - realized gain (loss)                              |   | $                      | (1,802     | ) |   | $ | (287 | ) |   | $ | (38,790 | ) |
| Natural gas derivatives - realized gain (loss)                      |   |                   | 44,542     |   |   |   | 27,769 |   |   |   | (58,419 | ) |
| Total realized gain (loss) on derivatives, net                      |   | $                      | 42,740     |   |   | $ | 27,482 |   |   | $ | (97,209 | ) |
|                                                                |   |                   |       |   |   |   |   |   |   |   |   |   |
| Average Sales Price (including realized gain (loss) on derivatives) |   |                   |       |   |   |   |   |   |   |   |   |   |
| Oil (per Bbl)                                                       |   | $                      | 56.97      |   |   | $ | 64.24 |   |   | $ | 46.38 |   |
| Natural gas (per Mcf)                                               |   |                   | 5.40       |   |   |   | 5.91 |   |   |   | 6.92 |   |
| Natural gas equivalents (per Mcfe)                                  |   |                   | 6.18       |   |   |   | 6.85 |   |   |   | 7.07 |   |
|                                                                |   |                   |       |   |   |   |   |   |   |   |   |   |
| Average cost per Mcfe                                               |   |                   |       |   |   |   |   |   |   |   |   |   |
| Natural gas and oil production costs  (3)                 |   | $                      | 2.99       |   |   | $ | 1.26 |   |   | $ | 0.88 |   |
| Depreciation, depletion and amortization                            |   |                   | 4.82       |   |   |   | 3.36 |   |   |   | 2.91 |   |
|                                                                |   |                   |       |   |   |   |   |   |   |   |   |   |
| Revenues:                                                           |   |                   |       |   |   |   |   |   |   |   |   |   |
| Natural gas and oil sales                                           |   | $                      | 902,025    |   |   | $ | 1,405,686 |   |   | $ | 2,191,003 |   |
| Realized gain (loss) on derivatives, net                            |   |                   | 42,740     |   |   |   | 27,482 |   |   |   | (97,209 | ) |
| Unrealized (loss) gain on derivatives, net                          |   |                   | (91,828    | ) |   |   | 114,263 |   |   |   | 1,547 |   |
| Total revenues                                                      |   | $                      | 852,937    |   |   | $ | 1,547,431 |   |   | $ | 2,095,341 |   |
|                                                                |   |                   |       |   |   |   |   |   |   |   |   |   |
| Operating costs and expenses:                                       |   |                   |       |   |   |   |   |   |   |   |   |   |
| Natural gas and oil production costs                                |   | $                      | 457,169    |   |   | $ | 262,957 |   |   | $ | 261,546 |   |
| Direct costs - general and administrative                           |   |                   | 266,804    |   |   |   | 54,081 |   |   |   | 14,812 |   |
| Depreciation, depletion and amortization                            |   |                   | 736,420    |   |   |   | 703,574 |   |   |   | 862,704 |   |
| Loss on impairment of oil and gas properties                        |   |                   | 2,052,510  |   |   |   | - |   |   |   | - |   |
| Accretion of asset retirement obligations                           |   |                   | 5,052      |   |   |   | 3,644 |   |   |   | 3,516 |   |
| Total operating costs and expenses                                  |   | $                      | 3,517,955  |   |   | $ | 1,024,256 |   |   | $ | 1,142,578 |   |
|                                                                |   |                   |       |   |   |   |   |   |   |   |   |   |
| (Loss) income from operations                                       |   | $                      | (2,665,018 | ) |   | $ | 523,175 |   |   | $ | 952,763 |   |
|                                                                |   |                   |       |   |   |   |   |   |   |   |   |   |
| Interest income                                                     |   |                   | 28,102     |   |   |   | 26,554 |   |   |   | 15,863 |   |
|                                                                |   |                   |       |   |   |   |   |   |   |   |   |   |
| Net (loss) income                                                   |   | $                      | (2,636,916 | ) |   | $ | 549,729 |   |   | $ | 968,626 |   |
|                                                                |   |                   |       |   |   |   |   |   |   |   |   |   |
| Cash distributions                                                  |   | $                      | 513,555    |   |   | $ | 1,460,182 |   |   | $ | 1,505,538 |   |

|   | (1) | Production is determined by multiplying the gross production volume of properties in which the Partnership has 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. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Natural gas and oil production costs represent natural gas and oil operating expenses which include production taxes. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------|

----

Index

|   | · | 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 |
|--------|--------|-----------------------------------------------------------------|

|   | · | MMbtu  – One million British Thermal Units |
|--------|--------|------------------------------------------------------------|

|                    |   | 2007                      |   |   | 2006   |   |   | 2005     |   |
|-------------------------|--------|---------------------------|--------|--------|--------|--------|--------|----------|--------|
| Total                   |   | Sales (in thousands) |   |   | MMcfe  |   |   | per Mcfe |   |   | Sales (in thousands) |   |   | MMcfe |   |   | per Mcfe |   |   | Sales (in thousands) |   |   | MMcfe |   |   | per Mcfe |   |
| Jan-Mar                 |   | $                         | 263    |   |   |   | 44     |     |   | $ | 6.08 |   |   | $ | 450 |   |   |   | 58 |   |   | $ | 7.62 |   |   | $ | 482 | * |   |   | 78 | * |   | $ | 6.17 |   |
| Apr-Jun                 |   |                      | 217    |   |   |   | 37     |     |   |   | 5.89 |   |   |   | 356 |   |   |   | 53 |   |   |   | 6.77 |   |   |   | 498 | * |   |   | 77 | * |   |   | 6.50 |   |
| Jul-Sep                 |   |                      | 239    |   |   |   | 43     |     |   |   | 5.50 |   |   |   | 350 |   |   |   | 54 |   |   |   | 6.53 |   |   |   | 510 |   |   |   | 69 |   |   |   | 7.37 |   |
| Oct-Dec                 |   |                      | 183    |   |   |   | 29     |     |   |   | 6.26 |   |   |   | 250 |   |   |   | 44 |   |   |   | 5.66 |   |   |   | 701 |   |   |   | 72 |   |   |   | 9.72 |   |
| Total                   |   | $                         | 902    |   |   |   | 153    |     |   | $ | 5.90 |   |   | $ | 1,406 |   |   |   | 209 |   |   | $ | 6.72 |   |   | $ | 2,191 |   |   |   | 296 |   |   | $ | 7.40 |   |
| Change (year over year) |   |                      | -36    | %      |   |   | -27    | %        |   |   | -12 | % |   |   | -36 | % |   |   | -29 | % |   |   | -9 | % |   |   |   |   |   |   |   |   |   |   |   |   |

|                    |   | 2007                      |   |   | 2006   |   |   | 2005    |   |
|-------------------------|--------|---------------------------|--------|--------|--------|--------|--------|---------|--------|
| Oil                     |   | Sales (in thousands) |   |   | MBbl   |   |   | per Bbl |   |   | Sales (in thousands) |   |   | MBbl |   |   | per Bbl |   |   | Sales (in thousands) |   |   | MBbl |   |   | per Bbl |   |
| Jan-Mar                 |   | $                         | 62     |   |   |   | 1      |    |   | $ | 44.92 |   |   | $ | 110 |   |   |   | 2 |   |   | $ | 61.26 |   |   | $ | 117 | * |   |   | 2 | * |   | $ | 45.94 |   |
| Apr-Jun                 |   |                      | 69     |   |   |   | 1      |    |   |   | 54.57 |   |   |   | 137 |   |   |   | 2 |   |   |   | 67.15 |   |   |   | 130 | * |   |   | 3 | * |   |   | 48.18 |   |
| Jul-Sep                 |   |                      | 97     |   |   |   | 2      |    |   |   | 63.71 |   |   |   | 125 |   |   |   | 2 |   |   |   | 68.37 |   |   |   | 107 |   |   |   | 2 |   |   |   | 56.05 |   |
| Oct-Dec                 |   |                      | 50     |   |   |   | 1      |    |   |   | 73.40 |   |   |   | 67 |   |   |   | 1 |   |   |   | 57.51 |   |   |   | 109 |   |   |   | 2 |   |   |   | 54.63 |   |
| Total                   |   | $                         | 278    |   |   |   | 5      |    |   | $ | 57.34 |   |   | $ | 439 |   |   |   | 7 |   |   | $ | 64.28 |   |   | $ | 463 |   |   |   | 9 |   |   | $ | 50.62 |   |
| Change (year over year) |   |                      | -37    | %      |   |   | -29    | %       |   |   | -11 | % |   |   | -5 | % |   |   | -25 | % |   |   | 27 | % |   |   |   |   |   |   |   |   |   |   |   |   |

|                    |   | 2007                      |   |   | 2006   |   |   | 2005    |   |
|-------------------------|--------|---------------------------|--------|--------|--------|--------|--------|---------|--------|
| Gas                     |   | Sales (in thousands) |   |   | MMcf   |   |   | per Mcf |   |   | Sales (in thousands) |   |   | MMcf |   |   | per Mcf |   |   | Sales (in thousands) |   |   | MMcf |   |   | per Mcf |   |
| Jan-Mar                 |   | $                         | 201    |   |   |   | 36     |    |   | $ | 5.74 |   |   | $ | 340 |   |   |   | 48 |   |   | $ | 7.04 |   |   | $ | 365 | * |   |   | 63 | * |   | $ | 5.81 |   |
| Apr-Jun                 |   |                      | 148    |   |   |   | 29     |    |   |   | 5.06 |   |   |   | 219 |   |   |   | 40 |   |   |   | 5.43 |   |   |   | 368 | * |   |   | 60 | * |   |   | 6.09 |   |
| Jul-Sep                 |   |                      | 142    |   |   |   | 34     |    |   |   | 4.12 |   |   |   | 225 |   |   |   | 43 |   |   |   | 5.28 |   |   |   | 403 |   |   |   | 58 |   |   |   | 6.97 |   |
| Oct-Dec                 |   |                      | 133    |   |   |   | 25     |    |   |   | 5.29 |   |   |   | 183 |   |   |   | 37 |   |   |   | 4.93 |   |   |   | 592 |   |   |   | 60 |   |   |   | 9.85 |   |
| Total                   |   | $                         | 624    |   |   |   | 124    |    |   | $ | 5.04 |   |   | $ | 967 |   |   |   | 168 |   |   | $ | 5.74 |   |   | $ | 1,728 |   |   |   | 241 |   |   | $ | 7.17 |   |
| Change (year over year) |   |                      | -35    | %      |   |   | -27    | %       |   |   | -12 | % |   |   | -44 | % |   |   | -30 | % |   |   | -20 | % |   |   |   |   |   |   |   |   |   |   |   |   |

----

Index

----

Index

|                                              |   | Three months ended                     |    |   | Year Ended Total                      |   |
|---------------------------------------------------|--------|----------------------------------------|---------|--------|---------------------------------------|--------|
|                                              |   | March 31, 2007                    |    |   | June 30, 2007                    |   |   | September 30, 2007 |   |   | December 31, 2007 |   |   |   |
| Commodity price risk management, gain (loss), net |   |                                   |    |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Realized (loss) gain                              |   |                                   |    |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Oil                                               |   | $                                      | (528    | )      |                                  | $      | (556 | ) |   | $ | (578 | ) |   | $ | (140 | ) |   | $ | (1,802 | ) |
| Natural Gas                                       |   |                                   | (1,196  | )      |                                  |   | 7,406 |   |   |   | 27,711 |   |   |   | 10,621 |   |   |   | 44,542 |   |
| Total realized (loss) gain                        |   |                                   | (1,724  | )      |                                  |   | 6,850 |   |   |   | 27,133 |   |   |   | 10,481 |   |   |   | 42,740 |   |
| Unrealized (loss) gain                            |   |                                   | (32,404 | )      |                                  |   | 12,015 |   |   |   | 13,056 |   |   |   | (84,495 | ) |   |   | (91,828 | ) |
| Commodity price risk management, (loss) gain, net |   | $                                      | (34,128 | )      |                                  | $      | 18,865 |   |   | $ | 40,189 |   |   | $ | (74,014 | ) |   | $ | (49,088 | ) |
|                                              |   |                                   |    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   | Three months ended                     |    |   | Year Ended Total                      |   |
|                                              |   | March 31, 2006                    |    |   | June 30, 2006                    |   |   | September 30, 2006 |   |   | December 31, 2006 |   |   |   |
| Commodity price risk management, gain (loss), net |   |                                   |    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Realized gain (loss)                              |   |                                   |    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil                                               |   | $                                      | -       |   |                                  | $      | - |   |   | $ | - |   |   | $ | (287 | ) |   | $ | (287 | ) |
| Natural Gas                                       |   |                                   | 21,038  |   |                                  |   | 1,265 |   |   |   | 1,408 |   |   |   | 4,058 |   |   |   | 27,769 |   |
| Total realized gain                               |   |                                   | 21,038  |   |                                  |   | 1,265 |   |   |   | 1,408 |   |   |   | 3,771 |   |   |   | 27,482 |   |
| Unrealized gain                                   |   |                                   | 67,932  |   |                                  |   | 7,210 |   |   |   | 24,938 |   |   |   | 14,183 |   |   |   | 114,263 |   |
| Commodity price risk management gain, net         |   | $                                      | 88,970  |   |                                  | $      | 8,475 |   |   | $ | 26,346 |   |   | $ | 17,954 |   |   | $ | 141,745 |   |
|                                              |   |                                   |    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   | Three months ended                     |    |   | Year Ended Total                      |   |
|                                              |   | March 31, 2005 (as restated) |    |   | June 30, 2005 (as restated) |   |   | September 30, 2005 |   |   | December 31, 2005 |   |   |   |
| Commodity price risk management, gain (loss), net |   |                                   |    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Realized loss                                     |   |                                   |    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil                                               |   | $                                      | (6,787  | )      |                                  | $      | (8,185 | ) |   | $ | (13,395 | ) |   | $ | (10,423 | ) |   | $ | (38,790 | ) |
| Natural Gas                                       |   |                                   | -       |   |                                  |   | (10,443 | ) |   |   | (14,360 | ) |   |   | (33,616 | ) |   |   | (58,419 | ) |
| Total realized loss                               |   |                                   | (6,787  | )      |                                  |   | (18,628 | ) |   |   | (27,755 | ) |   |   | (44,039 | ) |   |   | (97,209 | ) |
| Unrealized (loss) gain                            |   |                                   | (50,451 | )      |                                  |   | 41,908 |   |   |   | (118,713 | ) |   |   | 128,803 |   |   |   | 1,547 |   |
| Commodity price risk management, (loss) gain, net |   | $                                      | (57,238 | )      |                                  | $      | 23,280 |   |   | $ | (146,468 | ) |   | $ | 84,764 |   |   | $ | (95,662 | ) |

----

Index

|    |   | 2007       |    |   | 2006   |   |    | 2005     |   |
|---------|--------|------------|---------|--------|--------|--------|---------|----------|--------|
|    |   | Prod Costs |    |   | Mcfes  |   |    | per Mcfe |   |   | Prod Costs |   |   | Mcfes |   |   | per Mcfe |   |   | Prod Costs |   |   | Mcfes |   |   | per Mcfe |   |
| Jan-Mar |   | $          | 70,743  |   |   |   | 43,323  |     |   | $ | 1.63 |   |   | $ | 62,575 |   |   |   | 59,039 |   |   | $ | 1.06 |   |   | $ | 53,318 | * |   |   | 77,932 | * |   | $ | 0.68 |   |
| Apr-Jun |   |       | 144,945 |   |   |   | 36,833  |     |   |   | 3.94 |   |   |   | 51,135 |   |   |   | 52,556 |   |   |   | 0.97 |   |   |   | 68,934 | * |   |   | 76,647 | * |   |   | 0.90 |   |
| Jul-Sep |   |       | 102,705 |   |   |   | 43,424  |     |   |   | 2.37 |   |   |   | 71,900 |   |   |   | 53,634 |   |   |   | 1.34 |   |   |   | 65,076 |   |   |   | 69,292 |   |   |   | 0.94 |   |
| Oct-Dec |   |       | 138,776 |   |   |   | 29,237  |     |   |   | 4.75 |   |   |   | 77,347 |   |   |   | 44,105 |   |   |   | 1.75 |   |   |   | 74,218 |   |   |   | 72,115 |   |   |   | 1.03 |   |
| Total   |   | $          | 457,169 |   |   |   | 152,817 |     |   | $ | 2.99 |   |   | $ | 262,957 |   |   |   | 209,334 |   |   | $ | 1.26 |   |   | $ | 261,546 |   |   |   | 295,986 |   |   | $ | 0.88 |   |
| Change  |   |       | 73.9    | %      |   |   | -27.0   | %        |   |   | 138.2 | % |   |   | 0.5 | % |   |   | -29.3 | % |   |   | 42.2 | % |   |   |   |   |   |   |   |   |   |   |   |   |

----

Index

|    |   | 2007     |    |   | 2006   |   |    | 2005     |   |
|---------|--------|----------|---------|--------|--------|--------|---------|----------|--------|
|    |   | DD&A |    |   | Mcfes  |   |    | per Mcfe |   |   | DD&A |   |   | Mcfes |   |   | per Mcfe |   |   | DD&A |   |   | Mcfes |   |   | per Mcfe |   |
| Jan-Mar |   | $        | 197,545 |   |   |   | 43,323  |     |   | $ | 4.56 |   |   | $ | 181,798 |   |   |   | 59,039 |   |   | $ | 3.08 |   |   | $ | 226,540 | * |   |   | 77,932 | * |   | $ | 2.91 |   |
| Apr-Jun |   |     | 170,405 |   |   |   | 36,833  |     |   |   | 4.63 |   |   |   | 162,765 |   |   |   | 52,556 |   |   |   | 3.10 |   |   |   | 210,024 | * |   |   | 76,647 | * |   |   | 2.74 |   |
| Jul-Sep |   |     | 194,353 |   |   |   | 43,424  |     |   |   | 4.48 |   |   |   | 161,589 |   |   |   | 53,634 |   |   |   | 3.01 |   |   |   | 206,371 |   |   |   | 69,292 |   |   |   | 2.98 |   |
| Oct-Dec |   |     | 174,117 |   |   |   | 29,237  |     |   |   | 5.96 |   |   |   | 197,422 |   |   |   | 44,105 |   |   |   | 4.48 |   |   |   | 219,769 |   |   |   | 72,115 |   |   |   | 3.05 |   |
| Total   |   | $        | 736,420 |   |   |   | 152,817 |     |   | $ | 4.82 |   |   | $ | 703,574 |   |   |   | 209,334 |   |   | $ | 3.36 |   |   | $ | 862,704 |   |   |   | 295,986 |   |   | $ | 2.91 |   |
| Change  |   |     | 4.7     | %      |   |   | -27.0   | %        |   |   | 43.4 | % |   |   | -18.4 | % |   |   | -29.3 | % |   |   | 15.3 | % |   |   |   |   |   |   |   |   |   |   |   |   |

----

Index

----

Index

|            |   | As of                                  |    |
|-----------------|--------|----------------------------------------|---------|
|            |   | March 31, 2007                    |    |   | June 30, 2007 |   |   | September 30, 2007 |   |   | December 31, 2007 |   |
|            |   |                                   |    |   |   |   |   |   |   |   |   |   |
| Working capital |   | $                                      | 659,739 |   |   | $ | 476,866 |   |   | $ | 594,927 |   |   | $ | 252,214 |   |
|            |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            |   | As of                                  |    |
|            |   | March 31, 2006                    |    |   | June 30, 2006 |   |   | September 30, 2006 |   |   | December 31, 2006 |   |
|            |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Working capital |   | $                                      | 781,683 |   |   | $ | 712,573 |   |   | $ | 738,697 |   |   | $ | 641,564 |   |
|            |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            |   | As of                                  |    |
|            |   | March 31, 2005 (as restated) |    |   | June 30, 2005 (as restated) |   |   | September 30, 2005 |   |   | December 31, 2005 |   |
|            |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Working capital |   | $                                      | 519,930 |   |   | $ | 613,308 |   |   | $ | 559,049 |   |   | $ | 863,550 |   |

----

Index

|    |   | Managing General Partner Distributions |    |   | Investor Partners Distributions |   |      | Total Distributions |   |
|---------|--------|----------------------------------------|---------|--------|---------------------------------|--------|-----------|---------------------|--------|
|    |   |                                   |    |   |                            |   |      |                |   |
| 2007    |   |                                   |    |   |                            |   |      |                |   |   |
| Jan-Mar |   | $                                      | 28,666  |   |                            | $      | 114,666   |                |   | $ | 143,332 |   |
| Apr-Jun |   |                                   | 31,149  |   |                            |   | 130,030   |                |   |   | 161,179 |   |
| Jul-Sep |   |                                   | 11,683  |   |                            |   | 46,734    |                |   |   | 58,417 |   |
| Oct-Dec |   |                                   | 30,125  |   |                            |   | 120,502   |                |   |   | 150,627 |   |
|    |   | $                                      | 101,623 |   |                            | $      | 411,932   |                |   | $ | 513,555 |   |
|    |   |                                   |    |   |                            |   |      |                |   |   |   |   |
| 2006    |   |                                   |    |   |                            |   |      |                |   |   |   |   |   |
| Jan-Mar |   | $                                      | 109,561 |   |                            | $      | 438,243   |                |   | $ | 547,804 |   |
| Apr-Jun |   |                                   | 78,438  |   |                            |   | 313,755   |                |   |   | 392,193 |   |
| Jul-Sep |   |                                   | 54,705  |   |                            |   | 218,819   |                |   |   | 273,524 |   |
| Oct-Dec |   |                                   | 49,332  |   |                            |   | 197,329   |                |   |   | 246,661 |   |
|    |   | $                                      | 292,036 |   |                            | $      | 1,168,146 |                |   | $ | 1,460,182 |   |
|    |   |                                   |    |   |                            |   |      |                |   |   |   |   |
| 2005    |   |                                   |    |   |                            |   |      |                |   |   |   |   |   |
| Jan-Mar |   | $                                      | 75,983  |   |                            | $      | 303,932   |                |   | $ | 379,915 |   |
| Apr-Jun |   |                                   | 73,730  |   |                            |   | 294,920   |                |   |   | 368,650 |   |
| Jul-Sep |   |                                   | 74,675  |   |                            |   | 298,698   |                |   |   | 373,373 |   |
| Oct-Dec |   |                                   | 76,719  |   |                            |   | 306,881   |                |   |   | 383,600 |   |
|    |   | $                                      | 301,107 |   |                            | $      | 1,204,431 |                |   | $ | 1,505,538 |   |

|   | · | A decrease in natural gas and oil sales receipts of $0.9 million, accompanied by increases in natural gas and oil production costs of approximately $0.2 million and direct costs – general and administrative of $0.2 million; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | An increase in commodity price risk management realized gains receipts of $0.1 million accompanied by an increase in Due from Managing General Partner-other, net, receipts of approximately $0.3 million, excluding natural gas and oil sales received from third parties and realized derivative gains. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|                                 |   | 2007                         |    |
|--------------------------------------|--------|------------------------------|---------|
|                                 |   | Quarter ended March 31, |    |   | Quarter ended June 30, |   |   | Quarter ended September 30, |   |   | Quarter ended December 31, |   |
|                                 |   |                         |    |   |   |   |   |   |   |   |   |   |
| Cash flows from operating activities |   | $                            | 143,351 |   |   | $ | 163,588 |   |   | $ | 59,641 |   |   | $ | 150,465 |   |

|                                 |   | 2006                         |    |
|--------------------------------------|--------|------------------------------|---------|
|                                 |   | Quarter ended March 31, |    |   | Quarter ended June 30, |   |   | Quarter ended September 30, |   |   | Quarter ended December 31, |   |
|                                 |   |                         |    |   |   |   |   |   |   |   |   |   |
| Cash flows from operating activities |   | $                            | 550,440 |   |   | $ | 393,995 |   |   | $ | 273,538 |   |   | $ | 248,487 |   |

|                                 |   | 2005                                            |    |
|--------------------------------------|--------|-------------------------------------------------|---------|
|                                 |   | Quarter ended March 31, (as restated) |    |   | Quarter ended June 30, (as restated) |   |   | Quarter ended September 30, |   |   | Quarter ended December 31, |   |
|                                 |   |                                            |    |   |   |   |   |   |   |   |   |   |
| Cash flows from operating activities |   | $                                               | 379,615 |   |   | $ | 370,175 |   |   | $ | 374,337 |   |   | $ | 383,615 |   |

|                                               |   | 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            |   | $                      | 33,685  |   |   | $ | 33,685 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Asset retirement obligations                       |   |                   | 92,880  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 92,880 |   |
|                                               |   | $                      | 126,565 |   |   | $ | 33,685 |   |   | $ | - |   |   | $ | - |   |   | $ | 92,880 |   |
|                                               |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   | 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            |   | $                      | 23      |   |   | $ | 23 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Asset retirement obligations                       |   |                   | 87,828  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 87,828 |   |
|                                               |   | $                      | 87,851  |   |   | $ | 23 |   |   | $ | - |   |   | $ | - |   |   | $ | 87,828 |   |
|                                               |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   | 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            |   | $                      | 70,352  |   |   | $ | 60,207 |   |   | $ | 10,145 |   |   | $ | - |   |   | $ | - |   |
| Asset retirement obligations                       |   |                   | 63,376  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 63,376 |   |
|                                               |   | $                      | 133,728 |   |   | $ | 60,207 |   |   | $ | 10,145 |   |   | $ | - |   |   | $ | 63,376 |   |

----

Index

----

Index

----

Index

----

Index

| Item 7A. | Quantitative and Qualitative Disclosure About Market Risk |
|----------|-----------------------------------------------------------|

|   | · | “Collars” contain a fixed floor price (put) and ceiling price (call).  If the index price 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 index price from the counterparty.  If the index 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 index price to the counterparty.  If the index price is between the call and put strike price, no payments are due to or from the counterparty. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | · | “Swaps” are arrangements that guarantee a fixed price.  If the index 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 index price and the fixed contract price from the counterparty.  If the index price is above the fixed contract price, PDC, as Managing General Partner, receives the market price from the purchaser and pays the difference between the index price and the fixed contract price to the counterparty.  If the index price and contract price are the same, no payment is due to or from the counterparty. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | “Basis protection swaps” are arrangements that guarantee a price differential for natural gas from a specified delivery point.  For CIG basis protection swaps, which traditionally have negative differentials 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 counterparty if the price differential is less than the stated terms of the contract.  If the index price and contract price are the same, no payment is due to or from the counterparty. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Average index closing price   |   | Year Ended December 31, 2007 |   |   | Year Ended December 31, 2006 |   |   | Year Ended 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)         |   | $                                 | 5.04   |   |                              | $      | 5.74   |                              |   | $ | 7.17 |   |
| Oil (per Barrel)              |   |                              | 57.34  |   |                              |   | 64.28  |                              |   |   | 50.62 |   |

----

Index

|                                                 |   |   | Collars              |   |   | Fixed-Price Swaps               |     |   | CIG Basis Protection Swaps    |   |   |                            |   |
|------------------------------------------------------|--------|--------|----------------------|--------|--------|---------------------------------|----------|--------|-------------------------------|--------|--------|---------------------------------|--------|
| Commodity/ Index                                     |   |   | Quantity (Gas-Mmbtu) |   |   | Weighted Average Contract Price |     |   | Quantity (Gas-Mmbtu Oil-Bbls) |   |   | Weighted Average Contract Price |   |   | Quantity (Gas-Mmbtu) |   |   | Weighted Average Contract Price |   |   | Fair Value at September 30, 2010 |   |
|                                                 |   |   |                 | Floors |   |                            | Ceilings |   |                          |   |   |                            |   |   |   |   |   |   |
|                                                 |   |   |                 |   |   |                            |     |   |                          |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural Gas                                          |   |   |                 |   |   |                            |     |   |                          |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CIG                                                  |   |   |                 |   |   |                            |     |   |                          |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 10/01 - 12/31/2010                                   |   |   |                 | 5,096  |   |                            | $        | 4.75   |                          |   | $      | 9.45                            |   |   |   | - |   |   | $ | - |   |   |   | - |   |   | $ | - |   |   | $ | 5,676 |   |
| 01/01 - 03/31/2011                                   |   |   |                 | 7,644  |   |                            |     | 4.75   |                          |   |   | 9.45                            |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,094 |   |
|                                                 |   |   |                 |   |   |                            |     |   |                          |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NYMEX                                                |   |   |                 |   |   |                            |     |   |                          |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 10/01 - 12/31/2010                                   |   |   |                 | 1,498  |   |                            |     | 5.75   |                          |   |   | 8.30                            |   |   |   | 9,750 |   |   |   | 6.12 |   |   |   | 11,424 |   |   |   | (1.88 | ) |   |   | 7,835 |   |
| 01/01 - 03/31/2011                                   |   |   |                 | 2,028  |   |                            |     | 5.75   |                          |   |   | 8.30                            |   |   |   | 5,874 |   |   |   | 6.84 |   |   |   | 7,902 |   |   |   | (1.88 | ) |   |   | 6,425 |   |
| 04/01 - 06/30/2011                                   |   |   |                 | -      |   |                            |     | -      |                          |   |   | -                               |   |   |   | 15,411 |   |   |   | 6.78 |   |   |   | 15,411 |   |   |   | (1.88 | ) |   |   | 18,344 |   |
| 07/01 - 09/30/2011                                   |   |   |                 | -      |   |                            |     | -      |                          |   |   | -                               |   |   |   | 15,193 |   |   |   | 6.73 |   |   |   | 15,193 |   |   |   | (1.88 | ) |   |   | 14,905 |   |
| 10/01 - 12/31/2011                                   |   |   |                 | -      |   |                            |     | -      |                          |   |   | -                               |   |   |   | 14,786 |   |   |   | 6.79 |   |   |   | 14,786 |   |   |   | (1.88 | ) |   |   | 9,294 |   |
|         2012-2013 |   |   |                 | 3,017  |   |                            |     | 6.00   |                          |   |   | 8.27                            |   |   |   | 103,194 |   |   |   | 7.05 |   |   |   | 106,209 |   |   |   | (1.88 | ) |   |   | 53,664 |   |
| Total Natural Gas                                    |   |   |                 | 19,283 |   |                            |     |   |                          |   |   |                            |   |   |   | 164,208 |   |   |   |   |   |   |   | 170,925 |   |   |   |   |   |   |   | 123,237 |   |
|                                                 |   |   |                 |   |   |                            |     |   |                          |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil                                                  |   |   |                 |   |   |                            |     |   |                          |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NYMEX                                                |   |   |                 |   |   |                            |     |   |                          |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 10/01 - 12/31/2010                                   |   |   |                 | -      |   |                            |     | -      |                          |   |   | -                               |   |   |   | 634 |   |   |   | 92.96 |   |   |   | - |   |   |   | - |   |   |   | 7,409 |   |
| 01/01 - 03/31/2011                                   |   |   |                 | -      |   |                            |     | -      |                          |   |   | -                               |   |   |   | 294 |   |   |   | 70.75 |   |   |   | - |   |   |   | - |   |   |   | (3,528 | ) |
| 04/01 - 06/30/2011                                   |   |   |                 | -      |   |                            |     | -      |                          |   |   | -                               |   |   |   | 303 |   |   |   | 70.75 |   |   |   | - |   |   |   | - |   |   |   | (3,966 | ) |
| 07/01 - 09/30/2011                                   |   |   |                 | -      |   |                            |     | -      |                          |   |   | -                               |   |   |   | 310 |   |   |   | 70.75 |   |   |   | - |   |   |   | - |   |   |   | (4,304 | ) |
| 10/01 - 12/31/2011                                   |   |   |                 | -      |   |                            |     | -      |                          |   |   | -                               |   |   |   | 316 |   |   |   | 70.75 |   |   |   | - |   |   |   | - |   |   |   | (4,600 | ) |
| Total Oil                                            |   |   |                 | -      |   |                            |     |   |                          |   |   |                            |   |   |   | 1,857 |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | (8,989 | ) |
|                                                 |   |   |                 |   |   |                            |     |   |                          |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Natural Gas and Oil                            |   |   |                 |   |   |                            |     |   |                          |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 114,248 |   |

|                   |   |      |   |            |   | Floors                        |   |   | Ceilings |   |   | Swaps (Fixed Prices)          |   |
|------------------------|--------|-----------|--------|-----------------|--------|-------------------------------|--------|--------|----------|--------|--------|-------------------------------|--------|
|                   |   |      |   |            |   |                          |   |   |     |   |   |                          |   |
| Commodity/ Index/ Area |   | Month Set |   | Month           |   | Monthly Quantity (Gas -MMbtu) |   |   | Price    |   |   | Monthly Quantity (Gas -MMbtu) |   |   | Price |   |   | Monthly Quantity (Oil -Bbls) |   |   | Price |   |
| Natural Gas - (CIG)    |   |      |   |            |   |                          |   |   |     |   |   |                          |   |   |   |   |   |   |   |   |   |   |
| Piceance Basin         |   |      |   |            |   |                          |   |   |     |   |   |                          |   |   |   |   |   |   |   |   |   |   |
|                   |   | Dec-06    |   | Jan 08 - Mar 08 |   |                          | 1,369  |   |     | $      | 5.25   |                          |   |   | - |   |   | $ | - |   |   |   | - |   |   | $ | - |   |
|                   |   | Jan-07    |   | Jan 08 - Mar 08 |   |                          | 1,369  |   |     |   | 5.25   |                          |   |   | 1,369 |   |   |   | 9.80 |   |   |   | - |   |   |   | - |   |
|                   |   | May-07    |   | Apr 08 - Oct 08 |   |                          | 2,701  |   |     |   | 5.50   |                          |   |   | 2,701 |   |   |   | 10.35 |   |   |   | - |   |   |   | - |   |
|                   |   |      |   |            |   |                          |   |   |     |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wattenberg Field       |   |      |   |            |   |                          |   |   |     |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                   |   | Jan-07    |   | Jan 08 - Mar 08 |   |                          | 1,084  |   |     | $      | 5.25   |                          |   |   | 1,084 |   |   | $ | 9.80 |   |   |   | - |   |   | $ | - |   |
|                   |   | May-07    |   | Apr 08 - Oct 08 |   |                          | 2,601  |   |     |   | 5.50   |                          |   |   | 2,601 |   |   |   | 10.35 |   |   |   | - |   |   |   | - |   |
|                   |   |      |   |            |   |                          |   |   |     |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                   |   |      |   |            |   |                          |   |   |     |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil - NYMEX            |   |      |   |            |   |                          |   |   |     |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wattenberg Field       |   |      |   |            |   |                          |   |   |     |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                   |   | Oct-07    |   | Jan 08 - Dec 08 |   |                          | -      |   |     | $      | -      |                          |   |   | - |   |   | $ | - |   |   |   | 318 |   |   | $ | 84.20 |   |

----

Index

|                   |   |      |   |            |   | Floors                                  |   |   | Ceilings |   |
|------------------------|--------|-----------|--------|-----------------|--------|-----------------------------------------|--------|--------|----------|--------|
|                   |   |      |   |            |   |                                    |   |   |     |   |   |   |   |   |   |   |
| Commodity/ Index/ Area |   | Month Set |   | Month           |   | Monthly Quantity (Gas -MMbtu Oil -Bbls) |   |   | Price    |   |   | Monthly Quantity (Gas -MMbtu) |   |   | Price |   |
| Natural Gas - (CIG)    |   |      |   |            |   |                                    |   |   |     |   |   |   |   |   |   |   |
| Piceance Basin         |   |      |   |            |   |                                    |   |   |     |   |   |   |   |   |   |   |
|                   |   | Jul-05    |   | Jan 07 - Mar 07 |   |                                    | 1,276  |   |     | $      | 6.00 |   |   |   | 638 |   |   | $ | 8.40 |   |
|                   |   | Feb-06    |   | Jan 07 - Mar 07 |   |                                    | 2,734  |   |     |   | 6.50 |   |   |   | - |   |   |   | - |   |
|                   |   | Feb-06    |   | Apr 07 - Oct 07 |   |                                    | 2,005  |   |     |   | 5.50 |   |   |   | - |   |   |   | - |   |
|                   |   | Sep-06    |   | Jan 07 - Mar 07 |   |                                    | 4,829  |   |     |   | 4.00 |   |   |   | - |   |   |   | - |   |
|                   |   | Sep-06    |   | Apr 07 - Oct 07 |   |                                    | 6,834  |   |     |   | 4.50 |   |   |   | - |   |   |   | - |   |
|                   |   | Dec-06    |   | Nov 07 - Mar 08 |   |                                    | 3,463  |   |     |   | 5.25 |   |   |   | - |   |   |   | - |   |
|                   |   |      |   |            |   |                                    |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
|                   |   |      |   |            |   |                                    |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Oil - NYMEX            |   |      |   |            |   |                                    |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Wattenberg Field       |   |      |   |            |   |                                    |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
|                   |   | Sep-06    |   | Jan 07 - Oct 07 |   |                                    | 141    |   |     | $      | 50.00 |   |   |   | - |   |   | $ | - |   |

|                   |   |      |   |            |   | Floors                        |   |   | Ceilings |   |
|------------------------|--------|-----------|--------|-----------------|--------|-------------------------------|--------|--------|----------|--------|
|                   |   |      |   |            |   |                          |   |   |     |   |
| Commodity/ Index/ Area |   | Month Set |   | Month           |   | Monthly Quantity (Gas -MMbtu) |   |   | Price    |   |   | Monthly Quantity (Gas -MMbtu) |   |   | Price |   |
| Natural Gas - (CIG)    |   |      |   |            |   |                          |   |   |     |   |   |   |   |   |   |   |
| Piceance Basin         |   |      |   |            |   |                          |   |   |     |   |   |   |   |   |   |   |
|                   |   | Jan-05    |   | Jan 06 - Mar 06 |   |                          | 4,842  |   |     | $      | 4.50 |   |   |   | 2,421 |   |   | $ | 7.15 |   |
|                   |   | Jul-05    |   | Jan 06 - Mar 06 |   |                          | 2,825  |   |     |   | 6.50 |   |   |   | 1,412 |   |   |   | 8.27 |   |
|                   |   | Sep-05    |   | Jan 06 - Mar 06 |   |                          | 8,070  |   |     |   | 9.00 |   |   |   | - |   |   |   |   |   |
|                   |   | Mar-05    |   | Apr 06 - Oct 06 |   |                          | 4,035  |   |     |   | 4.50 |   |   |   | 2,018 |   |   |   | 7.25 |   |
|                   |   | Jul-05    |   | Apr 06 - Oct 06 |   |                          | 2,825  |   |     |   | 5.50 |   |   |   | 1,412 |   |   |   | 7.63 |   |
|                   |   | Jul-05    |   | Nov 06 - Mar 07 |   |                          | 2,825  |   |     |   | 6.00 |   |   |   | 1,412 |   |   |   | 8.40 |   |

----

Index

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

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

----

Index

|   | 1. | The following material weaknesses in internal control over financial reporting were identified by Management which related to the year ended December 31, 2004, and the subsequent period through October 20, 2006, 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 appropriately with 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 natural gas and oil 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 accordance with 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 estimated in 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. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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 on Page 1 for discussion concerning the over-withholding of production taxes by PDC. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| Item 9A. | Controls and Procedures |
|----------|-------------------------|

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

----

Index

|   | · | 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 Managing General Partner had policies and procedures, or personnel with sufficient technical expertise to record derivative activities in accordance with generally accepted accounting principles. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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 segregation of duties. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | · | The Partnership did not have effective policies and procedures, or personnel with sufficient technical expertise to ensure compliance with appropriate accounting principles for its natural gas and oil 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 performed in 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 December 31, 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 Managing General Partner had policies and procedures, or personnel with sufficient technical expertise to record derivative activities in accordance with generally accepted accounting principles. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

| Item 9B. | Other Information |
|----------|-------------------|

----

Index

| Item 10. | Directors, Executive Officers and Corporate Governance |
|----------|--------------------------------------------------------|

|   | · | Profitable development and cost-effective production operations of the Partnership’s natural gas and oil reserves; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | · | Market-responsive natural gas and oil marketing and prudent field operations cost management which support maximum cash flows; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Technology-enhanced compliant Partnership administration including the following: accounting; revenue and cost allocation; cash management; tax and regulatory agency reporting and filing; and Investor Partner Relations. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| Name                    |   | Age    |   | Positions and Offices Held                       |   | Director Since |   | Directorship Term Expires |
|-------------------------|--------|--------|--------|--------------------------------------------------|--------|----------------|--------|---------------------------|
|                    |   |   |   |                                             |   |           |   |                      |
| Richard W McCullough    |   | 59     |   | Chairman and Chief Executive Officer             |   | 2007           |   | 2013                      |
|                    |   |   |   |                                             |   |           |   |                      |
| Gysle R. Shellum        |   | 58     |   | Chief Financial Officer                          |   | -              |   | -                         |
|                    |   |   |   |                                             |   |           |   |                      |
| R. Scott Meyers         |   | 36     |   | Chief Accounting Officer                         |   | -              |   | -                         |
|                    |   |   |   |                                             |   |           |   |                      |
| Barton R. Brookman, Jr. |   | 48     |   | Senior Vice President Exploration and Production |   | -              |   | -                         |
|                    |   |   |   |                                             |   |           |   |                      |
| Daniel W. Amidon        |   | 50     |   | General Counsel and Secretary                    |   | -              |   | -                         |
|                    |   |   |   |                                             |   |           |   |                      |
| Lance Lauck             |   | 48     |   | Senior Vice President Business Development       |   | -              |   | -                         |
|                    |   |   |   |                                             |   |           |   |                      |
| Joseph E. Casabona      |   | 67     |   | Director                                         |   | 2007           |   | 2011                      |
|                    |   |   |   |                                             |   |           |   |                      |
| Anthony J. Crisafio     |   | 57     |   | Director                                         |   | 2006           |   | 2012                      |
|                    |   |   |   |                                             |   |           |   |                      |
| Kimberly Luff Wakim     |   | 52     |   | Director                                         |   | 2003           |   | 2012                      |
|                    |   |   |   |                                             |   |           |   |                      |
| Larry F. Mazza          |   | 50     |   |  Director                                   |   | 2007           |   | 2013                      |
|                    |   |   |   |                                             |   |           |   |                      |
| David C. Parke          |   | 43     |   | Director                                         |   | 2003           |   | 2011                      |
|                    |   |   |   |                                             |   |           |   |                      |
| Jeffrey C. Swoveland    |   | 55     |   | Director                                         |   | 1991           |   | 2011                      |
|                    |   |   |   |                                             |   |           |   |                      |
| James M. Trimble        |   | 62     |   | Director                                         |   | 2009           |   | 2013                      |

----

Index

----

Index

----

Index

| Item 11. | Executive Compensation |
|----------|------------------------|

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

|                                                                           |   | Limited Partnership Units                                                          |   |   |                               |   |
|--------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|--------|------------------------------------|--------|
| Person or Group                                                                |   | Number of Units Outstanding Which Represent 80% of Total Partnership Interests (1) |   |   | Number of Units Beneficially Owned |   |   | Percentage of Total Units Outstanding |   |   | Percentage of Total Partnership Interests Beneficially Owned |   |
|                                                                           |   |                                                                               | 559.02 |   |                               |   |   |   |   |   |   |   |   |
| Petroleum Development Corporation (2) (3) (4) (5)                              |   |                                                                               | -      |   |                               |   | 25.13 |   |   |   | 4.49 | % |   |   | 3.59 | % |
| Investor Partners beneficially owning 5% or more, of limited partner interests |   |                                                                               | -      |   |                               |   | - |   |   |   | - |   |   |   | - |   |

|   | (1) | Additional general partner units were converted to limited partner interests on January 23, 2003, which was at the completion of the Partnership’s well drilling phase of operations. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Petroleum Development Corporation (dba PDC Energy), 1775 Sherman Street Suite 3000, Denver, Colorado 80203. |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (3) | No current director or officer of PDC owns interest in PDC’s sponsored drilling partnerships.  Pursuant to the Partnership Agreement individual investor partners may present their units to PDC for purchase subject to certain conditions; however, PDC is not obligated to purchase more than 10% of the total outstanding units during any calendar year. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | The Percentage of “Total Partnership Interests Beneficially Owned” by PDC, with respect to its limited partnership units repurchased, is determined by multiplying the percentage of limited partnership units repurchased by PDC to total limited partnership units, by the limited partners’ percentage ownership in the Partnership.  [(25.13 units/559.02 units)*80% limited partnership ownership] |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | (5) | In addition to this ownership percentage of limited partnership interest, Petroleum Development Corporation (dba PDC Energy) owns a Managing General Partner interest of 20%. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

Index

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

|               |   | Year Ended December 31, |    |
|--------------------|--------|-------------------------|---------|
| Type of Service    |   | 2007                    |    |   | 2006 |   |   | 2005 |   |
|               |   |                    |    |   |   |   |   |   |   |
| Audit Fees (1) (2) |   | $                       | 153,546 |   |   | $ | 46,323 |   |   | $ | 3,618 |   |

|   | (1) | Audit fees consist of professional service fees billed for audit of the Partnership’s annual financial statements which accompany this Comprehensive Annual Report on Form 10-K for the three years ended December 31, 2007, including reviews of the condensed interim financial statements that accompany this Annual Report.  SD became the Partnership’s independent registered public accounting firm on October 25, 2006.  During the years ended December 31, 2007, 2006 and 2005 there were no other audit-related billings from the Partnership’s independent registered public accounting firm, Schneider Downs & Co., Inc. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Audit fees billed from the Partnership’s previous independent registered public accounting firm, KPMG LLP (“KPMG”), during 2005 were $3,600 for the audit of the Partnership’s financial statements in the annual reports on Form 10-K for the year ended December 31, 2004 and review of quarterly reports on Form 10-Q for the quarters ended March 31 and June 30, 2005. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| Item 15. | Exhibits, Financial Statement Schedules |
|----------|-----------------------------------------|

| (a) | The index to Financial Statements is located on page F-1. |
|-----|-----------------------------------------------------------|

| (b) | Exhibits index. |
|-----|-----------------|

|           |   |                                                                                                                                                                                                                                                                                                           |   | 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 the Partnership and PDC, as Managing General Partner                                                                                                                                                                                                                  |   |                      |   |            |   |   |   |   |   | X |
|           |   |                                                                                                                                                                                                                                                                                                           |   |                      |   |            |   |   |   |   |   |   |
| 10.2           |   | Form of assignment of leases to the Partnership                                                                                                                                                                                                                                                                |   |                      |   |            |   |   |   |   |   | X |
|           |   |                                                                                                                                                                                                                                                                                                           |   |                      |   |            |   |   |   |   |   |   |
| 10.3           |   | Audited Consolidated Financial Statements for the year ended December 31, 2009 of Petroleum Development Corporation (dba PDC Energy) and its subsidiaries, as Managing General Partner of the Partnership                                                                                                      |   | 10-K                      |   | 000-07246       |   |   |   | 03/04/2010 |   |   |
|           |   |                                                                                                                                                                                                                                                                                                           |   |                      |   |            |   |   |   |   |   |   |
| 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 |   |   |
|           |   |                                                                                                                                                                                                                                                                                                           |   |                      |   |            |   |   |   |   |   |   |
| 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 |   |   |

----

Index

|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Incorporated by Reference |   |            |
|----------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|-----------------|
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                      |   |            |   |   |   |   |   |   |
| Exhibit Number |   | Exhibit Description                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | Form                      |   | SEC File Number |   | Exhibit |   | Filing Date |   | Filed Herewith |
| 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, an individual, 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 |   |   |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                      |   |            |   |   |   |   |   |   |
| 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 |   |   |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                      |   |            |   |   |   |   |   |   |
| 31.1           |   | Rule 13a-14(a)/15d-14(c) Certification of Chief Executive Officer of Petroleum Development Corporation (dba PDC Energy), the Managing General Partner of the Partnership.                                                                                                                                                                                                                                                                                                        |   |                      |   |            |   |   |   |   |   | X |

----

Index

|           |   |                                                                                                                                                                                                                                                   |   | Incorporated by Reference |   |            |
|----------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|-----------------|
|           |   |                                                                                                                                                                                                                                                   |   |                      |   |            |   |   |   |   |   |   |
| Exhibit Number |   | Exhibit Description                                                                                                                                                                                                                                    |   | Form                      |   | SEC File Number |   | Exhibit |   | Filing Date |   | Filed Herewith |
| 31.2           |   | Rule 13a-14(a)/15d-14(c) Certification of Chief Financial Officer of Petroleum Development Corporation (dba PDC Energy), 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 (dba PDC Energy), the Managing General Partner of the Partnership. |   |                      |   |            |   |   |   |   |   | X |

----

Index

SIGNA

| Signature                 |   | Title                                             |   | Date             |
|---------------------------|--------|---------------------------------------------------|--------|------------------|
|                      |   |                                              |   |             |
| /s/ Richard W. McCullough |   | Chairman and Chief Executive Officer              |   | January 14, 2011 |
| Richard W. McCullough     |   | Petroleum Development Corporation(dba PDC Energy) |   |             |
|                      |   | Managing General Partner of the Registrant        |   |             |
|                      |   | (Principal executive officer)                     |   |             |
|                      |   |                                              |   |             |
| /s/ Gysle R. Shellum      |   | Chief Financial Officer                           |   | January 14, 2011 |
| Gysle R. Shellum          |   | Petroleum Development Corporation(dba PDC Energy) |   |             |
|                      |   | Managing General Partner of the Registrant        |   |             |
|                      |   | (Principal financial officer)                     |   |             |
|                      |   |                                              |   |             |
| /s/ R. Scott Meyers       |   | Chief Accounting Officer                          |   | January 14, 2011 |
| R. Scott Meyers           |   | Petroleum Development Corporation(dba PDC Energy) |   |             |
|                      |   | Managing General Partner of the Registrant        |   |             |
|                      |   | (Principal accounting officer)                    |   |             |
|                      |   |                                              |   |             |
| /s/ Kimberly Luff Wakim   |   | Director                                          |   | January 14, 2011 |
| Kimberly Luff Wakim       |   | Petroleum Development Corporation(dba PDC Energy) |   |             |
|                      |   | Managing General Partner of the Registrant        |   |             |
|                      |   |                                              |   |             |
| /s/ Anthony J. Crisafio   |   | Director                                          |   | January 14, 2011 |
| Anthony J. Crisafio       |   | Petroleum Development Corporation(dba PDC Energy) |   |             |
|                      |   | Managing General Partner of the Registrant        |   |             |
|                      |   |                                              |   |             |
| /s/ Jeffrey C. Swoveland  |   | Director                                          |   | January 14, 2011 |
| Jeffrey C. Swoveland      |   | Petroleum Development Corporation(dba PDC Energy) |   |             |
|                      |   | Managing General Partner of the Registrant        |   |             |
|                      |   |                                              |   |             |
| /s/ Joseph E. Casabona    |   | Director                                          |   | January 14, 2011 |
| Joseph E. Casabona        |   | Petroleum Development Corporation(dba PDC Energy) |   |             |
|                      |   | Managing General Partner of the Registrant        |   |             |

----

Index

PDC 

| 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 Natural Gas and Oil Information − Unaudited                             | F-31   |
|                                                                                       |   |
| Unaudited Condensed Quarterly Financial Statements                                         |   |
|                                                                                       |   |
| Balance Sheets - 2007                                                                      | F-35   |
| Balance Sheets - 2006                                                                      | F-36   |
| Balance Sheets - 2005                                                                      | F-37   |
|                                                                                       |   |
| Statements of Operations - 2007                                                            | F-38   |
| Statements of Operations - 2006                                                            | F-39   |
| Statements of Operations - 2005                                                            | F-40   |
|                                                                                       |   |
| Statements of Cash Flows - 2007                                                            | F-41   |
| Statements of Cash Flows - 2006                                                            | F-42   |
| Statements of Cash Flows - 2005                                                            | F-43   |
|                                                                                       |   |
| Notes to Unaudited Condensed Quarterly Financial Statements                                | F-44   |

----

Index

----

Index

| Assets                                                             |   | 2007   |       |   | 2006   |   |       | 2005   |   |
|--------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                                               |   |   |       |   |   |   |       |   |   |
| Current assets:                                                    |   |   |       |   |   |   |       |   |   |
| Cash and cash equivalents                                          |   | $      | 13,861     |   |   | $      | 10,371     |   |   | $ | 4,093 |   |
| Accounts receivable                                                |   |   | 76,032     |   |   |   | 174,098    |   |   |   | 428,554 |   |
| Due from Managing General Partner-derivatives                      |   |   | 9,457      |   |   |   | 60,810     |   |   |   | 21,006 |   |
| Due from Managing General Partner-other, net                       |   |   | 201,857    |   |   |   | 398,895    |   |   |   | 508,061 |   |
| Total current assets                                               |   |   | 301,207    |   |   |   | 644,174    |   |   |   | 961,714 |   |
|                                                               |   |   |       |   |   |   |       |   |   |   |   |   |
|                                                               |   |   |       |   |   |   |       |   |   |   |   |   |
| Natural gas and oil properties, successful efforts method, at cost |   |   | 8,666,633  |   |   |   | 12,231,799 |   |   |   | 12,210,991 |   |
| Less: Accumulated depreciation, depletion and amortization         |   |   | (4,377,875 | )      |   |   | (5,154,111 | )      |   |   | (4,450,537 | ) |
| Natural gas and oil properties, net                                |   |   | 4,288,758  |   |   |   | 7,077,688  |   |   |   | 7,760,454 |   |
|                                                               |   |   |       |   |   |   |       |   |   |   |   |   |
| Due from Managing General Partner-derivatives                      |   |   | -          |   |   |   | 6,813      |   |   |   | 2,683 |   |
| Due from Managing General Partner-other, net                       |   |   | 32,000     |   |   |   | -          |   |   |   | - |   |
| Other assets                                                       |   |   | 12,150     |   |   |   | 4,476      |   |   |   | - |   |
| Total noncurrent assets                                            |   |   | 4,332,908  |   |   |   | 7,088,977  |   |   |   | 7,763,137 |   |
|                                                               |   |   |       |   |   |   |       |   |   |   |   |   |
| Total Assets                                                       |   | $      | 4,634,115  |   |   | $      | 7,733,151  |   |   | $ | 8,724,851 |   |
|                                                               |   |   |       |   |   |   |       |   |   |   |   |   |
|                                                               |   |   |       |   |   |   |       |   |   |   |   |   |
| Liabilities and Partners' Equity                                   |   |   |       |   |   |   |       |   |   |   |   |   |
|                                                               |   |   |       |   |   |   |       |   |   |   |   |   |
| Current liabilities:                                               |   |   |       |   |   |   |       |   |   |   |   |   |
| Accounts payable and accrued expenses                              |   | $      | 15,308     |   |   | $      | 2,587      |   |   | $ | 37,957 |   |
| Due to Managing General Partner-derivatives                        |   |   | 33,685     |   |   |   | 23         |   |   |   | 60,207 |   |
| Total current liabilities                                          |   |   | 48,993     |   |   |   | 2,610      |   |   |   | 98,164 |   |
|                                                               |   |   |       |   |   |   |       |   |   |   |   |   |
| Due to Managing General Partner-derivatives                        |   |   | -          |   |   |   | -          |   |   |   | 10,145 |   |
| Asset retirement obligations                                       |   |   | 92,880     |   |   |   | 87,828     |   |   |   | 63,376 |   |
| Total liabilities                                                  |   |   | 141,873    |   |   |   | 90,438     |   |   |   | 171,685 |   |
|                                                               |   |   |       |   |   |   |       |   |   |   |   |   |
| Commitments and contingent liabilities                             |   |   |       |   |   |   |       |   |   |   |   |   |
|                                                               |   |   |       |   |   |   |       |   |   |   |   |   |
| Partners' equity:                                                  |   |   |       |   |   |   |       |   |   |   |   |   |
| Managing General Partner                                           |   |   | 899,538    |   |   |   | 1,528,544  |   |   |   | 1,710,634 |   |
| Limited Partners - 559.02 units issued and outstanding             |   |   | 3,592,704  |   |   |   | 6,114,169  |   |   |   | 6,842,532 |   |
| Total Partners' equity                                             |   |   | 4,492,242  |   |   |   | 7,642,713  |   |   |   | 8,553,166 |   |
|                                                               |   |   |       |   |   |   |       |   |   |   |   |   |
| Total Liabilities and Partners' Equity                             |   | $      | 4,634,115  |   |   | $      | 7,733,151  |   |   | $ | 8,724,851 |   |

----

Index

|                                                         |   | 2007   |       |   | 2006   |   |      | 2005   |   |
|--------------------------------------------------------------|--------|--------|------------|--------|--------|--------|-----------|--------|--------|
| Revenues:                                                    |   |   |       |   |   |   |      |   |   |
| Natural gas and oil sales                                    |   | $      | 902,025    |   |   | $      | 1,405,686 |   |   | $ | 2,191,003 |   |
| Commodity price risk management (loss) gain, net             |   |   | (49,088    | )      |   |   | 141,745   |   |   |   | (95,662 | ) |
| Total revenues                                               |   |   | 852,937    |   |   |   | 1,547,431 |   |   |   | 2,095,341 |   |
|                                                         |   |   |       |   |   |   |      |   |   |   |   |   |
| Operating costs and expenses:                                |   |   |       |   |   |   |      |   |   |   |   |   |
| Natural gas and oil production costs                         |   |   | 457,169    |   |   |   | 262,957   |   |   |   | 261,546 |   |
| Direct costs - general and administrative                    |   |   | 266,804    |   |   |   | 54,081    |   |   |   | 14,812 |   |
| Depreciation, depletion and amortization                     |   |   | 736,420    |   |   |   | 703,574   |   |   |   | 862,704 |   |
| Loss on impairment of oil and gas properties                 |   |   | 2,052,510  |   |   |   | -         |   |   |   | - |   |
| Accretion of asset retirement obligations                    |   |   | 5,052      |   |   |   | 3,644     |   |   |   | 3,516 |   |
| Total operating costs and expenses                           |   |   | 3,517,955  |   |   |   | 1,024,256 |   |   |   | 1,142,578 |   |
|                                                         |   |   |       |   |   |   |      |   |   |   |   |   |
| (Loss) income from operations                                |   |   | (2,665,018 | )      |   |   | 523,175   |   |   |   | 952,763 |   |
|                                                         |   |   |       |   |   |   |      |   |   |   |   |   |
| Interest income                                              |   |   | 28,102     |   |   |   | 26,554    |   |   |   | 15,863 |   |
|                                                         |   |   |       |   |   |   |      |   |   |   |   |   |
| Net (loss) income                                            |   | $      | (2,636,916 | )      |   | $      | 549,729   |   |   | $ | 968,626 |   |
|                                                         |   |   |       |   |   |   |      |   |   |   |   |   |
| Net (loss) income allocated to partners                      |   | $      | (2,636,916 | )      |   | $      | 549,729   |   |   | $ | 968,626 |   |
| Less: Managing General Partner interest in net (loss) income |   |   | (527,383   | )      |   |   | 109,946   |   |   |   | 193,725 |   |
| Net (loss) income allocated to Investor Partners             |   | $      | (2,109,533 | )      |   | $      | 439,783   |   |   | $ | 774,901 |   |
|                                                         |   |   |       |   |   |   |      |   |   |   |   |   |
| Net (loss) income per Investor Partner unit                  |   | $      | (3,774     | )      |   | $      | 787       |   |   | $ | 1,386 |   |
|                                                         |   |   |       |   |   |   |      |   |   |   |   |   |
| Investor Partner units outstanding                           |   |   | 559.02     |   |   |   | 559.02    |   |   |   | 559.02 |   |

----

Index

|                                              |   | Investor Partners |       |   | Managing General Partner |   |      | Accumulated Other Comprehensive Income (Loss) |   |   | Total   |   |
|---------------------------------------------------|--------|-------------------|------------|--------|--------------------------|--------|-----------|-----------------------------------------------|--------|--------|---------|--------|
|                                              |   |              |       |   |                     |   |      |                                          |   |   |    |   |
| Balance, January 1, 2005 (as previously reported) |   | $                 | 7,748,476  |   |                     | $      | 1,937,120 |                                          |   | $      | (48,210 | )      |   | $ | 9,637,386 |   |
|                                              |   |              |       |   |                     |   |      |                                          |   |   |    |   |   |   |   |   |
| Restatement (Note 9)                              |   |              | (476,414   | )      |                     |   | (119,104  | )                                             |   |   | 48,210  |   |   |   | (547,308 | ) |
|                                              |   |              |       |   |                     |   |      |                                          |   |   |    |   |   |   |   |   |
| Balance, January 1, 2005 (restated)               |   |              | 7,272,062  |   |                     |   | 1,818,016 |                                          |   |   | -       |   |   |   | 9,090,078 |   |
|                                              |   |              |       |   |                     |   |      |                                          |   |   |    |   |   |   |   |   |
| Distributions to Partners                         |   |              | (1,204,431 | )      |                     |   | (301,107  | )                                             |   |   | -       |   |   |   | (1,505,538 | ) |
|                                              |   |              |       |   |                     |   |      |                                          |   |   |    |   |   |   |   |   |
| Net income                                        |   |              | 774,901    |   |                     |   | 193,725   |                                          |   |   | -       |   |   |   | 968,626 |   |
|                                              |   |              |       |   |                     |   |      |                                          |   |   |    |   |   |   |   |   |
| Balance, December 31, 2005                        |   |              | 6,842,532  |   |                     |   | 1,710,634 |                                          |   |   | -       |   |   |   | 8,553,166 |   |
|                                              |   |              |       |   |                     |   |      |                                          |   |   |    |   |   |   |   |   |
| Distributions to Partners                         |   |              | (1,168,146 | )      |                     |   | (292,036  | )                                             |   |   | -       |   |   |   | (1,460,182 | ) |
|                                              |   |              |       |   |                     |   |      |                                          |   |   |    |   |   |   |   |   |
| Net income                                        |   |              | 439,783    |   |                     |   | 109,946   |                                          |   |   | -       |   |   |   | 549,729 |   |
|                                              |   |              |       |   |                     |   |      |                                          |   |   |    |   |   |   |   |   |
| Balance, December 31, 2006                        |   |              | 6,114,169  |   |                     |   | 1,528,544 |                                          |   |   | -       |   |   |   | 7,642,713 |   |
|                                              |   |              |       |   |                     |   |      |                                          |   |   |    |   |   |   |   |   |
| Distributions to Partners                         |   |              | (411,932   | )      |                     |   | (101,623  | )                                             |   |   | -       |   |   |   | (513,555 | ) |
|                                              |   |              |       |   |                     |   |      |                                          |   |   |    |   |   |   |   |   |
| Net loss                                          |   |              | (2,109,533 | )      |                     |   | (527,383  | )                                             |   |   | -       |   |   |   | (2,636,916 | ) |
|                                              |   |              |       |   |                     |   |      |                                          |   |   |    |   |   |   |   |   |
| Balance, December 31, 2007                        |   | $                 | 3,592,704  |   |                     | $      | 899,538   |                                          |   | $      | -       |   |   | $ | 4,492,242 |   |

----

Index

|                                                                                        |   | 2007   |       |   | 2006   |   |       | 2005   |   |
|---------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Cash flows from operating activities:                                                       |   |   |       |   |   |   |       |   |   |
| Net (loss) income                                                                           |   | $      | (2,636,916 | )      |   | $      | 549,729    |   |   | $ | 968,626 |   |
| Adjustments to net (loss) income to reconcile to net cash provided by operating activities: |   |   |       |   |   |   |       |   |   |   |   |   |
| Depreciation, depletion and amortization                                                    |   |   | 736,420    |   |   |   | 703,574    |   |   |   | 862,704 |   |
| Accretion of asset retirement obligations                                                   |   |   | 5,052      |   |   |   | 3,644      |   |   |   | 3,516 |   |
| Unrealized loss (gain) on derivative transactions                                           |   |   | 91,828     |   |   |   | (114,263   | )      |   |   | (1,547 | ) |
| Loss on impairment of oil and gas properties                                                |   |   | 2,052,510  |   |   |   | -          |   |   |   | - |   |
| Changes in operating assets and liabilities:                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Decrease (increase) in accounts receivable                                                  |   |   | 98,066     |   |   |   | 254,456    |   |   |   | (119,031 | ) |
| Increase in other assets                                                                    |   |   | (7,674     | )      |   |   | (4,476     | )      |   |   | - |   |
| Increase (decrease) in accounts payable and accrued expenses                                |   |   | 12,721     |   |   |   | (35,370    | )      |   |   | 21,952 |   |
| Decrease (increase) in Due from Managing General Partner-Other, net                         |   |   | 165,038    |   |   |   | 109,166    |   |   |   | (228,478 | ) |
| Net cash provided by operating activities                                                   |   |   | 517,045    |   |   |   | 1,466,460  |   |   |   | 1,507,742 |   |
|                                                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| Cash flows from financing activities:                                                       |   |   |       |   |   |   |       |   |   |   |   |   |
| Distributions to Partners                                                                   |   |   | (513,555   | )      |   |   | (1,460,182 | )      |   |   | (1,505,538 | ) |
| Net cash used in financing activities                                                       |   |   | (513,555   | )      |   |   | (1,460,182 | )      |   |   | (1,505,538 | ) |
|                                                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| Net increase in cash and cash equivalents                                                   |   |   | 3,490      |   |   |   | 6,278      |   |   |   | 2,204 |   |
| Cash and cash equivalents, beginning of year                                                |   |   | 10,371     |   |   |   | 4,093      |   |   |   | 1,889 |   |
| Cash and cash equivalents, end of year                                                      |   | $      | 13,861     |   |   | $      | 10,371     |   |   | $ | 4,093 |   |
|                                                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| Supplemental disclosure of non-cash activity:                                               |   |   |       |   |   |   |       |   |   |   |   |   |
| Asset retirement obligation, with corresponding increase to oil and gas properties          |   | $      | -          |   |   | $      | 20,808     |   |   | $ | - |   |

----

Index

----

Index

----

Index

----

Index

|   | Revenue Recognition |
|--------|---------------------|

|                                             |   | Year ended December 31, |   |
|--------------------------------------------------|--------|-------------------------|--------|
| Major Customer                                   |   | 2007                    |   |   | 2006 |   |   | 2005 |   |
|                                             |   |                    |   |   |   |   |   |   |   |
| DCP Midstream LP (“DCP”)             |   |                    | 24     | % |   |   | 24 | % |   |   | 26 | % |
| Teppco Crude Oil, LP (“Teppco”)      |   |                    | 31     | % |   |   | 30 | % |   |   | 22 | % |
| Williams Production RMT (“Williams”) |   |                    | 45     | % |   |   | 46 | % |   |   | 52 | % |

----

Index

----

Index

----

Index

----

Index

----

Index

|   | · | On January 6, 2010, the FASB issued ASU No. 2010-03 Extractive Activities – Oil and Gas (Topic 932):  Oil and Gas Reserve Estimation and Disclosures, an update of ASC Topic 932 Extractive Activities – Oil and Gas, which substantially aligns the reserve estimation, disclosure requirements, and definitions of Topic 932 with the disclosure requirements of the Final Rule issued by the SEC. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On April 20, 2010, the FASB issued ASU No. 2010-14 Accounting for Extractive Activities – Oil and Gas: Amendments to Paragraph 932-10-S99-1 which is a technical amendment for the SEC’s Modernization of Oil and Gas Reporting Final Rule to ASC Topic 932 Extractive Activities – Oil and Gas, SEC Materials that incorporates selected SEC and SEC Staff content into The Codification for reference by public companies. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

|                                           |   | Year Ended December 31, |    |
|------------------------------------------------|--------|------------------------------|---------|
|                                           |   | 2007                         |    |   | 2006 |   |   | 2005 |   |
|                                           |   |                         |    |   |   |   |   |   |   |
| Well operations and maintenance (1)            |   | $                            | 353,516 |   |   | $ | 185,981 |   |   | $ | 161,115 |   |
| Gathering, compression and processing fees (2) |   |                         | 26,834  |   |   |   | 20,344 |   |   |   | 10,568 |   |
| Direct costs - general and administrative (3)  |   |                         | 266,804 |   |   |   | 54,081 |   |   |   | 14,812 |   |
| Cash distributions (4)                         |   |                         | 108,335 |   |   |   | 296,515 |   |   |   | 301,904 |   |

|   | · | 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. |
|--------|--------|-----------------------------|

|   | 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 costs incurred 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

|   | · | “Collars” contain a fixed floor price (put) and ceiling price (call).  If the index price 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 index price from the counterparty.  If the index 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 index price to the counterparty.  If the index price is between the call and put strike price, no payments are due to or from the counterparty. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | “Swaps” are arrangements that guarantee a fixed price.  If the index 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 index price and the fixed contract price from the counterparty.  If the index price is above the fixed contract price, PDC, as Managing General Partner, receives the market price from the purchaser and pays the difference between the index price and the fixed contract price to the counterparty.  If the index price and contract price are the same, no payment is due to or from the counterparty. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | “Basis protection swaps” are arrangements that guarantee a price differential for natural gas from a specified delivery point.  For CIG basis protection swaps, which traditionally have negative differentials 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 counterparty if the price differential is less than the stated terms of the contract.  If the index price and contract price are the same, no payment is due to or from the counterparty. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|                |   | 2007       |    |   | 2006      |   |   | 2005   |   |
|---------------------|--------|------------|---------|--------|-----------|--------|--------|--------|--------|
|                |   | Short-term |    |   | Long-term |   |   | Total  |   |   | Short-term |   |   | Long-term |   |   | Total |   |   | Short-term |   |   | Long-term |   |   | Total |   |
| Natural gas floors  |   | $          | 138     |   |      | $      | -      |   |   | $ | 138 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Natural gas collars |   |       | 8,819   |   |      |   | -      |   |   |   | 8,819 |   |   |   | 59,972 |   |   |   | 6,813 |   |   |   | 66,785 |   |   |   | (39,201 | ) |   |   | (7,462 | ) |   |   | (46,663 | ) |
| Oil floors          |   |       | -       |   |      |   | -      |   |   |   | - |   |   |   | 815 |   |   |   | - |   |   |   | 815 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Oil swaps           |   |       | (33,185 | )      |      |   | -      |   |   |   | (33,185 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                |   | $          | (24,228 | )      |      | $      | -      |   |   | $ | (24,228 | ) |   | $ | 60,787 |   |   | $ | 6,813 |   |   | $ | 67,600 |   |   | $ | (39,201 | ) |   | $ | (7,462 | ) |   | $ | (46,663 | ) |

----

Index

|                                             |   | For the year ended December 31, |    |
|--------------------------------------------------|--------|---------------------------------|---------|
|                                             |   | 2007                            |    |   | 2006 |   |   | 2005 |   |
| Commodity price risk management gain (loss), net |   |                            |    |   |   |   |   |   |   |
| Realized gain (loss)                             |   |                            |    |   |   |   |   |   |   |
| Oil                                              |   | $                               | (1,802  | ) |   | $ | (287 | ) |   | $ | (38,790 | ) |
| Gas                                              |   |                            | 44,542  |   |   |   | 27,769 |   |   |   | (58,419 | ) |
| Total realized gain (loss)                       |   |                            | 42,740  |   |   |   | 27,482 |   |   |   | (97,209 | ) |
| Unrealized (loss) gain                           |   |                            | (91,828 | ) |   |   | 114,263 |   |   |   | 1,547 |   |
| Commodity price risk management (loss) gain, net |   | $                               | (49,088 | ) |   | $ | 141,745 |   |   | $ | (95,662 | ) |

|                           |   |      |   |            |   | Floors                       |   |   | Ceilings |   |
|--------------------------------|--------|-----------|--------|-----------------|--------|------------------------------|--------|--------|----------|--------|
| Commodity/Index/Area           |   | Month Set |   | Month           |   | Monthly Quantity(Gas -MMbtu) |   |   | Price    |   |   | Monthly Quantity(Gas -MMbtu) |   |   | Price |   |
| Natural Gas -  (CIG) |   |      |   |            |   |                         |   |   |     |   |   |   |   |   |   |   |
| Piceance Basin                 |   |      |   |            |   |                         |   |   |     |   |   |   |   |   |   |   |
|                           |   | Jan-05    |   | Jan 06 - Mar 06 |   |                         | 4,842  |   |     | $      | 4.50 |   |   |   | 2,421 |   |   | $ | 7.15 |   |
|                           |   | Jul-05    |   | Jan 06 - Mar 06 |   |                         | 2,825  |   |     |   | 6.50 |   |   |   | 1,412 |   |   |   | 8.27 |   |
|                           |   | Sep-05    |   | Jan 06 - Mar 06 |   |                         | 8,070  |   |     |   | 9.00 |   |   |   | - |   |   |   |   |   |
|                           |   | Mar-05    |   | Apr 06 - Oct 06 |   |                         | 4,035  |   |     |   | 4.50 |   |   |   | 2,018 |   |   |   | 7.25 |   |
|                           |   | Jul-05    |   | Apr 06 - Oct 06 |   |                         | 2,825  |   |     |   | 5.50 |   |   |   | 1,412 |   |   |   | 7.63 |   |
|                           |   | Jul-05    |   | Nov 06 - Mar 07 |   |                         | 2,825  |   |     |   | 6.00 |   |   |   | 1,412 |   |   |   | 8.40 |   |

----

Index

|                           |   |      |   |            |   | Floors                                 |   |   | Ceilings |   |
|--------------------------------|--------|-----------|--------|-----------------|--------|----------------------------------------|--------|--------|----------|--------|
| Commodity/Index/Area           |   | Month Set |   | Month           |   | Monthly Quantity(Gas -MMbtu Oil -Bbls) |   |   | Price    |   |   | Monthly Quantity(Gas -MMbtu) |   |   | Price |   |
| Natural Gas -  (CIG) |   |      |   |            |   |                                   |   |   |     |   |   |   |   |   |   |   |
| Piceance Basin                 |   |      |   |            |   |                                   |   |   |     |   |   |   |   |   |   |   |
|                           |   | Jul-05    |   | Jan 07 - Mar 07 |   |                                   | 1,276  |   |     | $      | 6.00 |   |   |   | 638 |   |   | $ | 8.40 |   |
|                           |   | Feb-06    |   | Jan 07 - Mar 07 |   |                                   | 2,734  |   |     |   | 6.50 |   |   |   | - |   |   |   | - |   |
|                           |   | Feb-06    |   | Apr 07 - Oct 07 |   |                                   | 2,005  |   |     |   | 5.50 |   |   |   | - |   |   |   | - |   |
|                           |   | Sep-06    |   | Jan 07 - Mar 07 |   |                                   | 4,829  |   |     |   | 4.00 |   |   |   | - |   |   |   | - |   |
|                           |   | Sep-06    |   | Apr 07 - Oct 07 |   |                                   | 6,834  |   |     |   | 4.50 |   |   |   | - |   |   |   | - |   |
|                           |   | Dec-06    |   | Nov 07 - Mar 08 |   |                                   | 3,463  |   |     |   | 5.25 |   |   |   | - |   |   |   | - |   |
|                           |   |      |   |            |   |                                   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
|                           |   |      |   |            |   |                                   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Oil - NYMEX                    |   |      |   |            |   |                                   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Wattenberg Field               |   |      |   |            |   |                                   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
|                           |   | Sep-06    |   | Jan 07 - Oct 07 |   |                                   | 141    |   |     | $      | 50.00 |   |   |   | - |   |   | $ | - |   |

|                     |   |      |   |            |   | Floors                       |   |   | Ceilings |   |   | Swaps (Fixed Prices)         |   |
|--------------------------|--------|-----------|--------|-----------------|--------|------------------------------|--------|--------|----------|--------|--------|------------------------------|--------|
| Commodity/Index/Area     |   | Month Set |   | Month           |   | Monthly Quantity(Gas -MMbtu) |   |   | Price    |   |   | Monthly Quantity(Gas -MMbtu) |   |   | Price |   |   | Monthly Quantity(Oil -Bbls) |   |   | Price |   |
| Natural Gas - (CIG) |   |
| Piceance Basin           |   |      |   |            |   |                         |   |   |     |   |   |                         |   |   |   |   |   |   |   |   |   |   |
|                     |   | Dec-06    |   | Jan 08 - Mar 08 |   |                         | 1,369  |   |     | $      | 5.25   |                         |   |   | - |   |   | $ | - |   |   |   | - |   |   | $ | - |   |
|                     |   | Jan-07    |   | Jan 08 - Mar 08 |   |                         | 1,369  |   |     |   | 5.25   |                         |   |   | 1,369 |   |   |   | 9.80 |   |   |   | - |   |   |   | - |   |
|                     |   | May-07    |   | Apr 08 - Oct 08 |   |                         | 2,701  |   |     |   | 5.50   |                         |   |   | 2,701 |   |   |   | 10.35 |   |   |   | - |   |   |   | - |   |
|                     |   |      |   |            |   |                         |   |   |     |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wattenberg Field         |   |      |   |            |   |                         |   |   |     |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   | Jan-07    |   | Jan 08 - Mar 08 |   |                         | 1,084  |   |     | $      | 5.25   |                         |   |   | 1,084 |   |   | $ | 9.80 |   |   |   | - |   |   | $ | - |   |
|                     |   | May-07    |   | Apr 08 - Oct 08 |   |                         | 2,601  |   |     |   | 5.50   |                         |   |   | 2,601 |   |   |   | 10.35 |   |   |   | - |   |   |   | - |   |
|                     |   |      |   |            |   |                         |   |   |     |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   |      |   |            |   |                         |   |   |     |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil - NYMEX              |   |      |   |            |   |                         |   |   |     |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wattenberg Field         |   |      |   |            |   |                         |   |   |     |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   | Oct-07    |   | Jan 08 - Dec 08 |   |                         | -      |   |     | $      | -      |                         |   |   | - |   |   | $ | - |   |   |   | 318 |   |   | $ | 84.20 |   |

----

Index

|                                                         |   | Investor Partners |   |   | Managing General 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 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 (loss) income             |   |                    |       |   |   |   |   |   |   |
| 20% of net (loss) income allocated to the Managing General Partner |   | $                       | (527,383   | ) |   | $ | 109,946 |   |   | $ | 193,725 |   |
|                                                               |   |                    |       |   |   |   |   |   |   |   |   |   |
| Investor Partner interest in net (loss) income                     |   |                    |       |   |   |   |   |   |   |   |   |   |
| 80% of net (loss) income allocated to the Investor Partners        |   |                    | (2,109,533 | ) |   |   | 439,783 |   |   |   | 774,901 |   |
|                                                               |   |                    |       |   |   |   |   |   |   |   |   |   |
| Net (loss) income allocated to Partners                            |   | $                       | (2,636,916 | ) |   | $ | 549,729 |   |   | $ | 968,626 |   |

----

Index

| Unit repurchase program period |   | Units Repurchased During Month Ended |   |   | Average Price Paid per Unit |   |
|--------------------------------|--------|--------------------------------------|--------|--------|-----------------------------|--------|
|                           |   |                                 |   |   |                        |   |
| November 1−30, 2006      |   |                                 | 1.25   |   |                        | $      | 8,736 |   |
|                           |   |                                 |   |   |                        |   |   |   |
| February 1−28, 2007      |   |                                 | 5.00   |   |                        |   | 8,014 |   |
| May 1−31, 2007           |   |                                 | 0.25   |   |                        |   | 5,720 |   |
| June 1−30, 2007          |   |                                 | 1.25   |   |                        |   | 5,048 |   |
| July 1−31, 2007          |   |                                 | 0.28   |   |                        |   | 4,782 |   |
| October 1−31, 2007       |   |                                 | 0.50   |   |                        |   | 4,050 |   |
| November 1−30, 2007      |   |                                 | 0.50   |   |                        |   | 3,290 |   |
| December 1−31, 2007      |   |                                 | 0.25   |   |                        |   | 4,060 |   |
|                           |   |                                 |   |   |                        |   |   |   |
| April 1−30, 2008         |   |                                 | 0.25   |   |                        |   | 2,460 |   |
| July 1−31, 2008          |   |                                 | 5.35   |   |                        |   | 2,457 |   |
|                           |   |                                 |   |   |                        |   |   |   |
| April 1−30, 2009         |   |                                 | 0.75   |   |                        |   | 3,727 |   |
| June 1−30, 2009          |   |                                 | 0.25   |   |                        |   | 4,040 |   |
| September 1−30, 2009     |   |                                 | 2.00   |   |                        |   | 3,735 |   |
| October 1−31, 2009       |   |                                 | 5.00   |   |                        |   | 3,538 |   |

| Negotiated-basis repurchase period |   | Units Repurchased During Month Ended |   |   | Average Price Paid per Unit |   |
|------------------------------------|--------|--------------------------------------|--------|--------|-----------------------------|--------|
|                               |   |                                 |   |   |                        |   |
| August 1−31, 2005            |   |                                 | 0.75   |   |                        | $      | 8,696 |   |
| October 1−31, 2005           |   |                                 | 0.25   |   |                        |   | 8,380 |   |
|                               |   |                                 |   |   |                        |   |   |   |
| January 1−31, 2006           |   |                                 | 1.00   |   |                        |   | 7,925 |   |

----

Index

|                                                               |   | 2007   |       |   | 2006   |   |       | 2005   |   |
|--------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                                               |   |   |       |   |   |   |       |   |   |
| Leasehold costs                                                    |   | $      | 337,478    |   |   | $      | 398,956    |   |   | $ | 398,956 |   |
| Development costs                                                  |   |   | 8,329,155  |   |   |   | 11,832,843 |   |   |   | 11,812,035 |   |
| Natural gas and oil properties, successful efforts method, at cost |   |   | 8,666,633  |   |   |   | 12,231,799 |   |   |   | 12,210,991 |   |
| Less: Accumulated depreciation, depletion and amortization         |   |   | (4,377,875 | )      |   |   | (5,154,111 | )      |   |   | (4,450,537 | ) |
| Natural gas and oil properties, net                                |   | $      | 4,288,758  |   |   | $      | 7,077,688  |   |   | $ | 7,760,454 |   |

|                                               |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                               |   |   |   |   |   |   |   |   |   |
| Balance at beginning of period                     |   | $      | 87,828 |   |   | $      | 63,376 |   |   | $ | 59,860 |   |
| New liabilities incurred due to estimate revisions |   |   | -      |   |   |   | 20,808 |   |   |   | - |   |
| Accretion expense                                  |   |   | 5,052  |   |   |   | 3,644  |   |   |   | 3,516 |   |
| Balance at end of period                           |   | $      | 92,880 |   |   | $      | 87,828 |   |   | $ | 63,376 |   |

----

Index

----

Index

----

Index

| Errors                                                                                                           |   | Partners’ equity increase (decrease) |      |
|------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|-----------|
| Accounts receivable from oil and gas sales                                                                       |   | $                                          | 98,751    | (1) |
| Due from Managing General Partner – other, net                                                             |   |                                       | 72,239    | (2)  |
| Accumulated depreciation, depletion and amortization                                                             |   |                                       | (664,998  | )(3) |
| Accounts payable and accrued expenses                                                                            |   |                                       | 81,347    | (4) |
| Due to Managing General Partner – derivatives                                                              |   |                                       | (81,783   | )(5) |
| Asset retirement obligations                                                                                     |   |                                       | (52,864   | )(6) |
| Decrease to Partners’ equity as of January 1, 2005                                                         |   |                                       | (547,308  | ) |
| Partners’ equity, as previously reported                                                                   |   |                                       | 9,637,386 |   |
|                                                                                                             |   |                                       |      |   |
| Partners’ equity, as restated                                                                              |   | $                                          | 9,090,078 |   |
|                                                                                                             |   |                                       |      |   |
| Decrease to Partners’ equity per Investor Partner unit, as of January 1, 2005 for 559.02 units outstanding |   | $                                          | (979      | ) |

| Accumulated other comprehensive income |   | $ | (48,210 | )(7) |
|----------------------------------------|--------|---|---------|------|

|   | (1) | The accounts receivable error of $98,751 related to an adjustment to record actual for previously estimated natural gas and oil sales revenue of $131,888 offset by the reclassification of unrealized derivative gains of $33,137 to Due to Managing General Partner – derivatives at December 31, 2004. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The Due to Managing General Partner – other, net error of $72,239 related to the correction of over withheld production taxes of $213,077 recorded to natural gas and oil production costs together with $7,323 of accrued interest income thereon offset by the accrual of natural gas and oil production costs of $148,161 at December 31, 2004. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | The accumulated depreciation, depletion and amortization (DD&A) error resulted in an increase in DD&A expense of $664,998 related to the Partnership’s wells being erroneously assigned to one combined field instead of two separate fields. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | The accounts payable and accrued expenses error of $81,347 is related to the reclassification of unrealized losses from accounts payable and accrued expenses to Due to Managing General Partner – Derivatives at December 31, 2004. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | The Due to Managing General Partner – derivatives, error of $81,783 is related to a reclassification of $33,137 from accounts receivable and $81,347 from accounts payable to Due from Managing General Partner – derivatives, and recording realized derivative losses of $33,573 at December 31, 2004. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | (6) | The asset retirement obligations error of $52,864 related to the Partnership’s use of an incorrect starting date for accretion resulting in an understatement of accretion asset retirement obligations of $6,459 and by the understatement of the cost of natural gas and oil properties of $46,405 at December 31, 2004. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | The accumulated other comprehensive income error of $48,210 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 (AOCI).  The Partnership determined that its derivatives did not qualify for hedge accounting and unrealized gains or losses should be recognized in the Statement of Operations at December 31, 2004.  Upon restatement of the balance sheet at December 31, 2004, AOCI is eliminated and changes in fair value of open derivative positions are recorded in retained earnings. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

|                            |   | Oil (MBbls) |   |
|---------------------------------|--------|-------------|--------|
|                            |   | 2007        |   |   | 2006 |   |   | 2005 |   |
| Proved reserves:                |   |        |   |   |   |   |   |   |   |
| Beginning of year               |   |        | 95     |   |   |   | 131 |   |   |   | 146 |   |
| Revisions of previous estimates |   |        | 8      |   |   |   | (29 | ) |   |   | (6 | ) |
| Production                      |   |        | (5     | ) |   |   | (7 | ) |   |   | (9 | ) |
| End of Year                     |   |        | 98     |   |   |   | 95 |   |   |   | 131 |   |

|                            |   | Gas (MMcf) |   |
|---------------------------------|--------|------------|--------|
|                            |   | 2007       |   |   | 2006 |   |   | 2005 |   |
| Proved reserves:                |   |       |   |   |   |   |   |   |   |
| Beginning of year               |   |       | 1,747  |   |   |   | 2,776 |   |   |   | 3,137 |   |
| Revisions of previous estimates |   |       | (327   | ) |   |   | (860 | ) |   |   | (120 | ) |
| Production                      |   |       | (124   | ) |   |   | (169 | ) |   |   | (241 | ) |
| End of Year                     |   |       | 1,296  |   |   |   | 1,747 |   |   |   | 2,776 |   |

|                      |   | As of December 31, |   |
|---------------------------|--------|--------------------|--------|
| Proved Developed Reserves |   | 2007               |   |   | 2006 |   |   | 2005 |   |
|                      |   |               |   |   |   |   |   |   |   |
| Oil (MBbl)                |   |               | 39     |   |   |   | 42 |   |   |   | 67 |   |
| Natural Gas (MMcf)        |   |               | 806    |   |   |   | 1,272 |   |   |   | 2,172 |   |

|   | · | 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                                          |   | $                  | 17,608 |   |   | $ | 13,779 |   |   | $ | 30,542 |   |
| Future estimated production costs                                  |   |               | (5,173 | ) |   |   | (4,722 | ) |   |   | (7,728 | ) |
| Future estimated development costs                                 |   |               | (2,087 | ) |   |   | (2,203 | ) |   |   | (1,417 | ) |
| Future net cash flows                                              |   |               | 10,348 |   |   |   | 6,854 |   |   |   | 21,397 |   |
| 10% annual discount for estimated timing of cash flows             |   |               | (4,544 | ) |   |   | (2,987 | ) |   |   | (10,755 | ) |
| Standardized measure of discounted future estimated net cash flows |   | $                  | 5,804  |   |   | $ | 3,867 |   |   | $ | 10,642 |   |

|                                                     |   | As of December 31, |   |
|----------------------------------------------------------|--------|--------------------|--------|
|                                                     |   | 2007               |   |   | 2006 |   |   | 2005 |   |
|                                                     |   | (in thousands)     |   |   | (in thousands) |   |   | (in thousands) |   |
|                                                     |   |               |   |   |   |   |   |   |   |
| Sales of oil and gas production, net of production costs |   | $                  | (454   | ) |   | $ | (1,143 | ) |   | $ | (1,930 | ) |
| Net changes in prices and production costs               |   |               | 2,801  |   |   |   | (4,839 | ) |   |   | 3,774 |   |
| Revisions of previous quantity estimates                 |   |               | (573   | ) |   |   | (1,826 | ) |   |   | (520 | ) |
| Accretion of discount                                    |   |               | 325    |   |   |   | 909 |   |   |   | 717 |   |
| Timing and other                                         |   |               | (162   | ) |   |   | 124 |   |   |   | (56 | ) |
| Net change                                               |   | $                  | 1,937  |   |   | $ | (6,775 | ) |   | $ | 1,985 |   |

----

Index

| As of December 31, |   | Oil    |   |   | Gas    |   |
|--------------------|--------|--------|--------|--------|--------|--------|
| 2007               |   | $      | 80.15  |   |   | $      | 7.51 |   |
| 2006               |   |   | 58.33  |   |   |   | 4.73 |   |
| 2005               |   |   | 58.52  |   |   |   | 8.24 |   |

----

Index

|                                                               |   | As of          |       |
|--------------------------------------------------------------------|--------|----------------|------------|
|                                                               |   | March 31, |       |   | June 30, |   |   | September 30, |   |   | December 31, |   |
| Assets                                                             |   | 2007           |       |   | 2007 |   |   | 2007 |   |   | 2007* |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |
| Current assets:                                                    |   |           |       |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                          |   | $              | 10,390     |   |   | $ | 12,799 |   |   | $ | 14,023 |   |   | $ | 13,861 |   |
| Accounts receivable                                                |   |           | 112,819    |   |   |   | 83,372 |   |   |   | 94,609 |   |   |   | 76,032 |   |
| Due from Managing General Partner-derivatives                      |   |           | 53,034     |   |   |   | 51,979 |   |   |   | 62,800 |   |   |   | 9,457 |   |
| Due from Managing General Partner-other, net                       |   |           | 524,051    |   |   |   | 359,148 |   |   |   | 449,535 |   |   |   | 201,857 |   |
| Total current assets                                               |   |           | 700,294    |   |   |   | 507,298 |   |   |   | 620,967 |   |   |   | 301,207 |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas and oil properties, successful efforts method, at cost |   |           | 12,231,799 |   |   |   | 12,231,799 |   |   |   | 12,231,799 |   |   |   | 8,666,633 |   |
| Less: Accumulated depreciation, depletion and amortization         |   |           | (5,351,656 | ) |   |   | (5,522,061 | ) |   |   | (5,716,414 | ) |   |   | (4,377,875 | ) |
| Natural gas and oil properties, net                                |   |           | 6,880,143  |   |   |   | 6,709,738 |   |   |   | 6,515,385 |   |   |   | 4,288,758 |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due from Managing General Partner-derivatives                      |   |           | -          |   |   |   | 15,515 |   |   |   | 5,004 |   |   |   | - |   |
| Due from Managing General Partner-other, net                       |   |           | 9,208      |   |   |   | 16,949 |   |   |   | 25,464 |   |   |   | 32,000 |   |
| Other assets                                                       |   |           | 6,395      |   |   |   | 8,313 |   |   |   | 10,232 |   |   |   | 12,150 |   |
| Total noncurrent assets                                            |   |           | 6,895,746  |   |   |   | 6,750,515 |   |   |   | 6,556,085 |   |   |   | 4,332,908 |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                       |   | $              | 7,596,040  |   |   | $ | 7,257,813 |   |   | $ | 7,177,052 |   |   | $ | 4,634,115 |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Partners' Equity                                   |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current liabilities:                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                              |   | $              | 22,717     |   |   | $ | 18,561 |   |   | $ | 20,233 |   |   | $ | 15,308 |   |
| Due to Managing General Partner-derivatives                        |   |           | 17,838     |   |   |   | 11,871 |   |   |   | 5,807 |   |   |   | 33,685 |   |
| Total current liabilities                                          |   |           | 40,555     |   |   |   | 30,432 |   |   |   | 26,040 |   |   |   | 48,993 |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due to Managing General Partner-derivatives                        |   |           | -          |   |   |   | 8,412 |   |   |   | 1,730 |   |   |   | - |   |
| Asset retirement obligations                                       |   |           | 89,091     |   |   |   | 90,354 |   |   |   | 91,617 |   |   |   | 92,880 |   |
| Total liabilities                                                  |   |           | 129,646    |   |   |   | 129,198 |   |   |   | 119,387 |   |   |   | 141,873 |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners' equity:                                                  |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Managing General Partner                                           |   |           | 1,493,281  |   |   |   | 1,426,812 |   |   |   | 1,412,622 |   |   |   | 899,538 |   |
| Limited Partners - 559.02 units issued and outstanding             |   |           | 5,973,113  |   |   |   | 5,701,803 |   |   |   | 5,645,043 |   |   |   | 3,592,704 |   |
| Total Partners' equity                                             |   |           | 7,466,394  |   |   |   | 7,128,615 |   |   |   | 7,057,665 |   |   |   | 4,492,242 |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Liabilities and Partners' Equity                             |   | $              | 7,596,040  |   |   | $ | 7,257,813 |   |   | $ | 7,177,052 |   |   | $ | 4,634,115 |   |

----

Index

|                                                               |   | As of          |       |
|--------------------------------------------------------------------|--------|----------------|------------|
|                                                               |   | March 31, |       |   | June 30, |   |   | September 30, |   |   | December 31, |   |
| Assets                                                             |   | 2006           |       |   | 2006 |   |   | 2006 |   |   | 2006* |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |
| Current assets:                                                    |   |           |       |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                          |   | $              | 6,729      |   |   | $ | 8,531 |   |   | $ | 8,545 |   |   | $ | 10,371 |   |
| Accounts receivable                                                |   |           | 185,561    |   |   |   | 172,652 |   |   |   | 107,251 |   |   |   | 174,098 |   |
| Due from Managing General Partner-derivatives                      |   |           | 21,336     |   |   |   | 28,148 |   |   |   | 37,959 |   |   |   | 60,810 |   |
| Due from Managing General Partner-other, net                       |   |           | 604,462    |   |   |   | 522,533 |   |   |   | 598,112 |   |   |   | 398,895 |   |
| Total current assets                                               |   |           | 818,088    |   |   |   | 731,864 |   |   |   | 751,867 |   |   |   | 644,174 |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas and oil properties, successful efforts method, at cost |   |           | 12,210,991 |   |   |   | 12,210,991 |   |   |   | 12,210,991 |   |   |   | 12,231,799 |   |
| Less: Accumulated depreciation, depletion and amortization         |   |           | (4,632,335 | ) |   |   | (4,795,100 | ) |   |   | (4,956,689 | ) |   |   | (5,154,111 | ) |
| Natural gas and oil properties, net                                |   |           | 7,578,656  |   |   |   | 7,415,891 |   |   |   | 7,254,302 |   |   |   | 7,077,688 |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due from Managing General Partner-derivatives                      |   |           | 9,263      |   |   |   | 5,822 |   |   |   | 15,458 |   |   |   | 6,813 |   |
| Other assets                                                       |   |           | -          |   |   |   | 639 |   |   |   | 2,558 |   |   |   | 4,476 |   |
| Total noncurrent assets                                            |   |           | 7,587,919  |   |   |   | 7,422,352 |   |   |   | 7,272,318 |   |   |   | 7,088,977 |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                       |   | $              | 8,406,007  |   |   | $ | 8,154,216 |   |   | $ | 8,024,185 |   |   | $ | 7,733,151 |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Partners' Equity                                   |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current liabilities:                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                              |   | $              | 27,075     |   |   | $ | 13,800 |   |   | $ | 13,170 |   |   | $ | 2,587 |   |
| Due to Managing General Partner-derivatives                        |   |           | 9,330      |   |   |   | 5,491 |   |   |   | - |   |   |   | 23 |   |
| Total current liabilities                                          |   |           | 36,405     |   |   |   | 19,291 |   |   |   | 13,170 |   |   |   | 2,610 |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset retirement obligations                                       |   |           | 64,287     |   |   |   | 65,198 |   |   |   | 66,109 |   |   |   | 87,828 |   |
| Total liabilities                                                  |   |           | 100,692    |   |   |   | 84,489 |   |   |   | 79,279 |   |   |   | 90,438 |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners' equity:                                                  |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Managing General Partner                                           |   |           | 1,661,064  |   |   |   | 1,613,947 |   |   |   | 1,588,982 |   |   |   | 1,528,544 |   |
| Limited Partners - 559.02 units issued and outstanding             |   |           | 6,644,251  |   |   |   | 6,455,780 |   |   |   | 6,355,924 |   |   |   | 6,114,169 |   |
| Total Partners' equity                                             |   |           | 8,305,315  |   |   |   | 8,069,727 |   |   |   | 7,944,906 |   |   |   | 7,642,713 |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Liabilities and Partners' Equity                             |   | $              | 8,406,007  |   |   | $ | 8,154,216 |   |   | $ | 8,024,185 |   |   | $ | 7,733,151 |   |

----

Index

|                                                               |   | As of          |       |
|--------------------------------------------------------------------|--------|----------------|------------|
|                                                               |   | March 31, |       |   | June 30, |   |   |   |   |   |   |   |
|                                                               |   | 2005           |       |   | 2005 |   |   | September 30, |   |   | December 31, |   |
|                                                               |   | (as restated)  |       |   | (as restated) |   |   | 2005 |   |   | 2005* |   |
| Assets                                                             |   |           |       |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |
| Current assets:                                                    |   |           |       |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                          |   | $              | 1,588      |   |   | $ | 3,113 |   |   | $ | 4,077 |   |   | $ | 4,093 |   |
| Accounts receivable                                                |   |           | 224,654    |   |   |   | 237,077 |   |   |   | 280,948 |   |   |   | 428,554 |   |
| Due from Managing General Partner-derivatives                      |   |           | 1,467      |   |   |   | 1,309 |   |   |   | 14,695 |   |   |   | 21,006 |   |
| Due from Managing General Partner-other, net                       |   |           | 407,809    |   |   |   | 442,859 |   |   |   | 449,782 |   |   |   | 508,061 |   |
| Total current assets                                               |   |           | 635,518    |   |   |   | 684,358 |   |   |   | 749,502 |   |   |   | 961,714 |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas and oil properties, successful efforts method, at cost |   |           | 12,210,991 |   |   |   | 12,210,991 |   |   |   | 12,210,991 |   |   |   | 12,210,991 |   |
| Less: Accumulated depreciation, depletion and amortization         |   |           | (3,814,373 | ) |   |   | (4,024,397 | ) |   |   | (4,230,768 | ) |   |   | (4,450,537 | ) |
| Natural gas and oil properties, net                                |   |           | 8,396,618  |   |   |   | 8,186,594 |   |   |   | 7,980,223 |   |   |   | 7,760,454 |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due from Managing General Partner-derivatives                      |   |           | 1,953      |   |   |   | 738 |   |   |   | 4,012 |   |   |   | 2,683 |   |
| Total noncurrent assets                                            |   |           | 8,398,571  |   |   |   | 8,187,332 |   |   |   | 7,984,235 |   |   |   | 7,763,137 |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                       |   | $              | 9,034,089  |   |   | $ | 8,871,690 |   |   | $ | 8,733,737 |   |   | $ | 8,724,851 |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Partners' Equity                                   |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current liabilities:                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                              |   | $              | 14,170     |   |   | $ | 17,078 |   |   | $ | 20,658 |   |   | $ | 37,957 |   |
| Due to Managing General Partner-derivatives                        |   |           | 101,418    |   |   |   | 53,972 |   |   |   | 169,795 |   |   |   | 60,207 |   |
| Total current liabilities                                          |   |           | 115,588    |   |   |   | 71,050 |   |   |   | 190,453 |   |   |   | 98,164 |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due to Managing General Partner-derivatives                        |   |           | 663        |   |   |   | 4,827 |   |   |   | 24,378 |   |   |   | 10,145 |   |
| Asset retirement obligations                                       |   |           | 60,720     |   |   |   | 61,593 |   |   |   | 62,478 |   |   |   | 63,376 |   |
| Total liabilities                                                  |   |           | 176,971    |   |   |   | 137,470 |   |   |   | 277,309 |   |   |   | 171,685 |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners' equity:                                                  |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Managing General Partner                                           |   |           | 1,771,424  |   |   |   | 1,746,844 |   |   |   | 1,691,286 |   |   |   | 1,710,634 |   |
| Limited Partners - 559.02 units issued and outstanding             |   |           | 7,085,694  |   |   |   | 6,987,376 |   |   |   | 6,765,142 |   |   |   | 6,842,532 |   |
| Total Partners' equity                                             |   |           | 8,857,118  |   |   |   | 8,734,220 |   |   |   | 8,456,428 |   |   |   | 8,553,166 |   |
|                                                               |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Liabilities and Partners' Equity                             |   | $              | 9,034,089  |   |   | $ | 8,871,690 |   |   | $ | 8,733,737 |   |   | $ | 8,724,851 |   |

----

Index

|                                                |   | Quarter Ended  |    |
|-----------------------------------------------------|--------|----------------|---------|
|                                                |   | March 31, |    |   | June 30, |   |   | September 30, |   |   | December 31, |   |
|                                                |   | 2007           |    |   | 2007 |   |   | 2007 |   |   | 2007 |   |
|                                                |   |           |    |   |   |   |   |   |   |   |   |   |
| Revenues:                                           |   |           |    |   |   |   |   |   |   |   |   |   |
| Natural gas and oil sales                           |   | $              | 263,344 |   |   | $ | 216,897 |   |   | $ | 238,616 |   |   | $ | 183,168 |   |
| Commodity price risk management (loss) gain, net    |   |           | (34,128 | ) |   |   | 18,865 |   |   |   | 40,189 |   |   |   | (74,014 | ) |
| Total revenues                                      |   |           | 229,216 |   |   |   | 235,762 |   |   |   | 278,805 |   |   |   | 109,154 |   |
|                                                |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating costs and expenses:                       |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas and oil production costs                |   |           | 70,743  |   |   |   | 144,945 |   |   |   | 102,705 |   |   |   | 138,776 |   |
| Direct costs - general and administrative           |   |           | -       |   |   |   | 102,705 |   |   |   | - |   |   |   | 164,099 |   |
| Depreciation, depletion and amortization            |   |           | 197,545 |   |   |   | 170,405 |   |   |   | 194,353 |   |   |   | 174,117 |   |
| Loss on impairment of oil and gas properties        |   |           | -       |   |   |   | - |   |   |   | - |   |   |   | 2,052,510 |   |
| Accretion of asset retirement obligations           |   |           | 1,263   |   |   |   | 1,263 |   |   |   | 1,263 |   |   |   | 1,263 |   |
| Total operating costs and expenses                  |   |           | 269,551 |   |   |   | 419,318 |   |   |   | 298,321 |   |   |   | 2,530,765 |   |
|                                                |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                                |   |           | (40,335 | ) |   |   | (183,556 | ) |   |   | (19,516 | ) |   |   | (2,421,611 | ) |
|                                                |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                     |   |           | 7,348   |   |   |   | 6,956 |   |   |   | 6,983 |   |   |   | 6,815 |   |
|                                                |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                            |   | $              | (32,987 | ) |   | $ | (176,600 | ) |   | $ | (12,533 | ) |   | $ | (2,414,796 | ) |
|                                                |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss allocated to Partners                      |   | $              | (32,987 | ) |   | $ | (176,600 | ) |   | $ | (12,533 | ) |   | $ | (2,414,796 | ) |
| Less: Managing General Partner interest in net loss |   |           | (6,597  | ) |   |   | (35,320 | ) |   |   | (2,507 | ) |   |   | (482,959 | ) |
| Net loss allocated to Investor Partners             |   | $              | (26,390 | ) |   | $ | (141,280 | ) |   | $ | (10,026 | ) |   | $ | (1,931,837 | ) |
|                                                |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss per Investor Partner unit                  |   | $              | (47     | ) |   | $ | (253 | ) |   | $ | (18 | ) |   | $ | (3,456 | ) |
|                                                |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investor Partner units outstanding                  |   |           | 559.02  |   |   |   | 559.02 |   |   |   | 559.02 |   |   |   | 559.02 |   |

----

Index

|                                                         |   | Quarter Ended  |    |
|--------------------------------------------------------------|--------|----------------|---------|
|                                                         |   | March 31, |    |   | June 30, |   |   | September 30, |   |   | December 31, |   |
|                                                         |   | 2006           |    |   | 2006 |   |   | 2006 |   |   | 2006 |   |
|                                                         |   |           |    |   |   |   |   |   |   |   |   |   |
| Revenues:                                                    |   |           |    |   |   |   |   |   |   |   |   |   |
| Natural gas and oil sales                                    |   | $              | 449,854 |   |   | $ | 356,062 |   |   | $ | 349,977 |   |   | $ | 249,793 |   |
| Commodity price risk management gain, net                    |   |           | 88,970  |   |   |   | 8,475 |   |   |   | 26,346 |   |   |   | 17,954 |   |
| Total revenues                                               |   |           | 538,824 |   |   |   | 364,537 |   |   |   | 376,323 |   |   |   | 267,747 |   |
|                                                         |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating costs and expenses:                                |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas and oil production costs                         |   |           | 62,575  |   |   |   | 51,135 |   |   |   | 71,900 |   |   |   | 77,347 |   |
| Direct costs - general and administrative                    |   |           | -       |   |   |   | - |   |   |   | - |   |   |   | 54,081 |   |
| Depreciation, depletion and amortization                     |   |           | 181,798 |   |   |   | 162,765 |   |   |   | 161,589 |   |   |   | 197,422 |   |
| Accretion of asset retirement obligations                    |   |           | 911     |   |   |   | 911 |   |   |   | 911 |   |   |   | 911 |   |
| Total operating costs and expenses                           |   |           | 245,284 |   |   |   | 214,811 |   |   |   | 234,400 |   |   |   | 329,761 |   |
|                                                         |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from operations                                |   |           | 293,540 |   |   |   | 149,726 |   |   |   | 141,923 |   |   |   | (62,014 | ) |
|                                                         |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                              |   |           | 6,413   |   |   |   | 6,879 |   |   |   | 6,780 |   |   |   | 6,482 |   |
|                                                         |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net  income (loss)                                 |   | $              | 299,953 |   |   | $ | 156,605 |   |   | $ | 148,703 |   |   | $ | (55,532 | ) |
|                                                         |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) allocated to Partners                      |   | $              | 299,953 |   |   | $ | 156,605 |   |   | $ | 148,703 |   |   | $ | (55,532 | ) |
| Less: Managing General Partner interest in net income (loss) |   |           | 59,991  |   |   |   | 31,321 |   |   |   | 29,740 |   |   |   | (11,106 | ) |
| Net income (loss) allocated to Investor Partners             |   | $              | 239,962 |   |   | $ | 125,284 |   |   | $ | 118,963 |   |   | $ | (44,426 | ) |
|                                                         |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) per Investor Partner unit                  |   | $              | 429     |   |   | $ | 224 |   |   | $ | 213 |   |   | $ | (79 | ) |
|                                                         |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investor Partner units outstanding                           |   |           | 559.02  |   |   |   | 559.02 |   |   |   | 559.02 |   |   |   | 559.02 |   |

----

Index

|                                                  |   | Quarter Ended  |    |
|-------------------------------------------------------|--------|----------------|---------|
|                                                  |   | March 31, |    |   | June 30, |   |   |   |   |   |   |   |
|                                                  |   | 2005           |    |   | 2005 |   |   | September 30, |   |   | December 31, |   |
|                                                  |   | (as restated)  |    |   | (as restated) |   |   | 2005 |   |   | 2005 |   |
|                                                  |   |           |    |   |   |   |   |   |   |   |   |   |
| Revenues:                                             |   |           |    |   |   |   |   |   |   |   |   |   |
| Natural gas and oil sales                             |   | $              | 481,126 |   |   | $ | 498,169 |   |   | $ | 510,415 |   |   | $ | 701,295 |   |
| Commodity price risk management (loss) gain, net      |   |           | (57,238 | ) |   |   | 23,280 |   |   |   | (146,468 | ) |   |   | 84,764 |   |
| Total revenues                                        |   |           | 423,888 |   |   |   | 521,449 |   |   |   | 363,947 |   |   |   | 786,059 |   |
|                                                  |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating costs and expenses:                         |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas and oil production costs                  |   |           | 53,318  |   |   |   | 68,934 |   |   |   | 65,076 |   |   |   | 74,218 |   |
| Direct costs - general and administrative             |   |           | -       |   |   |   | - |   |   |   | - |   |   |   | 14,812 |   |
| Depreciation, depletion and amortization              |   |           | 226,540 |   |   |   | 210,024 |   |   |   | 206,371 |   |   |   | 219,769 |   |
| Accretion of asset retirement obligations             |   |           | 860     |   |   |   | 873 |   |   |   | 885 |   |   |   | 898 |   |
| Total operating costs and expenses                    |   |           | 280,718 |   |   |   | 279,831 |   |   |   | 272,332 |   |   |   | 309,697 |   |
|                                                  |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from operations                                |   |           | 143,170 |   |   |   | 241,618 |   |   |   | 91,615 |   |   |   | 476,362 |   |
|                                                  |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                       |   |           | 3,786   |   |   |   | 4,135 |   |   |   | 3,966 |   |   |   | 3,976 |   |
|                                                  |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                            |   | $              | 146,956 |   |   | $ | 245,753 |   |   | $ | 95,581 |   |   | $ | 480,338 |   |
|                                                  |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income allocated to Partners                      |   | $              | 146,956 |   |   | $ | 245,753 |   |   | $ | 95,581 |   |   | $ | 480,338 |   |
| Less: Managing General Partner interest in net income |   |           | 29,391  |   |   |   | 49,150 |   |   |   | 19,117 |   |   |   | 96,067 |   |
| Net income allocated to Investor Partners             |   | $              | 117,565 |   |   | $ | 196,603 |   |   | $ | 76,464 |   |   | $ | 384,271 |   |
|                                                  |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income per Investor Partner unit                  |   | $              | 210     |   |   | $ | 352 |   |   | $ | 137 |   |   | $ | 687 |   |
|                                                  |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investor Partner units outstanding                    |   |           | 559.02  |   |   |   | 559.02 |   |   |   | 559.02 |   |   |   | 559.02 |   |

----

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 loss                                                                           |   | $                                      | (32,987  | )      |                                | $      | (209,587 | )                                         |   | $ | (222,120 | ) |
| Adjustments to net loss to reconcile to net cash provided by operating activities: |   |                                   |     |   |                                |   |     |                                      |   |   |   |   |
| Depreciation, depletion and amortization                                           |   |                                   | 197,545  |   |                                |   | 367,950  |                                      |   |   | 562,303 |   |
| Accretion of asset retirement obligations                                          |   |                                   | 1,263    |   |                                |   | 2,526    |                                      |   |   | 3,789 |   |
| Unrealized loss on derivative transactions                                         |   |                                   | 32,404   |   |                                |   | 20,389   |                                      |   |   | 7,333 |   |
| Changes in operating assets and liabilities:                                       |   |                                   |     |   |                                |   |     |                                      |   |   |   |   |
| Decrease in accounts receivable                                                    |   |                                   | 61,279   |   |                                |   | 90,726   |                                      |   |   | 79,489 |   |
| Increase in other assets                                                           |   |                                   | (1,919   | )      |                                |   | (3,837   | )                                         |   |   | (5,756 | ) |
| Increase in accounts payable and accrued expenses                                  |   |                                   | 20,130   |   |                                |   | 15,974   |                                      |   |   | 17,646 |   |
| (Increase) decrease in due from Managing General Partner-Other, net                |   |                                   | (134,364 | )      |                                |   | 22,798   |                                      |   |   | (76,104 | ) |
| Net cash provided by operating activities                                          |   |                                   | 143,351  |   |                                |   | 306,939  |                                      |   |   | 366,580 |   |
|                                                                               |   |                                   |     |   |                                |   |     |                                      |   |   |   |   |
| Cash flows from financing activities:                                              |   |                                   |     |   |                                |   |     |                                      |   |   |   |   |
| Distributions to Partners                                                          |   |                                   | (143,332 | )      |                                |   | (304,511 | )                                         |   |   | (362,928 | ) |
| Net cash used in financing activities                                              |   |                                   | (143,332 | )      |                                |   | (304,511 | )                                         |   |   | (362,928 | ) |
|                                                                               |   |                                   |     |   |                                |   |     |                                      |   |   |   |   |
| Net increase in cash and cash equivalents                                          |   |                                   | 19       |   |                                |   | 2,428    |                                      |   |   | 3,652 |   |
| Cash and cash equivalents, beginning of period                                     |   |                                   | 10,371   |   |                                |   | 10,371   |                                      |   |   | 10,371 |   |
| Cash and cash equivalents, end of period                                           |   | $                                      | 10,390   |   |                                | $      | 12,799   |                                      |   | $ | 14,023 |   |

----

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                                                                           |   | $                                      | 299,953  |   |                                | $      | 456,558  |                                      |   | $ | 605,261 |   |
| Adjustments to net income to reconcile to net cash provided by operating activities: |   |                                   |     |   |                                |   |     |                                      |   |   |   |   |
| Depreciation, depletion and amortization                                             |   |                                   | 181,798  |   |                                |   | 344,563  |                                      |   |   | 506,152 |   |
| Accretion of asset retirement obligations                                            |   |                                   | 911      |   |                                |   | 1,822    |                                      |   |   | 2,733 |   |
| Unrealized gain on derivative transactions                                           |   |                                   | (67,932  | )      |                                |   | (75,142  | )                                         |   |   | (100,080 | ) |
| Changes in operating assets and liabilities:                                         |   |                                   |     |   |                                |   |     |                                      |   |   |   |   |
| Decrease in accounts receivable                                                      |   |                                   | 242,993  |   |                                |   | 255,902  |                                      |   |   | 321,303 |   |
| Increase in other assets                                                             |   |                                   | -        |   |                                |   | (639     | )                                         |   |   | (2,558 | ) |
| Decrease in accounts payable and accrued expenses                                    |   |                                   | (10,882  | )      |                                |   | (24,157  | )                                         |   |   | (24,787 | ) |
| Increase in due from Managing General Partner-Other, net                             |   |                                   | (96,401  | )      |                                |   | (14,472  | )                                         |   |   | (90,051 | ) |
| Net cash provided by operating activities                                            |   |                                   | 550,440  |   |                                |   | 944,435  |                                      |   |   | 1,217,973 |   |
|                                                                                 |   |                                   |     |   |                                |   |     |                                      |   |   |   |   |
| Cash flows from financing activities:                                                |   |                                   |     |   |                                |   |     |                                      |   |   |   |   |
| Distributions to Partners                                                            |   |                                   | (547,804 | )      |                                |   | (939,997 | )                                         |   |   | (1,213,521 | ) |
| Net cash used in financing activities                                                |   |                                   | (547,804 | )      |                                |   | (939,997 | )                                         |   |   | (1,213,521 | ) |
|                                                                                 |   |                                   |     |   |                                |   |     |                                      |   |   |   |   |
| Net increase in cash and cash equivalents                                            |   |                                   | 2,636    |   |                                |   | 4,438    |                                      |   |   | 4,452 |   |
| Cash and cash equivalents, beginning of period                                       |   |                                   | 4,093    |   |                                |   | 4,093    |                                      |   |   | 4,093 |   |
| Cash and cash equivalents, end of period                                             |   | $                                      | 6,729    |   |                                | $      | 8,531    |                                      |   | $ | 8,545 |   |

----

Index

|                                                                                 |   | Three months ended March 31, 2005(as restated) |     |   | Six months ended June 30, 2005(as restated) |   |     | Nine months ended September 30, 2005 |   |
|--------------------------------------------------------------------------------------|--------|-----------------------------------------------------|----------|--------|--------------------------------------------------|--------|----------|-------------------------------------------|--------|
| Cash flows from operating activities:                                                |   |                                                |     |   |                                             |   |     |                                      |   |
| Net income                                                                           |   | $                                                   | 146,956  |   |                                             | $      | 392,709  |                                      |   | $ | 488,289 |   |
| Adjustments to net income to reconcile to net cash provided by operating activities: |   |                                                |     |   |                                             |   |     |                                      |   |   |   |   |
| Depreciation, depletion and amortization                                             |   |                                                | 226,540  |   |                                             |   | 436,564  |                                      |   |   | 642,935 |   |
| Accretion of asset retirement obligations                                            |   |                                                | 860      |   |                                             |   | 1,733    |                                      |   |   | 2,618 |   |
| Unrealized loss on derivative transactions                                           |   |                                                | 50,451   |   |                                             |   | 8,542    |                                      |   |   | 127,256 |   |
| Changes in operating assets and liabilities:                                         |   |                                                |     |   |                                             |   |     |                                      |   |   |   |   |
| Decrease in accounts receivable                                                      |   |                                                | 84,869   |   |                                             |   | 72,446   |                                      |   |   | 28,575 |   |
| (Decrease) increase in accounts payable and accrued expenses                         |   |                                                | (1,835   | )      |                                             |   | 1,073    |                                      |   |   | 4,653 |   |
| Increase in due from Managing General Partner-Other, net                             |   |                                                | (128,226 | )      |                                             |   | (163,276 | )                                         |   |   | (170,199 | ) |
| Net cash provided by operating activities                                            |   |                                                | 379,615  |   |                                             |   | 749,791  |                                      |   |   | 1,124,127 |   |
|                                                                                 |   |                                                |     |   |                                             |   |     |                                      |   |   |   |   |
| Cash flows from financing activities:                                                |   |                                                |     |   |                                             |   |     |                                      |   |   |   |   |
| Distributions to Partners                                                            |   |                                                | (379,915 | )      |                                             |   | (748,565 | )                                         |   |   | (1,121,938 | ) |
| Net cash used in financing activities                                                |   |                                                | (379,915 | )      |                                             |   | (748,565 | )                                         |   |   | (1,121,938 | ) |
|                                                                                 |   |                                                |     |   |                                             |   |     |                                      |   |   |   |   |
| Net (decrease) increase in cash and cash equivalents                                 |   |                                                | (301     | )      |                                             |   | 1,224    |                                      |   |   | 2,188 |   |
| Cash and cash equivalents, beginning of period                                       |   |                                                | 1,889    |   |                                             |   | 1,889    |                                      |   |   | 1,889 |   |
| Cash and cash equivalents, end of period                                             |   | $                                                   | 1,588    |   |                                             | $      | 3,113    |                                      |   | $ | 4,077 |   |

----

Index

| Three months ended |   | 2007   |    |   | 2006   |   |    | 2005   |   |
|--------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|               |   |   |    |   |   |   |    |   |   |
| March 31           |   | $      | 146,952 |   |   | $      | 275,694 |   |   | $ | 239,649 |   |
| June 30            |   |   | 133,524 |   |   |   | 183,410 |   |   |   | 261,090 |   |
| September 30       |   |   | 144,006 |   |   |   | 242,724 |   |   |   | 229,466 |   |
| December 31        |   |   | 107,136 |   |   |   | 73,882  |   |   |   | 272,740 |   |

----

Index

|                                       |   | Quarter Ended                    |    |
|--------------------------------------------|--------|----------------------------------|---------|
|                                       |   | March 31, 2007              |    |   | June 30, 2007 |   |   | September 30, 2007 |   |   | December 31, 2007 |   |
| Transaction                                |   |                             |    |   |   |   |   |   |   |   |   |   |
| Well operations and maintenance            |   | $                                | 39,514  |   |   | $ | 119,605 |   |   | $ | 75,165 |   |   | $ | 119,232 |   |
| Gathering, compression and processing fees |   |                             | 8,512   |   |   |   | 6,779 |   |   |   | 7,307 |   |   |   | 4,236 |   |
| Direct costs- general and administrative   |   |                             | -       |   |   |   | 102,705 |   |   |   | - |   |   |   | 164,099 |   |
| Cash distributions*                        |   |                             | 30,141  |   |   |   | 33,214 |   |   |   | 12,521 |   |   |   | 32,459 |   |
|                                       |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   | Quarter Ended                    |    |
|                                       |   | March 31, 2006              |    |   | June 30, 2006 |   |   | September 30, 2006 |   |   | December 31, 2006 |   |
| Transaction                                |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Well operations and maintenance            |   | $                                | 33,297  |   |   | $ | 36,124 |   |   | $ | 51,153 |   |   | $ | 65,407 |   |
| Gathering, compression and processing fees |   |                             | 2,203   |   |   |   | 1,211 |   |   |   | 7,577 |   |   |   | 9,353 |   |
| Direct costs- general and administrative   |   |                             | -       |   |   |   | - |   |   |   | - |   |   |   | 54,081 |   |
| Cash distributions*                        |   |                             | 111,129 |   |   |   | 79,561 |   |   |   | 55,488 |   |   |   | 50,337 |   |
|                                       |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   | Quarter Ended                    |    |
|                                       |   | March 31, 2005(as restated) |    |   | June 30, 2005(as restated) |   |   | September 30,2005 |   |   | December 31,2005 |   |
| Transaction                                |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Well operations and maintenance            |   | $                                | 35,885  |   |   | $ | 49,315 |   |   | $ | 42,031 |   |   | $ | 33,884 |   |
| Gathering, compression and processing fees |   |                             | 3,263   |   |   |   | 2,541 |   |   |   | 2,387 |   |   |   | 2,377 |   |
| Direct costs- general and administrative   |   |                             | -       |   |   |   | - |   |   |   | - |   |   |   | 14,812 |   |
| Cash distributions*                        |   |                             | 75,983  |   |   |   | 73,730 |   |   |   | 74,923 |   |   |   | 77,268 |   |

| Three months ended |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|--------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|               |   |   |   |   |   |   |   |   |   |
| March 31           |   | $      | 1,475  |   |   | $      | 1,568  |   |   | $ | - |   |
| June 30            |   |   | 2,065  |   |   |   | 1,123  |   |   |   | - |   |
| September 30       |   |   | 838    |   |   |   | 783    |   |   |   | 248 |   |
| December 31        |   |   | 2,334  |   |   |   | 1,005  |   |   |   | 549 |   |

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

----

Index

|   | · | “Collars” contain a fixed floor price (put) and ceiling price (call).  If the index price 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 index price from the counterparty.  If the index 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 index price to the counterparty.  If the index price is between the call and put strike price, no payments are due to or from the counterparty. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                |   | 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  |   | $                   | 42,836  |   |   | $ | - |   |   | $ | 42,836 |   |   | $ | 6,989 |   |   | $ | - |   |   | $ | 6,989 |   |   | $ | 14,607 |   |   | $ | - |   |   | $ | 14,607 |   |
| Natural gas collars |   |                | (7,878  | ) |   |   | - |   |   |   | (7,878 | ) |   |   | 33,083 |   |   |   | 7,103 |   |   |   | 40,186 |   |   |   | 42,383 |   |   |   | 3,274 |   |   |   | 45,657 |   |
| Oil floors          |   |                | 238     |   |   |   | - |   |   |   | 238 |   |   |   | 36 |   |   |   | - |   |   |   | 36 |   |   |   | 3 |   |   |   | - |   |   |   | 3 |   |
| Total               |   | $                   | 35,196  |   |   | $ | - |   |   | $ | 35,196 |   |   | $ | 40,108 |   |   | $ | 7,103 |   |   | $ | 47,211 |   |   | $ | 56,993 |   |   | $ | 3,274 |   |   | $ | 60,267 |   |
|                |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                |   | 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  |   | $                   | -       |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Natural gas collars |   |                | 12,006  |   |   |   | 9,263 |   |   |   | 21,269 |   |   |   | 22,657 |   |   |   | 5,822 |   |   |   | 28,479 |   |   | $ | 36,734 |   |   | $ | 15,218 |   |   |   | 51,952 |   |
| Oil floors          |   |                | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,225 |   |   |   | 240 |   |   |   | 1,465 |   |
| Total               |   | $                   | 12,006  |   |   | $ | 9,263 |   |   | $ | 21,269 |   |   | $ | 22,657 |   |   | $ | 5,822 |   |   | $ | 28,479 |   |   | $ | 37,959 |   |   | $ | 15,458 |   |   | $ | 53,417 |   |
|                |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                |   | As of               |    |
|                |   | March 31, 2005 |    |   | June 30, 2005 |   |   |   |   |
|                |   | (as restated)       |    |   | (as restated) |   |   | September 30, 2005 |   |
|                |   | Short-term          |    |   | Long-term |   |   | Total |   |   | Short-term |   |   | Long-term |   |   | Total |   |   | Short-term |   |   | Long-term |   |   | Total |   |
| Natural gas collars |   | $                   | (65,763 | ) |   | $ | 1,290 |   |   | $ | (64,473 | ) |   | $ | (30,045 | ) |   | $ | (4,089 | ) |   | $ | (34,134 | ) |   | $ | (140,064 | ) |   | $ | (20,366 | ) |   | $ | (160,430 | ) |
| Oil floors          |   |                | 133     |   |   |   | - |   |   |   | 133 |   |   |   | 10 |   |   |   | - |   |   |   | 10 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Oil ceilings        |   |                | (34,321 | ) |   |   | - |   |   |   | (34,321 | ) |   |   | (22,628 | ) |   |   | - |   |   |   | (22,628 | ) |   |   | (15,036 | ) |   |   | - |   |   |   | (15,036 | ) |
| Total               |   | $                   | (99,951 | ) |   | $ | 1,290 |   |   | $ | (98,661 | ) |   | $ | (52,663 | ) |   | $ | (4,089 | ) |   | $ | (56,752 | ) |   | $ | (155,100 | ) |   | $ | (20,366 | ) |   | $ | (175,466 | ) |

----

Index

|                                              |   | Three months ended  |    |   |               |   |
|---------------------------------------------------|--------|---------------------|---------|--------|--------------------|--------|
|                                              |   | March 31, 2007 |    |   | June 30, 2007 |   |   | September 30, 2007 |   |   | December 31, 2007 |   |   | Year Ended Total |   |
| Commodity price risk management, gain (loss), net |   |                |    |   |               |   |   |   |   |   |   |   |   |   |   |
| Realized (loss) gain                              |   |                |    |   |               |   |   |   |   |   |   |   |   |   |   |
| Oil                                               |   | $                   | (528    | )      |               | $      | (556 | ) |   | $ | (578 | ) |   | $ | (140 | ) |   | $ | (1,802 | ) |
| Natural Gas                                       |   |                | (1,196  | )      |               |   | 7,406 |   |   |   | 27,711 |   |   |   | 10,621 |   |   |   | 44,542 |   |
| Total realized (loss) gain                        |   |                | (1,724  | )      |               |   | 6,850 |   |   |   | 27,133 |   |   |   | 10,481 |   |   |   | 42,740 |   |
| Unrealized (loss) gain                            |   |                | (32,404 | )      |               |   | 12,015 |   |   |   | 13,056 |   |   |   | (84,495 | ) |   |   | (91,828 | ) |
| Commodity price risk management, (loss) gain, net |   | $                   | (34,128 | )      |               | $      | 18,865 |   |   | $ | 40,189 |   |   | $ | (74,014 | ) |   | $ | (49,088 | ) |

|                                              |   | Three months ended  |   |   |               |   |
|---------------------------------------------------|--------|---------------------|--------|--------|--------------------|--------|
|                                              |   | March 31, 2006 |   |   | June 30, 2006 |   |   | September 30, 2006 |   |   | December 31, 2006 |   |   | Year Ended Total |   |
| Commodity price risk management, gain (loss), net |   |                |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Realized gain (loss)                              |   |                |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Oil                                               |   | $                   | -      |   |               | $      | - |   |   | $ | - |   |   | $ | (287 | ) |   | $ | (287 | ) |
| Natural Gas                                       |   |                | 21,038 |   |               |   | 1,265 |   |   |   | 1,408 |   |   |   | 4,058 |   |   |   | 27,769 |   |
| Total realized gain                               |   |                | 21,038 |   |               |   | 1,265 |   |   |   | 1,408 |   |   |   | 3,771 |   |   |   | 27,482 |   |
| Unrealized gain                                   |   |                | 67,932 |   |               |   | 7,210 |   |   |   | 24,938 |   |   |   | 14,183 |   |   |   | 114,263 |   |
| Commodity price risk management gain, net         |   | $                   | 88,970 |   |               | $      | 8,475 |   |   | $ | 26,346 |   |   | $ | 17,954 |   |   | $ | 141,745 |   |

|                                              |   | Three months ended               |    |   |                            |   |
|---------------------------------------------------|--------|----------------------------------|---------|--------|---------------------------------|--------|
|                                              |   | March 31, 2005(as restated) |    |   | June 30, 2005(as restated) |   |   | September 30, 2005 |   |   | December 31, 2005 |   |   | Year Ended Total |   |
| Commodity price risk management, gain (loss), net |   |                             |    |   |                            |   |   |   |   |   |   |   |   |   |   |
| Realized loss                                     |   |                             |    |   |                            |   |   |   |   |   |   |   |   |   |   |
| Oil                                               |   | $                                | (6,787  | )      |                            | $      | (8,185 | ) |   | $ | (13,395 | ) |   | $ | (10,423 | ) |   | $ | (38,790 | ) |
| Natural Gas                                       |   |                             | -       |   |                            |   | (10,443 | ) |   |   | (14,360 | ) |   |   | (33,616 | ) |   |   | (58,419 | ) |
| Total realized loss                               |   |                             | (6,787  | )      |                            |   | (18,628 | ) |   |   | (27,755 | ) |   |   | (44,039 | ) |   |   | (97,209 | ) |
| Unrealized (loss) gain                            |   |                             | (50,451 | )      |                            |   | 41,908 |   |   |   | (118,713 | ) |   |   | 128,803 |   |   |   | 1,547 |   |
| Commodity price risk management, (loss) gain, net |   | $                                | (57,238 | )      |                            | $      | 23,280 |   |   | $ | (146,468 | ) |   | $ | 84,764 |   |   | $ | (95,662 | ) |

|                                                               |   | As of                            |       |
|--------------------------------------------------------------------|--------|----------------------------------|------------|
|                                                               |   | March 31, 2007              |       |   | June 30, 2007 |   |   | September 30, 2007 |   |   | December 31, 2007 |   |
|                                                               |   |                             |       |   |   |   |   |   |   |   |   |   |
| Leasehold costs                                                    |   | $                                | 398,956    |   |   | $ | 398,956 |   |   | $ | 398,956 |   |   | $ | 337,478 |   |
| Development costs                                                  |   |                             | 11,832,843 |   |   |   | 11,832,843 |   |   |   | 11,832,843 |   |   |   | 8,329,155 |   |
| Natural gas and oil properties, successful efforts method, at cost |   |                             | 12,231,799 |   |   |   | 12,231,799 |   |   |   | 12,231,799 |   |   |   | 8,666,633 |   |
| Less: Accumulated depreciation, depletion and amortization         |   |                             | (5,351,656 | ) |   |   | (5,522,061 | ) |   |   | (5,716,414 | ) |   |   | (4,377,875 | ) |
| Natural gas and oil properties, net                                |   | $                                | 6,880,143  |   |   | $ | 6,709,738 |   |   | $ | 6,515,385 |   |   | $ | 4,288,758 |   |
|                                                               |   |                             |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   | As of                            |       |
|                                                               |   | March 31, 2006              |       |   | June 30, 2006 |   |   | September 30, 2006 |   |   | December 31, 2006 |   |
|                                                               |   |                             |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Leasehold costs                                                    |   | $                                | 398,956    |   |   | $ | 398,956 |   |   | $ | 398,956 |   |   | $ | 398,956 |   |
| Development costs                                                  |   |                             | 11,812,035 |   |   |   | 11,812,035 |   |   |   | 11,812,035 |   |   |   | 11,832,843 |   |
| Natural gas and oil properties, successful efforts method, at cost |   |                             | 12,210,991 |   |   |   | 12,210,991 |   |   |   | 12,210,991 |   |   |   | 12,231,799 |   |
| Less: Accumulated depreciation, depletion and amortization         |   |                             | (4,632,335 | ) |   |   | (4,795,100 | ) |   |   | (4,956,689 | ) |   |   | (5,154,111 | ) |
| Natural gas and oil properties, net                                |   | $                                | 7,578,656  |   |   | $ | 7,415,891 |   |   | $ | 7,254,302 |   |   | $ | 7,077,688 |   |
|                                                               |   |                             |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   | As of                            |       |
|                                                               |   | March 31, 2005(as restated) |       |   | June 30, 2005(as restated) |   |   | September 30, 2005 |   |   | December 31, 2005 |   |
|                                                               |   |                             |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Leasehold costs                                                    |   | $                                | 398,956    |   |   | $ | 398,956 |   |   | $ | 398,956 |   |   | $ | 398,956 |   |
| Development costs                                                  |   |                             | 11,812,035 |   |   |   | 11,812,035 |   |   |   | 11,812,035 |   |   |   | 11,812,035 |   |
| Natural gas and oil properties, successful efforts method, at cost |   |                             | 12,210,991 |   |   |   | 12,210,991 |   |   |   | 12,210,991 |   |   |   | 12,210,991 |   |
| Less: Accumulated depreciation, depletion and amortization         |   |                             | (3,814,373 | ) |   |   | (4,024,397 | ) |   |   | (4,230,768 | ) |   |   | (4,450,537 | ) |
| Natural gas and oil properties, net                                |   | $                                | 8,396,618  |   |   | $ | 8,186,594 |   |   | $ | 7,980,223 |   |   | $ | 7,760,454 |   |

----

Index

----

Index

----

Index

----

Index

|                                                                                                             |   | Partners’ equity increase |      |
|------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|-----------|
| Errors                                                                                                           |   | (decrease)                      |      |
| Accounts receivable from oil and gas sales                                                                       |   | $                               | 98,751    | (1) |
| Due from Managing General Partner – other, net                                                             |   |                            | 72,239    | (2) |
| Accumulated depreciation, depletion and amortization                                                             |   |                            | (664,998  | )(3) |
| Accounts payable and accrued expenses                                                                            |   |                            | 81,347    | (4) |
| Due to Managing General Partner – derivatives                                                              |   |                            | (81,783   | )(5) |
| Asset retirement obligations                                                                                     |   |                            | (52,864   | )(6) |
| Decrease to Partners’ equity as of January 1, 2005                                                         |   |                            | (547,308  | ) |
| Partners’ equity, as previously reported                                                                   |   |                            | 9,637,386 |   |
|                                                                                                             |   |                            |      |   |
| Partners’ equity, as restated                                                                              |   | $                               | 9,090,078 |   |
|                                                                                                             |   |                            |      |   |
| Decrease to Partners’ equity per Investor Partner unit, as of January 1, 2005 for 559.02 units outstanding |   | $                               | (979      | ) |

| Accumulated other comprehensive income |   | $ | (48,210 | )(7) |
|----------------------------------------|--------|---|---------|------|

----

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) |   |   | Depreciation, Depletion & Amortization (4) |    |   | Asset Retirement Obligations (5) |   |    |   Reclassification (6) |   |   |   December 31, 2004 Restatement of Partners' Equity |   |   | Restated Balance |     |
|-------------------------------------------------------------|--------|-------------------------------|-----------|--------|----------------------------------------------------------|--------|---------|-------------------------|--------|--------|------------------------------------|--------|--------|------------------------------------------------|---------|--------|----------------------------------|--------|---------|-----------------------------|--------|--------|---------------------------------------------------------------|--------|--------|------------------|----------|
| Statement of Operations                                     |   |                          |      |   |                                                     |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                        |   |   |                                                          |   |   |             |     |
| Oil and gas sales                                           |   | $                             | 468,455   |   |                                                     | $      | 40,361  |                    |   | $      | (27,690                            | )      |   | $                                              | -       |   |                             | $      | -       |                        |   | $      | -                                                             |   |   |             |     |   |   |   |   | $ | 481,126 |   |
| Oil and gas price risk management gain (loss), net          |   |                          | -         |   |                                                     |   | (57,238 | )                       |   |   | -                                  |   |   |                                           | -       |   |                             |   | -       |                        |   |   | -                                                             |   |   |             |     |   |   |   |   |   | (57,238 | ) |
| Total revenues                                              |   |                          | 468,455   |   |                                                     |   | (16,877 | )                       |   |   | (27,690                            | )      |   |                                           | -       |   |                             |   | -       |                        |   |   | -                                                             |   |   |             |     |   |   |   |   |   | 423,888 |   |
|                                                        |   |                          |      |   |                                                     |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                        |   |   |                                                          |   |   |             |     |   |   |   |   |   |   |   |
| Production and operating costs                              |   |                          | 125,332   |   |                                                     |   | -       |                    |   |   | (37,589                            | )      |   |                                           | (34,425 | )      |                             |   | -       |                        |   |   | -                                                             |   |   |             |     |   |   |   |   |   | 53,318 |   |
| Direct costs - general and administration                   |   |                          | 105       |   |                                                     |   | -       |                    |   |   | -                                  |   |   |                                           | -       |   |                             |   | -       |                        |   |   | (105                                                          | )      |   |             |     |   |   |   |   |   | - |   |
| Depreciation, depletion and amortization                    |   |                          | 198,530   |   |                                                     |   | -       |                    |   |   | -                                  |   |   |                                           | -       |   |                             |   | 28,010  |                        |   |   | -                                                             |   |   |             |     |   |   |   |   |   | 226,540 |   |
| Accretion of asset retirement obligations                   |   |                          | -         |   |                                                     |   | -       |                    |   |   | -                                  |   |   |                                           | -       |   |                             |   | -       |                        |   |   | 860                                                           |   |   |             |     |   |   |   |   |   | 860 |   |
| Total costs and expenses                                    |   |                          | 323,967   |   |                                                     |   | -       |                    |   |   | (37,589                            | )      |   |                                           | (34,425 | )      |                             |   | 28,010  |                        |   |   | 755                                                           |   |   |             |     |   |   |   |   |   | 280,718 |   |
|                                                        |   |                          |      |   |                                                     |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                        |   |   |                                                          |   |   |             |     |   |   |   |   |   |   |   |
| Income from operations                                      |   |                          | 144,488   |   |                                                     |   | (16,877 | )                       |   |   | 9,899                              |   |   |                                           | 34,425  |   |                             |   | (28,010 | )                           |   |   | (755                                                          | )      |   |             |     |   |   |   |   |   | 143,170 |   |
|                                                        |   |                          |      |   |                                                     |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                        |   |   |                                                          |   |   |             |     |   |   |   |   |   |   |   |
| Interest income                                             |   |                          | 409       |   |                                                     |   | -       |                    |   |   | -                                  |   |   |                                           | 3,377   |   |                             |   | -       |                        |   |   | -                                                             |   |   |             |     |   |   |   |   |   | 3,786 |   |
|                                                        |   |                          |      |   |                                                     |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                        |   |   |                                                          |   |   |             |     |   |   |   |   |   |   |   |
| Net income (loss)                                           |   | $                             | 144,897   |   |                                                     | $      | (16,877 | )                       |   | $      | 9,899                              |   |   | $                                              | 37,802  |   |                             | $      | (28,010 | )                           |   | $      | (755                                                          | )      |   |             |     |   |   |   |   | $ | 146,956 |   |
|                                                        |   |                          |      |   |                                                     |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                        |   |   |                                                          |   |   |             |     |   |   |   |   |   |   |   |
| Managing General Partner income                             |   | $                             | 28,979    |   |                                                     |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                        |   |   |                                                          |   |   |             |     |   |   |   |   | $ | 29,391 |   |
| Investor Partner income                                     |   |                          | 115,918   |   |                                                     |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                        |   |   |                                                          |   |   |             |     |   |   |   |   |   | 117,565 |   |
| Total                                                       |   | $                             | 144,897   |   |                                                     |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                        |   |   |                                                          |   |   |             |     |   |   |   |   | $ | 146,956 |   |
|                                                        |   |                          |      |   |                                                     |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                        |   |   |                                                          |   |   |             |     |   |   |   |   |   |   |   |
| Net income per Investor Partner unit                        |   | $                             | 207       |   |                                                     |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                        |   |   |                                                          |   |   |             |     |   |   |   |   | $ | 210 |   |
|                                                        |   |                          |      |   |                                                     |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                        |   |   |                                                          |   |   |             |     |   |   |   |   |   |   |   |
| Balance Sheet                                               |   |                          |      |   |                                                     |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                        |   |   |                                                          |   |   |             |     |   |   |   |   |   |   |   |
| Cash                                                        |   | $                             | 1,588     |   |                                                     | $      | -       |                    |   | $      | -                                  |   |   | $                                              | -       |   |                             | $      | -       |                        |   | $      | -                                                             |   |   | $                | -        |   |   | $ | - |   |   | $ | 1,588 |   |
| Accounts receivable                                         |   |                          | 377,524   |   |                                                     |   | 38,549  |                    |   |   | (50,521                            | )      |   |                                           | -       |   |                             |   | -       |                        |   |   | -                                                             |   |   |             | (239,649 | ) |   |   | 98,751 |   |   |   | 224,654 |   |
| Due from Managing General Partner - derivatives, short term |   |                          | -         |   |                                                     |   | 1,903   |                    |   |   | -                                  |   |   |                                           | -       |   |                             |   | -       |                        |   |   | -                                                             |   |   |             | -        |   |   |   | (436 | ) |   |   | 1,467 |   |
| Due from Managing General Partner-other, net                |   |                          | 711       |   |                                                     |   | (6,786  | )                       |   |   | 109,015                            |   |   |                                           | 37,802  |   |                             |   | -       |                        |   |   | -                                                             |   |   |             | 194,828  |   |   |   | 72,239 |   |   |   | 407,809 |   |
| Total current assets                                        |   |                          | 379,823   |   |                                                     |   | 33,666  |                    |   |   | 58,494                             |   |   |                                           | 37,802  |   |                             |   | -       |                        |   |   | -                                                             |   |   |             | (44,821  | ) |   |   | 170,554 |   |   |   | 635,518 |   |
|                                                        |   |                          |      |   |                                                     |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                        |   |   |                                                          |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Oil and gas properties, net                                 |   |                          | 9,089,626 |   |                                                     |   | -       |                    |   |   | -                                  |   |   |                                           | -       |   |                             |   | (28,010 | )                           |   |   | -                                                             |   |   |             | -        |   |   |   | (664,998 | ) |   |   | 8,396,618 |   |
|                                                        |   |                          |      |   |                                                     |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                        |   |   |                                                          |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Due from Managing General Partner-derivatives, long term    |   |                          |      |   |                                                     |   | 1,953   |                    |   |   | -                                  |   |   |                                           | -       |   |                             |   | -       |                        |   |   | -                                                             |   |   |             | -        |   |   |   | - |   |   |   | 1,953 |   |
| Total assets                                                |   | $                             | 9,469,449 |   |                                                     | $      | 35,619  |                    |   | $      | 58,494                             |   |   | $                                              | 37,802  |   |                             | $      | (28,010 | )                           |   | $      | -                                                             |   |   | $                | (44,821  | ) |   | $ | (494,444 | ) |   | $ | 9,034,089 |   |
|                                                        |   |                          |      |   |                                                     |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                        |   |   |                                                          |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                       |   | $                             | 47,195    |   |                                                     | $      | 44,548  |                    |   | $      | 48,595                             |   |   | $                                              | -       |   |                             | $      | -       |                        |   | $      | -                                                             |   |   | $                | (44,821  | ) |   | $ | (81,347 | ) |   | $ | 14,170 |   |
| Due to Managing General Partner-derivatives, short term     |   |                          | -         |   |                                                     |   | 20,071  |                    |   |   | -                                  |   |   |                                           | -       |   |                             |   | -       |                        |   |   | -                                                             |   |   |             | -        |   |   |   | 81,347 |   |   |   | 101,418 |   |
| Due to Managing General Partner-derivatives, long term      |   |                          | -         |   |                                                     |   | 663     |                    |   |   | -                                  |   |   |                                           | -       |   |                             |   | -       |                        |   |   | -                                                             |   |   |             | -        |   |   |   | - |   |   |   | 663 |   |
| Asset retirement obligations                                |   |                          | 7,101     |   |                                                     |   | -       |                    |   |   | -                                  |   |   |                                           | -       |   |                             |   | -       |                        |   |   | 755                                                           |   |   |             | -        |   |   |   | 52,864 |   |   |   | 60,720 |   |
| Total liabilities                                           |   |                          | 54,296    |   |                                                     |   | 65,282  |                    |   |   | 48,595                             |   |   |                                           | -       |   |                             |   | -       |                        |   |   | 755                                                           |   |   |             | (44,821  | ) |   |   | 52,864 |   |   |   | 176,971 |   |
|                                                        |   |                          |      |   |                                                     |   |    |                    |   |   |                               |   |   |                                           |    |   |                             |   |    |                        |   |   |                                                          |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Accumulated other comprehensive income                      |   |                          | (35,424   | )      |                                                     |   | (12,786 | )                       |   |   | -                                  |   |   |                                           | -       |   |                             |   | -       |                        |   |   | -                                                             |   |   |             | -        |   |   |   | 48,210 |   |   |   | - |   |
| Partners' equity                                            |   |                          | 9,450,577 |   |                                                     |   | (16,877 | )                       |   |   | 9,899                              |   |   |                                           | 37,802  |   |                             |   | (28,010 | )                           |   |   | (755                                                          | )      |   |             | -        |   |   |   | (595,518 | ) |   |   | 8,857,118 |   |
| Total liabilities and Partners' equity                      |   | $                             | 9,469,449 |   |                                                     | $      | 35,619  |                    |   | $      | 58,494                             |   |   | $                                              | 37,802  |   |                             | $      | (28,010 | )                           |   | $      | -                                                             |   |   | $                | (44,821  | ) |   | $ | (494,444 | ) |   | $ | 9,034,089 |   |

|   | (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 a realized and an unrealized derivative loss of $57,238, and reclassification of a realized loss of $40,361 previously included in natural gas and oil sales during the first quarter of 2005.  The correction also resulted in changes to balance sheet captions as follows:  an increase in “Accounts receivable” of $38,549; an increase in “Due from Managing General Partner – derivatives” (short term) of $1,903; a decrease in “Due from Managing General Partner – other, net” of $6,786; an increase in “Due from Managing General Partner – derivatives” (long term) of $1,953; an increase in “Accounts payable and accrued expenses” of $44,548; an increase in “Due to Managing General Partner – derivatives” (short term) of $20,071; an increase in “Due to Managing General Partner – derivatives” (long term) of $663; and an increase in the “Accumulated other comprehensive loss” of $12,786. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | (2) | The Partnership determined that natural gas and oil revenues had been overstated for the three month period ended March 31, 2005 by $27,690 and production and operating costs were overstated by $37,589.  The reversal of the previously recorded incorrect natural gas and oil revenues accrual and the recording of the correct accrual resulted in changes to the Balance Sheet captions as follows:  a decrease in “Accounts receivable” of $50,521; an increase in “Due from Managing General Partner – other, net” of $109,015; and an increase in “Accounts payable and accrued expenses” of $48,595. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (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 $37,802, including $3,377 in forgone interest income, during the three month period ended March 31, 2005.  Properly recording these costs resulted in an increase in “Due from Managing General Partner – other, net” of $37,802. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | The “Depreciation, depletion and amortization” error related to Partnership’s wells being assigned to one combined field instead of two separate fields.  The revised calculation of DD&A using two fields resulted in additional DD&A expense of $28,010 during the first quarter of 2005 with a corresponding decrease in “Natural gas and oil properties, net” at March 31, 2005 of $28,010. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | The Partnership also used an incorrect starting date for accretion of the asset retirement obligation resulting in an understatement of “Accretion of asset retirement obligations” of $860 offset by a reduction in “Direct costs – general and administration” of $105.  Recording the additional accretion resulted in an increase to the Balance Sheet caption “Asset retirement obligations” of $755. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Represents the reclassification of $239,649 of “Accounts receivable” for undistributed natural gas and oil 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 $44,821 of “Accounts payable and accrued expenses” for natural gas and oil production costs to “Due from Managing General Partner – other, net” to conform to the 2007 current year presentation. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   Quarter ended June 30, 2005                          |   | Amount as Previously Reported |      |   | Unrealized Derivatives Gain (Loss), Net (1) |   |    | Oil & gas Sales (2) |   |   | Production and Operating Costs (3) |   |   | Depreciation, Depletion & Amortization (4) |    |   | Accretion of Asset Retirement Obligations (5) |   |    |   Reclassification (6) |   |   | December 31, 2004 Restatement of Partners' Equity |   |   |   March 31, 2005 Restatement |     |   | Restated Balance |   |
|-------------------------------------------------------------|--------|-------------------------------|-----------|--------|---------------------------------------------|--------|---------|-------------------------|--------|--------|------------------------------------|--------|--------|------------------------------------------------|---------|--------|-----------------------------------------------|--------|---------|-----------------------------|--------|--------|-------------------------------------------------------------|--------|--------|----------------------------------------|----------|--------|------------------|--------|
| Statement of Operations                                     |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                        |   |   |                                                        |   |   |                                   |     |   |             |   |
| Oil and gas sales                                           |   | $                             | 452,959   |   |                                        | $      | 18,629  |                    |   | $      | 26,581                             |   |   | $                                              | -       |   |                                          | $      | -       |                        |   | $      | -                                                           |   |   |                                   |     |   |             |   |   |   |   |   |   | $ | 498,169 |   |
| Oil and gas price risk management gain (loss), net          |   |                          | -         |   |                                        |   | 23,280  |                    |   |   | -                                  |   |   |                                           | -       |   |                                          |   | -       |                        |   |   | -                                                           |   |   |                                   |     |   |             |   |   |   |   |   |   |   | 23,280 |   |
| Total revenues                                              |   |                          | 452,959   |   |                                        |   | 41,909  |                    |   |   | 26,581                             |   |   |                                           | -       |   |                                          |   | -       |                        |   |   | -                                                           |   |   |                                   |     |   |             |   |   |   |   |   |   |   | 521,449 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                        |   |   |                                                        |   |   |                                   |     |   |             |   |   |   |   |   |   |   |   |   |
| Production and operating costs                              |   |                          | 86,665    |   |                                        |   | -       |                    |   |   | 16,126                             |   |   |                                           | (33,857 | )      |                                          |   | -       |                        |   |   | -                                                           |   |   |                                   |     |   |             |   |   |   |   |   |   |   | 68,934 |   |
| Direct costs - general and administration                   |   |                          | 105       |   |                                        |   | -       |                    |   |   | -                                  |   |   |                                           | -       |   |                                          |   | -       |                        |   |   | (105                                                        | )      |   |                                   |     |   |             |   |   |   |   |   |   |   | - |   |
| Depreciation, depletion and amortization                    |   |                          | 185,778   |   |                                        |   | -       |                    |   |   | -                                  |   |   |                                           | -       |   |                                          |   | 24,246  |                        |   |   | -                                                           |   |   |                                   |     |   |             |   |   |   |   |   |   |   | 210,024 |   |
| Accretion of asset retirement obligations                   |   |                          | -         |   |                                        |   | -       |                    |   |   | -                                  |   |   |                                           | -       |   |                                          |   | -       |                        |   |   | 873                                                         |   |   |                                   |     |   |             |   |   |   |   |   |   |   | 873 |   |
| Total costs and expenses                                    |   |                          | 272,548   |   |                                        |   | -       |                    |   |   | 16,126                             |   |   |                                           | (33,857 | )      |                                          |   | 24,246  |                        |   |   | 768                                                         |   |   |                                   |     |   |             |   |   |   |   |   |   |   | 279,831 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                        |   |   |                                                        |   |   |                                   |     |   |             |   |   |   |   |   |   |   |   |   |
| Income from operations                                      |   |                          | 180,411   |   |                                        |   | 41,909  |                    |   |   | 10,455                             |   |   |                                           | 33,857  |   |                                          |   | (24,246 | )                           |   |   | (768                                                        | )      |   |                                   |     |   |             |   |   |   |   |   |   |   | 241,618 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                        |   |   |                                                        |   |   |                                   |     |   |             |   |   |   |   |   |   |   |   |   |
| Interest income                                             |   |                          | 813       |   |                                        |   | -       |                    |   |   | -                                  |   |   |                                           | 3,322   |   |                                          |   | -       |                        |   |   | -                                                           |   |   |                                   |     |   |             |   |   |   |   |   |   |   | 4,135 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                        |   |   |                                                        |   |   |                                   |     |   |             |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                           |   | $                             | 181,224   |   |                                        | $      | 41,909  |                    |   | $      | 10,455                             |   |   | $                                              | 37,179  |   |                                          | $      | (24,246 | )                           |   | $      | (768                                                        | )      |   |                                   |     |   |             |   |   |   |   |   |   | $ | 245,753 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                        |   |   |                                                        |   |   |                                   |     |   |             |   |   |   |   |   |   |   |   |   |
| Managing General Partner income                             |   | $                             | 36,245    |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                        |   |   |                                                        |   |   |                                   |     |   |             |   |   |   |   |   |   | $ | 49,150 |   |
| Investor Partner income                                     |   |                          | 144,979   |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                        |   |   |                                                        |   |   |                                   |     |   |             |   |   |   |   |   |   |   | 196,603 |   |
| Total                                                       |   | $                             | 181,224   |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                        |   |   |                                                        |   |   |                                   |     |   |             |   |   |   |   |   |   | $ | 245,753 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                        |   |   |                                                        |   |   |                                   |     |   |             |   |   |   |   |   |   |   |   |   |
| Net income per Investor Partner unit                        |   | $                             | 259       |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                        |   |   |                                                        |   |   |                                   |     |   |             |   |   |   |   |   |   | $ | 352 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                        |   |   |                                                        |   |   |                                   |     |   |             |   |   |   |   |   |   |   |   |   |
| Balance Sheet                                               |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                        |   |   |                                                        |   |   |                                   |     |   |             |   |   |   |   |   |   |   |   |   |
| Cash                                                        |   | $                             | 3,113     |   |                                        | $      | -       |                    |   | $      | -                                  |   |   | $                                              | -       |   |                                          | $      | -       |                        |   | $      | -                                                           |   |   | $                                      | -        |   |             | $      | - |   |   | $ | - |   |   | $ | 3,113 |   |
| Accounts receivable                                         |   |                          | 374,712   |   |                                        |   | 11,170  |                    |   |   | 25,506                             |   |   |                                           | -       |   |                                          |   | -       |                        |   |   | -                                                           |   |   |                                   | (261,090 | )      |             |   | 98,751 |   |   |   | (11,972 | ) |   |   | 237,077 |   |
| Due from Managing General Partner - derivatives, short term |   |                          | -         |   |                                        |   | 6,629   |                    |   |   | -                                  |   |   |                                           | -       |   |                                          |   | -       |                        |   |   | -                                                           |   |   |                                   | -        |   |             |   | (436 | ) |   |   | (4,884 | ) |   |   | 1,309 |   |
| Due from Managing General Partner-other, net                |   |                          | -         |   |                                        |   | (18,627 | )                       |   |   | (12,711                            | )      |   |                                           | 37,179  |   |                                          |   | -       |                        |   |   | -                                                           |   |   |                                   | 217,962  |   |             |   | 72,239 |   |   |   | 146,817 |   |   |   | 442,859 |   |
| Total current assets                                        |   |                          | 377,825   |   |                                        |   | (828    | )                       |   |   | 12,795                             |   |   |                                           | 37,179  |   |                                          |   | -       |                        |   |   | -                                                           |   |   |                                   | (43,128  | )      |             |   | 170,554 |   |   |   | 129,961 |   |   |   | 684,358 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                        |   |   |                                                        |   |   |                                   |     |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Oil and gas properties, net                                 |   |                          | 8,903,848 |   |                                        |   | -       |                    |   |   | -                                  |   |   |                                           | -       |   |                                          |   | (24,246 | )                           |   |   | -                                                           |   |   |                                   | -        |   |             |   | (664,998 | ) |   |   | (28,010 | ) |   |   | 8,186,594 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                        |   |   |                                                        |   |   |                                   |     |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Due from Managing General Partner-derivatives, long term    |   |                          | -         |   |                                        |   | (1,215  | )                       |   |   | -                                  |   |   |                                           | -       |   |                                          |   | -       |                        |   |   | -                                                           |   |   |                                   | -        |   |             |   | - |   |   |   | 1,953 |   |   |   | 738 |   |
| Total assets                                                |   | $                             | 9,281,673 |   |                                        | $      | (2,043  | )                       |   | $      | 12,795                             |   |   | $                                              | 37,179  |   |                                          | $      | (24,246 | )                           |   | $      | -                                                           |   |   | $                                      | (43,128  | )      |             | $      | (494,444 | ) |   | $ | 103,904 |   |   | $ | 8,871,690 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                        |   |   |                                                        |   |   |                                   |     |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                       |   | $                             | 68,070    |   |                                        | $      | (22,000 | )                       |   | $      | 2,340                              |   |   | $                                              | -       |   |                                          | $      | -       |                        |   | $      | -                                                           |   |   | $                                      | (43,128  | )      |             | $      | (81,347 | ) |   | $ | 93,143 |   |   | $ | 17,078 |   |
| Due to Managing General Partner-derivatives, short term     |   |                          | -         |   |                                        |   | (47,446 | )                       |   |   | -                                  |   |   |                                           | -       |   |                                          |   | -       |                        |   |   | -                                                           |   |   |                                   | -        |   |             |   | 81,347 |   |   |   | 20,071 |   |   |   | 53,972 |   |
| Due to Managing General Partner-derivatives, long term      |   |                          | -         |   |                                        |   | 4,165   |                    |   |   | -                                  |   |   |                                           | -       |   |                                          |   | -       |                        |   |   | -                                                           |   |   |                                   | -        |   |             |   | - |   |   |   | 662 |   |   |   | 4,827 |   |
| Asset retirement obligations                                |   |                          | 7,206     |   |                                        |   | -       |                    |   |   | -                                  |   |   |                                           | -       |   |                                          |   | -       |                        |   |   | 768                                                         |   |   |                                   | -        |   |             |   | 52,864 |   |   |   | 755 |   |   |   | 61,593 |   |
| Total liabilities                                           |   |                          | 75,276    |   |                                        |   | (65,281 | )                       |   |   | 2,340                              |   |   |                                           | -       |   |                                          |   | -       |                        |   |   | 768                                                         |   |   |                                   | (43,128  | )      |             |   | 52,864 |   |   |   | 114,631 |   |   |   | 137,470 |   |
|                                                        |   |                          |      |   |                                        |   |    |                    |   |   |                               |   |   |                                           |    |   |                                          |   |    |                        |   |   |                                                        |   |   |                                   |     |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated other comprehensive income                      |   |                          | (56,753   | )      |                                        |   | 21,329  |                    |   |   | -                                  |   |   |                                           | -       |   |                                          |   | -       |                        |   |   | -                                                           |   |   |                                   | -        |   |             |   | 48,210 |   |   |   | (12,786 | ) |   |   | - |   |
| Partners' equity                                            |   |                          | 9,263,150 |   |                                        |   | 41,909  |                    |   |   | 10,455                             |   |   |                                           | 37,179  |   |                                          |   | (24,246 | )                           |   |   | (768                                                        | )      |   |                                   | -        |   |             |   | (595,518 | ) |   |   | 2,059 |   |   |   | 8,734,220 |   |
| Total liabilities and Partners' equity                      |   | $                             | 9,281,673 |   |                                        | $      | (2,043  | )                       |   | $      | 12,795                             |   |   | $                                              | 37,179  |   |                                          | $      | (24,246 | )                           |   | $      | -                                                           |   |   | $                                      | (43,128  | )      |             | $      | (494,444 | ) |   | $ | 103,904 |   |   | $ | 8,871,690 |   |

|   | (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 a realized and an unrealized derivative gain of $23,280, and reclassification of a realized loss of $18,629 previously included in natural gas and oil sales during the second quarter of 2005.  The correction also resulted in changes to balance sheet captions as follows:  an increase in “Accounts receivable” of $11,170; an increase in “Due from Managing General Partner – derivatives” (short term) of $6,629; a decrease in “Due from Managing General Partner – other, net” of $18,627; a decrease in “Due from Managing General Partner – derivatives” (long term) of $1,215; a decrease in “Accounts payable and accrued expenses” of $22,000; a decrease in “Due to Managing General Partner – derivatives” (short term) of $47,446; an increase in “Due to Managing General Partner – derivatives” (long term) of $4,165; and a decrease in the “Accumulated other comprehensive loss” of $21,329. |
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Index

|   | (2) | The Partnership determined that natural gas and oil revenues had been understated for the three month period ended June 30, 2005 by $26,581 and production and operating costs were understated by $16,126.  The reversal of the previously recorded incorrect natural gas and oil 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 $25,506; a decrease in “Due from Managing General Partner – other, net” of $12,711; and an increase in “Accounts payable and accrued expenses” of $2,340. |
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|   | (3) | PDC determined that it had 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 $37,179, including $3,322 in forgone interest income, during the three month period ended June 30, 2005.  Properly recording these costs resulted in an increase in “Due from Managing General Partner – other, net” of $37,179. |
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|   | (4) | The “Depreciation, depletion and amortization” error related to Partnership’s wells being assigned to one combined field instead of two separate fields.  The revised calculation of DD&A using two fields resulted in an increase to DD&A expense of $24,246 during the second quarter of 2005 with a corresponding decrease in “Natural gas and oil properties, net” at June 30, 2005 of $24,246. |
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|   | (5) | The Partnership also used an incorrect starting date for accretion of the asset retirement obligation resulting in an understatement of “Accretion of asset retirement obligations” of $873 offset by a decrease in “Direct costs – general and administration” $105.  Recording the additional accretion resulted in an increase to the Balance Sheet caption “Asset retirement obligations” of $768. |
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|   | (6) | Represents the reclassification of $261,090 of “Accounts receivable” for undistributed natural gas and oil revenues collected by the Managing General Partner from the Partnership’s customers from “Accounts receivable” to “Due from Managing General Partner – other, net” accompanied by the reclassification of $43,128 from “Accounts payable and accrued expenses” for production and operating costs to “Due from Managing General Partner – other, net” to conform to the 2007 presentation. |
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