# ** **

# **UNITED STATES**

**SECURITIES AND EXCHANGECOMMISSION**

# **Washington, D.C. 20549**

 

# ****

 

## **FORM 10-Q**

## ** **

| **x**      | ** ** | **QUARTERLY  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE  ACT OF 1934**                                                                                                                       |
|------------|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** ** | ** ** | **For  the Quarterly Period Ended March 31, 2008**                                                                                                                                                                       |
| ** ** | ** ** | ** **                                                                                                                                                                                                                    |
| **OR**     |
|       |       |                                                                                                                                                                                                                          |
| **o**      | ** ** | **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE  SECURITIES EXCHANGE ACT OF 1934**                                                                                                                      |
| ** ** | ** ** | **For  the Transition Period from                    to              ** |

# **Commission File Number: 333-93399-04**

# ** **

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**REEF GLOBAL ENERGY IV, L.P.**

(Exact name of registrant asspecified in its charter)

 

| **Nevada**

(State or other jurisdiction of

incorporation or organization)                                            | ** ** | **20-1654113**

(I.R.S. employer

identification no.) |
|------------------------------------------------------------------------------------------------------------------------|------------|-------------------------------------------------------|
|                                                                                                                   |       |                                                  |
| **1901 N. Central Expressway, Suite 300**

**Richardson,  Texas 75080**

(Address of principal executive offices) | ** ** | **75080-3609**

(Zip code)                            |
| ** **                                                                                                             | ** ** | ** **                                            |
| Registrant’s telephone number, including area code: **(972)-437-6792**                                       |

 

Indicate by checkmark whether the registrant (1) has filed all reports required to be filedby Section 13 or 15(d) of the Securities Exchange Act of 1934 duringthe preceding 12 months (or for such shorter period that the registrantwas required to file such reports), and (2) has been subject to suchfiling requirements for the past 90 days. Yes x   No o

 

Indicate by check markwhether the registrant is a large accelerated filer, an accelerated filer, anon-accelerated filer, or a smaller reporting company. See definitions of“large accelerated filer,” “accelerated filer,” and “smaller reporting company”in Rule 12b-2 of the Exchange Act. (Check one):

 

| Large accelerated filer  o                     |   | Accelerated filer o          |
|------------------------------------------------|--------|-----------------------------------|
|                                           |   |                              |
| Non-accelerated filer o                        |   | Smaller reporting  company x |
| (Do not check if a  smaller reporting company) |   |                              |

 

Indicate by check markwhether the registrant is a shell company (as defined in Rule 12b-2 of theExchange Act). Yes o    No x

 

**As of March 31, 2008, the registrant had 25.028units of general partner interest held by the managing general partner, 125.000units of additional general partner interest and 349.972 units of limitedpartner interest outstanding.**

** **

** **

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** **

**Reef Global Energy IV,L.P.**

**Form 10-Q Index**

 
| **PART I —  FINANCIAL INFORMATION** |
|-----------------------------------------------|
|                                          |   |   |
| ** **                                    | **ITEM 1.** | **Financial  Statements (Unaudited)** |
|                                          |   | *Condensed Balance  Sheets* |
|                                          |   | *Condensed  Statements of Operations* |
|                                          |   | *Condensed  Statements of Cash Flows* |
|                                          |   | *Notes to  Condensed Financial Statements* |
|                                          |   |   |
| ** **                                    | **ITEM 2.** | **Management’s  Discussion and Analysis of Financial Condition and Results of Operations** |
|                                          |   |   |
| ** **                                    | **ITEM 3.** | **Quantitative  and Qualitative Disclosures About Market Risk** |
|                                          |   |   |
| ** **                                    | **ITEM 4T.** | **Controls and  Procedures** |
|                                          |   |   |
| **PART II — OTHER  INFORMATION**    |
|                                          |   |   |
| ** **                                    | **ITEM 1.** | **Legal Proceedings** |
|                                          |   |   |
| ** **                                    | **ITEM 2.** | **Unregistered  Sales of Equity Securities and Use of Proceeds** |
|                                          |   |   |
| ** **                                    | **ITEM 3.** | **Default  Upon Senior Securities** |
|                                          |   |   |
| ** **                                    | **ITEM 4.** | **Submission  of Matters to a Vote of Security Holders** |
|                                          |   |   |
| ** **                                    | **ITEM 5.** | **Other Information** |
|                                          |   |   |
| ** **                                    | **ITEM 6.** | **Exhibits** |
|                                          |   |   |
|                                          | **Signatures** |   |

 

ii

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# ** **

# **PART I FINANCIAL INFORMATION**

# ** **

## **Item 1. FinancialStatements**

## ** **

**Reef Global Energy IV, L.P.**

**Condensed Balance Sheets**

** **
| ** **                                                                    | ** ** | **March 31,** | ** **  | **December 31,** | ** ** |
|-------------------------------------------------------------------------------|------------|--------------------|-------------|-----------------------|------------|
| ** **                                                                    | ** ** | **2008**           | ** **  | **2007**              | ** ** |
| ** **                                                                    | ** ** | **(Unaudited)**    | ** **  | ** **            | ** ** |
|                                                                          |       |               |        |                  |       |
| **Assets**                                                                    |       |               |        |                  |       |
|                                                                          |       |               |        |                  |       |
| **Current  assets:**                                                          |       |               |        |                  |       |
| Cash and cash  equivalents                                                    | ** ** | **$**              | 37,800      |                  | **$**      | 75,764 | ** ** |
| Accounts  receivable from affiliates, net                                     |       | 38,467             |        | —                |       |
| **Total  current assets**                                                     | ** ** | **76,267**         | ** **  | **75,764**            | ** ** |
|                                                                          |       |               |        |                  |       |
| **Oil and  natural gas properties, full cost method of accounting:**          |       |               |        |                  |       |
| Proved  properties, net of accumulated depletion of $8,407,324 and $8,393,271 |       | 197,119            |        | 152,562               |       |
| **Net oil  and natural gas properties**                                       | ** ** | **197,119**        | ** **  | **152,562**           | ** ** |
| ** **                                                                    | ** ** | ** **         | ** **  | ** **            | ** ** |
| **Total  assets**                                                             | ** ** | **$**              | **273,386** | ** **            | **$**      | **228,326** | ** ** |
|                                                                          |       |               |        |                  |       |
| **Liabilities  and partnership equity**                                       |       |               |        |                  |       |
|                                                                          |       |               |        |                  |       |
| **Current  liabilities:**                                                     |       |               |        |                  |       |
| Accounts payable                                                              | ** ** | **$**              | 106         |                  | **$**      | 82 |   |
| Accounts payable  to affiliates                                               |       | 4,037              |        | 6,240                 |       |
| **Total  current liabilities**                                                | ** ** | **4,143**          | ** **  | **6,322**             | ** ** |
|                                                                          |       |               |        |                  |       |
| **Long-term  liabilities:**                                                   |       |               |        |                  |       |
| Asset retirement  obligation                                                  |       | 139,027            |        | 137,757               |       |
| **Total  long-term liabilities**                                              | ** ** | **139,027**        | ** **  | **137,757**           | ** ** |
|                                                                          |       |               |        |                  |       |
| **Partnership  equity:**                                                      |       |               |        |                  |       |
| General partners                                                              |       | 7,816              |        | 3,459                 |       |
| Limited partners                                                              |       | 21,884             |        | 9,683                 |       |
| Managing general  partner                                                     |       | 100,516            |        | 71,105                |       |
| **Partnership  equity**                                                       | ** ** | **130,216**        | ** **  | **84,247**            | ** ** |
| ** **                                                                    | ** ** | ** **         | ** **  | ** **            | ** ** |
| **Total  liabilities and partnership equity**                                 | ** ** | **$**              | **273,386** | ** **            | **$**      | **228,326** | ** ** |

 

*Seeaccompanying notes to condensed financial statements.*

 

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**Reef Global Energy IV, L.P.**

**Condensed Statements ofOperations**

*** ***
| ** **                                  | ** ** | **For the three months ended  March 31, (unaudited)** | ** **  |
|---------------------------------------------|------------|-------------------------------------------------------------------------------------|-------------|
| ** **                                  | ** ** | **2008**                                                                            | ** **  | **2007** | ** ** |
|                                        |       |                                                                                |        |   |   |
| **Revenues**                                | ** ** | **$**                                                                               | **62,852**  | ** ** | **$** | **36,536** | ** ** |
|                                        |       |                                                                                |        |   |   |
| **Costs  and expenses:**                    |       |                                                                                |        |   |   |
| Lease operating  expenses                   |       | 12,695                                                                              |        | 13,540 |   |
| Production taxes                            |       | 4,098                                                                               |        | 2,255 |   |
| Depreciation,  depletion and amortization   |       | 14,053                                                                              |        | 14,992 |   |
| Property  impairment                        |       | —                                                                              |        | 56,256 |   |
| Accretion of  asset retirement obligation   |       | 1,270                                                                               |        | 34,154 |   |
| General and  administrative                 |       | 9,108                                                                               |        | 9,026 |   |
| **Total  costs and expenses**               | ** ** | **41,224**                                                                          | ** **  | **130,223** | ** ** |
|                                        |       |                                                                                |        |   |   |
| **Income  (loss) from operations**          | ** ** | **21,628**                                                                          | ** **  | **(93,687** | **)** |
|                                        |       |                                                                                |        |   |   |
| **Other  income:**                          |       |                                                                                |        |   |   |
| Interest income                             |       | 231                                                                                 |        | 334 |   |
| **Total  other income**                     | ** ** | **231**                                                                             | ** **  | **334** | ** ** |
|                                        |       |                                                                                |        |   |   |
| **Net  income (loss)**                      | ** ** | **$**                                                                               | **21,859**  | ** ** | **$** | **(93,353** | **)** |
|                                        |       |                                                                                |        |   |   |
| Net income  (loss) per general partner unit | ** ** | **$**                                                                               | **68.52**   | ** ** | **$** | **(184.84** | **)** |
| Net income  (loss) per limited partner unit | ** ** | **$**                                                                               | **68.52**   | ** ** | **$** | **(184.84** | **)** |
| Net loss per managing  general partner unit | ** ** | **$**                                                                               | **(426.97** | **)** | **$** | **(222.17** | **)** |

 

*See accompanying notes tocondensed financial statements.*

 

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**Reef Global Energy IV, L.P.**

**Condensed Statements of CashFlows**

** **
| ** **                                                                       | ** ** | **For the three months ended  March 31, (unaudited)** | ** ** |
|----------------------------------------------------------------------------------|------------|-------------------------------------------------------------------------------------|------------|
| ** **                                                                       | ** ** | **2008**                                                                            | ** ** | **2007** | ** ** |
| ** **                                                                       | ** ** | ** **                                                                          | ** ** | ** ** | ** ** |
| **Operating  Activities**                                                        |       |                                                                                |       |   |   |
| Net income  (loss)                                                               | ** ** | **$**                                                                               | 21,859     | ** ** | **$** | (93,353 | ) |
| Adjustments for  non-cash transactions:                                          | ** ** | ** **                                                                          | ** ** | ** ** | ** ** |
| Depreciation,  depletion and amortization                                        |       | 14,053                                                                              |       | 14,992 |   |
| Property  impairment                                                             |       | —                                                                              |       | 56,256 |   |
| Accretion of  asset retirement obligation                                        |       | 1,270                                                                               |       | 34,154 |   |
| Adjustments to  reconcile net loss to net cash provided by operating activities: | ** ** | ** **                                                                          | ** ** | ** ** | ** ** |
| Changes in  operating assets and liabilities:                                    |       |                                                                                |       |   |   |
| Accounts payable                                                                 |       | 24                                                                                  |       | (216 | ) |
| Accounts payable  to affiliates                                                  |       | (1,451                                                                              | )          | (40,250 | ) |
| **Net  cash provided by (used in) operating activities**                         | ** ** | **35,755**                                                                          | ** ** | **(28,417** | **)** |
| ** **                                                                       | ** ** | ** **                                                                          | ** ** | ** ** | ** ** |
| **Investing  Activities**                                                        | ** ** | ** **                                                                          | ** ** | ** ** | ** ** |
| Property  acquisition and development                                            |       | (58,610                                                                             | )          | — |   |
| **Net  cash used in investing activities**                                       | ** ** | **(58,610**                                                                         | **)**      | **—** | ** ** |
| ** **                                                                       | ** ** | ** **                                                                          | ** ** | ** ** | ** ** |
| **Financing  Activities**                                                        | ** ** | ** **                                                                          | ** ** | ** ** | ** ** |
| Partner capital  contributions                                                   |       | 1,891                                                                               |       | 29,023 |   |
| Partner  distributions                                                           |       | (17,000                                                                             | )          | — |   |
| **Net  cash provided by (used in) financing activities**                         | ** ** | **(15,109**                                                                         | **)**      | **29,023** | ** ** |
| ** **                                                                       | ** ** | ** **                                                                          | ** ** | ** ** | ** ** |
| **Net  increase (decrease) in cash and cash equivalents**                        | ** ** | **(37,964**                                                                         | **)**      | **606** | ** ** |
| Cash and cash  equivalents at beginning of period                                |       | 75,764                                                                              |       | 83,061 |   |
| **Cash  and cash equivalents at end of period**                                  | ** ** | **$**                                                                               | **37,800** | ** ** | **$** | **83,667** | ** ** |
| ** **                                                                       | ** ** | ** **                                                                          | ** ** | ** ** | ** ** |
| **Supplemental  disclosure of non-cash financing transactions:**                 | ** ** | ** **                                                                          | ** ** | ** ** | ** ** |
| Managing partner  contributions included in accounts receivable from affiliates  | ** ** | $                                                                                   | 38,467     |   | $ | 31,551 | ** ** |

 

*See accompanying notes tocondensed financial statements.*

 

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**ReefGlobal Energy IV, L.P.**

**Notes to Condensed Financial Statements(unaudited)**

**March 31, 2008**

 

**1.Organization and Basis of Presentation**

 

The financial statementsof Reef Global Energy IV, L.P. (the “Partnership”) have been prepared pursuantto the rules and regulations of the Securities and Exchange Commission(the “SEC”). Certain information and footnote disclosure normally included inannual financial statements prepared in accordance with accounting principlesgenerally accepted in the United States have been condensed or omitted pursuantto those rules and regulations. We have recorded all transactions andadjustments necessary to fairly present the financial statements included inthis Quarterly Report on Form 10-Q (this “Quarterly Report”). Theadjustments are normal and recurring. The following notes describe only thematerial changes in accounting policies, account details, or financialstatement notes during the first three months of 2008. Therefore, please readthese condensed financial statements and notes to condensed financialstatements together with the audited financial statements and notes tofinancial statements contained in the Partnership’s Annual Report on Form 10-Kfor the period ended December 31, 2007 (the “Annual Report”).

 

**2.Summary of Accounting Policies**

 

**Oil andNatural Gas Properties**

 

The Partnership followsthe full cost method of accounting for crude oil and natural gas properties.Under this method, all direct costs and certain indirect costs associated withacquisition of properties and successful as well as unsuccessful exploration anddevelopment activities are capitalized. Depreciation, depletion, andamortization of capitalized crude oil and natural gas properties and estimatedfuture development costs, excluding unproved properties, are based on theunit-of-production method using estimated proved reserves. For these purposes,proved gas reserves are converted to equivalent barrels at a rate of 6 Mcf to 1Bbl. Net capitalized costs of crude oil and natural gas properties, as adjustedfor asset retirement obligations, are limited to the lower of unamortized costor the cost ceiling, defined as the sum of the present value of estimatedfuture net revenues from proved reserves based on prices in effect at the endof the period held constant and discounted at 10 percent, plus the lower of costor fair value of unproved properties, if any. Pursuant to full cost accountingrules, the Partnership performs a ceiling test quarterly as of the balancesheet date on its proved oil and natural gas properties. Excess capitalizedcosts are charged to property impairment expense. No gain or loss is recognizedupon sale or disposition of crude oil and natural gas properties, unless such asale would significantly alter the rate of depletion and amortization. Duringthe three month periods ended March 31, 2008 and 2007, the Partnershiprecognized property impairment expenses of $0 and $56,256, respectively.

 

**Asset Retirement Obligations**

 

The Partnership accounts for its asset retirementobligations in accordance with Statement of Financial Accounting Standards (“SFAS”)No. 143, “Accounting for Asset Retirement Obligations” (“SFAS No. 143”).Asset retirement costs and liabilities associated with future site restorationand abandonment of long-lived assets are initially measured at fair value whichapproximates the cost a third party would incur in performing the tasksnecessary to retire such assets. The fair value is recognized in the financialstatements as the present value of expected future cash expenditures for siterestoration and abandonment. Subsequent to the initial measurement, the effectof the passage of time on the liability of the net asset retirement obligation(accretion expense) and the amortization of the asset retirement cost arerecognized in the results of operations.

 

Thefollowing table summarizes the Partnership’s asset retirement obligation forthe three months ended March 31, 2008 and the year ended December 31,2007.

 
| ** **                             | ** ** | **Three months ended  March 31, 2008** | ** ** | **2007** | ** ** |
|----------------------------------------|------------|------------------------------------------------------------|------------|----------|------------|
| Beginning asset  retirement obligation | ** ** | $                                                          | 137,757    |     | $          | 94,718 |   |
| Additions related  to new properties   |       | —                                                     |       | —   |       |
| Accretion  expense                     |       | 1,270                                                      |       | 43,039   |       |
| Ending asset  retirement obligation    | ** ** | $                                                          | 139,027    |     | $          | 137,757 |   |

 

4

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**Reclassifications**

 

Certain information provided for prior years has beenreclassified to conform to the 2008 financial statement presentation.

 

**3.Transactions with Affiliates**

 

The Partnership has noemployees. Reef Exploration, L.P. (“RELP”), an affiliate of the managinggeneral partner, employs a staff including geologists, petroleum engineers,landmen and accounting personnel who administer all of the Partnership’soperations. The Partnership reimburses RELP for technical and administrativeservices at cost. During the three month periods ended March 31, 2008 and2007, the Partnership incurred technical services and administrative coststotaling $2,642 and $1,308, respectively. Of these amounts, $1,373 and $0represent technical services costs capitalized as project costs, and $1,269 and$1,308 represent administrative costs included as general and administrativeexpenses.

 

Accounts receivable fromaffiliates totaled $38,467 at March 31, 2008. The balance consists ofworkover costs related to a Partnership well for which Reef is paying 100% ofthe cost. The Partnership settles its balances with Reef and RELP on aquarterly basis.

 

RELP processes jointinterest billings and revenues on behalf of the Partnership. Accounts payableto affiliates totaled $4,037 and $6,240 at March 31, 2008 and December 31,2007, respectively. Of these amounts, $4,037 and $5,488 are owed by thePartnership to RELP in connection with joint interest charges in excess of netrevenues processed by RELP on behalf of the Partnership. At December 31,2007, the Partnership owed Reef $752 for reimbursement of an overpayment madeby Reef in connection with Reef’s obligation to pay 1% of all leasehold,drilling, and completion costs incurred by the Partnership.

 

**4.Partnership Equity**

 

Information regarding thenumber of units outstanding and the net income (loss) per type of Partnershipunit for the three month periods ended March 31, 2008 and 2007 is detailedbelow:

 

For the three monthsended March 31, 2008

 
| **Type of Unit**      | ** ** | **Number of  Units** | ** ** | **Net income  (loss)** | ** ** | **Net income  (loss) per  unit** | ** ** |
|---------------------------------|------------|---------------------------|------------|-----------------------------|------------|--------------------------------------------|------------|
| Managing general  partner units |       | 25.028                    |       | $                           | (10,687    | )                                          | $          | (426.97 | ) |
| General partner  units          |       | 125.000                   |       | 8,565                       |       | 68.52                                      |       |
| Limited partner  units          |       | 349.972                   |       | 23,981                      |       | 68.52                                      |       |
| Total                           |       | 500.000                   |       | $                           | 21,859     |                                       |       |   |
|                                 |            |                           |            |                             |            |                                            |            |  |  |

 

For the three monthsended March 31, 2007

 
| **Type of Unit**      | ** ** | **Number of  Units** | ** ** | **Net loss** | ** ** | **Net loss per  unit** | ** ** |
|---------------------------------|------------|---------------------------|------------|-------------------|------------|----------------------------------|------------|
| Managing general  partner units |       | 25.028                    |       | $                 | (5,560     | )                                | $          | (222.17 | ) |
| General partner  units          |       | 125.000                   |       | (23,105           | )          | (184.84                          | )          |
| Limited partner  units          |       | 349.972                   |       | (64,688           | )          | (184.84                          | )          |
| Total                           |       | 500.000                   |       | $                 | (93,353    | )                                |       |   |
|                                 |            |                           |            |                   |            |                                  |            |  |  |

 

**Item2.  Management’s Discussion and Analysisof Financial Condition and Results of Operations.**

 

The following is a discussion of the Partnership’s financialposition, results of operations, liquidity and capital resources. Thisdiscussion should be read in conjunction with our financial statements and therelated notes thereto, included in the Annual Report.

 

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This Quarterly Reportcontains forward-looking statements that involve risks and uncertainties. Youshould exercise extreme caution with respect to all forward-looking statementsmade in this Quarterly Report.  Specifically, the following statements areforward-looking:

 

·                  statementsregarding the state of the oil and gas industry and the opportunity to profitwithin the oil and gas industry, competition, pricing, level of production, orthe regulations that may affect the Partnership;

 

·                  statementsregarding the plans and objectives of Reef for future operations, including,without limitation, the uses of Partnership funds and the size and nature ofthe costs the Partnership expects to incur and people and services thePartnership may employ;

 

·                  anystatements using the words “anticipate,” “believe,” “estimate,” “expect” andsimilar such phrases or words; and

 

·                  anystatements of other than historical fact.

 

Reef believes that it isimportant to communicate its future expectations to the partners. Forward-looking statements reflect the current view of management with respectto future events and are subject to numerous risks, uncertainties andassumptions, including, without limitation, the factors listed in thesection captioned “RISK FACTORS” contained in the Reef Global Ventures IIDrilling Program’s (the “Program”) prospectus dated January 10, 2002 andprospectus supplement dated September 21, 2004. Although Reef believesthat the expectations reflected in such forward-looking statements arereasonable, Reef can give no assurance that such expectations will prove tohave been correct.  Should any one or more of these or other risks oruncertainties materialize or should any underlying assumptions prove incorrect,actual results are likely to vary materially from those described herein. There can be no assurance that the projected results will occur, that thesejudgments or assumptions will prove correct or that unforeseen developmentswill not occur.

 

Reef does not intend toupdate its forward-looking statements. All subsequent written and oralforward-looking statements attributable to Reef or persons acting on its behalfare expressly qualified in their entirety by the applicable cautionarystatements.

 

Reef, as managing generalpartner, initially received a 10% interest in the Partnership as compensationfor forming the Partnership, and also received a 1% interest in the Partnershipas a result of paying 1% of all leasehold, drilling and completion costs. This11% interest was not represented by Partnership units. In addition, Reef purchased 5.01% of thePartnership units and, therefore, held 5.01% of the 89% interest in thePartnership (4.46%) held by the unit holders. Effective August 1, 2006,Reef reduced the interest it received as compensation for forming the Partnershipfrom 10% to 5%, and effective November 1, 2006 it reduced this interestfrom 5% to 0%. Therefore, effective November 1, 2006, Reef holds a 1%interest in the Partnership as a result of paying 1% of all leasehold, drillingand completion costs. This 1% interest is not represented by Partnership units.Effective November 1, 2006 Reef holds 5.01% of the 99% interest in thePartnership (4.96%) held by the unit holders.

 

**Overview**

 

Reef Global Energy IV,L.P. is a Nevada limited partnership formed to acquire, explore, develop, andproduce crude oil, natural gas, and natural gas liquids for the benefit of itsinvestor partners. The Partnership’s primary purposes are to generate revenuesfrom the production of oil and gas, distribute cash flow to investors, andprovide tax benefits to investors. The Partnership purchased working interestsin eight developmental prospects located in Live Oak (2 prospects) and NuecesCounty, Texas and Jefferson, St. Charles, Cameron, and Acadia (2 prospects)Parish, Louisiana and participated in the drilling of eight developmental wellson those prospects. The Partnership purchased working interests in fiveexploratory prospects located in Galveston (2 prospects) County, Texas,Jefferson and Plaquemines Parish, Louisiana, and in United States coastalwaters in the Gulf of Mexico, and participated in the drilling of fiveexploratory wells on those prospects.  A “prospect”is generally defined as a contiguous oil and gas leasehold estate, or lesserinterest in a leasehold estate, upon which drilling operations may beconducted. A prospect may be characterized as “exploratory” or “developmental”based upon the type of well to be drilled on the prospect. A development wellis a well drilled within a proved area of an oil or gas reservoir to the 

 

6

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depth of a stratigraphichorizon known to be productive. Generally an exploratory well is any well thatis not a development well, including wells drilled to find and produce oil orgas in an unproven area, wells drilled to find a new reservoir in a fieldpreviously found to be productive of oil or gas, or wells drilled to extend aknown reservoir. The Partnership also purchased a royalty interest in a fieldin Louisiana with three productive wells, one of which is still producing as ofthe date of this report. Drilling operations were completed during February 2006.Six developmental wells were successful, of which two are still productive, andtwo developmental wells were unsuccessful. One exploratory well was successfuland is still productive, and four exploratory wells were unsuccessful. In thisQuarterly Report, we use the term “successful” to refer to wells that aredrilled, tested, and either capable of or actually producing in commercialquantities. We use the tern “unsuccessful” to refer to wells that do not meetone or more of these criteria. The Partnership has incurred $8,035,610 ofproperty impairment associated with drilling operations during 2005, 2006, and2007, and cash flows from successful wells have not been sufficient to providesignificant returns to investor partners.

 

The managing generalpartner has reduced its interest in the Partnership as indicated above, and, inaddition, agreed to fund 100% of the cost of two projects. In August 2006the managing general partner agreed to pay 100% of the costs for a workinginterest in a developmental well located in Terrebonne Parish, Louisiana. Thewell completed drilling operations in May 2007 and was unsuccessful;however, after reviewing the well logs and other geologic data, the wellborewas re-entered during the fourth quarter of 2007 and successfully sidetracked.Drilling operations were finished during February 2008, and the well beganproducing on May 2, 2008. Initial results indicate the well will becommercially productive. Reef paid 100% of the costs of both the initialdrilling and the sidetrack of this well. Reef also agreed to pay 100% of thecost of a workover attempt performed during February 2008 on one of thePartnership’s developmental wells that had ceased production as a result ofhigh water volumes associated with the natural gas production from the well.This workover was unsuccessful in its attempt to shut-off the water production,and the well will be plugged and abandoned.

 

The Partnership has noplans for additional drilling activities. The Partnership does not operate inany other business segment, and operates solely in the United States. Note 1 tothe audited financial statements included in the Partnership’s Annual Reportincluded a section regarding the ability of the Partnership to continue as agoing concern, due to recurring losses from operations. The managing generalpartner continues to consider several options for the Partnership, includingthe possible sale of marketable assets. The final Partnership well beganproducing on May 2, 2008, and initial results indicate that the well will becommercially productive. Based upon its estimates of the revenues to begenerated from marketing the oil and gas production from this well, managementexpects the Partnership to have net income from operations during 2008 if itsevaluation of this well is accurate.

 

The table belowsummarizes Partnership drilling expenditures as of March 31, 2008 byclassification of well. Drilling, completion, and facilities costs include$86,210 capitalized as asset retirement cost.

 
| ** **                     | ** ** | **Leasehold  Costs** | ** ** | **Drilling,  Completion,  and Facilities  Costs** | ** ** | **Total Costs** | ** ** |
|--------------------------------|------------|----------------------|------------|--------------------------------------------------------|------------|----------------------|------------|
| Developmental  wells           |       | $                    | 464,099    |                                                   | $          | 4,463,079            |       | $ | 4,927,178 |   |
| Exploratory wells              |       | 139,396              |       | 2,960,963                                              |       | 3,100,359            |       |
| Purchase of  royalty interests |       | 523,554              |       | —                                                 |       | 523,554              |       |
| Total                          |       | $                    | 1,127,049  |                                                   | $          | 7,424,042            |       | $ | 8,551,091 |   |

 

**Critical Accounting Policies**

 

There have been no changes from the Critical Accounting Policiesdescribed in the Annual Report.

 

**Liquidity and Capital Resources**

 

The Partnership wasfunded with initial capital contributions totaling $9,924,916. Reef purchased25.028 limited partner units, or 5.01% of the total units sold, for $425,475.Investor partners purchased 125.000 units of general partner interest and349.972 units of limited partner interest for $9,499,441. The Partnership held$68,585 of interest earned during 2004 and 2005 for use in drilling operations.As of March 31, 2008, Reef has also contributed  $187,976 in connection with its obligation topay 1% of all leasehold, drilling, and completion costs, and to reimburse thePartnership for 100% of the drilling costs of a well in Louisiana for whichReef is paying 100% of the costs. Organization and offering costs totaled$1,424,916, leaving capital contributions of $8,756,561 available for drillingoperations and pre-production administrative costs. The Partnership expended $8,615,403 ondrilling operations and the purchase of royalty interests, and $112,843 onpre-production administrative costs in connection with the thirteen wells andthe royalty purchase described above. Drilling operations were completed in February 2006.

 

7

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During this quarter,drilling operations were finished on a developmental well located in TerrebonneParish, Louisiana for which the managing general partner paid 100% of thecosts. The well was completed during March and April 2008 and beganproduction operations on May 2, 2008. The managing general partner alsopaid 100% of the workover cost on a Partnership well that was shut-in during2007 due to high water volumes. The workover was unsuccessful in its attempt toreduce or eliminate the water volumes, and the well will be plugged andabandoned. Another non-operated developmental well also had an unsuccessfulworkover attempt to re-complete the well to a new productive zone. This wellceased production during the first quarter of 2008 and will be plugged andabandoned.

 

The Partnership hasworking capital of $72,124 at March 31, 2008. Subsequent to expending theinitial available partner capital contributions on drilling and completion ofwells and related facilities, the Partnership has minimal working capital,primarily consisting of cash and accounts receivable from RELP related to oiland gas sales processed by RELP, which the Partnership will use to pay monthlycash distributions to investors.

 

**Resultsof Operations**

 

The following is acomparative discussion of the results of operations for the periods indicated.It should be read in conjunction with the condensed financial statements andthe related notes to the condensed financial statements included in thisQuarterly Report.

 

The following tableprovides information about sales volumes and oil and natural gas prices for theperiods indicated.

 
| ** **                      | ** ** | **For the three months  Ended March 31,** | ** ** |
|---------------------------------|------------|--------------------------------------------------------------------|------------|
| ** **                      | ** ** | **2008**                                                           | ** ** | **2007** | ** ** |
| Sales volumes:                  |       |                                                               |       |   |   |
| Oil (Barrels)                   |       | 197                                                                |       | 160 |   |
| Natural gas  (Mcf)              |       | 5,137                                                              |       | 3,688 |   |
|                            |       |                                                               |       |   |   |
| Average sales  prices received: |       |                                                               |       |   |   |
| Oil (Barrels)                   |       | $                                                                  | 92.71      |   | $ | 56.37 |   |
| Natural gas  (Mcf)              |       | $                                                                  | 8.69       |   | $ | 7.46 |   |

 

The Partnership had fiveproductive wells during each of the periods shown in the table above. During June 2007,one of these wells was completed in a second zone and began producing from bothzones. During the three months ended March 31, 2007 this well producedonly from one productive zone. During the three months ended March 31,2008, this well accounted for $45,441, or 72.3%, of the total oil and gas salesrevenue of the Partnership.

 

Net proved oil andnatural gas reserves of the Partnership at March 31, 2008 and 2007 includeproved developed producing reserves and proved developed non-producingreserves. Net proved oil and natural gas reserves at March 31, 2008 and2007 include only those quantities that we expect to recover commercially usingcurrent prices, costs, existing regulatory practices, and technology as of thedate indicated. Therefore, any changes in future prices, costs, regulations,technology or other unforeseen factors could materially increase or decreasethe proved reserve estimates. Additional development costs required to recoverthese proved reserves are estimated at approximately $8,857 as of March 31,2008. All of the Partnership’s reserves are located in the United States.

 
| **Net proved reserves** | ** ** | **Oil (BBL)** | ** ** | **Gas (MCF)** | ** ** |
|-----------------------------------|------------|--------------------|------------|--------------------|------------|
| March 31, 2008               |       | 3,376              |       | 74,825             |       |
| March 31, 2007               |       | 1,861              |       | 43,000             |       |

 

8

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Estimated proveddeveloped non-producing reserves from the well which began productionoperations on May 2, 2008 and which are included in the March 31,2008 estimate above are 2,039 barrels of oil and 50,976 Mcf of natural gas.

 

**Threemonths ended March 31, 2008 compared to the three months ended March 31,2007**

 

The Partnership has netincome of $21,859 for the three month period ended March 31, 2008,compared to a net loss of $93,353 for the three month period ended March 31,2007.

 

The same five wells wereproductive during the three month periods ending March 31, 2008 and 2007.The increase in sales volumes is attributable to one of these wells in which asecond productive zone was opened during a June 2007 workover operation.Sales revenues were also greatly impacted by the rise in average pricesreceived, which is shown in the table above. During the first quarter of 2008,one of these five wells ceased producing, and a workover attempt to open a newproductive zone in the well was unsuccessful. The well accounted for 2.7% oftotal first quarter oil and gas revenues. The Partnership expects the loss ofrevenues from this well will be more than offset by the revenues from thePartnership well that began production operations on May 2, 2008.

 

Operating costs remainedstable, and decreased on a unit-of-production basis due to the increasedproduction volumes as a result of the June 2007 workover.

 

During the three monthperiod ended March 31, 2007, the Partnership incurred impairment costtotaling $56,256 as a result of a reduction in reserve estimates caused byproduction declines greater than previously estimated. The Partnership had noimpairment cost during the three month period ended March 31, 2008. ThePartnership does not expect to incur any additional impairment cost unlessreserve estimates related to the new well which began production operations May 2,2008 are adjusted downward at a future date.

 

General andadministrative costs incurred also remained stable. These costs are projectedto increase during the second quarter of 2008, primarily as a result of feesincurred in connection with the audit of the partnership’s 2007 financialstatements. The Partnership projects that overall general and administrativecosts for 2008 will be close to or slightly above the $70,953 incurred duringcalendar year 2007.

 

**Item 3.    Quantitativeand Qualitative Disclosures About Market Risk.**

 

Not Applicable

 

**Item 4T. Controls and Procedures**

 

**Evaluation of Disclosure Controls and Procedures**

 

As the managing generalpartner of the Partnership, Reef maintains a system of controls and proceduresdesigned to provide reasonable assurance as to the reliability of the financialstatements and other disclosures included in this report, as well as tosafeguard assets from unauthorized use or disposition. The Partnership, underthe supervision and with participation of its management, including theprincipal executive officer and principal financial officer of the Partnership’smanaging general partner, Reef Oil & Gas Partners, L.P., evaluated theeffectiveness of its “disclosure controls and procedures” as such term isdefined in Rule 13a-15(e) under the Securities Exchange Act of 1934,as amended (the “Exchange Act”), as of the end of the period covered by thisQuarterly Report. Based on that evaluation, the principal executive officer and principal financial officer of ourgeneral partner have concluded that the Partnership’s disclosure controls andprocedures are effective to ensure that information required to be disclosed bythe Partnership in reports that it files or submits under the Exchange Act isrecorded, processed, summarized, and reported within the time periods specifiedin Securities and Exchange Commission rules and forms, and includescontrols and procedures designed to ensure that information required to bedisclosed by us in such reports is accumulated and communicated to ourmanagement, including the principal executive officer and principal financialofficer of our general partner, as appropriate to allow timely decisionsregarding financial disclosure.

 

9

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**Changesin Internal Controls**

 

Therehave not been any changes in the Partnership’s internal controls over financialreporting during the fiscal quarter ended March 31, 2008 that havematerially affected, or are reasonably likely to materially affect, thePartnership’s internal control over financial reporting.

 

**PART II – OTHER INFORMATION**

 

**Item 1. Legal Proceedings**

 

None

 

**Item 2.  Unregistered Sales of Equity Securities andUse of Proceeds**

 

**Use of Proceeds**

 

In connection with theRegistration Statement filed on Form S-1 (No. 333-93399) and declaredeffective May 31, 2001, Reef filed a post-effective amendment to theRegistration Statement on behalf of the Program on September 14, 2001. On January 10,2002 Reef filed a final prospectus and commenced the offering of units in theProgram. All sales of Partnership units were made through the Program’sdealer-manager, Reef Securities, Inc., and a number of soliciting dealers.The Program filed a prospectus supplement describing the Partnership on September 21,2004 and commenced offering units. Under the terms of the offering, a minimumof 50 Partnership units at a price of $20,000 per unit were required to be soldin order to form the Partnership. Upon meeting this requirement, thePartnership was formed on November 10, 2004. The Partnership offeringconsisted of 375 units of limited partner interest and 125 units of generalpartner interest. The offering period ended on December 2, 2004, at whichtime all 500 allowable units had been sold.

 

During theoffering period, the Partnership sold 474.972 units to investor partners,consisting of 349.972 units of limited partner interest and 125 units ofgeneral partner interest. Reef purchased 25.028 limited partner units, equaling5.01% of the total Partnership units sold. Total offering proceeds were$9,924,916. All units except those purchased by Reef paid a 15% management feeto Reef to pay for the Partnership organization and offering costs, includingsales commissions. These costs totaled $1,424,916, leaving capitalcontributions of $8,500,000 available for Partnership oil & gasoperations. In addition, the Partnership had available $68,585 of interestincome and $187,976 of additional capital contributions from Reef in connectionwith its obligation to pay 1% of all leasehold, drilling and completion costs,and to reimburse the Partnership for 100% of the drilling costs of a well inLouisiana for which Reef is paying 100% of the costs, for a total of $8,756,561available for Partnership oil and gas operations. As of March 31, 2008 thePartnership had expended $8,615,403 on drilling operations and the purchase ofroyalty interests, and $112,843 on general and administrative expenses.

 

**Item 3.  Default Upon Senior Securities**

 

None

 

**Item 4.  Submission of Matters to a Vote of SecurityHolders**

 

None

 

**Item 5.  Other Information**

 

None

 

**Item6.  Exhibits**

 
|   | **Exhibits** |                                                                                                           |
|--------|--------------|----------------------------------------------------------------------------------------------------------------|
|   |         |                                                                                                           |
|   | 31.1         | Certification of  Principal Executive Officer pursuant to Section 302 of the  Sarbanes-Oxley Act of 2002. |

 

10

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|   | 31.2   | Certification of  Principal Financial Officer pursuant to Section 302 of the  Sarbanes-Oxley Act of 2002.     |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                               |
|   | 32.1   | Certification of the  Principal Executive Officer pursuant to Section 906 of the  Sarbanes-Oxley Act of 2002. |
|   |   |                                                                                                               |
|   | 32.2   | Certification of the  Principal Financial Officer pursuant to Section 906 of the  Sarbanes-Oxley Act of 2002. |

 

11

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**SIGNATURES**

 

Pursuant to therequirements of the Securities Exchange Act of 1934, the registrant has dulycaused this report to be signed on its behalf by the undersigned, thereuntoduly authorized.

 
|                                       | REEF GLOBAL  ENERGY IV, L.P. |
|--------------------------------------------|------------------------------|
|                                       |                         |   |
|                                       | By:                          | Reef  Oil & Gas Partners, L.P. |
|                                       |                         | Managing General  Partner |
|                                       |                         |   |
|                                       | By:                          | Reef  Oil & Gas Partners, GP, LLC |
|                                       |                         |   |
|                                       |                         |   |
| Dated:   May 20,  2008 | By:                          |    /s/  Michael J. Mauceli |
| ** **                                 | ** **                   | **Michael  J. Mauceli** |
|                                       |                         | Manager and  Member |
|                                       |                         | (*Principal Executive Officer)* |
|                                       |                         |   |
|                                       |                         |   |
| Dated:   May 20,  2008 | By:                          |    /s/  Daniel C. Sibley |
|                                       |                         | **Daniel  C. Sibley** |
|                                       |                         | Chief Financial  Officer |
| ** **                                 | ** **                   | (*Principal  Financial and Accounting Officer)* |

 

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