UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C. 20549







FORM
10-Q





x
            QUARTERLY
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934For
      the Quarterly Period Ended September 30,
2009




OR


o
            TRANSITION
      REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF
      1934For
      the Transition Period from ________ to
________





Commission
File Number: 333-93399-04







REEF
GLOBAL ENERGY IV, L.P.


(Exact
name of registrant as specified 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 check mark whether the registrant (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.


Yes xNoo





Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate Web site, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this
chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such files).


Yes oNo o





Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of “large accelerated filer,” “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act.





Large
accelerated filer oAccelerated filer oNon-accelerated fileroSmaller reporting company x





Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).


Yes o No x





As of
September 30, 2009, the registrant had 25.028 units of general partner interest
held by the managing general partner, and 474.972 units of limited partner
interest outstanding.




Reef
Global Energy IV, L.P.


Form
10-Q Index







PART I — FINANCIAL
      INFORMATION
            
            1ITEM
      1.
            
            Financial
      Statements (Unaudited)
            
            1Condensed
      Balance Sheets
            
            1Condensed
      Statements of Operations
            
            2Condensed
      Statements of Cash Flows
            
            3Notes
      to Condensed Financial Statements
            
            4ITEM
      2.
            
            Management’s
      Discussion and Analysis of Financial Condition and Results of
      Operations
            
            8ITEM
      3.
            
            Quantitative
      and Qualitative Disclosures About Market Risk
            
            13ITEM
      4T.
            
            Controls
      and Procedures
            
            13PART
      II —
      OTHER INFORMATION
            
            13ITEM
      1.
            
            Legal
      Proceedings
            
            13ITEM
      2.
            
            Unregistered
      Sales of Equity Securities and Use of Proceeds
            
            13ITEM
      3.
            
            Default
      Upon Senior Securities
            
            14ITEM
      4.
            
            Submission
      of Matters to a Vote of Security Holders
            
            14ITEM
      5.
            
            Other
      Information
            
            14ITEM
      6.
            
            Exhibits
            
            14Signatures
            
            15





ii





PART
I FINANCIAL INFORMATION





Item
1. Financial Statements





Reef
Global Energy IV, L.P.


Condensed
Balance Sheets





September
      30,
            
            
            December
      31,2009
            
            
            2008(Unaudited)AssetsCurrent
      assets:Cash
      and cash equivalents
            
            $
            92,164
            
            
            $
            106,454Total
      current assets
            
            
            92,164
            
            
            
            106,454Oil
      and gas properties, full cost method of accounting:Proved
      properties, net of accumulated depletion of $8,573,370 and
      $8,470,972
            
            
            156,418
            
            
            
            245,613Net
      oil and natural gas properties
            
            
            156,418
            
            
            
            245,613Total
      assets
            
            
            248,582
            
            
            
            352,067Liabilities
      and partnership equityCurrent
      liabilities:Accounts
      payable
            
            
            4,023
            
            
            
            436Accounts
      payable to affiliates
            
            
            82,562
            
            
            
            16,801Total
      current liabilities
            
            
            86,585
            
            
            
            17,237Long-term
      liabilities:Asset
      retirement obligation
            
            
            97,846
            
            
            
            122,213Total
      long-term liabilities
            
            
            97,846
            
            
            
            122,213Partnership
      equity:Limited
      partners
            
            
            (74,728
            )
            
            
            11,300Managing
      general partner
            
            
            138,879
            
            
            
            201,317Partnership
      equity
            
            
            64,151
            
            
            
            212,617Total
      liabilities and partnership equity
            
            $
            248,582
            
            
            $
            352,067





See
accompanying notes to condensed financial statements.




1




Reef
Global Energy IV, L.P.




Condensed
Statements of Operations


(Unaudited)





For
      the three months ended
              September
      30,
            
            
            For
      the nine months ended
              September
      30,2009
            
            
            2008
            
            
            2009
            
            
            2008Revenues
            
            $
            36,503
            
            
            $
            90,423
            
            
            $
            105,810
            
            
            $
            244,625Costs
      and expenses:Lease
      operating expenses
            
            
            12,312
            
            
            
            12,055
            
            
            
            46,507
            
            
            
            36,016Production
      taxes
            
            
            1,405
            
            
            
            6,266
            
            
            
            6,995
            
            
            
            15,936General
      and administrative
            
            
            30,582
            
            
            
            13,133
            
            
            
            96,224
            
            
            
            68,181Accretion
      of asset retirement obligation
            
            
            547
            
            
            
            511
            
            
            
            2,348
            
            
            
            3,000Depreciation,
      depletion and    amortization
            
            
            10,419
            
            
            
            15,822
            
            
            
            35,890
            
            
            
            43,757Property
      impairment
            
            
            46,678
            
            
            
            —
            
            
            
            52,189
            
            
            
            —Total
      costs and expenses
            
            
            101,943
            
            
            
            47,787
            
            
            
            240,153
            
            
            
            166,890Income
      (loss) from operations
            
            
            (65,440
            )
            
            
            42,636
            
            
            
            (134,343
            )
            
            
            77,735Other
      income:Interest
      income
            
            
            147
            
            
            
            189
            
            
            
            624
            
            
            
            486Total
      other income
            
            
            147
            
            
            
            189
            
            
            
            624
            
            
            
            486Net
      income (loss)
            
            $
            (65,293
            )
            
            $
            42,825
            
            
            $
            (133,719
            )
            
            $
            78,221Net
      income (loss) per general partner unit
            
            $
            —
            
            
            $
            —
            
            
            $
            —
            
            
            $
            122.41Net
      income (loss) per limited partner unit
            
            $
            (52.65
            )
            
            $
            96.81
            
            
            $
            (100.90
            )
            
            $
            219.22Net
      income (loss) per managing general partner unit
            
            $
            (1,609.80
            )
            
            $
            (126.18
            )
            
            $
            (2,816.69
            )
            
            $
            (1,035.04
            )





See
accompanying notes to condensed financial statements.




2




Reef
Global Energy IV, L.P.


Condensed
Statements of Cash Flows


(Unaudited)





For
      the nine months ended
              September
      30,2009
            
            
            2008Operating
      ActivitiesNet
      income (loss)
            
            $
            (133,719
            )
            
            $
            78,221Adjustments
      to reconcile net income (loss) to net cash provided by operating
      activities:Depreciation,
      depletion and amortization
            
            
            35,890
            
            
            
            43,757Property
      impairment
            
            
            52,189
            
            
            
            —Accretion
      of asset retirement obligation
            
            
            2,348
            
            
            
            3,000Changes
      in operating assets and liabilities:Accounts
      receivable from affiliates
            
            
            —
            
            
            
            (12,801
            )Accounts
      payable
            
            
            3,587
            
            
            
            98Accounts
      payable to affiliates
            
            
            52,557
            
            
            
            (5,488
            )Net
      cash provided by operating activities
            
            
            12,852
            
            
            
            106,787Investing
      ActivitiesProperty
      acquisition and development
            
            
            —
            
            
            
            (174,582
            )Plugging
      and abandonment costs paid from asset retirement
obligation
            
            
            (12,396
            )
            
            
            (1,096
            )Net
      cash used in investing activities
            
            
            (12,396
            )
            
            
            (175,678
            )Financing
      ActivitiesPartner
      capital contributions
            
            
            9,504
            
            
            
            162,364Partner
      distributions
            
            
            (24,250
            )
            
            
            (47,000
            )Net
      cash provided by (used in) financing activities
            
            
            (14,746
            )
            
            
            115,364Net
      decrease in cash and cash equivalents
            
            
            (14,290
            )
            
            
            46,473Cash
      and cash equivalents at beginning of period
            
            
            106,454
            
            
            
            75,764Cash
      and cash equivalents at end of period
            
            $
            92,164
            
            
            $
            122,237Supplemental
      disclosure of non-cash investing transactions:Property
      additions included in accounts payable to affiliates
            
            $
            13,204
            
            
            $
            —Property
      additions and asset retirement obligation
            
            $
            —
            
            
            $
            410Adjustment
      to asset retirement obligation
            
            $
            1,547
            
            
            $
            11,418Supplemental
      disclosure of non-cash financing transactions:Managing
      partner contributions included in accounts receivable from
      affiliates
            
            $
            —
            
            
            $
            20,099





See
accompanying notes to condensed financial statements.




3




Reef
Global Energy IV, L.P.


Notes
to Condensed Financial Statements (unaudited)


September
30, 2009




1.
Organization and Basis of Presentation





The
financial statements of Reef Global Energy IV, L.P. (the “Partnership”) have
been prepared pursuant to the rules and regulations of the Securities and
Exchange Commission (the “SEC”). Certain information and footnote disclosure
normally included in annual financial statements prepared in accordance with
accounting principles generally accepted in the United States have been
condensed or omitted pursuant to those rules and regulations. We have recorded
all transactions and adjustments necessary to fairly present the financial
statements included in this Quarterly Report on Form 10-Q (this “Quarterly
Report”). The adjustments are normal and recurring. The following notes describe
only the material changes in accounting policies, account details, or financial
statement notes during the first nine months of 2009. Therefore, please read
these condensed financial statements and notes to condensed financial statements
together with the audited financial statements and notes to financial statements
contained in the Partnership’s Annual Report on Form 10-K for the period ended
December 31, 2008 (the “Annual Report”).  The results of operations
for the three and nine month periods ended September 30, 2009 are not
necessarily indicative of the results that may be expected for the year ending
December 31, 2009.





Going
Concern





The
accompanying financial statements have been prepared assuming the Partnership is
a going concern, which assumption contemplates the realization of assets and
satisfaction of liabilities in the normal course of business. The Partnership
has suffered losses from operations that have utilized a major portion of
partnership equity. While the Partnership appears to have adequate liquidity at
September 30, 2009, there can be no assurance that such liquidity will remain
sufficient.





These
factors raise substantial doubt about the Partnership’s ability to continue as a
going concern. The financial statements do not include any adjustments relating
to the recoverability and classification of recorded asset amounts or the amount
of liabilities that might be necessary should the Partnership be unable to
continue in existence.





The
managing general partner is considering several options related to the
Partnership, including the possible sale of marketable assets, as a result of
the recurring losses incurred over the past several years, the erosion of
partnership equity, and the lack of significant cash flows from
operations.





2.
Summary of Accounting Policies





Oil
and Natural Gas Properties





The
Partnership follows the full cost method of accounting for crude oil and natural
gas properties. Under this method, all direct costs and certain indirect costs
associated with acquisition of properties and successful as well as unsuccessful
exploration and development activities are capitalized. Depreciation, depletion,
and amortization of capitalized oil and gas properties are based on the
unit-of-production method using estimated proved reserves. For these purposes,
proved natural gas reserves are converted to equivalent barrels of crude oil
(“EBO”) at a rate of 6 MCF to 1 Bbl. Net capitalized costs of crude oil and
natural gas properties, as adjusted for asset retirement obligations, are
limited to the lower of unamortized cost or the cost ceiling, defined as the sum
of the present value of estimated future net revenues from proved reserves based
on prices in effect at the end of the period held constant and discounted at 10
percent. Pursuant to full cost accounting rules, the Partnership performs a
ceiling test quarterly as of the balance sheet date on its proved oil and
natural gas properties. Excess capitalized costs are charged to property
impairment expense. No gain or loss is recognized upon sale or disposition of
crude oil and natural gas properties, unless such a sale would significantly
alter the rate of depletion and amortization. During the three month period
ended September 30, 2009 the Partnership recognized impairment expense of
$46,678. During the nine month period ended September 30, 2009, the Partnership
recognized property impairment expense of $52,189.




4





Asset
Retirement Obligation





Asset
retirement costs and liabilities associated with future site restoration and
abandonment of long-lived assets are initially measured at fair value which
approximates the cost a third party would incur in performing the tasks
necessary to retire such assets. The fair value is recognized in the financial
statements as the present value of expected future cash expenditures for site
restoration and abandonment. Subsequent to the initial measurement, the effect
of the passage of time on the liability of the net asset retirement obligation
(accretion expense) and the amortization of the asset retirement cost are
recognized in the results of operations.  No gain or loss is
recognized upon abandonment and restoration of crude oil and natural gas
properties, unless such abandonment and restoration would significantly alter
the rate of depletion and amortization.





The
following table summarizes the Partnership’s asset retirement obligation for the
nine months ended September 30, 2009 and the year ended December 31,
2008.





Nine
      months
              ended
              September
      30,
              2009
            
            
            Yearended
              December
      31,
              2008Beginning
      asset retirement obligation
            
            $
            122,213
            
            
            $
            137,757Additions
      related to new properties
            
            
            —
            
            
            
            410Accretion
      expense
            
            
            2,348
            
            
            
            3,519Retirement
      related to property abandonment and restoration
            
            
            (26,715
            )
            
            
            (19,473
            )Ending
      asset retirement obligation
            
            $
            97,846
            
            
            $
            122,213




Fair
Value of Financial Instruments





The
estimated fair values for financial instruments have been determined at discrete
points in time based on relevant market information. These estimates involve
uncertainties and cannot be determined with precision. The estimated fair
value of cash, accounts receivable and accounts payable approximates their
carrying value due to their short-term nature.





Recently
Adopted Accounting Pronouncements





Accounting
Standards Codification




In
June 2009, the FASB issued guidance on the accounting standards
codification and the hierarchy of generally accepted accounting principles. The
accounting standards codification is intended to be the source of authoritative
US GAAP and reporting standards as issued by the Financial Accounting
Standards Board (“FASB”). Its primary purpose is to improve clarity and use of
existing standards by grouping authoritative literature under common topics.
This statement is effective for financial statements issued for interim and
annual periods ending after September 15, 2009. Effective July 1,
2009, the Partnership will describe the authoritative guidance used within the
footnotes but will cease using numerical references. The accounting standards
codification does not change or alter existing US GAAP, and there is no
expected impact on the Partnership’s financial position, results of operations
or cash flows.





Fair
Value Measurement of Liabilities




In
August 2009, the FASB issued new guidance for the accounting for the fair
value measurement of liabilities.  The new guidance provides clarification
that in certain circumstances in which a quoted price in an active market for
the identical liability is not available, a company is required to measure fair
value using one or more of the following valuation techniques: the quoted price
of the identical liability when traded as an asset, the quoted prices for
similar liabilities or similar liabilities when traded as assets, and/or another
valuation technique that is consistent with the principles of fair value
measurements.  The new guidance is effective for interim and annual periods
beginning after August 27, 2009.  The Partnership does not
expect that the provisions of the new guidance will have a material
effect on its results of operations, financial position or
liquidity.




5





Subsequent
Events





In
May 2009, the FASB issued new guidance for accounting for subsequent
events.  The new guidanceincorporates guidance
into accounting literature that was previously addressed only in auditing
standards.  The statement refers to subsequent events that provide
additional evidence about conditions that existed at the balance-sheet date as
“recognized subsequent events”.  Subsequent events which provide evidence
about conditions that arose after the balance-sheet date but prior to the
issuance of the financial statements are referred to as ‘non-recognized
subsequent events”.  It also requires companies to disclose the date
through which subsequent events have been evaluated and whether this date is the
date the financial statements were issued or the date the financial statements
were available to be issued.  This guidance is effective for interim and
annual periods ending after June 15, 2009.  The Partnership evaluated
subsequent events up through November 12, 2009, the day the financial statements
were issued.





Recognition
and Presentation of Other-Than-Temporary Impairments





In April
2009, the FASB issued new guidance related to the presentation and disclosure of
other-than-temporary impairments on debt and equity securities.  The
new guidance amends the other-than-temporary impairment guidance for debt
securities to make the guidance more operational and to improve the presentation
and disclosure of other-than-temporary impairments on debt and equity securities
in the financial statements.  The guidance does not amend existing
recognition and measurement guidance for equity securities, but does establish a
new method of recognizing and reporting for debt
securities.  Disclosure requirements for impaired debt and equity
securities have been expanded significantly and are now required quarterly, as
well as annually.  This guidance became effective for interim and
annual reporting periods ending after June 15, 2009.  Comparative
disclosures are required for periods ending after the initial
adoption.  This guidance did not have an impact on the Partnership’s
financial position, results of operations or cash flows.





Interim
Reporting of Fair Value of Financial Instruments





In
April 2009, the FASB issued new guidance related to the disclosure of the
fair value of financial instruments.  The new guidance amends SFAS No. 107,
“Disclosures about Fair Value of Financial Instruments,” to require disclosures
about fair value of financial instruments for interim reporting
periods.  The guidance also amends APB Opinion No. 28, “Interim
Financial Reporting,” to require those disclosures about the fair value of
financial instruments in summarized financial information at interim reporting
periods.  This guidance is effective for reporting periods ending
after June 15, 2009.  The adoption of this guidance did not have any
impact on the Partnership’s results of operations, cash flows, or financial
position.





Fair
Value Measurements





In
February 2008, the FASB issued new guidance for the accounting for
non-financial assets and non-financial liabilities.  The new guidance
delayed the effective date of SFAS No. 157, “Fair Value Measurements” for
nonfinancial assets and liabilities, except for items that are recognized or
disclosed at fair value in the financial statements on a recurring basis at
least annually.  The adoption of this guidance was immaterial to the
Partnership’s results of operations, cash flows and financial
positions.





Newly
Issued But Not Effective Accounting Standards





Modernization
of Oil and Gas Reporting





In
January 2009, the SEC issued revisions to the oil and gas reporting disclosures,
“Modernization of Oil and Gas Reporting; Final Rule” (“the Final Rule”). In
addition to changing the definition and disclosure requirements for oil and gas
reserves, the Final Rule changes the requirements for determining quantities of
oil and gas reserves. The Final Rule also changes certain accounting
requirements under the full cost method of accounting for oil and gas
activities. The amendments are designed to modernize the requirements for the
determination of oil and gas reserves, aligning them with current practices and
updating them for changes in technology. The Final Rule is effective for annual
reports on Form 10-K for fiscal years ending on or after December 31, 2009. The
Partnership has not yet determined the impact, if any, of the Final Rule on the
financial statements.




6





3.
Transactions with Affiliates





The
Partnership has no employees. Reef Exploration, L.P. (“RELP”), an affiliate of
Reef Oil & Gas Partners, L.P. (“Reef”), the managing general partner of the
Partnership, employs a staff including geologists, petroleum engineers, landmen
and accounting personnel who administer all of the Partnership’s operations. The
Partnership reimburses RELP for technical and administrative services at cost.
During the three and nine month periods ended September 30, 2009, the
Partnership did not incur any technical services costs. During the three and
nine month periods ended September 30, 2009 the Partnership incurred
administrative costs totaling $14,597 and $35,991, respectively. During the
three and nine month periods ended September 30, 2008, the Partnership incurred
technical services and administrative costs totaling $17,446 and $29,257,
respectively. Of these amounts, $6,623 and $9,787 represent technical services
costs capitalized as project costs, and $10,823 and $19,470 represent
administrative costs included as general and administrative
expenses.





Reef
contributed 1% of all leasehold, drilling, and completion costs when incurred
during the drilling and completion phases of Partnership operations. Reef also
purchased 5.01% of the Partnership units and paid 5.01% of the 99% of these
costs paid by the unit holders (4.96%). In addition, Reef agreed to reimburse
the Partnership 100% of the costs for the workover of a Partnership well which
occurred during the first quarter of 2008, and 100% of the costs of drilling and
completing a well in Terrebonne Parish, Louisiana (as discussed in greater
detail below). Reef contributed $380,694 related to these obligations. Reef has
no remaining obligations related to these additional costs as of September 30,
2009. During the year ended December 31, 2008, this obligation totaled
$183,204.





RELP
processes joint interest billings and revenues on behalf of the Partnership. At
September 30, 2009, the Partnership owed RELP $82,562 for joint interest and
technical and administrative services charges processed in excess of net
revenues.  At December 31, 2008, the Partnership owed RELP $16,801 for
joint interest and technical and administrative services charges processed in
excess of net revenues.





4.
Commitments and Contingencies





The
Partnership is not currently involved in any legal proceedings.





5.
Partnership Equity





Information
regarding the number of units outstanding and the net loss per type of
Partnership unit for the three and nine month periods ended September 30, 2009
is detailed below:





For the
three months ended September 30, 2009





Type of Unit
            
            Number
              ofUnits
            
            
            Net
      loss
            
            
            Net
      loss
              per
      unitManaging
      general partner units
            
            
            25.028
            
            
            $
            (40,290
            )
            
            
            (1,609.80
            )Limited
      partner units
            
            
            474.972
            
            
            
            (25,003
            )
            
            
            (52.65
            )Total
            
            
            500.000
            
            
            $
            (65,293
            )




For the
nine months ended September 30, 2009





Type of Unit
            
            Number
              ofUnits
            
            
            Net
      loss
            
            
            Net
      loss
              per
      unitManaging
      general partner units
            
            
            25.028
            
            
            $
            (70,496
            )
            
            $
            (2,816.69
            )Limited
      partner units
            
            
            474.972
            
            
            
            (63,223
            )
            
            
            (100.90
            )Total
            
            
            500.000
            
            
            $
            (133,719
            )




7




Item
2.  Management's Discussion and Analysis of Financial Condition and
Results of Operations.





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





This
Quarterly Report contains forward-looking statements that involve risks and
uncertainties. You should exercise extreme caution with respect to all
forward-looking statements made in this Quarterly Report.  Specifically,
the following statements are forward-looking:





·
              statements
      regarding the state of the oil and gas industry and the opportunity to
      profit within the oil and gas industry, competition, pricing, level of
      production, or the regulations that may affect the
      Partnership;




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




·
              any
      statements using the words “anticipate,” “believe,” “estimate,” “expect”
      and similar such phrases or words;
and





·
              any
      statements of other than historical
fact.




Reef
believes that it is important to communicate its future expectations to the
partners.  Forward-looking statements reflect the current view of
management with respect to future events and are subject to numerous risks,
uncertainties and assumptions, including, without limitation, the factors listed
in the section captioned “RISK FACTORS” contained in the Reef Global
Ventures Drilling Program’s (the “Program”) prospectus dated January 10, 2002
and prospectus supplement dated September 21, 2004. Although Reef believes that
the expectations reflected in such forward-looking statements are reasonable,
Reef can give no assurance that such expectations will prove to have been
correct.  Should any one or more of these or other risks or uncertainties
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 these judgments or
assumptions will prove correct or that unforeseen developments will not
occur.





Reef does
not intend to update its forward-looking statements. All subsequent written and
oral forward-looking statements attributable to Reef or persons acting on its
behalf are expressly qualified in their entirety by the applicable cautionary
statements.





Reef, as
managing general partner, initially received a 10% interest in the Partnership
as compensation for forming the Partnership, and also received a 1% interest in
the Partnership as a result of paying 1% of all leasehold, drilling and
completion costs. This 11% interest was not represented by Partnership units. In
addition, Reef purchased 5.01% of the Partnership units and, therefore, held
5.01% of the 89% interest in the Partnership (4.46%) held by the unit holders.
Effective August 1, 2006, Reef reduced the interest it received as compensation
for forming the Partnership from 10% to 5%, and effective November 1, 2006 it
reduced this interest from 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, drilling and completion costs. This 1% interest is not represented by
Partnership units. Effective November 1, 2006 Reef holds 5.01% of the 99%
interest in the Partnership (4.96%) held by the unit holders.




Overview





Reef
Global Energy IV, L.P. is a Nevada limited partnership formed to acquire,
explore, develop, and produce crude oil, natural gas, and natural gas liquids
for the benefit of its investor partners. The Partnership’s primary purposes are
to generate revenues from the production of crude oil and natural gas,
distribute cash flow to investors, and provide tax benefits to investors. The
Partnership purchased working interests in eight developmental prospects located
in Live Oak (2 prospects) and Nueces County, Texas and Jefferson, St. Charles,
Cameron, and Acadia (2 prospects) Parish, Louisiana and participated in the
drilling of eight developmental wells on those prospects. The Partnership
purchased working interests in five exploratory prospects located in Galveston
(2 prospects) County, Texas, Jefferson and Plaquemines Parish, Louisiana, and in
United States coastal waters in the Gulf of Mexico, and participated in the
drilling of five exploratory wells on those prospects.




8





A
“prospect” is generally defined as contiguous oil and gas leasehold estate, or
lesser interest in a leasehold estate, upon which drilling operations may be
conducted. A prospect may be characterized as “exploratory” or “developmental”
based upon the type of well to be drilled on the prospect. A development well is
a well drilled within a proved area of an oil or gas reservoir to the depth of a
stratigraphic horizon known to be productive. Generally an exploratory is any
well that is not a development well, including wells drilled to find and produce
crude oil or natural gas in an unproven area, wells drilled to find a new
reservoir in a field previously found to be productive of crude oil or natural
gas, or wells drilled to extend a known reservoir. The Partnership also
purchased a royalty interest in a field in Louisiana with three productive
wells, one of which is still producing as of the date of this report. Drilling
operations on these thirteen prospects were completed during February 2006. Six
developmental wells were successful, of which one is still productive and one is
shut in as of the date of this report. Two developmental wells were
unsuccessful. One exploratory well was successful and is still productive, and
four exploratory wells were unsuccessful. In this Quarterly Report, we use the
term “successful” to refer to wells that are drilled, tested, and either capable
of or actually producing in commercial quantities. We use the term
“unsuccessful” to refer to wells that do not meet one or more of these criteria.
Since its inception, the Partnership has incurred $8,087,799 of property
impairment associated with wells drilled during the drilling phase of
operations, and cash flows from successful wells have not been sufficient to
provide significant returns to investor partners.





The
managing general partner reduced its interest in the Partnership as indicated
above, and, in addition, agreed to fund 100% of the cost of two projects. In
August 2006, the managing general partner agreed to pay 100% of the costs for a
working interest in a developmental well located in Terrebonne Parish,
Louisiana. The well completed drilling operations in May 2007 and was
unsuccessful; however, after reviewing the well logs and other geologic data,
the wellbore was re-entered during the fourth quarter of 2007 and successfully
sidetracked. Drilling operations were finished during February 2008, and the
well began producing in commercial quantities on May 2, 2008 and continues to do
so as of September 30, 2009. Reef paid 100% of the costs associated with the
drilling of the unsuccessful well and the subsequent drilling of the successful
sidetrack of this well. Reef also agreed to pay 100% of the cost of a workover
attempt performed during February 2008 on one of the Partnership’s developmental
wells that had ceased production as a result of high 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 was plugged and
abandoned.





The
Partnership has no plans to participate in additional drilling activities. The
Partnership does not operate in any other business segment, and operates solely
in the United States. Note 1 to the audited financial statements included in the
Partnership’s Annual Report included a section regarding the ability of the
Partnership to continue as a going concern, due to recurring losses from
operations. The managing general partner continues to consider several options
for the Partnership, including the possible sale of marketable assets. The
Partnership had net income and positive cash flow during 2008. As a result of
the downward movement in crude oil and natural gas prices which occurred during
the last half of 2008, the Partnership incurred a net loss and had negative cash
flow during the first nine months of 2009.





The table
below summarizes Partnership expenditures as of September 30, 2009 by
classification of well. Drilling, completion, and facilities costs include
$83,389 capitalized as asset retirement cost.





Leasehold
              Costs
            
            
            Drilling,
              Completion,
      and
              Facilities
      Costs
            
            
            Total
      CostsDevelopmental
      wells
            
            $
            469,549
            
            
            $
            4,680,156
            
            
            $
            5,149,705Exploratory
      wells
            
            
            139,396
            
            
            
            2,917,133
            
            
            
            3,056,529Purchase
      of royalty interests
            
            
            523,554
            
            
            
            —
            
            
            
            523,554Total
            
            $
            1,132,499
            
            
            $
            7,597,289
            
            
            $
            8,729,788




9




Critical
Accounting Policies





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





Liquidity
and Capital Resources





The
Partnership was funded with initial capital contributions totaling $9,924,916.
Reef purchased 25.028 limited partner units, or 5.01% of the total units sold,
for $425,475. Investor partners purchased 125.000 units of general partner
interest and 349.972 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. Reef also contributed $380,694 in connection with its
obligation to pay 1% of all leasehold, drilling, and completion costs, and to
reimburse the Partnership for 100% of the drilling and sidetracking costs of a
well in Louisiana for which Reef paid 100% of the costs. Organization and
offering costs totaled $1,424,916, leaving capital contributions of $8,843,076
available for drilling operations and pre-production administrative costs. The
Partnership expended $8,640,195 on prospect and property acquisitions, drilling
and completion costs and $112,843 on general and administrative expenses during
the drilling phase of operations in connection with the thirteen wells and the
royalty purchase described above, and the well for which Reef paid 100% of the
cost. Drilling operations were completed in February 2006 on the thirteen wells
drilled with the capital raised by the Partnership, and drilling operations were
completed in February 2008 on the additional well and sidetrack for which Reef
paid 100% of the costs.





The
Partnership’s drilling program is complete, and, as a result, no new wells began
production operations during this quarter.  The Thomas H Miller #1
well in Live Oak, Texas was shut in during the third quarter of 2009 and is
expected to be plugged and abandoned. The Partnership currently has four
remaining productive wells.





The
Partnership has working capital of $5,579 at September 30,
2009.  Subsequent to expending the initial available partner capital
contributions on prospect and property acquisitions and drilling and completion
costs of Partnership wells, the Partnership has minimal working capital,
primarily consisting of cash and accounts receivable from RELP related to oil
and gas sales from productive properties processed by RELP, offset by joint
interest and overhead charges processed by and payable to RELP, which the
Partnership uses to pay quarterly cash distributions to investors.





During
2008 the Partnership generated net income and positive cash flow, primarily due
to a new well which began production operations during May 2008, a second well
which underwent a successful workover in 2007, and the increase
in  crude oil and natural gas prices during 2008. However, during the
latter half of 2008, prices began moving downward. While oil prices have begun
to recover beginning with March 2009 sales, gas prices continued to decline
during the second quarter and recovered only slightly during the third quarter
of 2009. For the remainder of 2009, management does not expect to see a return
to the average pricing levels received during 2008. Because the ability of the
Partnership to generate positive cash flows during 2009 will primarily depend
upon crude oil and natural gas pricing, management expects the Partnership’s
cash flows to decline compared to 2008. The Partnership did not generate
positive cash flow during the first nine months of 2009. The managing general
partner is considering several options related to the Partnership, including the
possible sale of marketable assets and dissolution of the Partnership, as a
result of the recurring losses incurred over the past several years, the erosion
of partnership equity, and the lack of significant cash flows from
operations.





Results
of Operations





The
following is a comparative discussion of the results of operations for the
periods indicated. It should be read in conjunction with the condensed financial
statements and the related notes to the condensed financial statements included
in this Quarterly Report.




10





The
following table provides information about sales volumes and oil and natural gas
prices for the periods indicated. Equivalent barrels of oil (“EBO”) are computed
by converting 6 MCF of natural gas to 1 barrel of crude oil.




For
      the three months
              ended
      September 30,
            
            
            For
      the nine months
              ended
      September 30,2009
            
            
            2008
            
            
            2009
            
            
            2008Sales
      volumes:Oil
      (Barrels)
            
            
            439
            
            
            
            334
            
            
            
            1,345
            
            
            
            859Natural
      gas (Mcf)
            
            
            2,914
            
            
            
            4,280
            
            
            
            10,120
            
            
            
            13,068Average
      sales prices received:Oil
      (Barrels)
            
            $
            59.21
            
            
            $
            116.28
            
            
            $
            47.84
            
            
            $
            114.04Natural
      gas (Mcf)
            
            $
            3.60
            
            
            $
            12.04
            
            
            $
            4.10
            
            
            $
            11.22





The
Partnership owned interests in four productive wells during the third quarter of
2009 compared to five productive wells during the third quarter of 2008. The
Thomas H Miller #1 well in Live Oak, Texas was shut in during the third quarter
of 2009.  The decrease in natural gas sales volumes in the third
quarter of 2009 is primarily due to no production from the Thomas H Miller #1
well and decreased production from the State Tract 284 #1 well in Nueces County,
Texas.  The increase in oil sales volumes during the third quarter of
2009 compared to the third quarter of 2008 is directly due to the ROB L RA SUA
CL&F #1 well located in Terrabonne Parish, Louisiana (the “Gumbo II” well),
which sold 280 barrels of crude oil during the third quarter of 2009, compared
to 184 barrels of crude oil during the third quarter of 2008.





Net
proved reserves decreased overall from September 30, 2008 to September 30, 2009.
Net proved crude oil and natural gas reserves at September 30, 2009 and 2008
include only those quantities that we expect to recover commercially using
current prices, costs, existing regulatory practices, and technology as of the
date indicated. Therefore, any changes in future prices, costs, regulations,
technology or other unforeseen factors could materially increase or decrease the
proved reserve estimates. No additional development costs are required to
recover these proved reserves at September 30, 2009. At September 30, 2009, all
of the Partnership’s proved reserves are classified as proved producing
reserves. All of the Partnership’s reserves are located in the United States.
Net proved crude oil and natural gas reserves of the Partnership at September
30, 2009 and 2008 are detailed below.





Net
      proved reserves
            
            Oil
      (BBL)
            
            
            Gas
      (MCF)September
      30, 2009
            
            
            3,311
            
            
            
            53,823September
      30, 2008
            
            
            3,926
            
            
            
            72,916





Three
months ended September 30, 2009 compared to the three months ended September 30,
2008





The
Partnership has a net loss of $65,293 for the three month period ended September
30, 2009, compared to net income of $42,825 for the three month period ended
September 30, 2008.





The
Partnership incurred a property impairment expense of $46,678 during the three
month period ended September 30, 2009 and $0 during the three month period ended
September 30, 2008. Depletion expense decreased from $15,822 for the third
quarter of 2008 to $10,419 for the third quarter of 2009. This is a result of
decreased sales volumes for the third quarter of 2009.





The
Partnership owned interests in four productive wells during the third quarter of
2009 compared to five productive wells during the third quarter of 2008. The
Thomas H Miller #1 well in Live Oak, Texas was shut in during the third quarter
of 2009. The final Partnership successful well, the Gumbo II, began production
during May 2008 and continued to be productive during the third quarter of
2009.  The oil and natural gas sales from the Gumbo II well partially
offset the decline in sales from the other properties; however, sales volumes
decreased overall due to the lack of production at the Thomas H Miller #1
well.  Sales prices for crude oil and natural gas began declining
during the third quarter of 2008, and the average sales prices for the third
quarter of 2009 remained down from third quarter 2008 levels. In comparison with
prices received during the third quarter of 2008, oil prices have declined by
49.1%, to an average price of $59.21 for the third quarter of 2009. Gas prices
declined by 70.1%, to an average price of $3.60 per MCF this quarter, compared
to an average price of $12.04 received for the third quarter of 2008. As a
result, total sales revenues declined by 59.6% for the third quarter of
2009.




11





Lease
operating expenses increased from $12,055 during the third quarter of 2008 to
$12,312 during the third quarter of 2009. The increase is due to normal
fluctuations in operating activities.





General
and administrative costs increased from $13,133 incurred during the third
quarter of 2008 to $30,582 incurred during the third quarter of 2009, primarily
due to direct costs charged to the Partnership, as well as the timing of audit
and legal fees.  The administrative overhead charge to the Partnership
for the quarter ended September 30, 2009 decreased along with revenues and
expenses during the period, from $7,909 in the third quarter of 2008 to $4,451
in the third quarter of 2009.





Nine
months ended September 30, 2009 compared to the nine months ended September 30,
2008





The
Partnership had a net loss of $133,719 for the nine month period ended September
30, 2009, compared to net income of $78,221 for the nine month period ended
September 30, 2008.





The
Partnership incurred property impairment expense of $0 during the nine month
period ended September 30, 2008 and $52,189 for the nine months ended September
30, 2009. Depletion expense decreased from $43,757 for the nine months ended
September 30, 2008 to $35,890 for the nine months ended September 30, 2009. The
net effect of these two non-cash items was additional expense of approximately
$44,322 incurred during the first nine months of 2009.





The
Partnership owned interests in four productive wells during the nine months
ended September 30, 2009 compared to five productive wells during the nine
months ended September 30, 2008. The Thomas H Miller #1 well in Live Oak, Texas
was shut in during the third quarter of 2009. The final Partnership successful
well, the Gumbo II well, began production during May 2008 and was productive
during the first nine months of 2009. The oil sales from the Gumbo II well were
enough to offset the decline in sales from the other properties. Sales volumes
on an EBO basis remained consistent overall due to the production at the Gumbo
II well, which offset the decline in production on the Thomas H Miller #1
well.  Sales prices for crude oil and natural gas began declining
during the third quarter of 2008, and the average sales prices for the first
nine months of 2009 remained down from 2008 levels. In comparison with prices
received during the first nine months of 2008, oil prices have declined by
58.1%, to an average price of $47.84 for the first nine months of 2009. Gas
prices declined by 63.5%, to an average price of $4.10 per MCF for the first
nine months of 2009, compared to an average price of $11.22 received for the
first nine months of 2008. As a result, total sales revenues declined by 56.8%
for the first nine months of 2009.





Lease
operating expenses increased from $36,016 during the first nine months of 2008
to $46,507 during the first nine months of 2009. The primary factor of the
increase is due to an increase in gas marketing costs of approximately $4,500 on
the Gumbo II well along with the State Tract 284 #1 well, located in Nueces
County, Texas.  Additional increases of $5,700 relate to normal
operating expenses on the Gumbo II well, which began production in May of
2008.





General
and administrative costs increased from $68,181 incurred during the first nine
months of 2008 to $96,224 incurred during the first nine months of 2009,
primarily due to increases in direct costs charged to the Partnership, as well
as the timing of audit and legal fees. Effective April 1, 2008, Reef implemented
a new method for allocating overhead that takes actual overhead and allocates it
based on the summation of revenues, expenses and actual capital costs
incurred.  The administrative overhead charged to the Partnership for
the nine months ended September 30, 2009 was $15,191 compared to $16,549 charged
for the nine months ended September 30, 2008.





While oil
prices have began trending upward beginning with March 2009 sales, gas prices
continued to decline during the second quarter of 2009 and recovered only
slightly during the third quarter of 2009.  As such, the Partnership
expects to incur a loss during the fourth quarter based upon current
prices.




12




Item
3. Quantitative and Qualitative Disclosures About Market Risk.





Not
Applicable





Item
4T. Controls and Procedures





Evaluation
of Disclosure Controls and Procedures





As the
managing general partner of the Partnership, Reef maintains a system of controls
and procedures designed to provide reasonable assurance as to the reliability of
the financial statements and other disclosures included in this report, as well
as to safeguard assets from unauthorized use or disposition. The Partnership,
under the supervision and with participation of its management, including the
principal executive officer and principal financial officer, evaluated the
effectiveness of its “disclosure controls and procedures” as such term is
defined 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 this Quarterly
Report. Based on that evaluation,  the principal executive officer and
principal financial officer have concluded that the Partnership’s disclosure
controls and procedures are effective to ensure that information required to be
disclosed by the Partnership in reports that it files or submits under the
Exchange Act is recorded, processed, summarized, and reported within the time
periods specified in Securities and Exchange Commission rules and forms, and
includes controls and procedures designed to ensure that information required to
be disclosed by us in such reports is accumulated and communicated to our
management, including the principal executive officer and principal financial
officer, as appropriate to allow timely decisions regarding financial
disclosure.





Changes
in Internal Controls





There
have not been any changes in the Partnership’s internal controls over financial
reporting during the fiscal quarter ended September 30, 2009 that have
materially affected, or are reasonably likely to materially affect, the
Partnership’s internal control over financial reporting.





PART
II – OTHER INFORMATION





Item
1.  Legal Proceedings





None.





Item
2.  Unregistered Sales of Equity Securities and Use of
Proceeds





Use
of Proceeds





In
connection with the Registration Statement filed on Form S-1 (No. 333-93399) and
declared effective May 31, 2001, Reef filed a post-effective amendment to the
Registration 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 the Program. All sales of Partnership units were made through the
Program's dealer-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 minimum of 50 Partnership units at a price of $20,000 per unit were
required to be sold in order to form the Partnership. Upon meeting this
requirement, the Partnership was formed on November 10, 2004. The Partnership
offering consisted of 375 units of limited partner interest and 125 units of
general partner interest. The offering period ended on December 2, 2004, at
which time all 500 allowable units had been sold. Investor partners purchased
349.972 limited partner units and 125 general partner units. Reef purchased
25.028 limited partner units, equaling 5.01% of the total Partnership units
sold. Total offering proceeds were $9,924,916. Reef also contributed 1% of all
leasehold, drilling, and completion costs as incurred, and reimbursed the
Partnership 100% of the costs of drilling an unsuccessful development well and
100% of the costs of drilling and completing a successful sidetrack to the
unsuccessful developmental well in Louisiana. Reef paid the Partnership $380,694
in connection with these obligations. Reef also retained interest income earned
by the Partnership totaling $68,585 to be used during the drilling phase of
operations.





All units
except those purchased by Reef paid a 15% management fee to Reef to pay for
Partnership organization and offering costs, including sales commissions. These
costs totaled $1,424,916, leaving capital contributions of $8,843,076 available
for Partnership oil and gas operations. As of September 30, 2009, the
Partnership had expended $8,640,195 on property acquisitions and $112,843 on
pre-production general and administrative expenses. The remainder has been
retained for plugging and abandonment costs of productive wells. Drilling
operations have been completed on the 13 prospects owned by the Partnership, and
the Partnership has no plans to conduct further development operations on any
Partnership prospect.




13




Item
3.  Default Upon Senior Securities





None.





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





None.





Item
5.  Other Information





None.





Item
6.  Exhibits




Exhibits31.1
            Certification
      of Principal Executive Officer pursuant to Section 302 of the
      Sarbanes-Oxley Act of 2002.





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.




14




SIGNATURES





Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.




REEF GLOBAL ENERGY IV,
      L.P.By:
              Reef
      Oil & Gas Partners, L.P.

                Managing
      General PartnerBy:
              Reef
      Oil & Gas Partners, GP, LLC
  Dated: November
      16, 2009
              By:
              /s/
      Michael J. MauceliMichael
      J. Mauceli
                Manager
      and Member
                (principal executive
      officer)




Dated: November
      16, 2009
              By:
              /s/
      David M. TierneyDavid
      M. Tierney
                Treasurer
      and Principal Accounting Officer
                Reef
      Exploration, L.P.
                (principal financial and
      accounting officer)
  15




EXHIBIT
INDEX




Exhibits31.1
            Certification
      of Principal Executive Officer pursuant to Section 302 of the
      Sarbanes-Oxley Act of 2002.





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.





16