# **UNITED STATESSECURITIES AND EXCHANGE COMMISSION**

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

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## **FORM 10-Q**

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# **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OFTHE SECURITIES EXCHANGE ACT OF 1934**

# **For thequarterly period ended June 30, 2007**

# **CommissionFile Number: 333-93399-04**

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**REEF GLOBALENERGY IV, L.P.**

(Exact name of registrant asspecified in its charter)

| **Nevada**                                 |   | **20-1654113**                        |
|--------------------------------------------|--------|---------------------------------------|
| (State or other  jurisdiction of           |   | (I.R.S. employer                      |
| incorporation or  organization)            |   | identification  no.)                  |
|                                       |   |                                  |
| **1901 N.  Central Expressway, Suite 300** |   | ** **                            |
| **Richardson,  Texas 75080**               |   | **(972)  437-6792**                   |
| (Address of  principal executive offices,  |   | (Registrant’s  telephone number, |
| including zip  code)                       |   | including area  code)                 |

 

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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 during thepreceding 12 months (or for such shorter period that the registrant wasrequired to file such reports), and (2) has been subject to such filing requirementsfor the past 90 days. Yes  x    No  o

Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer,or a non-accelerated filer. See definition of “accelerated filer and largeaccelerated filer” in Rule 12b-2 of the Exchange Act

Large accelerated filer  o                          Accelerated filer  o                                Non-acceleratedfiler  x

Indicate by check mark whether the registrant is ashell company (as defined in Rule 12b-2 of the Exchange Act). Yes o   No x

**As ofAugust 14, 2007, the registrant had 25.028 units held by the managing generalpartner, 125.000 units of additional general partner interest and 349.972 unitsof limited partner interest outstanding.**

 

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

**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 4. CONTROLS AND  PROCEDURES**                                                                                 |       |       |
| ** **                                                                                                           |       |       |
| **PART II – OTHER  INFORMATION**                                                                                |       |       |
| ** **                                                                                                           |       |       |
| **ITEM 1. LEGAL PROCEEDINGS**                                                                                        |       |       |
| ** **                                                                                                           |       |       |
| **ITEM 1A. RISK FACTORS**                                                                                            |       |       |
| ** **                                                                                                           |       |       |
| **ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**                                             |       |       |
| ** **                                                                                                           |       |       |
| **ITEM 3.  DEFAULTS UPON SENIOR SECURITIES**                                                                         |       |       |
| ** **                                                                                                           |       |       |
| **ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**                                                     |       |       |
| ** **                                                                                                           |       |       |
| **ITEM 5. OTHER INFORMATION**                                                                                        |       |       |
| ** **                                                                                                           |       |       |
| **ITEM 6. EXHIBITS**                                                                                                 |       |       |
| ** **                                                                                                           |       |       |
| **SIGNATURES**                                                                                                       |       |       |

 

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# **PART IFINANCIAL INFORMATION**

## **Item1. Financial Statements**

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

**Condensed Balance Sheets**
| ** **                                              | ** ** | **June 30,** | ** **  | **December 31** | ** ** |
|---------------------------------------------------------|------------|-------------------|-------------|----------------------|------------|
| ** **                                              | ** ** | **2007**          | ** **  | **2006**             | ** ** |
| ** **                                              | ** ** | **(Unaudited)**   | ** **  | ** **           | ** ** |
| ** **                                              | ** ** | ** **        | ** **  | ** **           | ** ** |
| **Assets**                                              | ** ** | ** **        | ** **  | ** **           | ** ** |
| ** **                                              | ** ** | ** **        | ** **  | ** **           | ** ** |
| **Current  assets:**                                    | ** ** | ** **        | ** **  | ** **           | ** ** |
| Cash and cash equivalents                               | ** ** | $                 | 34,664      |                 | $          | 83,061 | ** ** |
| Accounts receivable from affiliates                     |       | 37,225            |        | 27,920               |       |
| **Total  current assets**                               | ** ** | **71,889**        | ** **  | **110,981**          | ** ** |
|                                                    |       |              |        |                 |       |
| **Property  and equipment:**                            | ** ** | ** **        | ** **  | ** **           | ** ** |
| Oil and gas properties, full cost method of  accounting |       | 8,412,535         |        | 8,596,035            |       |
| Drilling in progress                                    |       | 80,151            |        | 27,920               |       |
| Prepaid drilling costs                                  |       | 2,559             |        | 26,597               |       |
| Accumulated depreciation and depletion                  |       | (8,352,777        | )           | (8,456,815           | )          |
| **Net  property and equipment**                         | ** ** | **142,468**       | ** **  | **193,737**          | ** ** |
| ** **                                              | ** ** | ** **        | ** **  | ** **           | ** ** |
| **Total  assets**                                       | ** ** | **$**             | **214,357** | ** **           | **$**      | **304,718** | ** ** |
| ** **                                              | ** ** | ** **        | ** **  | ** **           | ** ** |
| **Liabilities  and partnership Equity**                 | ** ** | ** **        | ** **  | ** **           | ** ** |
|                                                    |       |              |        |                 |       |
| **Current  liabilities:**                               | ** ** | ** **        | ** **  | ** **           | ** ** |
| Accounts payable                                        | ** ** | $                 | 22          |                 | $          | 226 | ** ** |
| Accounts payable to affiliates                          |       | 4,525             |        | 90,336               |       |
| **Total  current liabilities**                          | ** ** | **4,547**         | ** **  | **90,562**           | ** ** |
|                                                    |       |              |        |                 |       |
| **Noncurrent  liabilities:**                            | ** ** | ** **        | ** **  | ** **           | ** ** |
| Asset retirement obligation                             |       | 130,487           |        | 94,718               |       |
| **Total  non-current liabilities**                      | ** ** | **130,487**       | ** **  | **94,718**           | ** ** |
| ** **                                              | ** ** | ** **        | ** **  | ** **           | ** ** |
| **Partnership  Equity**                                 | ** ** | ** **        | ** **  | ** **           | ** ** |
| General partners                                        |       | 1,583             |        | 24,716               |       |
| Limited partners                                        |       | 4,432             |        | 69,198               |       |
| Managing general partner                                |       | 73,308            |        | 25,524               |       |
| **Partnership  equity**                                 | ** ** | **79,323**        | ** **  | **119,438**          | ** ** |
| ** **                                              | ** ** | ** **        | ** **  | ** **           | ** ** |
| **Total liabilities and  partnership equity**           | ** ** | **$**             | **214,357** | ** **           | **$**      | **304,718** | ** ** |

 

*See accompanying notes to condensed financialstatements.*

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

**Condensed Statements ofOperations**
|                                                      | ** ** | **For the three months ended  June 30 (unaudited)** | ** ** | **For the six months ended  June 30 (unaudited)** | ** ** |
|------------------------------------------------------|------------|-----------------------------------------------------------------------------------|------------|---------------------------------------------------------------------------------|------------|
| ** **                                           | ** ** | **2007**                                                                          | ** ** | **2006**                                                                        | ** ** | **2007** | ** ** | **2006** | ** ** |
| ** **                                           | ** ** | ** **                                                                        | ** ** | ** **                                                                      | ** ** | ** ** | ** ** | ** ** | ** ** |
| **Revenues:**                                        |       |                                                                              |       |                                                                            |       |   |   |   |   |
| Oil and gas income                                   | ** ** | $                                                                                 | 75,061     |                                                                            | $          | 79,801 |   | $ | 111,597 |   | $ | 151,578 | ** ** |
| **Total  revenues**                                  | ** ** | **75,061**                                                                        | ** ** | **79,801**                                                                      | ** ** | **111,597** | ** ** | **151,578** | ** ** |
| ** **                                           | ** ** | ** **                                                                        | ** ** | ** **                                                                      | ** ** | ** ** | ** ** | ** ** | ** ** |
| **Costs  and expenses:**                             | ** ** | ** **                                                                        | ** ** | ** **                                                                      | ** ** | ** ** | ** ** | ** ** | ** ** |
| Lease operating expenses                             |       | 10,681                                                                            |       | 17,181                                                                          |       | 24,221 |   | 30,376 |   |
| Production taxes                                     |       | 4,423                                                                             |       | 3,353                                                                           |       | 6,678 |   | 5,342 |   |
| General and administrative                           |       | 44,805                                                                            |       | 32,019                                                                          |       | 53,831 |   | 57,018 |   |
| Accretion of asset retirement obligation             |       | 1,615                                                                             |       | 1,441                                                                           |       | 35,769 |   | 2,850 |   |
| Depreciation, depletion and amortization             |       | 7,463                                                                             |       | 56,235                                                                          |       | 22,455 |   | 153,280 |   |
| Property impairment                                  |       | —                                                                            |       | 321,291                                                                         |       | 56,256 |   | 2,474,665 |   |
| **Total  costs and expenses**                        | ** ** | **68,987**                                                                        | ** ** | **431,520**                                                                     | ** ** | **199,210** | ** ** | **2,723,531** | ** ** |
|                                                 |       |                                                                              |       |                                                                            |       |   |   |   |   |
| **Income(loss)  from operations**                    | ** ** | **6,074**                                                                         | ** ** | **(351,719**                                                                    | **)**      | **(87,613** | **)** | **$** | **(2,571,953** | **)** |
|                                                 |       |                                                                              |       |                                                                            |       |   |   |   |   |
| **Other  income:**                                   | ** ** | ** **                                                                        | ** ** | ** **                                                                      | ** ** | ** ** | ** ** | ** ** | ** ** |
| Interest Income                                      |       | 268                                                                               |       | 1,782                                                                           |       | 602 |   | 5,240 |   |
| **Total  other income**                              | ** ** | **268**                                                                           | ** ** | **1,782**                                                                       | ** ** | **602** | ** ** | **5,240** | ** ** |
|                                                 |       |                                                                              |       |                                                                            |       |   |   |   |   |
| **Net  income (loss)**                               | ** ** | **$**                                                                             | **6,342**  | ** **                                                                      | **$**      | **(349,937** | **)** | **$** | **(87,011** | **)** | **$** | **(2,566,713** | **)** |
|                                                 |       |                                                                              |       |                                                                            |       |   |   |   |   |
| Net income  (loss) per general partner unit          |       | $                                                                                 | 12.55      |                                                                            | $          | (696.22 | ) | $ | (172.29 | ) | $ | (5,091.69 | ) |
| Net income  (loss) per limited partner unit          |       | $                                                                                 | 12.55      |                                                                            | $          | (696.22 | ) | $ | (172.29 | ) | $ | (5,091.69 | ) |
| Net income (loss) per  managing general partner unit |       | $                                                                                 | 15.28      |                                                                            | $          | (769.30 | ) | $ | (206.89 | ) | $ | (5,925.49 | ) |

 

*See accompanying notes tocondensed financial statements.*

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

**Condensed Statements of CashFlows**
| ** **                                                                      | ** ** | **For the six months ended  June 30, 2007 (unaudited)** | ** ** |
|---------------------------------------------------------------------------------|------------|--------------------------------------------------------------------------------------------|------------|
| ** **                                                                      | ** ** | **2007**                                                                                   | ** ** | **2006** | ** ** |
| ** **                                                                      | ** ** | ** **                                                                                 | ** ** | ** ** | ** ** |
| **Operating  Activities**                                                       |       |                                                                                       |       |   |   |
| Net loss                                                                        | ** ** | $                                                                                          | (87,011    | ) | $ | (2,566,713 | **)** |
| Adjustments for  non-cash transactions:                                         |       |                                                                                       |       |   |   |
| Depreciation, depletion and amortization                                        |       | 22,455                                                                                     |       | 153,280 |   |
| Property impairment                                                             |       | 56,256                                                                                     |       | 2,474,665 |   |
| Accretion of asset retirement obligation                                        |       | 35,769                                                                                     |       | 2,850 |   |
| Adjustments to  reconcile net loss to net cash used in operating activities:    | ** ** | ** **                                                                                 | ** ** | ** ** | ** ** |
| **Changes  in operating assets and liabilities:**                               | ** ** | ** **                                                                                 | ** ** | ** ** | ** ** |
| Accounts receivable from affiliates                                             |       | (16,533                                                                                    | )          | (64,375 | ) |
| Accounts payable                                                                |       | (204                                                                                       | )          | (15,896 | ) |
| Accounts payable to affiliates                                                  |       | (59,343                                                                                    | )          | (7,565 | ) |
| **Net  cash used in operating activities**                                      | ** ** | **(48,611**                                                                                | **)**      | **(23,754** | **)** |
|                                                                            |       |                                                                                       |       |   |   |
| **Investing  Activities**                                                       | ** ** | ** **                                                                                 | ** ** | ** ** | ** ** |
| Property acquisition and development                                            |       | (53,910                                                                                    | )          | (535,377 | ) |
| **Net  cash used in investing activities**                                      | ** ** | **(53,910**                                                                                | **)**      | **(535,377** | **)** |
|                                                                            |       |                                                                                       |       |   |   |
| **Financing  Activities**                                                       | ** ** | ** **                                                                                 | ** ** | ** ** | ** ** |
| Partner capital contributions                                                   |       | 60,574                                                                                     |       | 12,573 |   |
| Partner distributions                                                           |       | (6,450                                                                                     | )          | (56,000 | ) |
| **Net  cash provided by (used in) financing activities**                        | ** ** | **54,124**                                                                                 | ** ** | **(43,427** | **)** |
|                                                                            |       |                                                                                       |       |   |   |
| **Net  decrease in cash and cash equivalents**                                  | ** ** | **(48,397**                                                                                | **)**      | **(602,558** | **)** |
| Cash and cash  equivalents at beginning of period                               |       | 83,061                                                                                     |       | 757,983 |   |
| **Cash  and cash equivalents at end of period**                                 | ** ** | **$**                                                                                      | **34,664** | ** ** | **$** | **155,425** | ** ** |
|                                                                            |       |                                                                                       |       |   |   |
| Non-cash  financing transactions:                                               |       |                                                                                       |       |   |   |
| Managing partner contributions included in accounts  receivable from affiliates | ** ** | $                                                                                          | 20,692     |   | $ | 803 | ** ** |
| Non-cash  investing transactions:                                               |       |                                                                                       |       |   |   |
| Property  additions and asset retirement obligation                             | ** ** | $                                                                                          | —     |   | $ | 1,173 | ** ** |

 

*See accompanying notes tocondensed financial statements.*

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

**Notes toCondensed Financial Statements (unaudited)**

**June 30, 2007**

**1. Organization and Basis of Presentation**

The financialstatements for Reef Global Energy IV, L.P. (the Partnership) have been preparedpursuant to the rules and regulations of the Securities and Exchange Commission(SEC). Certain information and footnote disclosure normally included in annualfinancial 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 Form 10-Q. The adjustments are normal and recurring. The following notes describeonly the material changes in accounting policies, account details, or financialstatement notes during the first six months of 2007. 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 Report on Form 10-K for theperiod ended December 31, 2006 (the 2006 10-K).

**2. Summary of Accounting Policies**

**Oil and Gas Properties**

The Partnershipfollows the full cost method of accounting for crude oil and natural gasproperties. Under this method, all direct costs and certain indirect costsassociated with acquisition of properties and successful as well asunsuccessful exploration and development activities are capitalized.Depreciation, depletion, and amortization of capitalized crude oil and naturalgas properties and estimated future development costs, excluding unprovedproperties, are based on the unit-of-production method using proved reserves.  Proved gas reserves are converted toequivalent barrels at a rate of 6 Mcf to 1 Bbl. Net capitalized costs of crudeoil and natural gas properties, as adjusted for asset retirement obligations,are limited to the lower of unamortized cost or the cost ceiling, defined asthe sum of the present value of estimated future net revenues from provedreserves based on un-escalated prices discounted at 10 percent, plus the costof properties not being amortized, if any, plus the lower of cost or estimatedfair value of unproved properties included in the costs being amortized, ifany. Excess costs are charged to property impairment expense. No gain or lossis recognized upon sale or disposition of crude oil and natural gas properties,except in unusual circumstances. During the three and six month periods endedJune 30, 2007, the Partnership recognized property impairment expense of $0 and$56,256.

**Asset Retirement Obligations**

Statement of Financial Accounting Standards No. 143, “Accounting forRetirement Obligations” (SFAS 143) addresses accounting and reporting forobligations associated with the retirement of tangible long-lived assets andthe associated asset retirement costs. SFAS 143 requires that the fair value ofa liability for an asset’s retirement obligation be recorded in the period inwhich it is incurred and the corresponding cost capitalized by increasing thecarrying amount of the related long-lived asset. The liability is accreted toits then present value each period, and the capitalized cost is depreciatedover the useful life of the related asset. SFAS 143 is effective for thePartnership as of its inception date.

The following table summarizes the Partnership’s asset retirementobligation for the six months ended June 30, 2007 and the year ended December31, 2006.
|                                       | ** ** | **Six months ended  June 30, 2007** | ** ** | **2006** | ** ** |
|---------------------------------------|------------|---------------------------------------------------------|------------|----------|------------|
| Beginning asset retirement obligation | ** ** | $                                                       | 94,718     |     | $          | 87,725 |   |
| Additions related to new properties   |       | —                                                  |       | 1,173    |       |
| Accretion expense                     |       | 35,769                                                  |       | 5,820    |       |
| Ending asset  retirement obligation   | ** ** | $                                                       | 130,487    |     | $          | 94,718 |   |

 

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**3. Transactions with Affiliates**

Reef Oil & GasPartners, L.P (Reef), the managing general partner, contributes 1% of allleasehold, drilling and completion costs when incurred, in addition to havingpurchased 5.01% of the Partnership units. In lieu of the 1% obligation, Reefagreed during 2006 to pay 100% of the costs for a working interest in adevelopmental well in Louisiana. During the three and six month periods endedJune 30, 2007, Reef was required to pay $20,692 and $52,243 to the Partnershipin connection with these obligations. The $20,692 obligation for the secondquarter is shown in accounts receivable from affiliates on the accompanyingbalance sheet. The Partnership settles its balances with Reef on a quarterlybasis.

RELP processesjoint interest billings and revenues on behalf of the Partnership. At June 30,2007, RELP owed the Partnership $16,533 for net revenues processed by RELP inexcess of joint interest billings paid by RELP on behalf of the Partnership.The $16,533 is shown in accounts receivable from affiliates on the accompanyingbalance sheet. The Partnership settles its balances with RELP on a quarterlybasis.

The Partnershiphas no employees. Reef Exploration, L.P. (RELP), an affiliate of Reef, employsa staff including geologists, petroleum engineers, landmen and accountingpersonnel who administer all of the Partnership’s operations. The Partnershipreimburses RELP for technical and administrative services at cost. During thethree and six month periods ended June 30, 2007, the Partnership had technicalservices credits totaling $(881) and $(881), which have been capitalized asproject costs, and incurred general and administrative costs totaling $4,098and $5,406. At June 30, 2007, the Partnership owed RELP $4,525 for technicalservices and administrative services.

**4. Partnership Equity**

Informationregarding the number of units outstanding and the net income (loss) per type ofPartnership unit for the three and six month periods ended June 30, 2007 isdetailed below:

For the three months ended June 30, 2007       
| Type of Unit          | ** ** | **Number of  Units** | ** ** | **Net income** | ** ** | **Net income per  unit** | ** ** |
|---------------------------------|------------|---------------------------|------------|---------------------|------------|------------------------------------|------------|
| Managing general  partner units |       | 25.028                    |       | $                   | 382        |                               | $          | 15.28 |   |
| General partner  units          |       | 125.000                   |       | 1,568               |       | 12.55                              |       |
| Limited partner  units          |       | 349.972                   |       | 4,392               |       | 12.55                              |       |
| Total                           |       | 500.000                   |       | $                   | 6,342      |                               |       |   |
|                                 |            |                           |            |                     |            |                                    |            |  |  |

 

For the six months ended June 30, 2007
| Type of Unit          | ** ** | **Number of  Units** | ** ** | **Net loss** | ** ** | **Net loss per  unit** | ** ** |
|---------------------------------|------------|---------------------------|------------|-------------------|------------|----------------------------------|------------|
| Managing general  partner units |       | 25.028                    |       | $                 | (5,178     | )                                | $          | (206.89 | ) |
| General partner  units          |       | 125.000                   |       | (21,537           | )          | (172.29                          | )          |
| Limited partner  units          |       | 349.972                   |       | (60,296           | )          | (172.29                          | )          |
|                            |       |                      |       |              |       |                             |       |
| Total                           |       | 500.000                   |       | $                 | (87,011    | )                                |       |   |
|                                 |            |                           |            |                   |            |                                  |            |  |  |

 

**Item 2. Management’s Discussion and Analysis of Financial Condition and Resultsof 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 2006 10-K.

This Report on Form 10-Qcontains forward-looking statements that involve risks and uncertainties. Youshould exercise extreme caution with respect to all forward-looking statementsmade in this Report.  Specifically, the following statements are forward-looking:

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·                                     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 thatit is important 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 Program’s prospectusdated January 10, 2002 and prospectus supplement dated September 21, 2004.Although Reef believes that the expectations reflected in such forward-lookingstatements are reasonable, Reef can give no assurance that such expectationswill prove to have been correct.  Should any one or more of these or otherrisks or uncertainties materialize or should any underlying assumptions proveincorrect, actual results are likely to vary materially from those describedherein.  There can be no assurance that the projected results will occur,that these judgments or assumptions will prove correct or that unforeseendevelopments will not occur.

Reef, as managinggeneral partner, initially received a 10% interest in the Partnership ascompensation for forming the Partnership, and also received a 1% interest inthe Partnership as a result of paying 1% of all leasehold, drilling andcompletion costs. This 11% 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, Reefreduced the interest it received as compensation for forming the Partnershipfrom 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 thepartnership as a result of paying 1% of all leasehold, drilling and completioncosts. This 1% interest is not represented by Partnership units. EffectiveNovember 1, 2006 Reef holds 5.01% of the 99% interest in the Partnership(4.96%) held by the unit holders.

Reef does notintend to update its forward-looking statements.  All subsequent writtenand oral forward-looking statements attributable to Reef or persons acting onits behalf are expressly qualified in their entirety by the applicablecautionary statements.

**Overview**

Reef Global EnergyIV, 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 ofits investor partners. The Partnership’s primary purposes are to generaterevenues from the production of oil and gas, distribute cash flow to investors,and provide tax benefits to investors. The Partnership purchased workinginterests in thirteen prospects with its initial capital  and participated in the drilling of thirteenwells on those prospects. Seven wells were successful, of which two have ceasedproduction and one is currently shut-in for evaluation. Six wells wereunsuccessful. A small portion of capital was also used to purchase a royaltyinterest in a field with three productive wells, one of which is stillproducing as of the date of this report. In addition, Reef has agreed to pay100% of the costs for an additional well that is currently in progress.

The Partnershipoperates solely in the United States. RELP, an affiliate of the managinggeneral partner, and its predecessor entity OREI, Inc. have expertise and havedrilled and operated wells primarily in Texas and Louisiana since 1987. ThePartnership has seven prospects are located in Louisiana, five prospectslocated in Texas, and one prospect located in United States coastal waters inthe Gulf of Mexico. The prospect for which Reef is paying 100% of the costs islocated in Louisiana.

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The Partnershipdoes not operate in any other industry segment. The Partnership is permittedbut has not and is not expected to engage in commodity futures trading orhedging activities, and therefore is subject to commodity pricerisk.   See “Item 3—Quantitative and Qualitative Disclosures AboutMarket Risk.”

**Critical AccountingPolicies**

There have been no changes from the Critical Accounting Policiesdescribed in the 2006 10-K.

**Liquidity and Capital Resources**

For the reasonsdescribed below, Partnership management believes that, unless certain drillingand re-completion projects are successful, cash on hand and cash flow generatedby the Partnership will not be adequate to fund the operation of its businessbeyond a short period of time.  ThePartnership has working capital of $67,342 at June 30, 2007 from which to payoperations costs. Drilling activities on the thirteen Partnership prospectswere completed in 2006, and the Partnership has no plans to issue voluntarycash calls to partners for additional developmental drilling on any of theprospects.

The total capitalinitially available to the Partnership, net of organization and offering costs,was $8,500,000. As of June 30, 2007, the Partnership has also received $84,651in additional capital contributions from Reef representing its obligation topay for 1% of all leasehold, drilling, and completion costs. The Partnershipalso retained the interest income earned during 2004 and 2005 totaling $68,585for use during the drilling phase of operations, resulting in total fundsavailable of approximately $8.653 million.

The Partnershippurchased interests in thirteen prospects upon which thirteen wells have beendrilled. These wells completed drilling operations in February 2006 and allsuccessful wells were operational as of July 2006.  The Partnership expended approximately $8.577million during the drilling phase of operations. The Partnership does notexpect to incur additional costs associated with the initial drilling of thesethirteen wells. The Partnership has also accrued approximately $130,000 as theestimated abandonment liability associated with successful wells drilled by thePartnership. The Partnership expended approximately $4.001 million inconnection with six unsuccessful wells drilled, approximately $3.940 million onseven wells completed as productive wells, $0.523 million on the purchase of aroyalty interest in a field in Louisiana, and $0.113 million in general andadministrative expenses. In addition, Reef, as managing general partner, agreedin July 2006 that it would pay 100 % of the cost for a working interest in awell in Louisiana currently drilling. Reef will make additional capitalcontributions to the Partnership, estimated at approximately $130,000, asdrilling costs are incurred on this well. Approximately $80,000 of this amount has been paid as of June 30, 2007.

Ourindependent registered public accounting firm’s opinion on our December 31,2006 audited financial statements includes an explanatory paragraph indicatingsubstantial doubt about our ability to continue as a going concern. Since itsinception, the Partnership has expended its operating capital on drilling foroil and natural gas. The drilling operations that the Partnership hasundertaken so far have not resulted in the discovery or exploitation ofsufficient oil and/or gas reserves to recover all of the Partnership’sinvestment in Partnership wells. The December 31, 2006 estimate of thePartnership’s oil and gas reserves and future cash flows raises doubts aboutthe future ability of the Partnership to generate oil and gas revenues inexcess of current operating costs. The managing general partner has contributedto the Partnership, free of cost to the Partnership, a working interest in awell currently being drilled. If successful, this well, in the opinion of themanaging general partner, has the potential to generate significant cash flowsto the Partnership. This well completed initial drilling operations in May2007. After reviewing the well logs and other geologic data, a proposal tosidetrack the well approximately 2500 feet from its current bottom holelocation has been made. Operations are expected to commence prior to November2007. Another well drilled by the Partnership and shut-in at December 31, 2006was re-completed in a new zone on May 11, 2007. The well produced forapproximately 30 days before high water volumes caused the well to be shut-infor evaluation. The Partnership owns an 11% revenue interest in the productionfrom this well.  Another well drilled bythe Partnership underwent a successful workover in May 2007. A secondproductive zone was perforated and the production rate from the well hasincreased substantially. As a result of this successful workover, thePartnership is currently generating positive cash flow to investors.  However, the long-term ability of thePartnership to generate revenues in excess of operating costs greatly dependsupon the success of the above drilling project. If this project is notsuccessful, we could be 

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unableto fund our operating costs, which could result in ceasing our operations andliquidating the Partnership’s assets.

**Results of Operations**

**Three months ended June 30, 2007 and 2006**

The Partnershipincurred a net loss of $349,937 during the three month period ended June 30,2006 compared to net income of $6,342 for the three month period ended June 30,2007.

Oil and gasrevenues from five productive working interest wells and one productive royaltyinterest well totaled $79,801 during the quarter ending June 30, 2006. Generaland administrative charges of $32,019 included approximately $11,000 forprofessional fees related to the audit of the 2005 financial statements. Theprimary reason for the net loss during the quarter was property impairmentcost. The Partnership incurred property impairment cost of $321,291 for thethree month period ended June 30, 2006, which was the result of the estimatedvalue of reserves not being sufficient to cover the drilling costs for the twoPartnership wells completed during this quarter.

The Partnershiphad net income of $6,342 for the quarter ended June 30, 2007. The Partnershiphad five productive working interest wells and one productive royalty interestwell during the quarter.  Successfulworkovers of two Partnership wells performed in May was the primary reasonrevenues for the second quarter of 2007 totaled $75,061 compared to revenues ofonly $36,536 during the first quarter of 2007. However, on one of these workovers, high water volumes caused the wellto be shut-in June 15, 2007, after approximately 30 days of production. Thiswell accounted for approximately $17,000 of revenue during the second quarter,and Reef is still evaluating the well. General and administrative costs totaled$44,805 during the quarter, which included $20,000 for professional feesrelated to the audit of the 2006 financial statements. We expect to incur$10,000 in audit costs during the third quarter, and anticipate that generaland administrative costs will decline during the third quarter. Revenues duringthe third quarter are also expected to decline slightly from second quarterlevels, but the Partnership is expected to continue generating positive cashflow during the third quarter.

**Six months ended June 30, 2007 and 2006**

During the sixmonth period ended June 30, 2006, the Partnership incurred a net loss of$2,566,713, compared to a net loss of $87,011 for the six month period endedJune 30, 2007.

During the sixmonths ended June 30, 2006, the Partnership recorded impairment expensetotaling $2,311,286. The impairment resulted primarily from the fact that theperformance levels of the Partnership’s successful wells drilled during thedrilling phase of Partnership operations did not meet initial expectations,leading to reductions in reserve estimates and reserve valuations. Thereduction in reserve estimates was also compounded by the fact that reservevalues are estimated based upon prices at the end of the quarter. At June 30,2006, gas prices had fallen by approximately 39.5% from levels at December 31,2005. The Partnership had five productive working interest wells and oneproductive royalty interest well during the first half of 2006. Revenues were$151,578 for the first half of 2006 compared to only $111,597 during the firsthalf of 2007, which resulted from the Partnership’s successful wells drilledhaving much higher decline rates than originally anticipated at the time theybegan production operations.

As of December 31,2006, the Partnership had taken $7.979 million of property impairment cost onits $8.557 million investment in properties. Operating results for the firsthalf of 2007 show additional property impairment cost of $56,256 incurredduring the first quarter of the year, caused again by property performancelevels not meeting expectations. The Partnership incurred a net loss of $87,011for the six month period ended June 30, 2007. The Partnership had fiveproductive working interest wells and one productive royalty interest wellduring the first six months of 2007. One of the productive working interestwells was shut-in June 15, 2007 for evaluation and has not returned toproduction as of the date of this report. As a result of a successful workoveron another Partnership well, we anticipate revenues for the second half of 2007will approximate revenues for the first half of 2007. General andadministrative costs totaled $53,831 during the first six months of 2007, andincluded $20,000 of professional fees for the audit of the 2006 financialstatements. We expect 

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to incur anadditional $10,000 of professional fees during the third quarter in connectionwith the 2006 audit, and believe general and administrative costs will declineduring the second half of 2007.

 Net proved oil and gas reserves at June 30,2007 and December 31, 2006 are presented below. The estimated proved reservesof the Partnership include only those quantities which are reasonably expectedto be recovered from known oil and gas reservoirs under current economic andoperating conditions. Proved reserves include only quantities we expect torecover commercially using current prices, costs, existing regulatorypractices, and technology. Therefore, any changes in future prices, costs,regulations, technology or other unforeseen factors could materially increaseor decrease the estimate of proved reserves. The estimate of proved reserves atJune 30, 2007 uses closing NYMEX prices of $70.68 per barrel and $6.77 perMMBTU, adjusted by property for energy context, quality and transportationcosts, compared to the December 31, 2006 estimate which utilized closing NYMEX pricesof $57.75 per barrel and $5.635 per MMBTU.
| Net proved reserves  | ** ** | **Oil (BBL)** | ** ** | **Gas (MCF)** | ** ** |
|-------------------------------------|------------|--------------------|------------|--------------------|------------|
| December 31,  2006                  |       | 1,185              |       | 65,178             |       |
| June 30, 2007                       |       | 2,328              |       | 63,726             |       |

 

**Item 3. Quantitative and Qualitative Disclosures about Market Risk.**

**InterestRate Risk**

The Partnership currently has no borrowings. The partnership agreementprohibited bank borrowings during the Partnership’s drilling phase ofoperations. The Partnership is permitted to borrow monies or assess partnersfor developmental activities on the prospects it has drilled, however, at thistime the Partnership has no plans to conduct additional activities on any ofthese prospects. The Partnership is subject to interest rate risk solely to theextent that changes in interest rates affect general economic conditions.

**CommodityPrice Risk**

The Partnershiphas not and does not expect to engage in commodity futures trading or hedgingactivities or enter into derivative financial instrument transactions fortrading or other speculative purposes. The Partnership sells a vast majority of its production from successfuloil and gas wells on a month-to-month basis at current spot market prices.Accordingly, the Partnership is at risk for the volatility in commodity pricesinherent in the oil and gas industry, and the level of commodity prices has asignificant impact on the Partnership’s results of operations.

**Item 4. Controls and Procedures**

As the ManagingGeneral Partner of the Partnership, Reef maintains a system of controls andprocedures designed to provide reasonable assurance as to the reliability ofthe financial statements and other disclosures included in this report, as wellas to safeguard assets from unauthorized use or disposition. As of the end ofthe period covered by this report, Reef’s Principal Executive Officer and ChiefFinancial Officer have evaluated the effectiveness of the design and operationof the Partnership’s disclosure controls and procedures (as defined in Rule13a-15(e) of the Securities Exchange Act of 1934) with the assistance andparticipation of other members of management. Based upon that evaluation, Reef’sPrincipal Executive Officer and Chief Financial Officer have concluded that asof June 30, 2007, Reef’s disclosure controls and procedures were effective at areasonable assurance level for gathering, analyzing and disclosing theinformation the Partnership is required to disclose in the reports it filesunder the Securities Exchange Act of 1934 within the time periods specified inthe SEC’s rules and forms. During our fiscal 

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quarter ended June30, 2007, no changes occurred in our internal control over financial reporting(as defined in Rule 13a-15(f) of the Securities Exchange Act of 1934) that havematerially affected, or are reasonably likely to materially affect, ourinternal control over financial reporting.

**PART II – OTHER INFORMATION**

**Item 1. Legal Proceedings**

None

**Item 1A. Risk Factors**

In addition to the other information set forth in this report, youshould carefully consider the risk factors discussed in Part I, Item 1A in the2006 10-K, which could materially affect our business, financial condition orfuture results. The risks described in our 2006 10-K are not the only risksfacing the Partnership. Additional risks and uncertainties not currently knownto us or that we currently deem to be immaterial also may materially adverselyaffect our business, financial condition and/or operating results. There havebeen no material changes from the risk factors previously disclosed in the 200610-K.

The 2006 10-K contained the following risk factor concerning theability of the Partnership to continue as a going concern. This risk factorcontinues to be valid as of June 30, 2007.

**The Partnership’s ability to continue as a goingconcern depends upon the success of drilling and re-completion projects whichwill take place during 2007.**

Ourindependent registered public accounting firm’s opinion on our December 31,2006 audited financial statements includes an explanatory paragraph indicatingsubstantial doubt about our ability to continue as a going concern. Since itsinception, the Partnership has expended its operating capital on drilling foroil and natural gas. The drilling operations that the Partnership hasundertaken so far have not resulted in the discovery or exploitation ofsufficient oil and/or gas reserves to recover all of the Partnership’sinvestment in Partnership wells. The December 31, 2006 estimate of thePartnership’s oil and gas reserves and future cash flows raises doubts aboutthe future ability of the Partnership to generate oil and gas revenues inexcess of current operating costs. The managing general partner has contributedto the Partnership, free of cost to the Partnership, a working interest in awell currently being drilled. If successful, this well, in the opinion of themanaging general partner, has the potential to generate significant cash flowsto the Partnership. This well completed initial drilling operations in May2007. After reviewing the well logs and other geologic data, a proposal tosidetrack the well approximately 2500’ from its current bottom hole locationhas been made. Operations are expected to commence prior to November 2007. Twoworkovers of existing Partnership wells were completed during the secondquarter. The first well produced oil and gas for approximately 30 days beforehigh water volumes caused the well to be shut-in for evaluation. A second wellunderwent a successful workover in which a second productive zone wasperforated and began production on June 2, 2007. The long-term ability of thePartnership to generate revenues in excess of operating costs greatly dependsupon the success of the drilling project referred to above. If this project isnot successful, we could be unable to fund our operating costs, which couldresult in ceasing our operations and liquidating the Partnership’s assets.

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

**Use of Proceeds**

In connection withthe Registration 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. OnJanuary 10, 2002 Reef filed a final prospectus and commenced the offering ofunits in the Program. All sales of Partnership units were made through theProgram’s dealer-manager, Reef Securities, Inc., and a number of solicitingdealers. The Program filed a prospectus supplement describing Reef GlobalEnergy IV, L.P. on September 21, 2004 and commenced offering units. Theoffering period ended on December 2, 2004.

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Duringthe offering period, the Partnership sold 474.972 units to investor partners,consisting of 349.972 limited partner units and 125 general partner units. Reefpurchased 25.028 limited partner units, equaling 5.01% of the total Partnershipunits sold. Total offering proceeds were $9,924,916. All units except thosepurchased by Reef paid a 15% management fee to Reef to pay for the Partnershiporganization and offering costs, including sales commissions. These coststotaled $1,424,916, leaving capital contributions of $8,500,000 available forPartnership oil & gas operations. In addition, the Partnership hasavailable $68,585 of interest income and $84,651 of additional capitalcontributions from Reef in connection with its obligation to pay 1% of allleasehold, drilling and completion costs, for a total of $8.653 million. As ofJune 30, 2007 the Partnership had expended $8.577 million on oil and gasoperations, and had accrued an estimated abandonment liability of approximately$130,000 in connection with successful wells drilled by the Partnership.

**Item 3.  Defaults 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 Chief Executive Officer required by  Rule 13a-14(a)/15d-14(a) pursuant to Section 302 of the Sarbanes-Oxley Act of  2002.          |
|     |       |                                                                                                                                                |
| 31.2     |       | Certification of Chief Financial Officer required by  Rule 13a-14(a)/15d-14(a) pursuant to Section 302 of the Sarbanes-Oxley Act of  2002.          |
|     |       |                                                                                                                                                |
| 32.1     |       | Certification of Chief Executive Officer pursuant to  18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of 2002. |
|     |       |                                                                                                                                                |
| 32.2     |       | Certification of Chief Financial Officer pursuant to  18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of 2002. |

 

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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 thereunto dulyauthorized.
|                                          |       | REEF GLOBAL ENERGY IV, L.P. |
|-----------------------------------------------|------------|-----------------------------|
|                                          |       |                        |
|                                          |       | By:                         | Reef Oil & Gas Partners, L.P. |
|                                          |       |                        | Managing General  Partner |
|                                          |       |                        |
|                                          |       | By:                         | Reef Oil & Gas Partners, GP, LLC |
|                                          |       |                        |
|                                          |       |                        |
| Dated:    August 20, 2007 |       | By:                         | /s/ Michael J. Mauceli |   |   |
| ** **                                    | ** ** |                        | **Michael J. Mauceli** |
|                                          |       |                        | Manager and Member |
| * *                                      |       |                        | *(principal executive officer)* |
| * *                                      |       | * *                    |
| * *                                      |       | * *                    |
| Dated:    August 20, 2007 |       | By:                         | /s/ Daniel C. Sibley |   |
| ** **                                    | ** ** |                        | **Daniel C. Sibley** |
|                                          |       |                        | Chief Financial Officer |
| * *                                      |       | * *                    | *(principal financial and accounting officer)* |
|                                               |            |                             |  |  |  |  |  |  |

 

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