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
      1934
  For
the Quarterly Period Ended June 30, 2009
 
 OR
 
 o
                TRANSITION
      REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF
      1934
  For
the Transition Period from ________ to ________
 
 Commission
File Number: 333-93399-04
 ___________________
 
 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 x    No
o
 
 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 o No 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 o
                Accelerated
      filer o
                Non-accelerated
      filer o
                Smaller
      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 oNox
  As of
June 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 INFORMATIONITEM
      1.
                  Financial
      Statements (Unaudited)Condensed
      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
                  7ITEM
      3.
                  Quantitative
      and Qualitative Disclosures About Market Risk
                  12ITEM
      4T.
                  Controls
      and Procedures
                  12PART
      II -- OTHER INFORMATIONITEM
      1.
                  Legal
      Proceedings
                  12ITEM
      2.
                  Unregistered
      Sales of Equity Securities and Use of Proceeds
                  13ITEM
      3.
                  Default
      Upon Senior Securities
                  13ITEM
      4.
                  Submission
      of Matters to a Vote of Security Holders
                  13ITEM
      5.
                  Other
      Information
                  13ITEM
      6.
                  Exhibits
                  13Signatures




i




PART
I FINANCIAL INFORMATION
  Item
1. Financial Statements
 
 Reef
Global Energy IV, L.P.
 Condensed
Balance Sheets
 
 June
      30,
              
              
              December
      31,2009
              
              
              2008(Unaudited)AssetsCurrent
      assets:Cash
      and cash equivalents
              
              $
              92,018
              
              
              $
              106,454Total
      current assets
              
              
              92,018
              
              
              
              106,454Oil
      and gas properties, full cost method of accounting:Proved
      properties, net of accumulated depletion of $8,516,272 and
      $8,489,709
              
              
              214,379
              
              
              
              245,613Net
      oil and natural gas properties
              
              
              214,379
              
              
              
              245,613Total
      assets
              
              $
              306,397
              
              
              $
              352,067Liabilities
      and partnership equityCurrent
      liabilities:Accounts
      payable
              
              $
              2,823
              
              
              $
              436Accounts
      payable to affiliates
              
              
              76,829
              
              
              
              16,801Total
      current liabilities
              
              
              79,652
              
              
              
              17,237Long-term
      liabilities:Asset
      retirement obligation
              
              
              97,299
              
              
              
              122,213Total
      long-term liabilities
              
              
              97,299
              
              
              
              122,213Partnership
      equity:Limited
      partners
              
              
              (49,724
              )
              
              
              11,300Managing
      general partner
              
              
              179,170
              
              
              
              201,317Partnership
      equity
              
              
              129,446
              
              
              
              212,617Total
      liabilities and partnership equity
              
              $
              306,397
              
              
              $
              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
                June
      30
              
              
              For
      the six months ended
                June
      302009
              
              
              2008
              
              
              2009
              
              
              2008Revenues
              
              $
              37,467
              
              
              $
              91,350
              
              
              $
              69,307
              
              
              $
              154,202Costs
      and expenses:Lease
      operating expenses
              
              
              14,143
              
              
              
              11,266
              
              
              
              34,195
              
              
              
              23,961Production
      taxes
              
              
              3,139
              
              
              
              5,572
              
              
              
              5,590
              
              
              
              9,670General
      and administrative
              
              
              43,087
              
              
              
              45,940
              
              
              
              65,642
              
              
              
              55,048Accretion
      of asset retirement obligation
              
              
              537
              
              
              
              1,219
              
              
              
              1,801
              
              
              
              2,489Depreciation,
      depletion and amortization
              
              
              12,245
              
              
              
              13,882
              
              
              
              25,471
              
              
              
              27,935Property
      impairment
              
              
              --
              
              
              
              --
              
              
              
              5,511
              
              
              
              --Total
      costs and expenses
              
              
              73,151
              
              
              
              77,879
              
              
              
              138,210
              
              
              
              119,103Income
      (loss) from operations
              
              
              (35,684
              )
              
              
              13,471
              
              
              
              (68,903
              )
              
              
              35,099Other
      income:Interest
      income
              
              
              211
              
              
              
              66
              
              
              
              477
              
              
              
              297Total
      other income
              
              
              211
              
              
              
              66
              
              
              
              477
              
              
              
              297Net
      income (loss)
              
              $
              (35,473
              )
              
              $
              13,537
              
              
              $
              (68,426
              )
              
              $
              35,396Net
      income (loss) per general partner unit
              
              $
              --
              
              
              $
              53.89
              
              
              $
              --
              
              
              $
              122.41Net
      income (loss) per limited partner unit
              
              $
              (53.71
              )
              
              $
              53.89
              
              
              $
              (48.25
              )
              
              $
              122.41Net
      income (loss) per managing general partner unit
              
              $
              (397.93
              )
              
              $
              (481.89
              )
              
              $
              (1,206.89
              )
              
              $
              (908.86
              )
  See
accompanying notes to condensed financial statements.
  2
  Reef
Global Energy IV, L.P.
 Condensed
Statements of Cash Flows
 (Unaudited)
  For
      the six months ended
                June
      302009
              
              
              2008Operating
      ActivitiesNet
      income (loss)
              
              $
              (68,426
              )
              
              $
              35,396Adjustments
      for non-cash transactions:Depreciation,
      depletion and amortization
              
              
              25,471
              
              
              
              27,935Property
      impairment
              
              
              5,511
              
              
              
              --Accretion
      of asset retirement obligation
              
              
              1,801
              
              
              
              2,489Adjustments
      to reconcile net income (loss) to net cashprovided
      by operating activities:Changes
      in operating assets and liabilities:Accounts
      payable
              
              
              2,387
              
              
              
              84Accounts
      payable to affiliates
              
              
              45,962
              
              
              
              (5,488
              )Net
      cash provided by operating activities
              
              
              12,706
              
              
              
              60,416Investing
      ActivitiesProperty
      acquisition and development
              
              
              --
              
              
              
              (154,932
              )Plugging
      and abandonment costs paid from asset retirement
obligation
              
              
              (12,396
              )
              
              
              (1,096
              )Net
      cash used in investing activities
              
              
              (12,396
              )
              
              
              (156,028
              )Financing
      ActivitiesPartner
      capital contributions
              
              
              9,504
              
              
              
              69,980Partner
      distributions
              
              
              (24,250
              )
              
              
              (41,000
              )Net
      cash provided by (used in) financing activities
              
              
              (14,746
              )
              
              
              28,980Net
      decrease in cash and cash equivalents
              
              
              (14,436
              )
              
              
              (66,632
              )Cash
      and cash equivalents at beginning of period
              
              
              106,454
              
              
              
              75,764Cash
      and cash equivalents at end of period
              
              $
              92,018
              
              
              $
              9,132Supplemental
      disclosure of non-cash investing transactions:Property
      additions included in accounts payable to affiliates
              
              $
              14,066
              
              
              $
              --Property
      additions and asset retirement obligation
              
              $
              --
              
              
              $
              410Adjustment
      to asset retirement obligation
              
              $
              --
              
              
              $
              11,418Supplemental
      disclosure of non-cash financing transactions:Managing
      partner contributions included in accounts receivable from
      affiliates
              
              $
              --
              
              
              $
              92,384
  See
accompanying notes to condensed financial statements.
  3
 Reef
Global Energy IV, L.P.
 Notes
to Condensed Financial Statements (unaudited)
 June
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 six 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 six month periods ended June 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
June 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 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 June 30, 2009
the Partnership recognized no impairment expense. During the six month period
ended June 30, 2009, the Partnership recognized a property impairment expense of
approximately $5,511.
  4
 
 Asset
Retirement Obligation
 
 The
Partnership accounts for its asset retirement obligations in accordance with
Statement of Financial Accounting Standards (“SFAS”) No. 143, “Accounting for
Asset Retirement Obligations” (“SFAS No. 143”). Asset retirement costs and
liabilities associated with future site 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
six months ended June 30, 2009 and the year ended December 31,
2008.
 
 
 Six
      months ended
                June
      30, 2009
              
              
              Year
      ended
                December
      31, 2008Beginning
      asset retirement obligation
              
              $
              122,213
              
              
              $
              137,757Additions
      related to new properties
              
              
              --
              
              
              
              410Accretion
      expense
              
              
              1,801
              
              
              
              3,519Retirement
      related to property abandonment and restoration
              
              
              (26,715
              )
              
              
              (19,473
              )Ending
      asset retirement obligation
              
              $
              97,299
              
              
              $
              122,213
 
 Fair
Value of Financial Instruments
 
 The
estimated fair values for financial instruments under FSP SFAS No. 107-1,
Interim Disclosures about Fair Value of Financial Instruments, are 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.
 
 New
Accounting Pronouncements
 
 Subsequent
Events
 
 In
May 2009, the Financial Accounting Standards Board (the
“FASB”)  issued SFAS No. 165, “Subsequent Events” (“SFAS
165”).  This statement incorporates 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
statement is effective for interim and annual periods ending after June 15,
2009.  The Partnership evaluated subsequent events up to immediately prior
to the issuance of these financial statements.
 
 Recognition
and Presentation of Other-Than-Temporary Impairments
 
 In April
2009, the FASB issued FSP No. FAS 115-2 and FAS 124-2, “Recognition and
Presentation of Other-Than-Temporary Impairments”, which 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.  FSP No. FAS 115-2 and FAS 124-2 do not amend existing
recognition and measurement guidance for equity securities, but do 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.  FSP No. FAS 115-2 and FAS 124-2 became effective
for interim and annual reporting periods ending after June 15,
2009.  Comparative disclosures are required for periods ending after
the initial adoption.  FSP No. FAS 115-2 and FAS 124-2 did not have a
material impact on the Partnership’s financial position, results of operations
or cash flows.
  5
 
 Interim
Reporting of Fair Value of Financial Instruments
 
 In April
2009, the FASB issued FASB Staff Position FSP FAS 107-1 and Accounting
Principles Board (“APB”) Opinion No. 28-1 (“FSP FAS 107-1”), “Interim
Disclosures about Fair Value of Financial Instruments.”  FSP FAS 107-1
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 FSP FAS 107-1 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.  FSP FAS 107-1 is effective for reporting periods
ending after June 15, 2009.  The adoption of FSP FAS 107-1 did not
have any impact on the Partnership’s results of operations, cash flows, or
financial position.
 
 Fair
Value Measurements
 
 On
January 1, 2009, the Partnership adopted FASB Staff Position FSP FAS No. 157-2
(“FSP FAS No. 157-2”), which 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 FSP FAS No. 157-2
was immaterial to the Partnership’s results of operations, cash flows and
financial positions.
 
 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.
 
 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 six month periods ended June 30, 2009, the Partnership did
not incur any technical services costs. During the three and six month periods
ended June 30, 2009 the Partnership incurred administrative costs totaling
$10,632 and $21,394, respectively. During the three and six month periods ended
June 30, 2008, the Partnership incurred technical services and administrative
costs totaling $9,169 and $11,811, respectively. Of these amounts, $1,791 and
$3,164 represent technical services costs capitalized as project costs, and
$7,378 and $8,647 represent administrative costs included as general and
administrative expenses.
 
 Reef
contributes 1% of all leasehold, drilling, and completion costs when incurred.
During the six months ended June 30, 2009 and the year ended December 31, 2008,
this 1% obligation totaled $0 and $0, respectively. Reef also purchased 5.01% of
the Partnership units and pays 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 had
contributed $381,745 related to these obligations as of June 30, 2009. Reef has
no remaining obligations related to these additional costs as of June 30, 2009.
At December 31, 2008, Reef owed the Partnership $183,204 in connection with
these obligations.
  6
 
 RELP
processes joint interest billings and revenues on behalf of the Partnership. At
June 30, 2009, the Partnership owed RELP $76,829 for net revenues processed in
excess of joint interest and technical and administrative services charges. At
December 31, 2008, the Partnership owed RELP $16,801 for joint interest charges
and technical and administrative services charges processed in excess of net
revenues. The Partnership settles its balances with Reef and RELP on a quarterly
basis.
 
 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 six month periods ended June 30, 2009 is
detailed below:
 
 For the
three months ended June 30, 2009
 Type of Unit
              
              Number
      of Units
              
              
              Net
      loss
              
              
              Net
      loss per unitManaging
      general partner units
              
              
              25.028
              
              
              $
              (9,959
              )
              
              
              (397.93
              )Limited
      partner units
              
              
              474.972
              
              
              
              (25,514
              )
              
              
              (53.71
              )Total
              
              
              500.000
              
              
              $
              (35,473
              )
 
 For the
six months ended June 30, 2009
 
 Type of Unit
              
              Number
      of Units
              
              
              Net
      loss
              
              
              Net
      loss per unitManaging
      general partner units
              
              
              25.028
              
              
              $
              (30,206
              )
              
              $
              (1,206.89
              )Limited
      partner units
              
              
              474.972
              
              
              
              (38,220
              )
              
              
              (48.25
              )Total
              
              
              500.000
              
              
              $
              (68,426
              )
 
 
 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.
  7
  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.
 
 A
“prospect” is generally defined as a 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 two are still productive, and 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
$8,041,121 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.
  8
 
 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. 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 six months of 2009.
 
 The table
below summarizes Partnership expenditures as of June 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
              
              
              $
              4,689,380
              
              
              $
              5,158,929Exploratory
      wells
              
              
              139,396
              
              
              
              2,917,173
              
              
              
              3,056,569Purchase
      of royalty interests
              
              
              523,554
              
              
              
              --
              
              
              
              523,554Total
              
              $
              1,132,499
              
              
              $
              7,606,553
              
              
              $
              8,739,052
 
 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. As of June 30, 2009, Reef has also contributed or accrued
$274,491 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 is paying 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 $8,655,663 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. No Partnership wells ceased
production during the quarter. The Partnership currently has five productive
wells.
 
 The
Partnership has working capital of $12,366 at June 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, which the
Partnership uses to pay quarterly cash distributions to investors.
  9
 
 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 have continued to
decline. 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 six 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.
 
 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 oil.
  For
      the three months
                ended
      June 30
              
              
              For
      the six months
                ended
      June 302009
              
              
              2008
              
              
              2009
              
              
              2008Sales
      volumes:Oil
      (Barrels)
              
              
              472
              
              
              
              328
              
              
              
              905
              
              
              
              525Natural
      gas (Mcf)
              
              
              4,053
              
              
              
              3,651
              
              
              
              7,206
              
              
              
              8,788Average
      sales prices received:Oil
      (Barrels)
              
              $
              48.99
              
              
              $
              124.53
              
              
              $
              42.33
              
              
              $
              112.61Natural
      gas (Mcf)
              
              $
              3.54
              
              
              $
              13.82
              
              
              $
              4.30
              
              
              $
              10.82
 
 The
Partnership owned interests in five productive wells during the second quarter
of 2009 and 2008. During the second quarter of 2008, three Partnership wells
accounted for 98.6% of gas sales volumes. The increase in gas sales volumes in
the second quarter of 2009 is primarily due to the production from the ROB L RA
SUA CL&F #1 well located in Terrabonne Parish, Louisiana (the “Gumbo II”
well). The increase in oil sales volumes is directly due to the Gumbo II well,
which sold 355 barrels of crude oil during the second quarter of
2009.
 
 Net
proved crude oil and natural gas reserves of the Partnership at June 30, 2009
and 2008 are detailed below. Net reserves increased overall from June 30, 2008
to June 30, 2009. Net proved crude oil and natural gas reserves at June 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 June 30, 2009. At June 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 reserves
              Oil
      (BBL)
              Gas
      (MCF)June
      30, 2009
              4,973
              70,969June
      30, 2008
              3,930
              79,376
  10
 
 Three
months ended June 30, 2009 compared to the three months ended June 30,
2008
 
 The
Partnership has a net loss of $35,473 for the three month period ended June 30,
2009, compared to net income of $13,537 for the three month period ended June
30, 2008.
 
 The
Partnership incurred no property impairment expense during the three month
period ended June 30, 2009 or the three month period ended June 30, 2008.
Depletion expense decreased from $13,882 for the second quarter of 2008 to
$12,245 for the second quarter of 2009., This is a result of increased sales
volumes and approximately the same reserves for the second quarter of
2009.
 
 The
Partnership had five productive wells during the comparative quarters. The final
Partnership successful well, the Gumbo II, began production during May 2008 and
continued to be productive during the second quarter of 2009.  The oil
production and gas sales from the Gumbo II well was more than enough to offset
the decline in sales barrels from the other properties which were producing
during the second quarter of 2008.  Sales volumes increased overall
due to production at the Gumbo II well.  Sales prices for crude oil
and natural gas began declining during the third quarter of 2008, and the
average sales prices for the second quarter of 2009 continued to decline from
prior quarter levels. In comparison with prices received during the second
quarter of 2008, oil prices have declined by 60.7%, to an average price of
$48.99 for the second quarter of 2009. Gas prices declined by 74.4%, to an
average price of $3.54 per MCF this quarter, compared to an average price of
$13.82 received for the second quarter of 2008. As a result, total sales
revenues declined by 59.0% for the second quarter of 2009.
 
 Lease
operating expenses increased from $11,266 during the second quarter of 2008 to
$14,143 during the second quarter of 2009. The primary factor in the increase is
an approximate $2,000 increase in gas marketing costs for the quarter ended June
30, 2009.
 
 General
and administrative costs decreased from $45,940 incurred during the second
quarter of 2008 to $43,087 incurred during the second quarter of
2009.  Effective April 1, 2008 Reef implemented a new method for
allocating overhead that takes actual overhead and allocates it based upon the
summation of revenues, expenses, and actual capital costs incurred. Accordingly,
the administrative overhead charge to the Partnership for the quarter ended June
30, 2009 decreased along with revenues and expenses during the period, from
$8,640 in the second quarter of 2008 to $4,946 in the second quarter of
2009.   This decrease was partially offset by increases in other
general fees and expenses.
 
 Six
months ended June 30, 2009 compared to the six months ended June 30,
2008
 
 The
Partnership had a net loss of $68,426 for the six month period ended June 30,
2009, compared to net income of $35,396 for the six month period ended June 30,
2008.
 
 The
Partnership incurred no property impairment expense during the six month period
ended June 30, 2008. However, the decline in oil and gas prices has resulted in
impairment expense of proved properties totaling $5,511 for the six months ended
June 30, 2009. Depletion expense also increased from $55,048 for the six months
ended June 30, 2008 to $65,642 for the six months ended June 30, 2009, as
increased sales volumes and approximately the same reserves during this period
led to a lower overall depletion rate. The net effect of these two non-cash
items was additional expense of approximately $16,105 incurred during the first
six months of 2009.
 
 The
Partnership had five productive wells during the comparative six months. The
final Partnership successful well, the Gumbo II well, began production during
May 2008 and was productive during the six months of 2009. The oil production
from the Gumbo II well was more than enough to offset the decline in sales from
the productive properties which produced during the first six months of 2008.
Sales volumes increased overall due to the production at the Gumbo II
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 six
months of 2009 continued to decline from prior month levels. In comparison with
prices received during the first six months of 2008, oil prices have declined by
61.3%, to an average price of $42.33 for the first six months of 2009. Gas
prices declined by 60.8%, to an average price of $4.30 per MCF for the first six
months of 2009, compared to an average price of $11.26 received for the first
six months of 2008. As a result, total sales revenues declined by 55.1% for the
first six months of 2009.
  11
 
 Lease
operating expenses increased from $23,961 during the first six months of 2008 to
$34,195 during the first six 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,
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 $55,048 incurred during the first six
months of 2008 to $65,642 incurred during the first six months of 2009.
Effective April 1, 2008, Reef increased overhead charges to the Partnership in
order to recover the actual overhead costs allocable to the Partnership. Not all
allocable general and administrative expenses were charged to the Partnership
prior to that date. Beginning 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 capital costs consistent with the prior
year’s method of supplying percentages.
 
 While oil
prices began an upward movement beginning with March 2009 oil sales, gas prices
have continued to decline and the Partnership expects to incur a loss during the
third quarter based upon current prices.
 
 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 June 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.
  12
 
 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 $274,491
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 June 30, 2009, the Partnership had
expended $8,655,663 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.
  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
 
 Exhibits
  31.1
              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.
  13
  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, LLCDated:     August
      13, 2009
                By:
                /s/ Michael J. MauceliMichael J.
    MauceliManager
      and Member(principal executive
      officer)Dated:     August
      13, 2009
                By:
                /s/
      L. Mark PriceL. Mark PriceChief
      Financial OfficerReef
      Exploration, L.P.(principal financial and
      accounting officer)
  
  EXHIBIT
INDEX
 
 
 Exhibits
  31.1
              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.