##### Table of Contents



United States
Securities and Exchange Commission
 Washington, D.C. 20549
 Form 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2010
 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 0-51272
 ATLAS AMERICA SERIES 25-2004 (A) L.P.
  Delaware
    
    55-0856393(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)Westpointe Corporate Center One1550 Coraopolis Heights Rd. 2nd FloorMoon Township, PA
    
    15108(Address of principal executive offices)
    
    (zip code)
 (412) 262-2830
 þ o
 o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ
 o þ




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##### 



ATLAS AMERICA SERIES 25-2004 (A) L.P.
(A Delaware Limited Partnership)
INDEX TO QUARTERLY REPORT
ON FORM 10-Q
 PAGEPART I. FINANCIAL INFORMATIONItem 1: Financial StatementsBalance Sheets as of September 30, 2010 and December 31, 2009
    
    
    3Statements of Operations for the Three Months and Nine Months ended September 30, 2010 and 2009
    
    
    4Statement of Changes in Partners Capital for the Nine Months ended September 30, 2010
    
    
    5Statements of Cash Flows for the Nine Months ended September 30, 2010 and 2009
    
    
    6Notes to Financial Statements
    
    
    7-18Item 2: Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    18-22Item 4: Controls and Procedures
    
    
    22PART II. OTHER INFORMATIONItem 1: Legal Proceedings
    
    
    22Item 6: Exhibits
    
    
    22SIGNATURES
    
    
    23CERTIFICATIONSExhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   2




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PART 1. FINANCIAL INFORMATION
 
 ITEM 1. FINANCIAL STATEMENTS
ATLAS AMERICA SERIES 25-2004 (A) L.P.
 
 BALANCE SHEETS
 September 30,
    
    
    December 31,2010
    
    
    2009(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    62,700
    
    
    $
    123,100Accounts receivable-affiliate
    
    
    380,800
    
    
    
    508,500Short-term hedge receivable due from affiliate
    
    
    582,100
    
    
    
    379,300Total current assets
    
    
    1,025,600
    
    
    
    1,010,900Oil and gas properties, net
    
    
    8,015,200
    
    
    
    8,510,700Long-term hedge receivable due from affiliate
    
    
    611,400
    
    
    
    312,100$
    9,652,200
    
    
    $
    9,833,700LIABILITIES AND PARTNERS CAPITALCurrent liabilities:Accrued liabilities
    
    $
    29,900
    
    
    $
    42,100Short-term hedge liability due to affiliate
    
    
    1,500
    
    
    
    4,600Total current liabilities
    
    
    31,400
    
    
    
    46,700Asset retirement obligation
    
    
    1,490,800
    
    
    
    1,426,600Long-term hedge liability due to affiliate
    
    
    99,900
    
    
    
    47,500Partners capital:Managing general partner
    
    
    2,541,300
    
    
    
    2,791,900Limited partners (1,106.76 units)
    
    
    4,715,600
    
    
    
    5,486,400Accumulated other comprehensive income
    
    
    773,200
    
    
    
    34,600Total partners capital
    
    
    8,030,100
    
    
    
    8,312,900$
    9,652,200
    
    
    $
    9,833,700
   3




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ATLAS AMERICA SERIES 25-2004 (A) L.P.
 
 STATEMENTS OF OPERATIONS
 (Unaudited)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009REVENUESNatural gas and oil
    
    $
    378,700
    
    
    $
    627,300
    
    
    $
    1,276,700
    
    
    $
    2,127,400Total revenues
    
    
    378,700
    
    
    
    627,300
    
    
    
    1,276,700
    
    
    
    2,127,400COSTS AND EXPENSESProduction
    
    
    247,400
    
    
    
    239,600
    
    
    
    736,500
    
    
    
    789,900Depletion
    
    
    157,200
    
    
    
    266,400
    
    
    
    528,500
    
    
    
    885,600Accretion of asset retirement obligation
    
    
    21,400
    
    
    
    18,300
    
    
    
    64,200
    
    
    
    54,900General and administrative
    
    
    34,100
    
    
    
    46,700
    
    
    
    116,900
    
    
    
    125,800Total expenses
    
    
    460,100
    
    
    
    571,000
    
    
    
    1,446,100
    
    
    
    1,856,200Net (loss) earnings
    
    $
    (81,400
    )
    
    $
    56,300
    
    
    $
    (169,400
    )
    
    $
    271,200Allocation of net (loss) earnings:Managing general partner
    
    $
    (3,000
    )
    
    $
    62,800
    
    
    $
    26,200
    
    
    $
    237,900Limited partners
    
    $
    (78,400
    )
    
    $
    (6,500
    )
    
    $
    (195,600
    )
    
    $
    33,300Net (loss) earnings per limited partnership unit
    
    $
    (71
    )
    
    $
    (6
    )
    
    $
    (177
    )
    
    $
    30
   4




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ATLAS AMERICA SERIES 25-2004 (A) L.P.
 
 STATEMENT OF CHANGES IN PARTNERS CAPITAL
 FOR THE NINE MONTHS ENDED
 September 30, 2010
 (Unaudited)
 AccumulatedManaging
    
    
    
    
    
    
    OtherGeneral
    
    
    Limited
    
    
    ComprehensivePartner
    
    
    Partners
    
    
    Income
    
    
    TotalBalance at January 1, 2010
    
    $
    2,791,900
    
    
    $
    5,486,400
    
    
    $
    34,600
    
    
    $
    8,312,900Participation in revenues and expenses:Net production revenues
    
    
    189,100
    
    
    
    351,100
    
    
    
    
    
    
    
    540,200Depletion
    
    
    (99,500
    )
    
    
    (429,000
    )
    
    
    
    
    
    
    (528,500
    )Accretion of asset retirement obligation
    
    
    (22,500
    )
    
    
    (41,700
    )
    
    
    
    
    
    
    (64,200
    )General and administrative
    
    
    (40,900
    )
    
    
    (76,000
    )
    
    
    
    
    
    
    (116,900
    )Net earnings (loss)
    
    
    26,200
    
    
    
    (195,600
    )
    
    
    
    
    
    
    (169,400
    )Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    738,600
    
    
    
    738,600Asset contributed by MGP
    
    
    33,000
    
    
    
    
    
    
    
    
    
    
    
    33,000Distributions to partners
    
    
    (309,800
    )
    
    
    (575,200
    )
    
    
    
    
    
    
    (885,000
    )Balance at September 30, 2010
    
    $
    2,541,300
    
    
    $
    4,715,600
    
    
    $
    773,200
    
    
    $
    8,030,100
   5




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ATLAS AMERICA SERIES 25-2004 (A) L.P.
 
 STATEMENTS OF CASH FLOWS
 (Unaudited)
 Nine Months EndedSeptember 30,2010
    
    
    2009Cash flows from operating activities:Net (loss) earnings
    
    $
    (169,400
    )
    
    $
    271,200Adjustments to reconcile net (loss) earnings to
net cash provided by operating activities:Depletion
    
    
    528,500
    
    
    
    885,600Non-cash loss on derivative value
    
    
    285,800
    
    
    
    84,900Accretion of asset retirement obligation
    
    
    64,200
    
    
    
    54,900Decrease in
accounts receivable  affiliate
    
    
    127,700
    
    
    
    373,500(Decrease) increase in accrued liabilities
    
    
    (12,200
    )
    
    
    6,600Net cash provided by operating activities
    
    
    824,600
    
    
    
    1,676,700Cash flows from financing activities:Distributions to partners
    
    
    (885,000
    )
    
    
    (1,827,900
    )Net cash used in financing activities
    
    
    (885,000
    )
    
    
    (1,827,900
    )Net decrease in cash and cash equivalents
    
    
    (60,400
    )
    
    
    (151,200
    )Cash and cash equivalents at beginning of period
    
    
    123,100
    
    
    
    295,200Cash and cash equivalents at end of period
    
    $
    62,700
    
    
    $
    144,000Supplemental schedule of non-cash investing and financing activities:Assets contributed by managing general partner:Tangible equipment
    
    $
    12,200
    
    
    $
    Intangible drilling costs
    
    
    20,800
    
    
    
    $
    33,000
    
    
    $
    
   6




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ATLAS AMERICA SERIES 25-2004 (A) L.P.
 
 NOTES TO FINANCIAL STATEMENTS
 September 30, 2010
 (Unaudited)
 NOTE 1  BASIS OF PRESENTATION
   NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Use of Estimates
   Fair Value of Financial Instruments
   7




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ATLAS AMERICA SERIES 25-2004 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Oil and Gas Properties
   Impairment of Long-Lived Assets
      8




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ATLAS AMERICA SERIES 25-2004 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Working Interest
  Revenue Recognition
    9




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ATLAS AMERICA SERIES 25-2004 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Comprehensive Income (Loss)
  Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Net (loss) earnings
    
    $
    (81,400
    )
    
    $
    56,300
    
    
    $
    (169,400
    )
    
    $
    271,200Other comprehensive income (loss):Unrealized holding gain (loss)
on hedging contracts
    
    
    361,200
    
    
    
    (21,000
    )
    
    
    850,300
    
    
    
    (160,000
    )Less: reclassification
adjustment for gains realized in
net (loss) earnings
    
    
    (39,700
    )
    
    
    (239,400
    )
    
    
    (111,700
    )
    
    
    (649,000
    )Total other comprehensive income (loss)
    
    
    321,500
    
    
    
    (260,400
    )
    
    
    738,600
    
    
    
    (809,000
    )Comprehensive income (loss)
    
    $
    240,100
    
    
    $
    (204,100
    )
    
    $
    569,200
    
    
    $
    (537,800
    )
 Recently Adopted Accounting Standards
     10




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ATLAS AMERICA SERIES 25-2004 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Recently Adopted Accounting Standards (Continued)
  Recently Issued Accounting Standards
    11




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ATLAS AMERICA SERIES 25-2004 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE
3  OIL AND GAS PROPERTIES
  September 30,
    
    
    December 31,2010
    
    
    2009Natural gas and oil properties:Proved properties:Leasehold interests
    
    $
    716,500
    
    
    $
    716,500Wells and related equipment
    
    
    34,741,500
    
    
    
    34,708,50035,458,000
    
    
    
    35,425,000Accumulated depletion
    
    
    (27,442,800
    )
    
    
    (26,914,300
    )$
    8,015,200
    
    
    $
    8,510,700
 NOTE
4  ASSET RETIREMENT OBLIGATIONS
    Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Asset retirement obligation at beginning of
period
    
    $
    1,469,400
    
    
    $
    1,257,000
    
    
    $
    1,426,600
    
    
    $
    1,220,400Accretion expense
    
    
    21,400
    
    
    
    18,300
    
    
    
    64,200
    
    
    
    54,900Asset retirement obligation at end of period
    
    $
    1,490,800
    
    
    $
    1,275,300
    
    
    $
    1,490,800
    
    
    $
    1,275,300
  12




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ATLAS AMERICA SERIES 25-2004 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE
5  DERIVATIVE INSTRUMENTS
     13




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ATLAS AMERICA SERIES 25-2004 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE
5  DERIVATIVE INSTRUMENTS (Continued)
  Fair Value of Derivative Instruments:
 Asset Derivatives
    
    
    
    
    Liability DerivativesDerivatives in
    
    
    
    Fair Value
    
    
    
    
    Fair ValueCash Flow
    
    Balance Sheet
    
    September 30,
    
    
    December 31,
    
    
    Balance sheet
    
    September 30,
    
    
    December 31,Hedging Relationships
    
    Location
    
    2010
    
    
    2009
    
    
    Location
    
    2010
    
    
    2009Commodity Contracts
    
    Current Assets
    
    $
    582,100
    
    
    $
    379,300
    
    
    Current liabilities
    
    $
    (1,500
    )
    
    $
    (4,600
    )Long-Term Assets
    
    
    611,400
    
    
    
    312,100
    
    
    Long-term liabilities
    
    
    (99,900
    )
    
    
    (47,500
    )Total Derivatives
    
    
    
    $
    1,193,500
    
    
    $
    691,400
    
    
    
    
    $
    (101,400
    )
    
    $
    (52,100
    )
 Effects of Derivative Instruments on Statements of Operations:
 GainGain/(Loss)
    
    
    
    
    Reclassified from Accumulated OCI intoRecognized in OCI on Derivative
    
    
    
    
    (Loss) Earnings(Effective Portion)
    
    
    Location of Gain
    
    (Effective Portion)Derivatives in
    
    Three Months Ended
    
    
    Reclassified from Accumulated
    
    Three Months EndedCash Flow
    
    September 30,
    
    
    September 30,
    
    
    OCI into (Loss) Earnings
    
    September 30,
    
    
    September 30,Hedging Relationships
    
    2010
    
    
    2009
    
    
    (Effective Portion)
    
    2010
    
    
    2009Commodity Contracts
    
    $
    361,200
    
    
    $
    (21,000
    )
    
    Natural Gas and Oil Revenue
    
    $
    39,700
    
    
    $
    239,400
 GainGain/(Loss)
    
    
    
    
    Reclassified from Accumulated OCI intoRecognized in OCI on Derivative
    
    
    
    
    (Loss) Earnings(Effective Portion)
    
    
    Location of Gain
    
    (Effective Portion)Derivatives in
    
    Nine Months Ended
    
    
    Reclassified from Accumulated
    
    Nine Months EndedCash Flow
    
    September 30,
    
    
    September 30,
    
    
    OCI into (Loss) Earnings
    
    September 30,
    
    
    September 30,Hedging Relationships
    
    2010
    
    
    2009
    
    
    (Effective Portion)
    
    2010
    
    
    2009Commodity Contracts
    
    $
    850,300
    
    
    $
    (160,000
    )
    
    Natural Gas and Oil Revenue
    
    $
    111,700
    
    
    $
    649,000
   14




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ATLAS AMERICA SERIES 25-2004 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE
5  DERIVATIVE INSTRUMENTS (Continued)
 Natural Gas Fixed Price Swaps
 Production
    
    
    
    
    
    AveragePeriod Ending
    
    Volumes
    
    
    Fixed Price
    
    
    Fair ValueDecember 31,
    
    (MMbtu)(1)
    
    
    (per MMbtu)(1)
    
    
    Asset(2)2010
    
    
    53,700
    
    
    $
    7.236
    
    
    $
    176,9002011
    
    
    143,300
    
    
    
    6.845
    
    
    
    344,5002012
    
    
    96,300
    
    
    
    7.172
    
    
    
    200,6002013
    
    
    54,000
    
    
    
    6.544
    
    
    
    65,9002014
    
    
    23,600
    
    
    
    5.899
    
    
    
    10,800$
    798,700
 Natural Gas Costless Collars
 Production
    
    
    
    
    
    
    
    AveragePeriod Ending
    
    Option
    
    Volumes
    
    
    Floor & Cap
    
    
    Fair ValueDecember 31,
    
    Type
    
    (MMbtu)(1)
    
    
    (per MMbtu)(1)
    
    
    Asset (Liability)(2)2010
    
    Puts purchased
    
    
    9,200
    
    
    $
    5.774
    
    
    $
    17,3002010
    
    Calls sold
    
    
    9,200
    
    
    
    6.996
    
    
    
    (100
    )2011
    
    Puts purchased
    
    
    66,300
    
    
    
    6.441
    
    
    
    139,9002011
    
    Calls sold
    
    
    66,300
    
    
    
    7.551
    
    
    
    (3,000
    )2012
    
    Puts purchased
    
    
    59,700
    
    
    
    6.013
    
    
    
    89,9002012
    
    Calls sold
    
    
    59,700
    
    
    
    7.183
    
    
    
    (19,800
    )2013
    
    Puts purchased
    
    
    69,900
    
    
    
    5.749
    
    
    
    103,9002013
    
    Calls sold
    
    
    69,900
    
    
    
    6.937
    
    
    
    (49,600
    )2014
    
    Puts purchased
    
    
    25,700
    
    
    
    5.613
    
    
    
    39,2002014
    
    Calls sold
    
    
    25,700
    
    
    
    6.724
    
    
    
    (26,100
    )$
    291,600
 Crude Oil Fixed Price Swaps
 Production
    
    
    
    
    
    AveragePeriod Ending
    
    Volumes
    
    
    Fixed Price
    
    
    Fair ValueDecember 31,
    
    (Bbl)(1)
    
    
    (per Bbl)(1)
    
    
    Asset(3)2010
    
    
    50
    
    
    $
    97.061
    
    
    $
    7002011
    
    
    100
    
    
    
    88.498
    
    
    
    5002012
    
    
    100
    
    
    
    88.093
    
    
    
    1002013
    
    
    50
    
    
    
    88.398
    
    
    
    1002014
    
    
    
    
    
    
    
    
    
    
    $
    1,400
  15




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ATLAS AMERICA SERIES 25-2004 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE
5  DERIVATIVE INSTRUMENTS (Continued)
 Crude Oil Costless Collars
 Production
    
    
    
    
    
    
    
    AveragePeriod Ending
    
    Option
    
    Volumes
    
    
    Floor & Cap
    
    
    Fair ValueDecember 31,
    
    Type
    
    (Bbl)(1)
    
    
    (per Bbl)(1)
    
    
    Asset (Liability)(3)2010
    
    Puts purchased
    
    
    25
    
    
    $
    85.000
    
    
    $
    2002010
    
    Calls sold
    
    
    25
    
    
    
    112.220
    
    
    
    2011
    
    Puts purchased
    
    
    100
    
    
    
    77.563
    
    
    
    5002011
    
    Calls sold
    
    
    100
    
    
    
    101.861
    
    
    
    (300
    )2012
    
    Puts purchased
    
    
    50
    
    
    
    76.952
    
    
    
    5002012
    
    Calls sold
    
    
    50
    
    
    
    102.368
    
    
    
    (500
    )2013
    
    Puts purchased
    
    
    25
    
    
    
    76.952
    
    
    
    2002013
    
    Calls sold
    
    
    25
    
    
    
    103.269
    
    
    
    (200
    )2014
    
    Puts purchased
    
    
    
    
    
    
    
    
    
    
    2014
    
    Calls sold
    
    
    
    
    
    
    
    
    
    
    $
    400Total Net Asset
    
    
    $
    1,092,100
 
 (1)
    
    MMBTU represents million British Thermal Units. Bbl represents barrels.(2)
    
    Fair value based on forward NYMEX natural gas prices, as applicable.(3)
    
    Fair value based on forward WTI crude oil prices, as applicable. NOTE 6  FAIR VALUE OF FINANCIAL INSTRUMENTS
  Level
1 
 Level
2 
 Level
3 
  16




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ATLAS AMERICA SERIES 25-2004 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 6  FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
 Assets and Liabilities Measured at Fair Value on a Recurring Basis
  Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
  NOTE 7  CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
  
    
    Administrative costs, which are included in general and administrative expenses in
the Partnerships statements of operations, are payable at $75 per well per month.
Administrative costs incurred for the three months and nine months ended September 30,
2010 were $27,700 and $81,100, respectively. Administrative costs incurred for the three
months and nine months ended September 30, 2009 were $21,300 and $77,300, respectively.
 
    
    Monthly well supervision fees, which are included in production expenses in the
Partnerships statements of operations, are payable at $313 per well per month for
operating and maintaining the wells. Well supervision fees incurred for the three months
and nine months ended September 30, 2010 were $114,600 and $335,500, respectively. Well
supervision fees incurred for the three months and nine months ended September 30, 2009
were $87,800 and $319,700, respectively.
 
    
    Transportation fees, which are included in production expenses in the Partnerships
statements of operations, are generally payable at 13% of the natural gas sales price.
Transportation fees incurred for the three months and nine months ended September 30,
2010 were $47,900 and $167,900, respectively. Transportation fees incurred for the three
months and nine months ended September 30, 2009 were $75,100 and $250,800, respectively.
 
    
    Assets contributed by the MGP, which are disclosed in the Partnership statements of
cash flows as a non-cash activity for the nine months ended September 30, 2010, were
$33,000.
  Subordination by Managing General Partner
   17




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##### Table of Contents



ATLAS AMERICA SERIES 25-2004 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 8  COMMITMENTS AND CONTINGENCIES
 Legal Proceedings
   
 NOTE 9 — SUBSEQUENT EVENT-MERGER AGREEMENT
 )
    
 ITEM 2.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)
 Forward-Looking Statements
 When used in this Form 10-Q , the words believes, anticipates, expects and similar
expressions are intended to identify forward-looking statements. There are risks and uncertainties
that could cause actual results to differ materially from the results stated or implied in this
document. Readers are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. We undertake no obligation to publicly release the results
of any revisions to forward-looking statements which we may make to reflect events or circumstances
after the date of this Form 10-Q or to reflect the occurrence of unanticipated events.
 BUSINESS OVERVIEW
    18




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##### Table of Contents



Results of Operations
  Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Production revenues (in thousands):Gas
    
    $
    333
    
    
    $
    594
    
    
    $
    1,175
    
    
    $
    2,020Oil
    
    
    46
    
    
    
    33
    
    
    
    102
    
    
    
    107Total
    
    $
    379
    
    
    $
    627
    
    
    $
    1,277
    
    
    $
    2,127Production volumes:Gas (mcf/day)(1)
    
    
    676
    
    
    
    829
    
    
    
    767
    
    
    
    908Oil (bbls/day)(1)
    
    
    7
    
    
    
    7
    
    
    
    5
    
    
    
    7Total (mcfe/day)(1)
    
    
    718
    
    
    
    871
    
    
    
    797
    
    
    
    950Average sales prices:(2)Gas (per mcf)(1) (3)
    
    $
    6.77
    
    
    $
    8.11
    
    
    $
    6.96
    
    
    $
    8.47Oil (per bbl)(1) (4)
    
    $
    78.56
    
    
    $
    56.47
    
    
    $
    76.31
    
    
    $
    57.37Average production costs:As a percent of revenues
    
    
    65
    %
    
    
    38
    %
    
    
    58
    %
    
    
    37
    %Per mcfe(1)
    
    $
    3.75
    
    
    $
    3.00
    
    
    $
    3.38
    
    
    $
    3.04Depletion per mcfe
    
    $
    2.39
    
    
    $
    3.33
    
    
    $
    2.43
    
    
    $
    3.41
 
 (1)
    
    Mcf represents thousand cubic feet, mcfe represents thousand cubic feet
equivalent, and bbls represents barrels. Bbls are converted to mcfe using the ratio
of six mcfs to one bbl.(2)
    
    Average sales prices represent accrual basis pricing after reversing the effect
of previously recognized gains resulting from prior period impairment charges.(3)
    
    Average gas prices are calculated by including in total revenue derivative gains
previously recognized into (loss) earnings and dividing by the total volume for the
period. Previously recognized derivative gains were $89,200 and $24,700 for the three
months ended September 30, 2010 and 2009, respectively. Previously recognized
derivative gains were $281,200 and $80,100 for the nine months ended September 30, 2010
and 2009, respectively. The derivative gains are included in other comprehensive income
(loss) and resulted from prior period impairment charges.(4)
    
    Average oil prices are calculated by including in total revenue derivative gains
previously recognized into (loss) earnings and dividing by the total volume for the
period. Previously recognized derivative gains were $1,600 and $1,500 for the three
months ended September 30, 2010 and 2009, respectively. Previously recognized
derivative gains were $4,600 and $4,800 for the nine months ended September 30, 2010
and 2009, respectively. The derivative gains are included in other comprehensive income
(loss) and resulted from prior period impairment charges. Natural Gas Revenues.
  19




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Oil Revenues.
  Expenses.
   Liquidity and Capital Resources
    20




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Subordination by Managing General Partner
  CRITICAL ACCOUNTING POLICIES AND ESTIMATES
  Fair Value of Financial Instruments
  Level
1 
 Level
2 
 Level
3 
   21




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##### Table of Contents



ITEM 4. CONTROLS AND PROCEDURES
    
 PART II. OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
   
 ITEM 6. EXHIBITS
 
 EXHIBIT INDEX
 Exhibit No.
    
    Description4.0
    
    
    Amended and Restated Certificate and Agreement of Limited Partnership for Atlas America
Series 25-2004 (A) L.P.(1)10.1
    
    
    Drilling and Operating Agreement for Atlas America Series 25-2004 (A) L.P.(1)31.1
    
    
    Rule 13a-14(a)/15d-14(a) Certification.31.2
    
    
    Rule 13a-14(a)/15d-14(a) Certification.32.1
    
    
    Section 1350 Certification.32.2
    
    
    Section 1350 Certification.
 
 (1)
    
    Filed on April 29, 2005 in the Form S-1 Registration Statement dated April 29, 2005, File No. 0-51272  22




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SIGNATURES
   Date:  November 12, 2010
    By:
    /s/ Freddie M. KotekFreddie M. KotekChairman of the Board of Directors,
Chief Executive Officer and PresidentDate:  November 12, 2010
    By:
    /s/ Matthew A. JonesMatthew A. JonesChief Financial Officer  23