** **

**UNITEDSTATES**

**SECURITIES AND EXCHANGECOMMISSION**

**Washington, D.C. 20549**

** **

----

 

**Form 10-K**

** **

----

** **

| **(Mark One)** |
|----------------|
|           |   |   |
| **x**          | ** ** | **ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE  SECURITIES EXCHANGE ACT OF 1934** |
|           |   |   |
|           | **For The Fiscal Year Ended December 31, 2007** |
|           |   |   |
| **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 333-122935-04**                                                                                                                                                                              |

### ** **

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

(Exact name of registrant as specified in itscharter)

** **

| **Nevada**                                                      | ** ** | **20-8785577**                        |
|-----------------------------------------------------------------|------------|---------------------------------------|
| (State or other jurisdiction of  incorporation or organization) |       | (I.R.S. Employer  Identification No.) |

 

| **1901 N. Central Expressway, Suite 300,  Richardson, TX 75080-3610** |
|----------------------------------------------------------------------------|
| (Address of principal executive offices  including zip code)               |
|                                                                       |
| **(972)-437-6792**                                                         |
| (Registrant’s telephone number, including  area code)                 |

 

Securities registered pursuant to Section 12(b) ofthe Act:  **None**

Securities registered pursuant to Section 12(g) ofthe Act:

 

**General and Limited Partnership Interests**

(Title of Class)

 

Indicate by check mark if the registrant is a well-known seasonedissuer, as defined in Rule 405 of the Securities Act. Yes o No x

 

Indicate by check mark if the registrant is not required to filereports pursuant to Section 13 or Section 15(d) of the Act. Yes o No x

 

Indicate by check mark whether the registrant (1) has filed allreports required to be filed by Section 13 or 15(d) of the SecuritiesExchange Act of 1934 during the preceding 12 months (or for such shorter periodthat the registrant was required to file such reports), and (2) has beensubject to such filing requirements for the past 90 days.  Yes x  No o

 

Indicate by check mark if disclosure of delinquent filers pursuant toItem 405 of Regulation S-K is not contained herein, and will not becontained, to the best of registrant’s knowledge, in definitive proxy orinformation statements incorporated by reference in Part III of this Form 10-Kor any amendment to this Form 10-K. x

 

Indicate by check mark whether the registrant is a large acceleratedfiler, an accelerated filer, a non-accelerated filer or a smaller reporting company.See the definition 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 (asdefined in Rule 12b-2 of the Exchange Act) Yes o  No x

 

No market currently exists for the limited and general partnershipinterests of the registrant.

 

As of March 31, 2008, the registrant had 22.792 units of generalpartner interest held by the managing general partner, 370.561 units ofadditional general partner interest and 62.480 units of limited partnerinterest outstanding.

 

##### Documents incorporated by reference: None

#####  

 

----

 

REEF GLOBAL ENERGY IX, L.P.

FORM 10-K

TABLE OF CONTENTS

 
| **Part I**   |                                                                                                               |   |
|-------------------|--------------------------------------------------------------------------------------------------------------------|--------|
| Item 1.           | Business                                                                                                           |   |
| Item 1A.          | Risk  Factors                                                                                                      |   |
| Item 1B.          | Unresolved Staff Comments                                                                                          |   |
| Item 2.           | Properties                                                                                                         |   |
| Item 3.           | Legal Proceedings                                                                                                  |   |
| Item 4.           | Submission of Matters to a Vote of Security  Holders                                                               |   |
|              |                                                                                                               |   |
| **PART II**  |                                                                                                               |   |
| Item 5.           | Market for Registrant’s Common Equity,  Related Stockholder Matters and Issuer Purchases of Equity Securities |   |
| Item 6.           | Selected Financial Data                                                                                            |   |
| Item 7.           | Management’s Discussion and Analysis of  Financial Condition and Results of Operations                        |   |
| Item 7A.          | Quantitative and Qualitative Disclosures  About Market Risk                                                        |   |
| Item 8.           | Financial Statements and Supplementary Data                                                                        |   |
| Item 9.           | Changes in and Disagreements with  Accountants on Accounting and Financial Disclosure                              |   |
| Item 9A(T).       | Controls and Procedures                                                                                            |   |
| Item 9B.          | Other Information                                                                                                  |   |
|              |                                                                                                               |   |
| **PART III** |                                                                                                               |   |
| Item 10.          | Directors, Executive Officers and Corporate  Governance                                                            |   |
| Item 11.          | Executive Compensation                                                                                             |   |
| Item 12.          | Security  Ownership of Certain Beneficial Owners and Management and Related Stockholder  Matters                   |   |
| Item 13.          | Certain Relationships and Related  Transactions, and Director Independence                                         |   |
| Item 14.          | Principal Accounting Fees and Services                                                                             |   |
|              |                                                                                                               |   |
| **PART IV**  |                                                                                                               |   |
| Item 15.          | Exhibits and Financial Statement Schedules                                                                         |   |
|              | Signatures                                                                                                         |   |

 

2

----

 

**PART I**

 

**ITEM 1.****                             BUSINESS**

 

**Introduction**

 

Reef Global Energy IX, L.P. (the Partnership) is the fourth in a seriesof four Nevada limited partnerships comprising a program called Reef GlobalEnergy Ventures II (the Program). The Partnership was formed in the state ofNevada on April 6, 2007. The Partnership purchases working interests inoil and natural gas prospects and participates in the drilling of wells onthose prospects. The primary objectives of the Partnership are to generaterevenue from the production of oil and natural gas, distribute cash to thepartners, and provide tax benefits. Reef Oil & Gas Partners, L.P.(Reef) is the managing general partner of the Partnership.

 

The Partnership was formed to drill, complete and own working interestsin oil and natural gas wells located onshore in the continental United States.During 2007, the Partnership acquired working interests in two prospects uponwhich it has drilled or has participated in the drilling of a total of ninewells—one developmental prospect located in Glasscock County, Texas and onedevelopmental prospect located in Eddy County, New Mexico. At December 31,2007, six wells had completed drilling operations (one on the Cole Ranchprospect in Glasscock County, Texas and five on the Sand Dunes prospect in EddyCounty, New Mexico), and three more wells on the Sand Dunes prospect completeddrilling operations during the first quarter of 2008. The Partnership has noplans to purchase additional prospects. Additional wells may be drilled on theSand Dunes prospect.

 

Other partnerships formed as a part of the Program also own workinginterests in some of the wells owned by this Partnership. Reef has alsopurchased interests in one of the prospects for some of the other partnershipsit manages. In such cases where the percentage ownership of the Partnership andReef-affiliated entities in a prospect has been large enough, Reef Exploration,L.P. (RELP), an affiliate of Reef, has been elected as operator of theprospect.  As of the date of this report,RELP operates the nine wells on the two developmental prospects in which thePartnership owns a working interest.  Inthis Annual Report on Form 10-K (Annual Report), we use the term “successful”to refer to wells that are drilled, tested, and either capable of or actuallyproducing in commercial quantities. We use the term “unsuccessful” to refer towells that do not meet one or more of these criteria.

 

The attainment of the Partnership’s business objectives, including thegeneration of revenue from Partnership operations, the distribution of cash tothe partners and the provision of tax benefits, will depend upon many factors,including:

 
| · |   | Reef’s ability to select productive prospects;                                         |
|--------|--------|---------------------------------------------------------------------------------------------|
| · |   | the drilling and completion of wells in an economical manner;                               |
| · |   | the successful management of prospects;                                                     |
| · |   | the level of oil and natural gas prices in the future;                                      |
| · |   | the degree of governmental regulation over the production and sale of  oil and natural gas; |
| · |   | the future economic conditions in the United States and throughout  the world; and          |
| · |   | changes in the Internal Revenue Code (the Code).                                            |

 

Accordingly, there can be no assurance that the Partnership willachieve its business objectives.  Inaddition, distributions to partners will decrease over time because oil andnatural gas wells are depleting assets, and production rates will decline overthe life of an individual well. Distribution levels will also be highly dependent upon oil and naturalgas prices. Distributions will be partially sheltered by the percentagedepletion allowance.

 

**Acquisition and Drilling ofUndeveloped Prospects**

 

The Partnership purchased working interests in two developmentalprospects internally sourced by RELP. A “prospect” is generally defined as acontiguous oil and gas leasehold estate, or lesser interest in a leaseholdestate, upon which drilling operations may be conducted. A prospect may becharacterized as “exploratory” or “developmental” based upon the type of wellto be drilled on the prospect.  Adevelopment well is a well drilled within a proved area of an oil or gasreservoir to a depth of a stratigraphic horizon known to be productive.Generally an exploratory well is any well that is not a development well,including wells drilled to find and produce oil or gas in an unproven area,wells drilled to find a new reservoir in a field previously found to beproductive of oil or gas, or wells drilled to extend a known reservoir.

 

3

----

 

Prospects were evaluated utilizing data generated by RELP or providedby unaffiliated third parties to RELP. This data included well logs, productionrecords from other area wells, seismic, geological and geophysical information,and such other information available and considered useful. Partnershipprospects were evaluated by petroleum engineers, geophysicists, geologists, andother technical consultants employed by or retained by RELP on the Partnership’sbehalf.

 

The Partnership prospects were acquired pursuant to an arrangement inwhich the Partnership purchased part of the working interest. A workinginterest bears a specified portion of the costs of development, operation andmaintenance of a prospect.  A workinginterest is subject to landowners’ royalty interests and may be subject toother royalty interests payable to unaffiliated third parties. Where thePartnership acquired less than 100% of the working interest, costs were reducedproportionately. The Partnership’s limited partnership agreement (thePartnership Agreement) prohibits Reef or any of its affiliates from retainingany overriding royalty interest, that is, any royalty interest that would bepaid out of the Partnership’s working interest, in any working interestpurchased by the Partnership. The Partnership is a non-operator workinginterest owner in all prospects purchased by the Partnership. RELP serves asoperator for both prospects which have been purchased by the Partnership.

 

**Consulting Agreements forProspect Acquisitions**

 

Reefentered into an agreement with Access Exploration Corp. (AEC), a screener ofdomestic oil and gas prospects, for the period from October 1, 2004 thru October 2,2007. Under terms of the agreement, Reef had the option to participate for upto 10% of the interest made available to AEC in any Gulf of Mexicodevelopmental project screened by AEC, and to participate for up to 12.5% ofthe interest made available to AEC in any Gulf of Mexico exploration projectscreened by AEC. There was no minimum number of prospects which AEC wasrequired to screen and present to Reef for participation. As part of thisagreement, AEC made available to Reef 5% of the interest made available to AECin all projects outside the Gulf of Mexico. Reef paid AEC the sum of $100,000per year during the three year term of this agreement for the services renderedby AEC.

 

Prospectsapproved for acquisition by Reef under this agreement could be assigned to thisPartnership as well as other limited partnerships formed as part of theProgram. Each partnership formed as a part of the Program paid Reef, on a prorata basis, a portion of the actual consulting fees paid by Reef under thisagreement. Total reimbursements to Reef by the partnerships formed as a part ofthis Program were equal to the actual fees paid by Reef under this agreement.The Partnership has accrued, at December 31, 2007, a payable of $30,958 inconnection with this obligation. This amount was paid to Reef during the firstquarter of 2008. This amount has been capitalized as geological and geophysicalcosts in accordance with the full cost method of accounting for oil and gasproperties.

 

**Drilling and Completion Phaseof Operations**

 

RELP is currently the operator of both Partnership prospects andoperates all nine wells in which the Partnership has a working interest. As awell operator, RELP receives operator fees during the drilling and productionphase of each well at the competitive rate in the geographical area where theprospect is located.  These fees arecharged as a monthly fee per well as agreed to in an operating agreement signedby the Partnership and participating third parties in the well. The wells aresubject to a model form operating agreement issued by the American Associationof Petroleum Landmen and an accounting procedure for joint operations issued bythe Council of Petroleum Accountants Societies of North America.

 

RELP contracted the drilling of the nine Partnership wells to anindependent third party, and the resulting costs of the wells to thePartnership were determined by the actual third party costs, plus RELP’smonthly charges for supervision, engineering, geology, accounting and otherservices at the competitive rate for the geographical area where the wells arelocated.

 

Wells drilled that fail to result in the discovery of oil or naturalgas, or that are determined to be unable to produce oil or natural gas incommercial quantities, are plugged and abandoned in accordance with applicableregulations.

 

The well drilled on thePartnership’s Cole Ranch prospect is currently producing oil and gas incommercial quantities. Of the eight Sand Dunes prospect wells, four wells areundergoing extended testing and evaluation in order to determine their potentialcommercial productivity. The Partnership estimates that it may take between 90and 120 days from the date of this Annual Report to finish the evaluationprocess. Following initial testing which confirmed the presence of oil andnatural gas, the remaining four Sand Dunes prospect wells were temporarily shutin due to the high cost associated with salt water disposal and generatorrental.  

 

Currently, generators have beenrented to power the four producing Sand Dunes prospect wells undergoing the evaluationprocess, and salt water produced is being trucked off-site by an independentvendor. In order to reduce overall costs, installation of electric service tothe well-site locations is proceeding, and a more cost effective method of saltwater disposal is being explored. To date, RELP, the operator of these wells,has been unsuccessful in locating a long-term economic solution for disposingof produced salt water; however, RELP is currently evaluating its options forsalt water disposal, and estimates that it will be at least 90 to 120 days fromthe date of this Annual Report for the Sand Dunes prospect to have electricityand efficient salt water disposal capability in place.

 

4

----

 

**Production Phase of Operations**

 

For any well capable of producing quantities of oil and/or natural gasin commercial quantities, production operations commence once the well has beencompleted by installing all surface equipment necessary to control the flow ofproduction or to shut down the well, and by installing any storage facilities,gathering, or sales lines required to produce and sell the oil and/or naturalgas production from the well.

 

The Partnership has entered into agreements with third party marketersto sell the oil and/or natural gas produced from successful wells on acompetitive basis at the best available terms and prices. Generally, purchasecontracts for the sale of oil are cancelable on 30 days’ notice, but purchasecontracts for the sale of natural gas may have a longer term. The Partnershipsells natural gas discovered by it at negotiated prices domestically, basedupon a number of factors, such as the quality of the gas, well pressure,estimated reserves, prevailing supply conditions and any applicable priceregulations promulgated by the Federal Energy Regulatory Commission (FERC).

 

Historically,the oil and gas market has experienced significant price fluctuations. Pricesare impacted by local weather, supply in the area, availability and price ofcompetitive fuels, seasonal variations in local demand, limited transportationcapacity to other regions, and the worldwide supply and demand balance forcrude oil.

 

ThePartnership has not engaged in and does not expect to engage in commodityfutures trading or hedging activities, or to enter into derivative financialinstrument transactions for trading or other speculative purposes. Accordingly,the Partnership is at risk for the volatility in commodity prices inherent inthe oil and gas industry, and the level of commodity prices has a significantimpact on the Partnership’s results of operations.  See “Item 7A. Quantitative and QualitativeDisclosures About Market Risk.”

 

The Partnership’s share of revenue from productive wells is burdened byand/or subject to royalties and overriding royalties, monthly operatingcharges, and other operating costs. These items of expenditure involve amounts payable solely out of, orexpenses incurred solely by reason of, production operations.  The Partnership deducts operating expensesfrom the production revenue for the corresponding period.

 

**Major Customers**

 

The Partnership sells crude oil and natural gas oncredit terms to refiners, pipelines, marketers, and other users of petroleumcommodities. Revenues are received directly from these parties or, in certaincircumstances, paid to the operator of the property who disburses to thePartnership its percentage share of the revenues. During the period frominception (April 6, 2007) to December 31, 2007, one marketerpurchased all of the Partnership’s products and accounted for 100% of thePartnership’s oil and gas revenues. Due to the competitive nature of the marketfor purchase of crude oil and natural gas, the Partnership does not believethat the loss of any particular purchaser would have a material adverse impacton the Partnership.

 

**Insurance**

 

The Partnership is a named insured under blowout, pollution, publicliability and workmen’s compensation insurance policies obtained by RELP. Suchinsurance, however, may not be sufficient to cover all liabilities.  Each unit held by the general partnersrepresents an open-ended security for unforeseen events such as blowouts, lostcirculation, stuck drill pipe, etc. that may result in unanticipated additionalliability materially in excess of a general partner’s initial investment in thePartnership.

 

The Partnership is a named insured under various insurance policies andintends to maintain such policies subject to its analysis of their premiumcosts, coverage and other factors.  Inthe exercise of Reef’s fiduciary duty as managing

 

5

----

 

general partner, Reef has obtained insurance on behalf of thePartnership to provide the Partnership with such coverage as Reef believes issufficient to protect the partners other than the managing general partner (theinvestor partners) against the foreseeable risks of drilling andproduction.  Reef reviewed thePartnership insurance coverage prior to commencing drilling operations andperiodically evaluates the sufficiency of insurance. In no event will thePartnership maintain public liability insurance of less than two times thePartnership’s capitalization.****Subjectto the foregoing, Reef may, in its sole discretion, increase or decrease thepolicy limits and types of insurance from time to time as Reef deemsappropriate under the circumstances, which may vary materially.

 

Reef will notify all investor general partners of the Partnership atleast 30 days prior to any material change in the amount of the Partnership’sinsurance coverage.  Within this 30-dayperiod and otherwise after the expiration of one year following the closing ofthe offering of the Partnership, investor general partners have the right toconvert their units into units of limited partnership interest by giving Reefwritten notice of their intent to convert. At any time during this 30-dayperiod, upon receipt of the required written notice from an investor generalpartner of his intent to convert, Reef will amend the Certificate of Limited Partnershipof the Partnership and will file the amendment with the State of Nevada priorto the effective date of the change in insurance coverage.  This amendment to the Certificate of LimitedPartnership of the Partnership will effectuate the conversion of the interestof the former investor general partner to that of a limited partner.  Effecting conversion is subject to theexpress requirement that the conversion will not cause a termination of thePartnership for federal income tax purposes. Investor general partners willhave limited liability as a limited partner for any Partnership operationsconducted after their conversion date, effective upon the filing of anamendment to the Certificate of Limited Partnership of the Partnership.However, even after an election of conversion, the investor partner willcontinue to have unlimited liability regarding partnership activities thatoccurred while he was an investor general partner.

 

**Competition**

 

There are thousands of oil and natural gas companies in the UnitedStates.  Competition is strong amongpersons and entities involved in the exploration for and production of oil andnatural gas.  Reef expects thePartnership to encounter strong competition at every phase of business.  The Partnership competes with entities havingfinancial resources and staffs substantially larger than those available to it.

 

The national supply of natural gas is widely diversified, with no oneentity controlling over 5% of the supply. As a result of deregulation of the natural gas industry enacted byCongress and FERC, natural gas prices are generally determined by competitivemarket forces.  Prices of crude oil,condensate and natural gas liquids are not currently regulated and are generallydetermined by competitive market forces.

 

There is competition among operators for drilling equipment, goods, anddrilling crews. Such competition may affect the ability of the Partnership todevelop prospects suitable for development by the Partnership once they areacquired.

 

**Markets**

 

The marketing of any oil and natural gas produced by the Partnership isaffected by a number of factors that are beyond the Partnership’s control andwhose exact effect cannot be accurately predicted.  These factors include:

 
| · |   | the amount of crude oil and natural gas imports;                                                                                                                      |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · |   | the availability, proximity and cost of adequate pipeline and other  transportation facilities;                                                                       |
| · |   | the success of efforts to market competitive fuels, such as coal and  nuclear energy and the growth and/or success of alternative energy sources  such as wind power; |
| · |   | the effect of United States and state regulation of production,  refining, transportation and sales;                                                                  |
| · |   | other matters affecting the availability of a ready market, such as  fluctuating supply and demand; and                                                               |
| · |   | general economic conditions in the United States and around the  world.                                                                                               |

 

The supply and demand balance of crude oil and natural gas in worldmarkets has caused significant variations in the prices of these products overrecent years.  The North American FreeTrade Agreement eliminated trade and investment barriers between the UnitedStates, Canada, and Mexico, resulting in increased foreign competition fordomestic natural gas production.  Newpipeline projects recently approved by, or presently pending before, FERC as

 

6

----

 

well as nondiscriminatory access requirements could furthersubstantially increase the availability of gas imports to certain U.S.markets.  Such imports could have anadverse effect on both the price and volume of gas sales from Partnershipwells.

 

Members of the Organization of Petroleum Exporting Countries (OPEC)establish prices and production quotas for petroleum products from time to timewith the intent of affecting the global supply of crude oil and reducing,increasing or maintaining certain price levels. Reef is unable to predict what effect, if any, such actions will have onthe amount of or the prices received for oil produced and sold from thePartnership’s wells.

 

In several initiatives, FERC has required pipelines to developelectronic communication and to provide standardized access via the Internet toinformation concerning capacity and prices on a nationwide basis, so as tocreate a national market.  Paralleldevelopments toward an electronic marketplace for electric power, mandated byFERC, are serving to create multi-national markets for energy productsgenerally.  These systems will allowrapid consummation of natural gas transactions. Although this system may initially lower prices due to increasedcompetition, it is anticipated to expand natural gas markets and to improvetheir reliability.

 

**Regulation**

 

The Partnership’s operations will be affected from time to time invarying degrees by domestic and foreign political developments and by federaland state laws and regulations.

 

*Production*. In most areas of operations within the United States the production ofoil and natural gas is regulated by state agencies that set allowable rates ofproduction and otherwise control the conduct of oil and natural gas operations.Among the ways that states control production is through regulations thatestablish the spacing of wells or limit the number of days in a given monthduring which a well can produce.

 

*Environmental*. The Partnership’s drilling and production operations are also subject toenvironmental protection regulations established by federal, state, and localagencies that may necessitate significant capital outlays that, in turn, wouldmaterially affect the financial position and business operations of thePartnership. These regulations, enacted to protect against waste, conservenatural resources and prevent pollution, could necessitate spending funds onenvironmental protection measures, rather than on drilling operations. If anypenalties or prohibitions were imposed on the Partnership for violating suchregulations, the Partnership’s operations could be adversely affected.

 

*Natural Gas Transportation and Pricing*.  FERC regulates the rates for interstatetransportation of natural gas as well as the terms for access to natural gaspipeline capacity. Pursuant to the Wellhead Decontrol Act of 1989, however,FERC may not regulate the price of gas. Such deregulated gas production may besold at market prices determined by supply and demand, Btu content, pressure,location of wells, and other factors. Reef anticipates that all of the gasproduced by the Partnership’s wells will be considered price-decontrolled gasand that the Partnership’s gas will be sold at fair market value.

 

*Proposed Regulation*. Various legislative proposals arebeing considered in Congress and in the legislatures of various states, which,if enacted, may significantly and adversely affect the petroleum and naturalgas industries. Such proposals involve, among other things, the imposition ofprice controls on all categories of natural gas production, the imposition ofland use controls, such as prohibiting drilling activities on certain federaland state lands in protected areas, as well as other measures. At the present time,it is impossible to predict what proposals, if any, will actually be enacted byCongress or the various state legislatures and what effect, if any, suchproposals will have on the Partnership’s operations.

 

**Employees**

 

The Partnership has no employees, and is managed by its managinggeneral partner, Reef. RELP employs a staff including geologists,geophysicists, petroleum engineers, landmen and accounting personnel whoadminister all of the Partnership’s operations. The Partnership reimburses RELPfor technical and administrative services at cost.  See “Item 11. Executive Compensation.”

 

7

----

 

**FORWARD-LOOKINGSTATEMENTS**

 

This Annual Report on Form 10-K contains forward-lookingstatements that involve risks and uncertainties.  You should exercise extreme caution withrespect to all forward-looking statements made in this Annual Report.  Specifically, the following statements areforward-looking:

 
| · |   | statements regarding the Partnership’s overall strategy for acquiring  prospects, including its intent to diversify the Partnership’s investments;                                                                                                           |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · |   | statements estimating any number or specific type or size of  prospects the Partnership may acquire or size of the interest the Partnership  may acquire in such prospects;                                                                                            |
| · |   | statements regarding the state of the oil and gas industry and the  opportunity to profit within the oil and gas industry, competition, pricing,  level of production, or the regulations that may affect the Partnership;                                             |
| · |   | statements regarding the plans and objectives of Reef for future  operations, including, without limitation, the uses of Partnership funds and  the size and nature of the costs the Partnership expects to incur and people  and services the Partnership may employ; |
| · |   | any statements using the words “anticipate,” “believe,” “estimate,”  “expect,” and similar such phrases or words; and                                                                                                          |
| · |   | any statements of other than historical fact.                                                                                                                                                                                                                          |

 

Reef believes that it is important to communicate its futureexpectations to the partners. Forward-looking statements reflect the current view of management withrespect to future events and are subject to numerous risks, uncertainties andassumptions, including, without limitation, the factors listed in Item 1A ofthis Annual Report captioned “RISK FACTORS.” Although Reef believes that theexpectations reflected in such forward-looking statements are reasonable, Reefcan give no assurance that such expectations will prove to have beencorrect.  Should any one or more of theseor other risks or uncertainties materialize or should any underlyingassumptions prove incorrect, actual results are likely to vary materially fromthose described herein.  There can be noassurance that the projected results will occur, that these judgments orassumptions will prove correct or that unforeseen developments will not occur.

 

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

 

**ITEM 1A.       RISK FACTORS**

 

**Ourbusiness activities are subject to certain risks and hazards, including therisks discussed below. If any of these events should occur, it could materiallyand adversely affect our business, financial condition, cash flow, or resultsof operations. The risks below are not the only risks we face. We mayexperience additional risks and uncertainties not currently known to us or, asa result of developments occurring in the future, conditions that we currentlydeem to be immaterial may also materially and adversely affect our business,financial condition, cash flow, and results of operations.**

** **

**Oil and natural gas prices are volatile, and fluctuate due to a numberof factors outside of our control.**

 

Thefinancial condition, results of operations, and the carrying value of our oiland natural gas properties depend primarily upon the prices received for ouroil and natural gas production. Oil and natural gas prices historically have beenvolatile and likely will continue to be volatile given current geopoliticalconditions. Cash flow from operations is highly dependent upon the sales pricesreceived from oil and natural gas production. The prices for oil and naturalgas are subject to a variety of factors beyond our control. These factorsinclude:

 
| · |   | the  domestic and foreign supply of oil and natural gas; consumer demand for oil  and gas, and market expectations regarding supply and demand; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| · |   | the  ability of the members of OPEC to agree to and maintain oil price and  production controls;                                                |
| · |   | domestic  government regulations and taxes;                                                                                                     |
| · |   | the  price and availability of foreign exports and alternative fuel sources;                                                                    |

 

8

----

 
| · |   | weather  conditions, including hurricanes and tropical storms in and around the Gulf of  Mexico;                        |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|
| · |   | political  conditions in oil and natural gas producing regions, including the Middle  East, Nigeria, and Venezuela; and |
| · |   | domestic  and worldwide economic conditions.                                                                            |

 

Thesefactors and the volatility of the energy markets make it extremely difficult topredict price movements. Also, oil and natural gas prices do not necessarilymove in tandem. Declines in oil and natural gas prices would not only reducerevenues and cash flow available for distributions to partners, but couldreduce the amount of oil and natural gas that can be economically produced fromsuccessful wells drilled by the Partnership, and, therefore, have an adverseeffect upon financial condition, results of operations, oil and gas reserves,and the carrying value of the Partnership’s oil and natural gas properties.Approximately 74% of the Partnership’s estimated proved reserves at December 31,2007 were oil reserves, and, as a result, financial results are more sensitiveto fluctuations in oil prices.

 

The Partnership, while not prohibited from engaging in commoditytrading or hedging activities in an effort to reduce exposure to short-termfluctuations in the price of oil and natural gas, has not engaged in suchactivities. Accordingly, the Partnership is at risk for the volatility in oiland natural gas prices, and the level of commodity prices has a significantimpact upon the Partnership’s results of operations.

 

**Oil and natural gas well drilling is a speculative activity involvingnumerous risks and substantial and uncertain costs which could adversely affectthe Partnership.**

 

Drillingoil and natural gas wells involves numerous risks, including the risk that nocommercially productive oil and/or natural gas reserves will be discovered.There can be no assurance that wells drilled by the Partnership will beproductive or recover all or any portion of the investment in such wells.Drilling and completion costs are substantial and uncertain, and drillingoperations may be curtailed, delayed, or cancelled due to a variety of factorsbeyond our control, including shortages or delays in the availability ofdrilling rigs and crews, unexpected drilling conditions, title problems,pressure or irregularities in formations, equipment failures or accidents,adverse weather conditions, and compliance with environmental and othergovernmental regulations. Our drilling activities may not be successful and, ifunsuccessful, will have an adverse effect on the Partnership’s results ofoperations and cash flow available for distribution to the partners.

 

**We are subject to substantial operating risks that may adversely affectthe results of operations.**

 

Thereare numerous hazards involved in the drilling and operation of oil and naturalgas wells, including blowouts involving possible damages to property and thirdparties, bodily injuries, mechanical failures, explosions, uncontrollable flowsof oil, natural gas or well fluids, fires, formations with abnormal pressure,pollution, releases of toxic gas and other environmental hazards and risks. ThePartnership could suffer substantial losses as a result of any of these risks.The Partnership is not fully insured against all risks inherent to the oil andgas business. Uninsured liabilities would reduce the funds available to thePartnership, may result in the loss of Partnership properties and may createliability for the general partners. Although the Partnership maintainsinsurance coverage in amounts Reef deems appropriate, it is possible thatinsurance coverage may be insufficient. In that case Partnership assets mayhave to be sold to pay personal injury and property claims and the cost ofcontrolling blowouts or replacing damaged equipment rather than for drillingand operating activities.

 

**Continuedinability to dispose of produced salt water may limit production on our oil andnatural gas properties.**

 

Currently, the Partnership doesnot have an economically efficient manner in which to dispose of the salt waterproduced from the eight Sand Dunes prospect wells.  The Partnership anticipates it will be atleast 90 to 120 days from the date of this Annual Report for the Sand Dunesprospect to have efficient salt water disposal capabilities in place.  The Partnership will be unable to obtain fullproduction from each well until a long-term economic solution for the disposingof produced salt water is determined and implemented.  If the Sand Dunes prospect wells aredetermined capable of producing in commercial quantities prior toimplementation of such long-term economic solution, there will be significantdelays in obtaining full production from each well, as well as significantdelays in the receipt of production distributions by the investor partners.

 

**High demand for drilling contractors, field services and equipment, andthe ability of suppliers to meet demand may limit our ability to drill andproduce our oil and natural gas properties.**

 

Due tocurrent industry demands, drilling contractors, well service providers andrelated equipment and personnel are in short supply. This is causing escalatingprices, delays in drilling and other exploration activities, and thepossibility of poor service coupled with potential damage to downholereservoirs and personnel injuries. Such pressures will likely increase theactual cost of services, extend the time to secure such services, and add costsfor damages due to any accidents sustained from overuse of equipment andinexperienced personnel.

 

9

----

 

**We facestrong competition within the energy industry.**

 

Theoil and gas industry is highly competitive. Competition is encountered in allaspects of Partnership operations, including the requisition of drilling andservice contractors. Many of our competitors are larger, well-establishedcompanies with substantially larger operating staffs and greater capitalresources than those of the Partnership, Reef and its affiliates. We may not beable to conduct our operations successfully, obtain drilling and servicecontractors, consummate transactions, and obtain technical, managerial andother professional personnel in this highly competitive environment.Specifically, larger competitors may be able to pay more for competentpersonnel than the Partnership, Reef and its affiliates. In addition, suchcompetitors may be able to expend greater resources on the existing andchanging technologies that will be increasingly important to success. Suchcompetitors may also be in a better position to secure drilling and oilfieldservices, as well as equipment, more timely or on more favorable terms.Finally, oil and gas producers are increasingly facing competition fromproviders of non-fossil energy, and government policy may favor thosecompetitors in the future.

 

**Oil andnatural gas reserve data are estimates based upon assumptions that may beinaccurate, and upon existing economic and operating conditions that may differfrom future economic and operating conditions.**

 

Securitiesand Exchange Commission (SEC) rules require the Partnership to presentannual estimates of reserves. Reservoir engineering is a subjective and inexactprocess of estimating underground accumulations of oil and natural gas thatcannot be measured in an exact manner, and is based upon assumptions that mayvary considerably from actual results. Accordingly, reserve estimates may besubject to upward or downward adjustments. Actual production, revenues andexpenditures with respect to reserves will likely vary from estimates, and suchvariances could be material.

 

You should not assumethat any present value of future net cash flows from our producing reservesshown in this Annual Report on Form 10-K is the market value for ourestimated oil and natural gas reserves. The estimated discounted future net cashflows from our proved reserves are based upon prices and costs in effect at theend of the period held constant and discounted at 10%. Actual future prices andcosts may be materially higher or lower. Further, actual future net cash flowswill be affected by factors such as the amount and timing of actual developmentexpenditures, the rate and timing of production, and changes in governmentalregulations and tax rates.

 

**Reef and its affiliates havesponsored ventures in the past that have produced dry holes and abandonedwells.**

 

Reef Global Energy VenturesII is the second public drilling program sponsored by Reef as the managinggeneral partner, and Reef Global Energy IX, L.P. is the fourth limitedpartnership offered under that Program. Reef and its affiliate, OREI, Inc.(OREI), have sponsored 68 ventures from 1996 to the present. Among theseventures, (i) eight were dedicated almost exclusively to the purchase ofinterests in already producing reserves, (ii) one was dedicated primarilyto the purchase of interests in already producing reserves but has the abilityto use up to 20% of capital raised for development purposes, and (iii) threewere dedicated to both the purchase of interests in producing wells and the useof up to 50% of capital raised for development of proven reserves.  We refer to the programs described in clause (i) inthe preceding sentence as “income fund” ventures and to the programs describedin clauses (ii) and (iii) as “income and development fund” ventures.Reef and its affiliates have also sponsored 52 drilling ventures, three 3-Dseismic ventures, and one salt water disposal venture since 1996. Together,these ventures have drilled 132 wells (104 by drilling ventures and 28 byincome fund and income and development fund ventures). Of the wells drilled byReef and its affiliates’ ventures, 63 were exploratory wells and 69 weredevelopmental wells. Forty-nine of the wells drilled were dry holes, and threewells were completed but were non-commercial. Of the 80 wells that were commercial,60 are still owned by Reef or its affiliates’ ventures and are currentlyproducing, eighteen have been plugged and abandoned or sold essentially forsalvage value, one has been sold, and one is currently used as a salt waterdisposal well. Using this data, approximately 60.6% of the wells drilled bythese ventures were completed as commercially producing and 39.4% were dryholes (including the three wells that were completed but failed to becomecommercial producers). Approximately 13.6% of the wells drilled by our ventureswere subsequently abandoned or sold essentially for salvage value prior toabandonment.

 

**ThePartnership has limited external sources of funds, which could result in ashortage of working capital.**

 

ThePartnership intends to utilize substantially all available capital for thedrilling and completion of wells and acquisition of the prospects. ThePartnership only has nominal funds available for partnership purposes untilthere are revenues from Partnership operations. The Partnership Agreement permits the Partnership to borrow money for

 

10

----

 

futuredevelopment of prospects drilled by the Partnership with the original availablePartnership capital. Any future requirement for additional funding will have tocome, if at all, from the Partnership’s revenues or from borrowings. Reefcannot assure the partners that Partnership operations will be sufficient toprovide the Partnership with necessary additional funding. Reef cannot assurethe partners that the Partnership will be able to borrow funds from thirdparties on commercially reasonable terms or at all.

 

**Other partnerships Reef sponsors will compete with the Partnership forequipment, contractors, and personnel.**

 

ReefplanstoofferinterestsinotherpartnershipstobeformedforsubstantiallythesamepurposesasthoseofthePartnership.Therefore,anumberofpartnershipswithunexpendedcapitalfunds,includingthosepartnershipstobeformedinfutureoilandgasprogramssponsoredbyReef,mayexistatthesametime.  Duetocompetitionamongthepartnershipsforequipment,contractors,andReef’spersonnel,thefactthatotherpartnershipsorganizedbyReefanditsaffiliatesmaystillbepurchasingprospectsanddrillingandcompletingwellswhenthePartnershipisattemptingtodrillandcompletewellsonitsprospectsmaymakesuchactivitiesofthePartnershipmoredifficult.

 

**ThePartnership Agreement limits Reef’s liability to each partner and thePartnership and requires the Partnership to indemnify Reef against certainlosses.**

 

Reefwill have no liability to the Partnership or to any partner for any losssuffered by the Partnership, and will be indemnified by the Partnership againstloss sustained by it in connection with the Partnership if:

 
| · |   | Reef  determines in good faith that its action was in the best interest of the  Partnership; |
|--------|--------|----------------------------------------------------------------------------------------------|
| · |   | Reef  was acting on behalf of or performing services for the Partnership; and                |
| · |   | Reef’s  actions did not constitute negligence or misconduct.                            |

 

**ThePartnership may be required to pay delay rentals to hold properties, which maydeplete Partnership capital.**

 

Oiland gas leases generally require that the property must be drilled upon by acertain date or additional funds known as delay rentals must be paid to keepthe lease in effect.  Delay rentalstypically must be paid within a year of the entry into the lease if noproduction or drilling activity has commenced. If delay rentals become due on any property the Partnership acquires,the Partnership will have to pay its share of such delay rentals or lose itslease on the property.  These delayrentals could equal or exceed the cost of the property.  Further, payment of these delay rentals couldseriously deplete the Partnership’s capital available to fund drillingactivities when they do commence.

 

**ThePartnership may incur liability for liens against its subcontractors.**

 

AlthoughReef will try to determine the financial condition of nonaffiliatedsubcontractors, if subcontractors fail to timely pay for materials andservices, the properties of the Partnership could be subject to materialmen’sand workmen’s liens.  In that event, thePartnership could incur excess costs in discharging such liens.

 

**Shut-inwells and delays in production may adversely affect Partnership operations.**

 

Productionfrom wells drilled in areas remote from marketing facilities may be delayeduntil sufficient reserves are established to justify construction of necessarypipelines and production facilities. In addition, production from wells may bereduced or delayed due to seasonal marketing demands. Wells drilled for thePartnership may have access to only one potential market. Local conditions,including closing businesses, conservation, shifting population, pipeline maximumoperating pressure constraints, and development of local oversupply ordeliverability problems could halt sales from Partnership wells.

 

**Theproduction and producing life of Partnership wells is uncertain.**

 

Productionwill decline. It is not possible to predict the life and production of anywell. The actual life could differ from that which is anticipated. Sufficientoil or natural gas may not be produced for a partner to receive a profit oreven to recover his initial investment. In addition, production from thePartnership’s oil and natural gas wells, if any,

 

11

----

 

willdecline over time, and does not indicate any consistent level of futureproduction. This production decline may be rapid and irregular when compared toa well’s initial production.

 

**Our dependence on third parties for the processingand transportation of oil and gas may adversely affect the Partnership’srevenues and, consequently, the distribution of net cash flows to investorpartners*.***

 

We rely on third parties to process and transport the oil and gasproduced by the Partnership’s successful wells. In the event a third party uponwhom we rely is unable to provide transportation or processing services, andanother third party is unavailable to provide such services, the Partnershipmay have to temporarily shut-in successful wells, and revenues to thePartnership and distributions to investor partners related to those wells maybe delayed.

 
| **ITEM 1B.** | ** ** | **UNRESOLVED STAFF COMMENTS** |
|--------------|------------|-------------------------------|

 

None.

 
| **ITEM 2.** | ** ** | **PROPERTIES** |
|-------------|------------|----------------|

 

**Drilling Activities and Productive Wells**

 

AllPartnership prospects are located onshore in the continental United States. ThePartnership purchased working interests in the Cole Ranch developmentalprospect located in Glasscock County, Texas, and in the Sand Dunesdevelopmental prospect located in Eddy County, New Mexico.  Nine wells have been drilled on these twoprospects.  The one well on thePartnership’s Cole Ranch prospect has been drilled and completed and beganproducing oil and natural gas in December 2007. Five wells on thePartnership’s Sand Dunes prospect completed drilling operations during 2007,and three of the five wells tested for the presence of hydrocarbons in December 2007.Subsequent to December 31, 2007, the Partnership completed and tested theother two Sand Dunes prospect wells drilled in 2007, and also completed thedrilling and short-term testing of three additional wells. All five of thesewells tested for the presence of hydrocarbons. However, the Partnership has notyet determined the potential commercial productivity of any of the Sand Dunesprospect wells.

 

The well drilled on the Partnership’s ColeRanch prospect is currently producing oil and gas in commercial quantities. Ofthe eight Sand Dunes prospect wells, four wells are undergoing extended testingand evaluation in order to determine their potential commercial productivity.The Partnership estimates that it may take between 90 and 120 days from thedate of this Annual Report to finish the evaluation process. Following initialtesting which confirmed the presence of oil and natural gas, the remaining fourSand Dunes prospect wells were temporarily shut in due to the high costassociated with salt water disposal and generator rental.  

 

Currently, generators have been rented topower the four producing Sand Dunes prospect wells undergoing the evaluationprocess, and salt water produced is being trucked off-site by an independentvendor. In order to reduce overall costs, installation of electric service tothe well-site locations is proceeding, and a more cost effective method of saltwater disposal is being explored. To date, RELP, the operator of these wells,has been unsuccessful in locating a long-term economic solution for disposingof produced salt water; however, RELP is currently evaluating its options forsalt water disposal, and estimates that it will be at least 90 to 120 days fromthe date of this Annual Report for the Sand Dunes prospect to have electricityand efficient salt water disposal capability in place.

 

TheunprovedpropertiesownedbythePartnershipatDecember31,2007consistofun-drilledleaseholdinterests(11potentialdrillinglocations)intheSandDunesprospect.ThePartnershipdoesnothaveavailablecapitaltodrillthesepotentiallocations.ThePartnershipmaysellallorapartoftheseleaseholdintereststothirdpartiesorotherPartnershipsmanagedbyReef.However,thePartnershipispermittedtoborrowfundsorutilizecashflowsfromexistingproductivepropertiesinordertoconductfuturedevelopmentaldrillingonthisprospect.Partnerapprovalwouldneedtobeobtainedforborrowingactivity,astheestimatedadditionalcostisinexcessof25%ofthePartnership’soriginalaggregatecapitalcontributions.Untilsuchtimeastheproductivecapabilityoftheeightwellsalreadydrilledcanbefullyanalyzed(seeNote8tothePartnership’sfinancialstatements),itisunknownwhetherthePartnershipwilldrilladditionalwellsontheSandDunesprospectorsellalloraportionoftheacreage.TheestimatedcosttothePartnershipofparticipatinginfuturedrillingoperationsatitscurrentworkinginterestownershipisapproximately$787,500-$1,050,000perlocation.

 

**ProvedOil and Gas Reserves**

 

ThePartnership uses an independent petroleum engineer to prepare its year endestimate of net proved oil and natural gas reserves. Net proved oil and naturalgas reserves as of December 31, 2007 have been estimated by GleasonEngineering, of Arlington, Texas. The quantities of proved oil and gas reservesdiscussed in this section

 

12

----

 

includeonly the amounts which we reasonably expect to recover in the future from knownoil and gas reservoirs under the current economic and operating conditions.Proved reserves include only quantities that we expect to recover commerciallyusing current prices, costs, existing regulatory practices, and technology.Therefore, any changes in future prices, costs, regulations, technology orother unforeseen factors could materially increase or decrease the provedreserve estimates.

 
| ** **                                        | ** ** | **Oil (BBL)** | ** ** | **Gas (MCF)** | ** ** |
|---------------------------------------------------|------------|--------------------|------------|--------------------|------------|
| Net proved reserves as of  December 31, 2007 |       | 203,203            |       | 428,898            |       |

 

Thestandardized measure of discounted future net cash flows as of December 31,2007 is computed by applying year-end prices, costs, and legislated tax ratesand a discount factor of 10% to net proved reserves. The standardized measureof discounted future net cash flows does not purport to present the fair valueof our oil and natural gas reserves.

 
| Standardized measure of  discounted future net cash flows as of December 31, 2007 |   | $ | 8,551,849 |   |
|----------------------------------------------------------------------------------------|--------|---|-----------|--------|

 

**Title to Properties**

 

ThePartnership’s interests in producing and non-producing acreage are in the formof assigned direct interests in leases held by the Partnership or by Reef onbehalf of the Partnership. Such properties are subject to customary royaltyinterests and could be subject to liens incident to operating agreements, liensfor current taxes and overriding royalty interests and other burdens.  The Partnership believes that none of theseburdens will materially interfere with the use of such properties in theoperation of the Partnership’s business and that it will obtain satisfactorytitle to all of its leases. Title will be held by the Partnership or by Reef onbehalf of the Partnership.

 
| **ITEM 3.** | ** ** | **LEGAL  PROCEEDINGS** |
|-------------|------------|------------------------|

 

The Partnership is not, and has not been, a party to anylegal proceedings.

 
| **ITEM 4.** | ** ** | **SUBMISSION OF MATTERS TO A VOTE  OF SECURITY HOLDERS** |
|-------------|------------|----------------------------------------------------------|

 

None.

 

**PART II**

 
| **ITEM 5.** | ** ** | **MARKET FOR REGISTRANT’S COMMON  EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES** |
|-------------|------------|------------------------------------------------------------------------------------------------------------------------|

 

Asof December 31, 2007, the Partnership had one managing general partner, 66limited partners, and 232 additional general partners. Reef holds a total of 22.792general partner units and the investor partners hold 370.561 general partnerunits and 62.480 limited partner units. No established trading market existsfor the units.

 

Cashwhich, in the sole judgment of the managing general partner, is not required tomeet the Partnership’s obligations is distributed to the partners at leastquarterly in accordance with the Partnership Agreement. The Partnership beganmaking monthly cash distributions to the partners of interest income and netoil and natural gas revenues in November 2007.  Cash distributions are distributed 15.45% tothe managing general partner (based upon the 11% interest not represented byunits and the 4.45% interest represented by Partnership units) and 84.55% toinvestor partners.

 

Investorlimited and general partnership interests are transferable, subject to certainrestrictions contained in the Partnership Agreement; however, no assignee of aunit in the Partnership can become a substituted partner without the writtenconsent of both the transferor and Reef.

 

ThePartnership has adopted a unit repurchase program. Under the terms of theprogram, the managing general partner is obligated to purchase up to 5% of theunits in the Partnership per year during the period set forth in the PartnershipAgreement. Unless changes in oil and gas pricing meet certain criteriaspecified in the prospectus supplement,

 

13

----

 

datedFebruary 15, 2007. However, the managing general partner’s obligation topurchase units is limited to $500,000 per year in the aggregate for allpartnerships previously or subsequently organized by the managing generalpartner or its affiliates. The Partnership did not repurchase any units in2007.

 

**Use of Proceeds**

 

Inconnection with the Registration Statement filed on form S-1 (No. 333-122935)and declared effective July 7, 2005, Reef filed a final prospectus for theProgram on July 8, 2005. On February 15, 2007, Reef filed aprospectus supplement describing the Partnership and commenced the offering ofunits in the Partnership. All sales of Partnership units were made through theProgram’s dealer-manager, Reef Securities, Inc., and a number ofsoliciting dealers. The offering terminated July 7, 2007. Under the termsof the offering, a minimum of 40 Partnership units at a price of $25,000 perunit were required to be sold in order to form the Partnership. Upon meetingthis requirement, the Partnership was formed on April 6, 2007.

 

ThePartnership registered a total of 400 units of limited partner interests and 1,600units of general partner interests. The aggregate offering amount registeredwas $50,000,000. During the offering period that terminated on July 7,2007, the Partnership sold 433.041 units to investor partners, consisting of 62.480units of limited partner interest and 370.561 units of additional generalpartner interest. Reef purchased 22.792 general partner units, equaling 5.00%of the total Partnership units sold. Total offering proceeds were $11,310,350.Reef will also contribute 1% of all leasehold, drilling, and completion costsas incurred. At December 31, 2007, Reef had contributed $19,590 andaccrued $48,064 as a payable to the Partnership in connection with thisobligation.

 

Allunits except those purchased by Reef paid a 15% management fee to Reef to payfor the Partnership organization and offering costs, including salescommissions. These costs totaled $1,623,904, leaving capital contributions of$9,754,100 available for Partnership oil and gas operations. As of December 31,2007, the Partnership had expended $8,109,175 on property acquisitions and$12,218 on general and administrative expenses.

 

ThePartnership expects to utilize substantially all available Partnership capitalby July 2008 on the drilling and completion of nine Partnership wells, andon salt water disposal facilities for the wells located on the Partnership’sSand Dunes prospect.

 
| **ITEM 6.** | ** ** | **SELECTED FINANCIAL DATA** |
|-------------|------------|-----------------------------|

 

Thefollowing table sets forth selected financial data. The selected financial datapresented below has been derived from the audited financial statements of thePartnership.

 
| ** **                                    | ** ** | **Period from  inception (April 6,  2007) to  December 31,** | ** **   |
|-----------------------------------------------|------------|---------------------------------------------------------------------------------------|--------------|
| ** **                                    | ** ** | **2007**                                                                              | ** **   |
| ** **                                    | ** ** | ** **                                                                            | ** **   |
| Oil and gas sales revenue |       | $                                                                                     |  36,526 |   |
| Interest income                               |       | 171,425                                                                               |         |
| Costs and expenses                            |       | (81,238                                                                               | )            |
| Partnership net income                        |       | 126,713                                                                               |         |
|                                          |       |                                                                                  |         |
| Allocation of net income:                     |       |                                                                                  |         |
| Managing general partner                      |       | 28,438                                                                                |         |
| General partner units                         |       | 84,096                                                                                |         |
| Limited partner units                         |       | 14,179                                                                                |         |
| Net income per managing  partner unit         |       | 1,247.70                                                                              |         |
| Net  income per general partner unit          |       | 226.94                                                                                |         |
| Net income per limited  partner unit          |       | 226.94                                                                                |         |
|                                          |       |                                                                                  |         |
| Total assets                                  |       | 11,861,834                                                                            |         |
| Distributions to managing  general partner    |       | 15,450                                                                                |         |
| Distributions to investor  partners           |       | 84,550                                                                                |         |
|                                               |            |                                                                                       |              |  |

 

14

----

 
|                                             |   | **Period from  inception (April 6,  2007) to  December 31,** |   |
|--------------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|
|                                             |   | **2007**                                                                              |   |
| Distributions per general  partner unit          |   | 677.87                                                                                |   |
| Distributions per limited  partner unit          |   | 195.25                                                                                |   |
| Distributions per managing  general partner unit |   | 195.25                                                                                |   |
|                                             |   |                                                                                  |   |
| **Operating Data**                               |   |                                                                                  |   |
| Annual sales volume:                             |   |                                                                                  |   |
| Gas (MCF)                                        |   | —                                                                                |   |
| Oil (BBL)                                        |   | 393                                                                                   |   |
|                                             |   |                                                                                  |   |
| Average sales price:                             |   |                                                                                  |   |
| Gas (per MCF)                                    |   | $                                                                                     | — |   |
| Oil (per BBL)                                    |   | $                                                                                     | 92.94  |   |

 
| **ITEM 7.** | ** ** | **MANAGEMENT’S DISCUSSION AND  ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS** |
|-------------|------------|-------------------------------------------------------------------------------------------------|

 

The following discussion will assist you in understanding thePartnership’s financial position, liquidity, and results of operations. Theinformation should be read in conjunction with the audited financial statementsand notes to financial statements contained herein. The discussion containshistorical and forward-looking information.

 

For a discussion of risk factors that could impact the Partnership’sfinancial results, please see Item 1A of this Annual Report.

 

**Critical Accounting Policies**

 

The preparation of financial statements inconformity with accounting principles generally accepted in the United Statesrequires us to make estimates and assumptions that can affect the reporting ofassets, liabilities, equity, revenues, and expenses. We base our estimates onhistorical experience and various other assumptions that are believed to bereasonable under the circumstances. Actual results may differ from theseestimates under different assumptions or conditions. We are also required toselect among alternative acceptable accounting policies. See Note 2 to thefinancial statements for a complete list of significant accounting policies.

 

**Oil and Gas Properties**

 

ThePartnershipfollowsthefullcostmethodofaccountingforcrudeoilandnaturalgasproperties.Underthismethod,alldirectcostsandcertainindirectcostsassociatedwithacquisitionofpropertiesandsuccessfulaswellasunsuccessfulexplorationanddevelopmentactivitiesarecapitalized.Depreciation,depletion,andamortizationofcapitalizedcrudeoilandnaturalgaspropertiesandestimatedfuturedevelopmentcosts,excludingunprovedproperties,arebasedontheunit-of-productionmethodusingestimatedprovedreserves.  Forthesepurposes,provedgasreservesareconvertedtoequivalentbarrelsatarateof6Mcfto1Bbl.Netcapitalizedcostsofcrudeoilandnaturalgasproperties,asadjustedforassetretirementobligations,arelimitedtothelowerofunamortizedcostorthecostceiling,definedasthesumofthepresentvalueofestimatedfuturenetrevenuesfromprovedreservesbasedonpricesineffectattheendoftheperiodheldconstantanddiscountedat10percent,plusthelowerofcostorestimatedfairvalueofunprovedproperties,ifany.Pursuanttofullcostaccountingrules,thePartnershipperformsaceilingtestquarterlyasofthebalancesheetdateonitsprovedoilandgasproperties.Excesscapitalizedcostsarechargedtopropertyimpairmentexpense.Nogainorlossisrecognizeduponsaleordispositionofcrudeoilandnaturalgasproperties,unlesssuchasalewouldsignificantlyaltertherateofdepletionandamortization.Duringtheperiodfrominception(April6,2007)toDecember31,2007,thePartnershiprecognizednoimpairmentofprovedproperties.

 

15

----

 

Unprovedproperties consist of undeveloped leasehold interest. Investments in unprovedproperties are not depleted pending determination of the existence of provedreserves. Unproved properties are assessed for impairment quarterly as of thebalance sheet date by considering the primary lease term, the holding period ofthe properties, geologic data obtained relating to the properties, and otherdrilling activity in the immediate area of the properties. Any impairmentresulting from this quarterly assessment is reported as property impairmentexpense in the current period, as appropriate. During the period from inception(April 6, 2007) to December 31, 2007, the Partnership recognized noimpairment of unproved properties.

 

The estimate of proved oil and gasreserves used to determine property impairment expense, and also utilized inthe Partnership’s disclosures of supplemental information regarding oil and gasproducing activities, including the standardized measure of discounted cash flows,was prepared by an independent petroleum engineer, utilizing the period endprices and costs as promulgated by the SEC. Reserve engineering is a subjectiveand inexact process of estimating underground accumulations of oil and naturalgas that cannot be measured in an exact manner, and is based upon assumptionsthat may vary considerably from actual results. Accordingly, reserve estimatesmay be subject to upward or downward adjustments. Actual production,revenues and expenditures with respect to reserves will likely vary fromestimates, and such variances could be material.

 

The determination of depreciation,depletion and amortization expense recognized in the financial statements isalso dependent upon the estimates of proved oil and gas reserves and iscomputed using the units-of-production method based upon this estimate ofproved reserves. During the period from inception (April 6, 2007) to December 31,2007, the Partnership had depreciation, depletion, and amortization expensetotaling $11,876.

 

ThePartnership accounts for its asset retirement obligations in accordance withStatement of Financial Accounting Standards (“SFAS”) No. 143, “Accountingfor Asset Retirement Obligations” (“SFAS No. 143”). Asset retirement costsand liabilities associated with future site restoration and abandonment oflong-lived assets are initially measured at fair value which approximates thecost a third party would incur in performing the tasks necessary to retire suchassets. The fair value is recognized in the financial statements as the presentvalue of expected future cash expenditures for site restoration andabandonment. Subsequent to the initial measurement, the effect of the passageof time on the liability for the net asset retirement obligation (accretion expense)and the amortization of the asset retirement cost are recognized in the resultsof operations. Upon settlementof the obligation a gain or loss is recognized to the extent actual charges areless than or exceed the liability recorded. Duringthe period from inception (April 6, 2007) to December 31, 2007, thePartnership recognized $118,246 of asset retirement obligations and additionalcapitalized cost in connection with successful wells drilled by thePartnership.

 

**Recognitionof Revenue**

 

The Partnership has entered into salescontracts for disposition of its share of oil and gas production fromproductive wells. Revenue is recognized based upon the metered volumesdelivered to those purchasers each month. As of December 31, 2007 thePartnership had no gas production and, therefore, had no gas imbalancepositions.

 

**Overview**

 

Reef Global Energy IX, L.P. is a Nevada limitedpartnership formed to explore, develop, acquire and produce crude oil, naturalgas, and natural gas liquids for the benefit of its investor partners. ThePartnership’s primary purposes are to generate revenues from the production ofoil and gas, distribute cash flow to investors, and provide tax benefits toinvestors. The majority of the Partnership’s proceeds will be used to purchaseprospects and drill oil and gas wells on those prospects.

 

During 2007, the Partnership purchased interests intwo developmental prospects upon which it has drilled nine wells. Six wells hadbeen drilled as of December 31, 2007, and three wells completed drillingoperations during the first quarter of 2008. One well on the Partnership’s ColeRanch prospect is currently producing oil and natural gas in commercialquantities. As discussed in this Annual Report on Form 10-K above in “Item2. Properties,” the Partnership has participated in the drilling of eight wellson its Sand Dunes prospect. Four of these wells are undergoing extendedtesting and evaluation in order to determine their potential commercialproductivity. The Partnership estimates that it may take between 90 and 120days from the date of this Annual Report to finish the testing and evaluationprocess. Following initial short-term tests which confirmed the presence of oiland natural gas, the remaining four Sand Dunes prospect wells were temporarilyshut in due to the high cost associated with salt water disposal and generatorrental. The Partnership does not expectto acquire interests in any additional prospects, but may conduct additionaldevelopment activity on the Sand Dunes prospect. The Partnership operatessolely onshore in the United States. Partnership prospects are located in Texasand New Mexico. RELP, an

 

16

----

 

affiliate of Reef, and its predecessor OREI haveexpertise and have served as well operators primarily in Texas and Louisianasince 1987. RELP operates all nine of the Partnership’s wells.

 

ThePartnershipdoesnotoperateinanyotherindustrysegment.ShouldanyprospectinwhichthePartnershippurchasesaninterestbedeterminedtowarrantadditionaldevelopmentactivity,thePartnershipmaypayforsuchdevelopmentusingcashflowsfromsuccessfulwells,ormayborrowanamountupto25%ofthePartnership’saggregatecapitalcontributionswithouttheconsentoftheinvestorpartners,providedthelenderagreesitwillhavenorecourseagainstindividualinvestorpartners.ThePartnershipisprohibitedfromissuingadditionalcashcallstoinvestorpartners.Borrowingsfordevelopmentalactivityinexcessof25%ofthePartnership’saggregatecapitalcontributionsrequireapprovaloftheinvestorpartners.  ShouldthePartnershipelecttoborrowmoniesforadditionaldevelopmentactivityonPartnershipproperties,itwillbesubjecttotheinterestrateriskinherentinborrowingactivities.ThePartnershipispermittedbutisnotexpectedtoengageincommodityfuturestradingorhedgingactivities,andthereforeissubjecttocommoditypricerisk.   See“Item7A.QuantitativeandQualitativeDisclosuresAboutMarketRisk.”

 

**Liquidity and Capital Resources**

 

ThePartnershipwasfundedwithinitialcapitalcontributionstotaling$11,310,350.Investorpartnerspurchased370.561generalpartnerunitsand62.480limitedpartnerunitsfor$10,826,028.Reefpurchased5%ofthetotalpartnershipunits(22.792units)for$484,322.Reefwillalsocontribute1%ofallleasehold,drilling,andcompletioncostswhenincurred,inadditiontopayingitsproratashare(4.95%)oftheleasehold,drilling,andcompletioncostspaidbythePartnership.AsofDecember31,2007,Reefhaspaid$19,590andaccrued$48,064inconnectionwiththisobligation.Organizationandofferingcoststotaled$1,623,904,leavingthePartnership$9,754,100fordrillingoperationsandpre-productionadministrativecosts.ThesefundsareexpectedtobesubstantiallyexpendedoveraperiodofapproximatelytwelvemonthsbeginningJuly2007inthedrillingofninePartnershipwellsandtheconstructionorpurchaseofsaltwaterdisposalfacilitiesforthePartnership’seightSandDunesprospectwells.

 

AtDecember 31, 2007, the Partnership owned working interests in twodevelopmental prospects. The Partnership owns 100% of the working interest inthe well on its Cole Ranch prospect and has expended approximately $1.52million in acquisition and drilling costs. The Partnership owns a 42% workinginterest in the Sand Dunes prospect, where it has drilled eight wells. At December 31,2007, five wells had completed drilling operations and three wells were stillundergoing drilling operations. The Partnership has expended approximately$5.783 million in acquisition and drilling costs at December 31 inconnection with these eight wells, and has estimated future costs ofapproximately $1.092 million to complete drilling operations and facilities forthese wells.

 

UnderthetermsofthePartnershipagreement,thePartnershipcanconductadditionaldevelopmentactivityonprospectsithaspurchasedanddrilledonwithitsinitialcapitalcontributions.ThePartnershipcannotissueadditionalcashcallstoinvestorpartners,butispermittedtoborrowfundsorusecashflowfromtheinitialwellstofundtheadditionaldevelopmentactivity.ShouldthePartnershipchoosetoborrowfunds,itmayborrowupto25%ofthePartnership’saggregatecapitalcontributionswithouttheapprovalofinvestorpartners,providedthelenderagreesitwillhavenorecourseagainsttheindividualinvestorpartners,andmayborrowinexcessof25%ofthePartnership’saggregatecapitalcontributionswiththeapprovalofinvestorpartners.

 

TheunprovedpropertiesownedbythePartnershipatDecember31,2007consistofun-drilledleaseholdinterests(11potentialdrillinglocations)intheSandDunesprospect.ThePartnershipdoesnothaveavailablecapitaltodrillthesepotentiallocations.ThePartnershipmaysellallorapartoftheseleaseholdintereststothirdpartiesorotherPartnershipsmanagedbyReef.However,thePartnershipispermittedtoborrowfundsorutilizecashflowsfromexistingproductivepropertiesinordertoconductfuturedevelopmentaldrillingonthisprospect.Partnerapprovalwouldneedtobeobtainedforborrowingactivity,astheestimatedadditionalcostisinexcessof25%ofthePartnership’soriginalaggregatecapitalcontributions.Untilsuchtimeastheproductivecapabilityoftheeightwellsalreadydrilledcanbefullyanalyzed(seeNote8),itisunknownwhetherthePartnershipwilldrilladditionalwellsontheSandDunesprospectorsellalloraportionoftheacreage.TheestimatedcosttothePartnershipofparticipatinginfuturedrillingoperationsatitscurrentworkinginterestownershipisapproximately$787,500-$1,050,000perlocation.

 

17

----

 

ThePartnership has working capital of $1,827,808 at December 31, 2007, whichincludes interest income and oil and gas sales revenues which will bedistributed to investor partners, and capital available for drillingactivities.

 

**Results of Operations**

 

Because the Partnership was formed on April 6, 2007, there is nocomparable information for the period ended December 31, 2006.

 

**Periodfrom Inception (April 6, 2007) thru December 31, 2007**

 

ThePartnership began operations on April 6, 2007. During the period between April andDecember 2007, the Partnership purchased interests in two developmentalprospects upon which it has drilled 9 wells. At December 31, 2007, thePartnership had completed drilling six wells and three wells were in progress.These three wells completed drilling operations during the first quarter of2008. The Partnership’s Cole Ranch prospect well began production of oil andnatural gas on December 24, 2007. The Partnership also had oil sales as aresult of the completion and testing of three wells on the Partnership’s SandDunes prospect. Oil revenues from these wells totaled $36,526 during 2007. Gassales from the Cole Ranch prospect well and from the four Sand Dunes prospectwells currently being tested and evaluated to determine their potentialcommercial productivity began during January 2008. During the period frominception (April 6, 2007) to December 31, 2007, the Partnershipearned $171,425 of interest income from the investment of partner capitalcontributions prior to their expenditure in lease acquisition and drillingactivities. Total oil and gas revenues and interest income was $207,951.

 

Interest income will decline significantlyduring 2008, as the Partnership expects to expend substantially all of itsremaining initial partner capital by July 2008. While oil and gas revenuesare expected to begin increasing during the first quarter of 2008, thePartnership’s Sand Dunes prospect wells are currently not commerciallyproducing. Four of these wells are undergoing extended testing and evaluationin order to determine their potential commercial productivity. The Partnershipestimates that it may take between 90 and 120 days from the date of this AnnualReport to finish the testing and evaluation process. Following initialshort-term tests which confirmed the presence of oil and natural gas, theremaining four Sand Dunes prospect wells were temporarily shut in due to thehigh cost associated with salt water disposal and generator rental.

 

ThePartnership incurred organization costs of $50,000 (a one time expense), andgeneral and administrative costs of $13,269 during the period from inception (April 6,2007) to December 31, 2007. General and administrative costs consistprimarily of legal, accounting, and printing costs for required SEC filings aswell as general and administrative costs incurred by RELP and billed to thePartnership. Both of these costs are expected to increase during 2008 as aresult of the increased activities of the Partnership.

 

**Off-Balance Sheet Arrangements**

 

The Partnership does not participate in transactionsthat generate relationships with unconsolidated entities or financialpartnerships, such as entities often referred to as structure finance orspecial purpose entities (SPEs), which would have been established for thepurpose of facilitating off-balance sheet arrangements or other contractuallynarrow or limited purposes.  As of December 31,2007, the Partnership was not involved in any unconsolidated SPE transactionsor any other off-balance sheet arrangements.

 

**Contractual Obligations Table**

 
| ** **                       | ** ** | **Payment due by period** | ** **    |
|----------------------------------|------------|------------------------------------------|---------------|
| **Contractual obligations** | ** ** | **Total**                                | ** **    | **Less than 1  Year** | ** ** | **1-3 Years** | ** ** | **3-5 years** | ** ** | **More than 5  Years** | ** ** |
| Purchase obligations * |       | $                                        |  153,712 |   | $ |  60,000 |   | $ |  93,712 |   | — |   | — |   |
|                                  |            |                                          |               |  |  |  |  |  |  |  |  |  |  |  |

 

----

*The 15% management fee due Reef fororganization and offering costs, including sales commissions, is payable in twoparts. Reef initially received an amount, not to exceed 13.5%, to recoveractual commissions and organization and offering costs. As of December 31,2007, the Partnership is obligated to pay Reef $153,712 representing theportion of the management fee in excess of actual commissions and organizationand offering costs, from the oil and gas cash flows available for partnerdistributions at a rate not to exceed $1 million per year. The Partnershipbegan paying this balance at a rate of $5,000 per month beginning in January 2008.

 

18

----

 
| **ITEM 7A.** | ** ** | **QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT  MARKET RISK** |
|--------------|------------|-----------------------------------------------------------------|

 

**InterestRate Risk**

 

ThePartnership has not borrowed any funds to date. The Partnership Agreementallows borrowings from banks or other financial sources of up to 25% of theaggregate capital contributions to the Partnership without investor approvalprovided the lender agrees it will have no recourse against the individualinvestor partners, and allows borrowings in excess of 25% of the aggregatecapital contributions to the Partnership with the consent of investor partners.Should the Partnership elect to borrow monies for additional developmentactivity on Partnership properties, it will be subject to the interest raterisk inherent in borrowing activities. Changes in interest rates couldsignificantly affect the Partnership’s results of operations and the amount ofnet cash flow available for partner distributions. Also, to the extent thatchanges in interest rates affect general economic conditions, the Partnershipwill be affected by such changes.

 

**Commodity Price Risk**

 

ThePartnership has not and does not expect to engage in commodity futures tradingor hedging activities or to enter into derivative financial instrumenttransactions for trading or other speculative purposes. The Partnership sells avast majority of its production from successful oil and gas wells on amonth-to-month basis at current spot market prices. Accordingly, thePartnership is at risk for the volatility in commodity prices inherent in theoil and gas industry, and the level of commodity prices has a significantimpact on the Partnership’s results of operations.

 

Assuming the production levels we attained during the year ended December 31,2007, a 10% change in the price received for our crude oil would have had anapproximate $3,600 impact on our oil revenues.

 
| **ITEM 8.** | ** ** | **FINANCIAL STATEMENTS AND  SUPPLEMENTARY DATA** |
|-------------|------------|--------------------------------------------------|

 

ThePartnership’s financial statements and supplementary data are set forth in aseparate section to this Annual Report, beginning on page F-1.

 
| **ITEM 9.** | ** ** | **CHANGES IN AND DISAGREEMENTS  WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE** |
|-------------|------------|-------------------------------------------------------------------------------------------|

 

None.

 

**ITEM 9A(T). CONTROLS AND PROCEDURES**

 

**Evaluation of Disclosure Controls and Procedures**

 

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

 

19

----

 

**Management Report on Internal Control OverFinancial Reporting**

 

Management ofthe Partnership is responsible for establishing and maintaining adequateinternal control over financial reporting, as such term is defined in ExchangeAct Rule 13a-15(f). Our management conducted an evaluation of theeffectiveness of our internal control over financial reporting based on theframework in Internal Control - Integrated Framework issued by the Committee ofSponsoring Organizations of the Treadway Commission. Based on this evaluationunder the framework in Internal Control – Integrated Framework, management ofthe Partnership concluded that the Partnership’s internal control overfinancial reporting was effective as of December 31, 2007.

 

Thisannual report does not include an attestation report of the Partnership’sregistered public accounting firm regarding internal control over financialreporting. Management’s report was not subject to attestation by thePartnership’s registered public accounting firm pursuant to temporary rules ofthe SEC that permit the Partnership to provide only management’s report in thisannual report.

 

**Changes in Internal Controls**

 

Therehave not been any changes in the Partnership’s internal controls over financialreporting during the fiscal quarter ended December 31, 2007 that havematerially affected, or are reasonably likely to materially affect, thePartnership’s internal control over financial reporting.

 

**ITEM 9B.****       OTHER INFORMATION**

 

None.

 

**PART III**

 

**ITEM 10.****       DIRECTORS, EXECUTIVE OFFICERS,AND CORPORATE GOVERNANCE**

 

The Partnership has no directors or executive officers; it is managedby Reef Oil & Gas Partners, L.P.

 

**Reef Oil & Gas Partners, L.P. andReef Exploration, L.P.**

 

The Manager, officers and key personnel ofthe managing general partner, their ages, current positions with the managinggeneral partner and/or RELP, and certain additional information are set forthbelow:

 
| **Name**                       | ** ** | **Age** | ** ** | **Positions and Offices Held**                                         | ** ** |
|--------------------------------|------------|---------|------------|---------------------------------------------------------------------------------------|------------|
| Michael J. Mauceli             |       | 51      |       | Manager of Reef Oil & Gas Partners GP, LLC;  Chief Executive Officer of RELP |       |
| Kellam Colquitt                |       | 60      |       | Chief Operating Officer of RELP                                                       |       |
| H. Walt Dunagin                |       | 50      |       | Vice President – Land Manager of RELP                                            |       |
| Lawrence J. Harrison, Jr. |       | 57      |       | Vice President – Business Development of RELP                                    |       |
| Byron H. Dean                  |       | 58      |       | Manager of Acquisitions and Divestitures of RELP                                      |       |
| Daniel C. Sibley               |       | 56      |       | Chief Financial Officer of Reef and of RELP                                           |       |
| David M. Tierney               |       | 55      |       | Controller – Reef Global Energy Ventures II                                      |       |

 

**MichaelJ. Mauceli**is the Manager and a member of Reef Oil & Gas Partners, GP, LLC, whichis the general partner of Reef, as well as the Chief Executive Officer of RELP.Mr. Mauceli has been the principal executive officer of Reef since itsformation in February 1999. He has served in this position with RELP sinceJanuary 2006 and has served in this position with its predecessor entity,OREI, since 1987.  Mr. Mauceliattended the University of Mississippi where he majored in business managementand marketing as well as the University of Houston where he received his CommercialReal Estate License. He entered the oil and natural gas business in 1976 whenhe joined Tenneco Oil & Gas Company. Mr. Mauceli moved to Dallas in 1979, where he was independentlyemployed by several exploration and development firms in planning explorationand marketing feasibility of privately sponsored drilling programs.

 

20

----

 

**KellamColquitt**joinedRELP as Chief Operating Officer on February 14, 2006. Mr. Colquitthas over thirty-five years of experience in the oil and gas industry. Prior tojoining RELP, Mr. Colquitt served as Vice President-Exploration of VintagePetroleum, Inc. in Tulsa Oklahoma from 2001-2006. He also served as theGeneral Manager-Exploration of Vintage Petroleum, Inc. from 2000-2001.Prior to that, Mr. Colquitt was employed from 1995-2000, first as VicePresident-International Exploration Western Hemisphere and later as VicePresident-U.S. Operations for Ranger Oil Limited. He is a 1971 graduate ofTexas A&M University with a degree in geology. He is a member of theAmerican Association of Petroleum Geologists, the Houston Petroleum Club, theTulsa Geological Society, and the Houston Geological Society.

 

**H.********Walt********Dunagin**isVicePresident– LandManagerofRELP.HehasheldthispositionsinceJanuary2006andhasservedinthispositionwithitspredecessorentity,OREI,since1990.Heisresponsibleforallcontractswithotherindustrypartnersandalllandactivitiesrequiredforexploration,developmentandproduction,includingleaseacquisition,titleopinions,curative,permitting,unitization,rights-of-wayandenvironmentalissues.AgraduateoftheUniversityofMississippiin1969withaB.B.A.degree,Walt’scareerhasalsoinvolvedlandworkforExxonMobil,ChevronTexaco,UNOCAL,SantaFeEnergyandOryxEnergy(nowKerr-McGee).WaltisamemberoftheDallasAssociationofPetroleumLandmenandtheAssociationofInternationalPetroleumNegotiators.

 

**LawrenceJ. Harrison, Jr.**is Vice President – BusinessDevelopment of RELP. He joined RELP in October 2006 following fourteenyears with The Oil & Gas Asset Clearinghouse, a leading acquisitionand divestiture advisory firm. Mr. Harrison has served as an independentLandman verifying title ownership and acquiring leases and other agreements insupport of clients drilling programs. He worked for Mobil Oil Corporation andseveral other companies before joining The Clearinghouse. Mr. Harrison isa 1972 graduate of the University of Southern Mississippi with a Bachelor ofScience degree in Communications. Mr. Harrison is a past president of theHouston Association of Professional Landmen and a past member of the AmericanAssociation of Professional Landmen Executive Committee. He is currently aDirector of the Louisiana Oil & Gas Association (LOGA) and a member ofthe ADAM Energy Forum and the Independent Petroleum Association of America.

 

**ByronH. (Howard) Dean**is Manager – Acquisitions and Divestitures of RELP and isresponsible for solicitation and technical evaluation of acquisition anddevelopment opportunities for Reef. A registered petroleum engineer, Mr. Deanhas over 30 years of industry experience with oil and natural gas operationsand reservoir engineering, both domestic onshore and offshore. Prior to joiningRELP, Mr. Dean was Senior Petroleum Engineer and Acquisition andDivestiture Specialist for PLS, Inc. and Noble Royalties, Inc. He isa 1974 graduate of the University of Texas at Arlington with a Bachelor ofScience degree in Civil Engineering. Mr. Dean is an active member of theSociety of Petroleum Engineers, the Society of Petroleum Evaluation Engineers, theADAM Energy Forum, and Texas Independent Producer and Royalty OwnersAssociation.

 

**DanielC. Sibley**becameChief Financial Officer of Reef in December 1999. He has served in thesame position for RELP since January 2006, and has served in this positionwith RELP’s predecessor entity, OREI, since 1998. Mr. Sibley was employedas a Certified Public Accountant with Grant Thornton from 1977 to 1980. From1980 to 1994, he was involved in the private practice of law. He received aB.B.A. in accounting from the University of North Texas in 1973, a law degree(J.D.) from the University of Texas in 1977, and a Master of Laws-Taxationdegree (L.L.M.) from Southern Methodist University in 1984.

 

**DavidM. Tierney**has been employed by RELP since January 2006 and was previously with itspredecessor entity, OREI, since March 2001.  Mr. Tierney is the Controller of theReef Global Energy Ventures and Reef Global Energy Ventures II partnerships. Mr. Tierneyreceived a Bachelor’s degree from Davidson College in 1974, a Masters ofBusiness Administration from Tulane University in 1976, and is a TexasCertified Public Accountant. Mr. Tierney has worked in public accounting,and has worked in the oil and gas industry since 1979. From 1992 through 2000he served as controller/treasurer of an independent oil and gas explorationcompany.

 

**Audit Committee andNominating Committee**

 

Because the Partnership has no directors, itdoes not have an audit committee, an audit committee financial expert or anominating committee.

 

21

----

 

**Code of Ethics**

 

Because thePartnership has no employees, it does not have a code of ethics.  Employees of the Partnership’s managinggeneral partner, Reef, must comply with Reef’s Code of Ethics, a copy of whichwill be provided to any person, without charge, upon request made to Reef Oil& Gas Partners, L.P., 1901 N. Central Expressway, Suite 300,Richardson, Texas 75080, Attention: Daniel C. Sibley.

 

**ITEM 11.****       EXECUTIVE COMPENSATION**

 

The following table summarizes the items ofcompensation to be received by Reef as the managing general partner from the Partnership.

 
| **Recipient**                               | ** ** | **Form of Compensation**                                                                   | ** ** | **Amount**                 | ** ** |
|---------------------------------------------|------------|------------------------------------------------------------------------------------------------------|------------|----------------------------|------------|
| Managing General Partner                    |       | Partnership interest (excluding any  partnership interest resulting from the purchase of units) |       | 10% interest               |       |
| Managing General Partner                    |       | Management fee                                                                                       |       | 15% of subscriptions       |       |
| Managing General Partner and its Affiliates |       | Direct and administrative costs                                                                      |       | Reimbursement at cost      |       |
| Affiliate of the Managing General Partner   |       | Operator’s per-well charges                                                                     |       | Competitive prices         |       |
| Managing General Partner and its Affiliates |       | Payment for equipment, supplies, marketing, and other services                                       |       | Cost or competitive prices |       |

 

Reef’s “partnership interest,” as described in the table above, refersonly to its interest as managing general partner and does not include theinterest Reef has as the result of its purchase of units in the Partnership, orthe 1% interest Reef has as the result of its payment of 1% of all leasehold,drilling, and completion costs.  Reefpurchased 5.00% of the outstanding Partnership units. Reef received a 10%interest as managing general partner of the Partnership and a 1% interest as aresult of Reef’s payment of 1% of all leasehold, drilling, and completion costsfor a total of an 11% interest.  This 11%interest is not represented by Partnership units.  Reef has a total interest in the Partnershipof 15.45%.

 

Reef will receive a management fee equal to 15% of the Partnershipsubscriptions exclusive of the units purchased by Reef. From this amount Reefpays all of the Partnership’s organization and offering costs, including salescommissions. The management fee is payable to Reef in two parts. Reef initiallyreceives an amount not to exceed 13.5% to cover actual sales commissions andactual organization and offering costs. The remainder of the management fee ispaid to Reef from the net cash flow available for partner distributions, at a ratenot to exceed $1 million per year. The total management fee owed Reef is$1,623,904. The Partnership recorded $1,573,904 of this amount as offeringcosts, and $50,000 as organization costs. Of this amount, $1,461,514 has beenpaid to Reef to cover actual sales commissions and organization and offeringcosts, $8,678 has been paid to Reef from net cash flow, and $153,712 has beenaccrued at December 31, 2007 as an account payable to be paid to Reef fromfuture net cash flows of the Partnership.

 

Reef will be reimbursed for direct costs and all documentedout-of-pocket expenses incurred on behalf of the Partnership, includingadministrative costs. During the period from inception (April 6, 2007) to December 31,2007, the Partnership reimbursed Reef $405,924 for technical services costswhich have been capitalized as project costs, and $1,051 for administrativecosts included as general and administrative expenses.

 

Operators fees will be payable only if RELP or another Reef affiliateserves as operator of a Partnership prospect. Under such circumstances, suchaffiliate will receive fees at the competitive rate in the geographical area ofthe prospects during the drilling and production phase of operations. Oftenthese are charged as a monthly fee per well. During the period from inception (April 6,2007) to December 31, 2007, the Partnership paid operator fees totaling$17,221 to RELP. RELP serves as operator of the nine wells on the Partnership’stwo prospects.

 

**Compensation Committee**

 

Because the Partnership has no directors, it does not have a compensationcommittee.

 

22

----

 

**ITEM12.**      SECURITY OWNERSHIP OF CERTAIN BENEFICIALOWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

** **

Thefollowing table sets forth information as of December 31, 2007 concerningall persons known by Reef to own beneficially more than 5% of the interests inthe Partnership. Unless expressly indicated otherwise, each partner exercisessole voting and investment power with respect to the interest beneficiallyowned.

 
| **Person or Group**              | ** ** | **Number of Units  Beneficially  Owned** | ** ** | **Percent of Total  Partnership Units  Outstanding** | ** ** | **Percentage of  Total Partnership  Interests  Beneficially  Owned** | ** ** |
|--------------------------------------------|------------|----------------------------------------------------|------------|---------------------------------------------------------------------|------------|--------------------------------------------------------------------------------|------------|
| Reef Oil & Gas Partners, L.P. (1) |       | 22.792                                             |       | 5.00                                                                | %          | 4.45                                                                           | %          |
| Reef Oil & Gas Partners, L.P. (1) |       | —                                             |       | —                                                              |       | 11.00                                                                          | %          |
| Leslie A Buttorff (2)                      |       | 80.000                                             |       | 17.55                                                               | %          | 15.62                                                                          | %          |

 

----

(1)          Reef Oil & GasPartners, L.P.’s address is 1901 N. Central Expressway, Suite 300,Richardson, Texas 75080.

(2)          Leslie A. Buttorff’saddress is 5600 Piedmont Dr, Englewood, Colorado 80111.

 

Themanaging general partner received a 10% interest in the Partnership ascompensation for forming the Partnership, and also holds a 1% interest in thePartnership as a result of paying 1% of all leasehold, drilling and completioncosts. In addition to this 11% interest not represented by Partnership units,Reef purchased 5% of the 455.833 Partnership units and, therefore, holds 5% ofthe 89% interest in the Partnership (4.45%) held by the unit holders.

 

**ITEM 13.**       CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, ANDDIRECTOR INDEPENDENCE

 

The Partnership is managed by amanaging general partner and does not have directors.  Reef is the managing general partner of thePartnership.  Along with its affiliates,Reef has entered into agreements with, and received compensation from, thePartnership for services it performs for the Partnership.  See Item 11. Executive Compensation.

 

**ITEM 14.**       PRINCIPAL ACCOUNTING FEES AND SERVICES

** **

The Partnership was formed April 6, 2007. The Partnership incurredprofessional audit and tax fees from its principal auditor BDO Seidman, LLP, asdisclosed in the table below:

 
| ** **         | ** ** | **2007** | ** ** |
|--------------------|------------|----------|------------|
| Audit fees         |       | $        | 13,501     |   |
| Audit related fees |       | —   |       |
| Tax fees           |       | —   |       |
| All other fees     |       | —   |       |
|                    |            |          |            |  |

 

At December 31, 2007, the Partnership had filed no federal taxreturns, and incurred no tax fees.

 

As indicated inItem 10 above, the Partnership does not have any directors or an auditcommittee.

 

23

----

 

**PART IV**

 

**ITEM 15.**       EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

 
| (a)    | 1.  Financial Statements                                 |   |
|--------|----------------------------------------------------------|--------|
|   |                                                     |   |
|   | Report  of Independent Registered Public Accounting Firm | F-1    |
|   | Balance Sheet                                            | F-2    |
|   | Statement of  Operations                                 | F-3    |
|   | Statement of Partnership Equity                          | F-4    |
|   | Statement  of Cash Flows                                 | F-5    |
|   | Notes  to Financial Statements                           | F-6    |
|   |                                                     |   |
|   | 2.  Financial Statement Schedules                        | None   |
|   |                                                     |   |
|   | 3.  Exhibits                                             |   |

 

A list of the exhibits filed or furnished with this Annual Report (orincorporated by reference to exhibits previously filed or furnished by us) isprovided in the Exhibit Index in this Annual Report.  Those exhibits incorporated by referenceherein are indicated as such by the information supplied in the parentheticalthereafter. Otherwise, the exhibits are filed herewith.

 

**SIGNATURES**

 

Pursuant to the requirements of Section 13 or 15(d) of theSecurities Exchange Act of 1934, the registrant has duly caused this report tobe signed on its behalf by the undersigned, thereunto duly authorized.

 
| Date:      | April 15, 2008 | **REEF GLOBAL ENERGY IX, L.P.**        |
|------------|---------------------|----------------------------------------|
|       |                |                                   |
|       |                |                                   |
|       |                | Reef Oil & Gas Partners, L.P. |
|       |                | Managing General Partner               |
|       |                |                                   |   |
|       |                | By:                                    | Reef Oil & Gas Partners, GP, LLC |
|       |                |   General Partner            |
|       |                |                                   |   |
|       |                |                                   |   |
|       |                | By:                                    | /s/ Michael J. Mauceli |
|       |                |                                   | Michael J. Mauceli |
| ** ** | ** **          | ** **                             | **Manager (Principal Executive Officer)** |

 

24

----

 

Pursuant to the requirements of the SecuritiesExchange Act of 1934, this report has been signed below by the followingpersons on behalf of the registrant and in the capacities and on the datesindicated.

 
| **Signature**          |   | **Title**                                                          |   | **Date**            |
|------------------------|--------|--------------------------------------------------------------------|--------|---------------------|
|                   |   |                                                               |   |                |
| /s/ Michael J. Mauceli |   | Manager and Member of the general partner of Reef                  |   | April 15, 2008 |
| Michael J. Mauceli     |   | Oil & Gas Partners, L.P. (*Principal  Executive Officer*) |   |                |
|                   |   |                                                               |   |                |
| /s/ Daniel C. Sibley   |   | Chief Financial Officer of the general partner of Reef             |   | April 15, 2008 |
| Daniel C. Sibley       |   | Oil & Gas Partners, L.P. (*Principal Financial  Officer*       |   |                |
|                   |   | *and Principal Accounting Officer*)                                |   |                |

 

25

----

 

Reef Global Energy IX, L.P.

 

Financial Statements

 

Forthe Period from

Inception(April 6, 2007) to December 31, 2007

 
| **Contents**                                             |
|----------------------------------------------------------|
|                                                     |   |
| Report of Independent Registered Public  Accounting Firm | F-1 |
|                                                     |   |
| Audited Financial Statements                             |   |
|                                                     |   |
| Balance Sheet                                            | F-2 |
| Statement of Operations                                  | F-3 |
| Statement of  Partnership Equity                         | F-4 |
| Statement of Cash Flows                                  | F-5 |
| Notes to Financial Statements                            | F-6 |

 

----

 

Report ofIndependent Registered Public Accounting Firm

 

The Partners

Reef Global Energy IX, L.P.

 

We have audited the accompanying balance sheet of ReefGlobal Energy IX, L.P. (the “Partnership”) as of December 31, 2007, andthe related statements of operations, partnership equity, and cash flows forthe period from inception (April 6, 2007) to December 31, 2007. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audit.

 

We conducted our audit in accordance with the standards of the PublicCompany Accounting Oversight Board (United States). Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. The Partnership isnot required to have, nor were we engaged to perform, an audit of its internalcontrol over financial reporting. An audit includes consideration of internalcontrol over financial reporting as a basis for designing audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the Partnership’s internal control overfinancial reporting. Accordingly, we express no such opinion. An audit alsoincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements, assessing the accounting principlesused and significant estimates made by management, as well as evaluating theoverall financial statement presentation. We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of Reef Global EnergyIX, L.P. at December 31, 2007, and the results of its operations and itscash flows for the period from inception (April 6, 2007) to December 31,2007, in conformity with accounting principles generally accepted in the UnitedStates of America.

 

/s/ BDO Seidman, LLP

 

 

Dallas, Texas

April 2, 2008

 

F-1

----

 

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

**BalanceSheet**

 
| **December 31,**                                                | ** ** | **2007**      | ** **     |
|----------------------------------------------------------------------|------------|---------------|----------------|
|                                                                 |       |          |           |
| **Assets**                                                           |       |          |           |
|                                                                 |       |          |           |
| **Current  assets:**                                                 |       |          |           |
| Cash and cash equivalents                                            | ** ** | **$**         | 3,598,294      | ** ** |
| Accounts receivable from affiliates                                  |       | 48,064        |           |
| **Total current  assets**                                            | ** ** | **3,646,358** | ** **     |
| ** **                                                           | ** ** | ** **    | ** **     |
| **Oil and  natural gas properties, full cost method of accounting:** |       |          |           |
| Proved properties, net of accumulated  depletion of $11,945          |       | 7,410,232     |           |
| Unproved properties                                                  |       | 805,244       |           |
| **Net oil  and natural gas properties**                              | ** ** | **8,215,476** | ** **     |
|                                                                 |       |          |           |
| **Total  assets**                                                    | ** ** | **$**         | **11,861,834** | ** ** |
|                                                                 |       |          |           |
| **Liabilities  and partnership Equity**                              |       |          |           |
|                                                                 |       |          |           |
| **Current  liabilities:**                                            |       |          |           |
| Accounts payable to affiliates                                       |       | $             | 1,818,550      |   |
| **Total  current liabilities**                                       | ** ** | **1,818,550** | ** **     |
|                                                                 |       |          |           |
| **Long-term  liabilities:**                                          |       |          |           |
| Asset retirement obligation                                          |       | 118,759       |           |
| Accounts payable to affiliates                                       |       | 93,712        |           |
| **Total  long-term liabilities**                                     | ** ** | **212,471**   | ** **     |
|                                                                 |       |          |           |
| **Commitments  and contingencies (Note 6)**                          |       |          |           |
|                                                                 |       |          |           |
| **Partnership  equity**                                              |       |          |           |
| General partners                                                     |       | 7,928,955     |           |
| Limited partners                                                     |       | 1,336,894     |           |
| Managing general partner                                             |       | 564,964       |           |
| **Partnership  equity**                                              | ** ** | **9,830,813** | ** **     |
| ** **                                                           | ** ** | ** **    | ** **     |
| **Total  liabilities and partnership equity**                        | ** ** | **$**         | **11,861,834** | ** ** |

 

*See accompanying notes to financial statements.*

 

F-2

----

 

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

**Statementof Operations**

 
| ** **                                    | ** ** | **Period from  inception (April 6,  2007) to  December 31, 2007** | ** **  |
|-----------------------------------------------|------------|-------------------------------------------------------------------------------------------------|-------------|
| ** **                                    | ** ** | ** **                                                                                      | ** **  |
| **Revenues**                                  | ** ** | **$**                                                                                           | **36,526**  | ** ** |
| ** **                                    | ** ** | ** **                                                                                      | ** **  |
| **Costs  and expenses:**                      | ** ** | ** **                                                                                      | ** **  |
| Lease operating expenses                      |       | 702                                                                                             |        |
| Production taxes                              |       | 4,809                                                                                           |        |
| Depreciation, depletion and amortization      |       | 11,945                                                                                          |        |
| Accretion of asset retirement obligation      |       | 513                                                                                             |        |
| General and administrative expenses           |       | 63,269                                                                                          |        |
| **Total  costs and expenses**                 | ** ** | **81,238**                                                                                      | ** **  |
| ** **                                    | ** ** | ** **                                                                                      | ** **  |
| **Loss  from operations**                     | ** ** | **(44,712**                                                                                     | **)**       |
| ** **                                    | ** ** | ** **                                                                                      | ** **  |
| **Other  income:**                            | ** ** | ** **                                                                                      | ** **  |
| Interest income                               |       | 171,425                                                                                         |        |
| **Total  other income**                       | ** ** | **171,425**                                                                                     | ** **  |
| ** **                                    | ** ** | ** **                                                                                      | ** **  |
| **Net  income**                               | ** ** | **$**                                                                                           | **126,713** | ** ** |
| ** **                                    | ** ** | ** **                                                                                      | ** **  |
| Net income per general partner unit           | ** ** | $                                                                                               | 226.94      | ** ** |
| Net income per limited partner unit           | ** ** | $                                                                                               | 226.94      | ** ** |
| Net income per managing general partner  unit | ** ** | $                                                                                               | 1,247.70    | ** ** |

 

*See accompanying notes to financial statements.*

 

F-3

----

 

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

**Statementof Partnership Equity**

 
| ** **                                    | ** ** | **General partners** | ** ** | **Limited partners** | ** ** | **Managing general   partner** | ** ** | **Total**  | ** ** |
|-----------------------------------------------|------------|---------------------------|------------|---------------------------|------------|------------------------------------------|------------|------------|------------|
| ** **                                    | ** ** | **Units**                 | ** ** | **Amount**                | ** ** | **Units**                                | ** ** | **Amount** | ** ** | **Units** | ** ** | **Amount** | ** ** | **Units** | ** ** | **Amount** | ** ** |
| Partner  contributions, net of offering costs |       | 370.561                   |       | $                         | 7,917,210  |                                     | 62.480     |       | $          | 1,334,914 |   | 22.792 |   | $ | 551,976 |   | 455.833 |   | $ | 9,804,100 |   |
| Partner  distributions                        |       | —                    |       | (72,351                   | )          | —                                   |       | (12,199    | )          | — |   | (15,450 | ) | — |   | (100,000 | ) |
| Net income                                    |       | —                    |       | 84,096                    |       | —                                   |       | 14,179     |       | — |   | 28,438 |   | — |   | 126,713 |   |
| Balance at  December 31, 2007            |       | 370.561                   |       | $                         | 7,928,955  |                                     | 62.480     |       | $          | 1,336,894 |   | 22.792 |   | $ | 564,964 |   | 455.833 |   | $ | 9,830,813 |   |
|                                          |       |                      |       |                      |       |                                     |       |       |       |   |   |   |   |   |   |   |   |
| Distribution  amount per partnership unit     |       |                      |       | $                         | 195.25     |                                     |       |       | $          | 195.25 |   |   |   | $ |  677.87 |   |   |   |   |   |

 

*See accompanying notes to financial statements.*

 

F-4

----

 

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

**Statementof Cash Flows**

** **
| ** **                                                                      | ** ** | **Period from  inception (April  6, 2007) to  December 31,  2007** | ** **    |
|---------------------------------------------------------------------------------|------------|---------------------------------------------------------------------------------------------|---------------|
| **Operating Activities**                                                        |       |                                                                                        |          |
| Net income                                                                      |       | $                                                                                           | 126,713       |   |
| Adjustments for non-cash transactions:                                          |       |                                                                                        |          |
| Depreciation, depletion and amortization                                        |       | 11,945                                                                                      |          |
| Accretion of asset retirement obligation                                        |       | 513                                                                                         |          |
| **Changes in operating assets and  liabilities:**                               |       |                                                                                        |          |
| Accounts payable to affiliates                                                  |       | 1,051                                                                                       |          |
| **Net cash provided by operating activities**                                   | ** ** | **140,222**                                                                                 | ** **    |
| ** **                                                                      | ** ** | ** **                                                                                  | ** **    |
| **Investing Activities**                                                        | ** ** | ** **                                                                                  | ** **    |
| Property acquisition and development                                            |       | (6,351,676                                                                                  | )             |
| **Net cash used in investing activities**                                       | ** ** | **(6,351,676**                                                                              | **)**         |
| ** **                                                                      | ** ** | ** **                                                                                  | ** **    |
| **Financing Activities**                                                        | ** ** | ** **                                                                                  | ** **    |
| Partner capital contributions                                                   |       | 11,329,940                                                                                  |          |
| Offering costs                                                                  |       | (1,420,192                                                                                  | )             |
| Partner distributions                                                           |       | (100,000                                                                                    | )             |
| **Net cash provided by financing activities**                                   | ** ** | **9,809,748**                                                                               | ** **    |
| ** **                                                                      | ** ** | ** **                                                                                  | ** **    |
| **Net increase in cash and cash equivalents**                                   | ** ** | **3,598,294**                                                                               | ** **    |
| Cash and cash equivalents at beginning of  period                               |       | —                                                                                      |          |
| **Cash and cash equivalents at end of period**                                  | ** ** | **$**                                                                                       | **3,598,294** | ** ** |
| ** **                                                                      | ** ** | ** **                                                                                  | ** **    |
| Non-cash investing transactions:                                                |       |                                                                                        |          |
| Property additions included in accounts  payable to affiliates                  | ** ** | **$**                                                                                       | 1,757,499     | ** ** |
| Property additions and asset retirement  obligation                             | ** ** | **$**                                                                                       | 118,246       | ** ** |
| Non-cash financing transactions:                                                | ** ** | ** **                                                                                  | ** **    |
| Managing partner contributions included in  accounts receivable from affiliates | ** ** | **$**                                                                                       | 48,064        | ** ** |
| Offering costs included in accounts payable  to affiliates                      | ** ** | **$**                                                                                       | 60,000        | ** ** |
| Offering costs included in non-current  accounts payable to affiliates          | ** ** | **$**                                                                                       | 93,712        | ** ** |

 

* See accompanying notes to financialstatements.*

 

F-5

----

 

Reef Global Energy IX, L.P.

Notes toFinancial Statements

December 31, 2007

 

**1. Organization and Basis of Presentation**

 

Reef Global Energy IX, L.P. (the “Partnership”) is the fourth in aseries of four Nevada limited partnerships comprising a program called ReefGlobal Energy Ventures II (the “Program”), pursuant to an S-1 RegistrationStatement declared effective by the Securities and Exchange Commission (the “SEC”)on July 7, 2005. In order to be formed, each partnership was required tosell a minimum of 40 partnership units at $25,000 per unit, including unitspurchased by the managing general partner. Each partnership formed as a part ofthe Program offered a minimum of 1,000 and a maximum of 2,000 units for sale.The Program was authorized to sell up to 1,600 limited partner units and 6,400general partner units during the period beginning July 8, 2005 through July 7,2007. Reef Global Energy IX, L.P. offered 2,000 units for sale ($50,000,000),consisting of up to 400 limited partner units and up to 1,600 general partnerunits. Investor funds were held in escrow and were subject to reimbursementwith interest if the minimum number of units was not sold. The Program filed aprospectus supplement with the SEC on February 15, 2007 describing thePartnership and commenced offering units in the Partnership. Upon reaching theminimum subscription level, the Partnership was formed on April 6, 2007.The Partnership offering closed July 7, 2007, with sales to outsideinvestors totaling 370.561 general partner units and 62.480 limited partnerunits, and sales to the managing general partner totaling 22.792 generalpartner units.

 

The Partnership is a Nevada limited partnership formed under the NevadaUniform Limited Partnership Act. Reef Oil & Gas Partners, L.P. (“Reef”)serves as the Partnership’s managing general partner. Partnership interests areheld by the managing general partner and investor partners who are general andlimited partners (“investor partners”). The managing general partner received a10% interest in the Partnership as compensation for forming the Partnership,and also holds a 1% interest in the Partnership as a result of paying 1% of allleasehold, drilling and completion costs. This 11% interest is not representedby Partnership units. In addition, Reef purchased 5% of the Partnership unitsand, therefore, holds 5% of the 89% interest in the Partnership (4.45%) held bythe unit holders. The Partnership has purchased working interests in twodevelopmental drilling prospects located onshore in the continental UnitedStates, and has drilled or is drilling a total of nine oil and gas wells onthose prospects. Other partnerships formed as a part of this Program, as wellas other partnerships managed by Reef also own interests in some of the prospectspurchased by this Partnership. In instances where Reef-affiliated entities owna majority working interest in a prospect, the prospect may be operated by ReefExploration, L.P. (“RELP”), an affiliate of the managing general partner.

 

During the year following completion of the drilling phase of thePartnership, all investor general partner units will be converted into limitedpartner units. Limited partners do not have any rights to convert their unitsto general partner units.

 

Under the terms of the partnership agreement, certain income andexpense items are allocated differently between the managing general partnerand the investor partners. Allocations of 

 

F-6

----

 

Reef Global Energy IX, L.P.

Notes to Financial Statements (continued)

 

income and expense to the managing general partner and investorpartners are made quarterly based upon the number and type of partnership unitsheld at the end of the quarter.

 

Organization and offering costs are allocated 100% to investor partnersas the managing general partner purchases its units net of the 15% fee fororganization and offering costs. Monthly cash distributions to partners arebased upon the number and type of partnership units held at the close of theprior month. Cash distributions to partners of the net cash flow from interestincome and oil and natural gas sales revenues, less operating, general andadministrative, and other costs are distributed 15.45% to the managing generalpartner (based upon the 11% interest not represented by units and the 4.45%interest represented by Partnership units) and 84.55% to investor partners.

 

**2. Summary of Accounting Policies**

 

**Use of Estimates**

 

The preparation of financial statements in conformity with accountingprinciples generally accepted in the United States of America requiresmanagement to make estimates and assumptions that affect the amounts reportedin the financial statements and accompanying notes. Actual results could differfrom these estimates.

 

**Cash and Cash Equivalents**

 

The Partnership considers all highly liquid investments with maturitydates of no more than three months from the purchase date to be cashequivalents. Cash and cash equivalents consist of demand deposits and moneymarket investments invested with a major national bank. The carrying value ofthe Partnership’s cash equivalents approximates fair value.

 

**Risks and Uncertainties**

 

Historically, the oil and gas market has experienced significant pricefluctuations. Prices are impacted by local weather, supply in the area,availability and price of competitive fuels, seasonal variations in localdemand, limited transportation capacity to other regions, and the worldwidesupply and demand balance for crude oil.

 

The Partnership has not engaged in commodity futures trading or hedgingactivities and has not entered into derivative financial instrumenttransactions for trading or other speculative purposes. Accordingly, thePartnership is at risk for the volatility in commodity prices inherent in theoil and gas industry, and the level of commodity prices has a significantimpact on the Partnership’s results of operations.

 

F-7

----

 

Reef Global Energy IX, L.P.

Notes to Financial Statements (continued)

 

**Organization and Offering Costs**

 

Organization and offering costs total 15% ofinvestor capital contributions, except for units purchased by the managinggeneral partner, which are purchased net of the 15% cost. Partnershiporganization costs totaling $50,000 have been expensed in the financialstatements for the period from inception (April 6, 2007) to December 31,2007. Offering costs represent costs incurred in conjunction with the offeringof partnership units. These costs, totaling $1,573,904, have been recorded as areduction of the proceeds of the offering.

 

# **Oiland Natural Gas Properties**

# ** **

The Partnership follows the full cost method of accounting for crudeoil and natural gas properties. Under this method, all direct costs and certainindirect costs associated with acquisition of properties and successful as wellas unsuccessful 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 estimated provedreserves. For these purposes, proved gas reserves are converted to equivalentbarrels at a rate of 6 Mcf to 1 Bbl. Net capitalized costs of crude oil andnatural gas properties, as adjusted for asset retirement obligations, arelimited to the lower of unamortized cost or the cost ceiling, defined as thesum of the present value of estimated future net revenues from proved reservesbased on prices in effect at the end of the period held constant and discountedat 10 percent, plus the lower of cost or estimated fair value of  unproved properties, if any. Pursuant to fullcost accounting rules, the Partnership performs a ceiling test quarterly as ofthe balance sheet date on its proved oil and natural gas properties. Excesscapitalized costs are charged to property impairment expense. No gain or lossis recognized upon sale or disposition of crude oil and natural gas properties,unless such a sale would significantly alter the rate of depletion andamortization. During the period from inception (April 6, 2007) to December 31,2007, the Partnership recognized no impairment of proved properties.

 

Unproved properties consist of undeveloped leasehold interest.Investments in unproved properties are not depleted pending determination ofthe existence of proved reserves. Unproved properties are assessed forimpairment quarterly as of the balance sheet date by considering the primarylease term, the holding period of the properties, geologic data obtainedrelating to the properties, and other drilling activity in the immediate areaof the properties. Any impairment resulting from this quarterly assessment is reportedas property impairment expense in the current period, as appropriate. Duringthe period from inception (April 6, 2007) to December 31, 2007, thePartnership recognized no impairment of unproved properties.

 

# **Restoration,Removal, and Environmental Liabilities**

# ** **

The Partnership is subject to extensive Federal, state and localenvironmental laws and regulations. These laws regulate the discharge ofmaterials into the environment and may require

 

F-8

----

 

Reef Global Energy IX, L.P.

Notes to Financial Statements (continued)

 

the Partnership to remove or mitigate the environmental effects of thedisposal or release of petroleum substances at various sites. Environmentalexpenditures are expensed or capitalized depending on their future economicbenefit. Expenditures that relate to an existing condition caused by pastoperations and that have no future economic benefit are expensed.

 

Liabilities for expenditures of a non-capital nature are recorded whenenvironmental assessments and/or remediation is probable, and the costs can bereasonably estimated. Such liabilities are generally undiscounted values unlessthe timing of cash payments for the liability or component is fixed or reliablydeterminable.

 

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

 

The following table summarizes the Partnership’s asset retirementobligation for the period from inception (April 6, 2007) to December 31,2007.

 
| ** **                            | ** ** | **2007** | ** ** |
|---------------------------------------|------------|----------|------------|
| Beginning asset retirement obligation | ** ** | **$**    | **—** | ** ** |
| Additions related to new properties   |       | 118,246  |       |
| Accretion expense                     |       | 513      |       |
| Ending asset retirement obligation    | ** ** | **$**    | 118,759    | ** ** |

 

**Recognition of Revenue**

 

The Partnership enters into sales contracts fordisposition of its share of oil and natural gas production from productivewells. Revenues are recognized based upon the Partnership’s share of meteredvolumes delivered to its purchasers each month. The Partnership had no gasproduction at December 31, 2007, and therefore has no gas imbalances.

 

**Income Taxes**

 

The Partnership’s net income or loss flows directly through to itspartners, who are responsible for the payment of Federal taxes on theirrespective share of any income or loss. Therefore, there is no provision forfederal income taxes in the accompanying financial statements.

 

F-9

----

 

Reef Global Energy IX, L.P.

Notes to Financial Statements (continued)

 

As of December 31, 2007, the financial reporting basis of thePartnership’s assets exceeds the tax basis of the assets by approximately $3.67million, primarily due to intangible drilling costs deducted for income taxpurposes.

 

**Fair Value of Financial Instruments**

 

The carrying amounts of the Partnership’s short-term financial instruments,including cash equivalents, accounts receivable and accounts payable,approximate their fair values based on the short maturities of thoseinstruments.

 

**3. Transactions with Affiliates**

 

The Partnership settles its balances with Reef and RELP on a quarterlybasis.

 

Reef, as managing general partner, contributes 1% of all leasehold,drilling, and completion costs when incurred. In addition, Reef purchased 5% ofthe units and pays 5% of the 99% of these costs paid by the unit holders(4.95%). In connection with the 1% obligation, Reef owed the Partnership$48,064 at December 31, 2007.

 

The Partnership has no employees. RELP employs a staff includinggeologists, petroleum engineers, landmen and accounting personnel whoadminister all of the Partnership’s operations. The Partnership reimburses RELPfor technical and administrative services at cost. During the period frominception (April 6, 2007) to December 31, 2007, the Partnershipincurred technical services and administrative costs totaling $406,975. Of thisamount, $405,924 represents technical services costs capitalized as projectcosts, and $1,051 represents administrative costs included as general andadministrative expenses. At December 31, 2007, the Partnership owed RELP$289,432 for technical and administrative services.

 

RELP processes joint interest billings and revenue payments on behalfof the Partnership. At December 31, 2007, the Partnership owed RELP$1,438,160 for net drilling costs in excess of revenues processed by RELP.

 

Accounts payable to affiliates as of December 31, 2007 alsoincludes $153,712 for the unpaid portion of the 15% management fee due Reef fororganization and offering costs, including sales commissions. The managementfee is payable in two parts. Reef initially received an amount not to exceed13.5% to recover actual commissions and organization and offering costs. Thisremaining balance of $153,712 represents the portion of the management fee inexcess of actual commissions and organization and offering costs, and will bepaid to Reef from the oil and gas cash flows available for partnerdistributions, at a rate not to exceed $1 million per year. The Partnership hasbegun payment of this balance at a rate of $5,000 per month beginning in 2008.As such, $60,000 of this amount has been classified as a current liability, andthe remaining $93,712 has been classified as a long term liability toaffiliates at December 31, 2007.

 

F-10

----

 

Reef Global Energy IX, L.P.

Notes to Financial Statements (continued)

 

Reef entered into an agreement with Access Exploration Corp (“AEC”), ascreener of domestic oil and gas prospects. This agreement allowed Reef theopportunity to review and selectively participate in exploratory anddevelopmental prospects previewed by AEC. Reef paid AEC for the geological andgeophysical services provided by AEC under this agreement.

 

Prospects approved for acquisition by Reef under this agreement wereassigned to partnerships formed as part of the Program. Each partnership formedas a part of the Program paid Reef, on a pro rata basis, a portion of the feespaid by Reef under this agreement. Total reimbursements to Reef by thepartnerships formed as a part of this Program were equal to the actual feespaid by Reef under this agreement. At December 31, 2007, this Partnershiphad a payable to Reef of $30,958 in connection with this obligation, which waspaid to Reef during the first quarter of 2008. The payment has been capitalizedas geological and geophysical costs in accordance with the full cost method ofaccounting for oil and natural gas properties.

 

If an affiliate of Reef serves as operator of a Partnership prospect,then operator fees will be payable to the affiliate. Under such circumstances,such affiliate will receive fees at the competitive rate in the area during thedrilling and production phase of operations. Often these are charged as amonthly fee per well as agreed to in an operating agreement signed by thePartnership as well as outside third party working interests in the well.During the period from inception (April 6, 2007) to December 31,2007, the Partnership paid $17,221 of drilling fees to RELP in connection withthis obligation. RELP is the operator of all nine wells in which thePartnership currently owns a working interest.

 

**4. Major Customers**

 

The Partnership sells crude oil and natural gas oncredit terms to refiners, pipelines, marketers, and other users of petroleumcommodities. Revenues are received directly from these parties or, in certaincircumstances, paid to the operator of the property who disburses to thePartnership its percentage share of the revenues. During the period frominception (April 6, 2007) to December 31, 2007, one marketerpurchased all of the Partnership’s products and accounted for 100% of thePartnership’s oil revenues. Due to the competitive nature of the market forpurchase of crude oil and natural gas, the Partnership does not believe thatthe loss of any particular purchaser would have a material adverse impact onthe Partnership.

 

**5. Commitments and Contingencies**

 

The Partnership is not currently involved in any legal proceedings.

 

**6. Partnership Equity**

 

Sales of Partnership units began on February 15, 2007. Proceedsreceived were placed into an interest bearing escrow account until thePartnership reached the minimum subscription level of 40 units. The Partnershipwas formed on April 6, 2007, and the sale of Partnership units was closedon July 7, 2007. The Partnership raised $10,826,028 from the sale of433.041 Partnership

 

F-11

----

 

Reef Global Energy IX, L.P.

Notes to Financial Statements (continued)

 

units to investor partners. Reef purchased 22.792 units (5%) for$484,322. Reef also contributes 1% of all leasehold, drilling, and completioncosts when incurred, in addition to paying its pro rata share (4.95%) of theleasehold, drilling, and completion costs paid by the Partnership. Inconnection with this obligation, Reef paid $19,590 during the period frominception (April 6, 2007) to December 2007, and has accrued anadditional $48,064 which was paid during the first quarter of 2008.

 

All units, except those purchased by Reef, paid a 15% management fee toReef to pay for Partnership organization and offering costs, including salescommissions. These costs totaled $1,623,904, leaving net capital contributionsof $9,754,100 available for Partnership oil and gas activities. Of the$1,623,904 management fee, offering costs were $1,573,904 and organizationcosts were $50,000.

 

Reef exclusively manages and controls all aspects of the business ofthe Partnership. The Partnership agreement prohibits participation by investorpartners in the Partnership’s day-to-day business decisions.

 

**7. Partnership Prospects**

 

As of December 31, 2007, the Partnership owns working interests intwo developmental prospects operated by RELP upon which a total of six wellshave been drilled and three wells are drilling. One well located on thePartnership’s Cole Ranch prospect in Glasscock County, Texas was drilled andcompleted and began producing oil and natural gas in December 2007. Fivewells located on the Partnership’s Sand Dunes prospect in Eddy County, NewMexico completed drilling operations during 2007, and three of the five tested forthe presence of hydrocarbons in December 2007. Also, in December 2007,the Partnership began participating in the drilling of three additional wellson the Partnership’s Sand Dunes prospect. The Partnership expects that thedrilling of these three wells will be completed in the first quarter of 2008.

 

The unproved properties owned by the Partnership at December 31,2007 consist of un-drilled leasehold interests (11 potential drillinglocations) in the Sand Dunes prospect. The Partnership does not have availablecapital to drill these potential locations. The Partnership may sell all or apart of these leasehold interests to third parties or other Partnershipsmanaged by Reef. However, the Partnership is permitted to borrow funds orutilize cash flows from existing productive properties in order to conductfuture developmental drilling on this prospect. Partner approval would need tobe obtained for borrowing activity, as the estimated additional cost is inexcess of 25% of the Partnership’s original aggregate capital contributions.Until such time as the productive capability of the eight wells already drilledcan be fully analyzed (see Note 8), it is unknown whether the Partnership willdrill additional wells on the Sand Dunes prospect or sell all or a portion ofthe acreage. The estimated cost to the Partnership of participating in futuredrilling operations at its current working interest ownership is approximately$787,500-$1,050,000 per location.

 

F-12

----

 

Reef Global Energy IX, L.P.

Notes to Financial Statements (continued)

 

**8. Subsequent Events**

 

Subsequent to December 31, 2007, the Partnership completed andtested the two remaining Sand Dunes prospect wells drilled during 2007. The threeadditional wells in the Sand Dunes prospect also completed their drilling andshort-term testing. All five of the wells tested for the presence ofhydrocarbons.

 

The well drilled on thePartnership’s Cole Ranch prospect is currently producing oil and gas incommercial quantities. Of the eight Sand Dunes prospect wells, four wells areundergoing extended testing and evaluation in order to determine theirpotential commercial productivity. The Partnership estimates that it may takebetween 90 and 120 days from the date of this report to finish the evaluationprocess. Following initial testing which confirmed the presence of oil andnatural gas, the remaining four Sand Dunes prospect wells were temporarily shutin due to the high cost associated with salt water disposal and generator rental.  

 

Currently, generators have beenrented to power the four producing Sand Dunes prospect wells undergoing theevaluation process, and salt water produced is being trucked off-site by anindependent vendor. In order to reduce overall costs, installation of electricservice to the well-site locations is proceeding, and a more cost effectivemethod of salt water disposal is being explored. To date, RELP, the operator ofthese wells, has been unsuccessful in locating a long-term economic solutionfor disposing of produced salt water; however, RELP is currently evaluating itsoptions for salt water disposal, and estimates that it will be at least 90 to120 days from the date of this report for the Sand Dunes prospect to haveelectricity and efficient salt water disposal capability in place.

 

**9. Supplemental Information on Oil &Gas Exploration and Production Activities**

**   (Unaudited)**

 

**Capitalized Costs**

 

The following table presents the Partnership’s aggregate capitalizedcosts relating to oil and gas activities at the end 2007:

 
| **December 31,**                                  | ** ** | **2007**      | ** **    |
|--------------------------------------------------------|------------|---------------|---------------|
| ** **                                             | ** ** | ** **    | ** **    |
| **Oil and natural gas properties:**                    | ** ** | ** **    | ** **    |
| Unproved properties                                    | ** ** | **$**         | 805,244       | ** ** |
| Proved properties                                      |       | 7,422,177     |          |
| ** **                                             | ** ** | **8,227,421** | ** **    |
| **Less:**                                              | ** ** | ** **    | ** **    |
| Accumulated depreciation, depletion, and  amortization |       | (11,945       | )             |
| **Total**                                              | ** ** | **$**         | **8,215,476** | ** ** |

 

**CostsIncurred**

 

Thefollowing table sets forth costs incurred in oil and gas exploration anddevelopment activities during the period from inception (April 6, 2007) toDecember 31, 2007:

 

F-13

----

 

Reef Global Energy IX, L.P.

Notes to FinancialStatements (continued)

 
| ** **                          | ** ** | **2007**   | ** **          |
|-------------------------------------|------------|------------|---------------------|
| ** **                          | ** ** | ** ** | ** **          |
| **Oil and natural gas properties:** | ** ** | ** ** | ** **          |
| Exploration                         | ** ** | **$**      | ** —**    | ** ** |
| Development                         |       | 8,215,476  |                |
| **Total costs incurred**            | ** ** | **$**      | ** 8,215,476** | ** ** |

 

**Resultsof Operations**

 

The following table sets forth results ofoperations from oil and gas producing activities for the period from inception(April 6, 2007) to December 31, 2007.

 
| ** **                                | ** ** | **2007**   | ** ** |
|-------------------------------------------|------------|------------|------------|
| ** **                                | ** ** | ** ** | ** ** |
| **Oil and gas producing activities:**     |       |       |       |
| Oil sales                                 | ** ** | **$**      | 36,526     | ** ** |
| Production expenses                       |       | (5,511     | )          |
| Accretion of asset retirement obligation  |       | (513       | )          |
| Depreciation , depletion and amortization |       | (11,945    | )          |
| **Results of producing activities**       | ** ** | **$**      | **18,557** | ** ** |
| ** **                                | ** ** | ** ** | ** ** |
| Depletion rate per BOE                    | ** ** | **$**      | 30.32      | ** ** |

BOE = Barrels of Oil Equivalent (6 MCF equals 1 BOE)

 

**Oil and Natural Gas Reserves**

 

The following information describes changes during the year andbalances of proved oil and natural gas reserves as of December 31, 2007.The definitions used are in accordance with applicable Securities and ExchangeCommission regulations.

 

Proved oil and natural gas reserves are the estimated quantities ofcrude oil, natural gas and natural gas liquids which geological and engineeringdata demonstrate with reasonable certainty to be recoverable in future yearsfrom known reservoirs under existing economic and operating conditions, thatis, prices and costs as of the date the estimate is made.

 

Prices include consideration of changes in existing prices provided bycontractual arrangements, but not escalations based upon future conditions.Additional development costs required to recover these proved reserves areestimated at approximately $1,091,580 as of December 31, 2007. All of thePartnership’s reserves are located in the United States.

 
| ** **                                                    | ** ** | **Oil  (BBL) (1)** | ** ** | **Gas  (mcf)** | ** ** | **BOE (2)** | ** ** |
|---------------------------------------------------------------|------------|-------------------------|------------|----------------|------------|------------------|------------|
| Net proved reserves for properties owned by  the Partnership: |       |                    |       |           |       |             |       |
| New discoveries                                               |       | 203,597                 |       | 428,898        |       | 275,080          |       |
| Production                                                    |       | (394                    | )          | —         |       | (394             | )          |
| Reserves at December 31, 2007                            | ** ** | **203,203**             | ** ** | **428,898**    | ** ** | **274,686**      | ** ** |

 

----

**(1)****              **Oil includesboth oil and natural gas liquids

**(2)****              **BOE (barrels ofoil equivalent) is calculated by converting 6 MCF of natural gas to 1 BBLof oil. A BBL (barrel) of oil is one stock tank barrel, or 42 U.S. gallonsliquid volume, of crude oil or other liquid hydrocarbons.

 

F-14

----

 

Reef Global Energy IX, L.P.

Notes to Financial Statements (continued)

 

**Standardized Measure of Discounted Future NetCash Flows**

 

Asrequired by the Financial Accounting Standards Board, the standardized measureof discounted future net cash flows is computed by applying year-end prices,costs and legislated tax rates and a discount factor of 10 percent to netproved reserves.

 

Changesin the demand for oil and natural gas, inflation, and other factors make suchestimates inherently imprecise and subject to substantial revision. This tableshould not be construed to be an estimate of the current market value of thePartnership’s proved reserves.

 
| **December 31,**                                     | ** ** | **2007**       | ** **    |
|-----------------------------------------------------------|------------|----------------|---------------|
| Oil and natural gas properties owned by the  Partnership: | ** ** | ** **     | ** **    |
| Future cash inflows                                       | ** ** | **$**          | 20,756,192    | ** ** |
| Future production costs                                   |       | (7,735,268     | )             |
| Future development costs                                  |       | (1,091,580     | )             |
| Future net cash flows                                     | ** ** | **11,929,344** | ** **    |
| Effect of discounting net cash flows at 10%               |       | (3,377,495     | )             |
| Discounted future net cash flows                          | ** ** | **$**          | **8,551,849** | ** ** |

 

**Changes in the StandardizedMeasure of Discounted Future Net Cash flows Relating to Proved Oil and NaturalGas Reserves**

 
| **December 31,**                                     | ** ** | **2007**   | ** **        |
|-----------------------------------------------------------|------------|------------|-------------------|
| Oil and natural gas properties owned by the  Partnership: | ** ** | ** ** | ** **        |
| Standardized measure at beginning of period               |       | $          |  —      |   |
| Extensions and discoveries                                |       | 8,582,864  |              |
| Changes in production timing rates                        |       | (513       | )                 |
| Sales net of production costs                             |       | (30,502    | )                 |
| Net increase                                              |       | 8,551,849  |              |
| Standardized measure at end of year                       | ** ** | **$**      | ** 356,210** | ** ** |

 

F-15

----

 

**EXHIBIT INDEX**

 
| 3.1*   |   | Certificate of Limited Partnership.                                                                                                                                                                                                                          |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                         |
| 3.2    |   | Form of Limited  Partnership Agreement (incorporated by reference to Appendix A to the  prospectus filed as part of Post-Effective Amendment No.2 to Registration  Statement on Form S-1, SEC File No. 333-122935, filed with the SEC on July 7,  2006. |
|   |   |                                                                                                                                                                                                                                                         |
| 23.2*  |   | Consent of Gleason Engineering.                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                         |
| 31.1*  |   | Certification of Principal Executive Officer pursuant to  Rule 13a-14(a) under the Securities Exchange Act of 1934.                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                         |
| 31.2*  |   | Certification of Principal Financial Officer pursuant to Rule 13a-14(a) under  the Securities Exchange Act of 1934.                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                         |
| 32.1*  |   | Certification of Principal Executive Officer pursuant to 18 U.S.C.  §1350.                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                         |
| 32.2*  |   | Certification of Principal Financial Officer pursuant to 18 U.S.C.  §1350.                                                                                                                                                                              |

 

----

*  Attached herewith

 

----