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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

|  |                                                                                          
|- | -----------------------------------------------------------------------------------------
|x | QUARTERLY
 REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
|  | For the
 quarterly period ended September 30, 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 000-51924

RIDGEWOOD ENERGY O FUND, LLC(Exact name of
registrant as specified in its charter)

|                                 |                     
|-------------------------------- | --------------------
|Delaware                         | 76-0774429          
|(State
 or other jurisdiction of | (I.R.S.
 Employer   
|incorporation
 or organization)  | Identification
 No.)

1314 King Street, Wilmington, Delaware 19801(Address of principal
executive offices) (Zip code)

(302) 888-7444
(Registrants telephone number, including area code)

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

Indicate by check mark
whether the registrant is a large accelerated filer, an accelerated filer, or
non-accelerated filer. See definition of accelerated filer and large
accelerated filer in Rule 12b-2 of the Exchange Act. (Check one):

|                           |                      |                         
|-------------------------- | -------------------- | ------------------------
|Large
 accelerated filer o | Accelerated
 filer o | Non-accelerated
 filer x

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

As of November 2, 2007 there
were 870.6486 shares of membership interest of the registrant outstanding.

---



Table of Contents

|                               |  |                                                                                                                                             |  |    | 
|------------------------------ |  | ------------------------------------------------------------------------------------------------------------------------------------------- |  | -- | 
|                               |  | Page                                                                                                                                       
|                              
|PART I - FINANCIAL INFORMATION |  |                                                                                                                                             | 
|Item 1.                        |  | Financial
 Statements:                                                                                                                      |  |    | 
|                               |  | Unaudited Condensed Balance Sheets
as of September
 30, 2007 and December 31, 2006                                                          |  | 3  | 
|                               |  | Unaudited Condensed Statements of Operations and Other
 Comprehensive Loss for the three and nine months ended September 30, 2007 and
 2006 |  | 4  | 
|                               |  | Unaudited Condensed Statements of
Cash Flows for
 the nine months ended September 30, 2007and 2006                                          |  | 5  | 
|                               |  | Notes to Unaudited Condensed
Financial Statements                                                                                           |  | 6  | 
|Item 2.                        |  | Managements
 Discussion and Analysis of Financial Condition and Results of Operations                                                      |  | 11 | 
|Item 3.                        |  | Quantitative
 and Qualitative Disclosures about Market Risk                                                                                 |  | 17 | 
|Item 4.                        |  | Controls
 and Procedures                                                                                                                    |  | 17 | 
|                               |  |                                                                                                                                             |  |    | 
|PART II - OTHER INFORMATION    |  |                                                                                                                                             | 
|                               |  |                                                                                                                                             |  |    | 
|Item 1.                        |  | Legal
 Proceedings                                                                                                                          |  | 18 | 
|Item 1A.                       |  | Risk
 Factors                                                                                                                               |  | 18 | 
|Item 2.                        |  | Unregistered
 Sales of Equity Securities and Use of Proceeds                                                                                |  | 18 | 
|Item 3.                        |  | Defaults
 Upon Senior Securities                                                                                                            |  | 18 | 
|Item 4.                        |  | Submissions
 of Matters to a Vote of Security Holders                                                                                       |  | 18 | 
|Item 5.                        |  | Other
 Information                                                                                                                          |  | 18 | 
|Item 6.                        |  | Exhibits                                                                                                                                    |  | 19 | 
|                               |  |                                                                                                                                             |  |    | 
|                               |  | SIGNATURES                                                                                                                                  |  | 19 | 

2

---



PART I - FINANCIAL INFORMATIONITEM 1. FINANCIAL STATEMENTS

RIDGEWOOD ENERGY O FUND, LLCUNAUDITED CONDENSED BALANCE SHEETS
(in thousands, except share data)

|                                                                                |  |                     |         |                    |   |         |  
|------------------------------------------------------------------------------- |  | ------------------- | ------- | ------------------ | - | ------- | -
|                                                                                |  | September 30,
 2007 |         | December 31,
 2006 |  
|                                                                                |  |                     |         |                    |  
|ASSETS                                                                          |  |                     |         |                    |   |         |  
|Current assets:                                                                 |  |                     |         |                    |   |         |  
|Cash and cash equivalents                                                       |  | $                   | 19,087  |                    | $ | 33,188  |  
|Short-term investments in marketable
securities                                 |  |                     | 40,156  |                    |   | 25,185  |  
|Production receivable                                                           |  |                     | 303     |                    |   |        |  
|Insurance receivable                                                            |  |                     | 2,266   |                    |   | 16,643  |  
|Other current assets                                                            |  |                     | 169     |                    |   | 245     |  
|                                                                                |  |                     |         |                    |   |         |  
|Total current assets                                                            |  |                     | 61,981  |                    |   | 75,261  |  
|                                                                                |  |                     |         |                    |   |         |  
|Salvage fund                                                                    |  |                     | 1,098   |                    |   | 1,060   |  
|                                                                                |  |                     |         |                    |   |         |  
|                                                                                |  |                     |         |                    |   |         |  
|Oil and gas properties:                                                         |  |                     |         |                    |   |         |  
|Unproved properties                                                             |  |                     | 3,637   |                    |   |        |  
|Proved properties                                                               |  |                     | 5,602   |                    |   | 3,917   |  
|Less: accumulated depletion and
 amortization                                   |  |                     | (64     | )                  |   |        |  
|                                                                                |  |                     |         |                    |   |         |  
|Total oil and gas properties                                                    |  |                     | 9,175   |                    |   | 3,917   |  
|                                                                                |  |                     |         |                    |   |         |  
|                                                                                |  |                     |         |                    |   |         |  
|Total assets                                                                    |  | $                   | 72,254  |                    | $ | 80,238  |  
|                                                                                |  |                     |         |                    |   |         |  
|                                                                                |  |                     |         |                    |   |         |  
|LIABILITIES AND MEMBERS CAPITAL                                                |  |                     |         |                    |   |         |  
|Current liabilities:                                                            |  |                     |         |                    |   |         |  
|Due to operators                                                                |  | $                   | 3,006   |                    | $ | 6,344   |  
|Accrued expenses payable                                                        |  |                     | 76      |                    |   | 98      |  
|Due to affiliates (Note 5)                                                      |  |                     | 20      |                    |   |        |  
|                                                                                |  |                     |         |                    |   |         |  
|Total current liabilities                                                       |  |                     | 3,102   |                    |   | 6,442   |  
|                                                                                |  |                     |         |                    |   |         |  
|Asset retirement obligations                                                    |  |                     | 39      |                    |   | 37      |  
|                                                                                |  |                     |         |                    |   |         |  
|Total liabilities                                                               |  |                     | 3,141   |                    |   | 6,479   |  
|                                                                                |  |                     |         |                    |   |         |  
|Commitments and contingencies (Note 7)                                          |  |                     |         |                    |   |         |  
|Members capital:                                                               |  |                     |         |                    |   |         |  
|Manager:                                                                        |  |                     |         |                    |   |         |  
|Accumulated deficit                                                             |  |                     | (1,540  | )                  |   | (1,248  | )
|                                                                                |  |                     |         |                    |   |         |  
|Managers total                                                                 |  |                     | (1,540  | )                  |   | (1,248  | )
|                                                                                |  |                     |         |                    |   |         |  
|Shareholders:                                                                   |  |                     |         |                    |   |         |  
|Capital contributions (935 shares
 authorized; 870.6486 issued and outstanding) |  |                     | 128,990 |                    |   | 128,990 |  
|Syndication costs                                                               |  |                     | (14,742 | )                  |   | (14,742 | )
|Accumulated deficit                                                             |  |                     | (43,595 | )                  |   | (39,241 | )
|                                                                                |  |                     |         |                    |   |         |  
|Shareholders total                                                             |  |                     | 70,653  |                    |   | 75,007  |  
|                                                                                |  |                     |         |                    |   |         |  
|                                                                                |  |                     |         |                    |   |         |  
|Total members capital                                                          |  |                     | 69,113  |                    |   | 73,759  |  
|                                                                                |  |                     |         |                    |   |         |  
|                                                                                |  |                     |         |                    |   |         |  
|Total liabilities and members
capital                                          |  | $                   | 72,254  |                    | $ | 80,238  |  
|                                                                                |  |                     |         |                    |   |         |  

The accompanying notes are an integral part
of these unaudited condensed financial statements.

3

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RIDGEWOOD ENERGY O FUND, LLCUNAUDITED CONDENSED STATEMENTS OF OPERATIONS AND OTHER
COMPREHENSIVE LOSS
(in thousands, except share data)

|                                         |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|---------------------------------------- |  | --------------------------------- | ---- | -------------------------------- | - | ------ | - | ---- | ------ | - | - | ------- | -
|                                         |  | Three Months Ended
 September 30, |      | Nine Months Ended
 September 30, |  
|                                         |  | 2007                              |      | 2006                             |   | 2007   |   | 2006 |       
|                                         |  |                                   |      |                                  |   |        |   |      |       
|Revenue                                  |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Oil and gas revenue                      |  | $                                 | 303  |                                  | $ |       |   | $    | 303    |   | $ |        |  
|                                         |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Expenses                                 |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Depletion and amortization               |  |                                   | 64   |                                  |   |       |   |      | 64     |   |   |        |  
|Dry-hole costs                           |  |                                   | (352 | )                                |   | 308    |   |      | 1,503  |   |   | 20,588  |  
|Management fees to affiliate (Note 5)    |  |                                   | 565  |                                  |   | 806    |   |      | 1,739  |   |   | 2,419   |  
|Lease operating expense                  |  |                                   | 9    |                                  |   |       |   |      | 9      |   |   |        |  
|Casualty (gain) loss                     |  |                                   | (277 | )                                |   |       |   |      | 3,191  |   |   |        |  
|Other operating expenses                 |  |                                   | 6    |                                  |   |       |   |      | 46     |   |   |        |  
|General and administrative expenses      |  |                                   | 153  |                                  |   | 105    |   |      | 387    |   |   | 310     |  
|                                         |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Total expenses                           |  |                                   | 168  |                                  |   | 1,219  |   |      | 6,939  |   |   | 23,317  |  
|                                         |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Income (loss) from operations            |  |                                   | 135  |                                  |   | (1,219 | ) |      | (6,636 | ) |   | (23,317 | )
|Other income                             |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Interest income                          |  |                                   | 618  |                                  |   | 948    |   |      | 1,990  |   |   | 2,721   |  
|                                         |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Net income (loss)                        |  |                                   | 753  |                                  |   | (271   | ) |      | (4,646 | ) |   | (20,596 | )
|Other comprehensive loss                 |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Unrealized loss on marketable securities |  |                                   |     |                                  |   |       |   |      |       |   |   | (45     | )
|                                         |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Total comprehensive income (loss)        |  | $                                 | 753  |                                  | $ | (271   | ) | $    | (4,646 | ) | $ | (20,641 | )
|                                         |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|                                         |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Manager Interest                         |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Net loss                                 |  | $                                 | (48  | )                                | $ | (124   | ) | $    | (292   | ) | $ | (570    | )
|                                         |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Shareholder Interest                     |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Net income (loss)                        |  | $                                 | 801  |                                  | $ | (147   | ) | $    | (4,354 | ) | $ | (20,026 | )
|Net income (loss) per share              |  | $                                 | 920  |                                  | $ | (169   | ) | $    | (5,001 | ) | $ | (23,001 | )

The accompanying notes are an integral part of these unaudited condensed
financial statements.

4

---



RIDGEWOOD ENERGY O FUND, LLCUNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)

|                                                                                                                        |  |                                  |         |      |   |         |  
|----------------------------------------------------------------------------------------------------------------------- |  | -------------------------------- | ------- | ---- | - | ------- | -
|                                                                                                                        |  | Nine months ended
 September 30, |        
|                                                                                                                        |  | 2007                             |         | 2006 |  
|                                                                                                                        |  |                                  |         |      |  
|                                                                                                                        |  |                                  |         |      |  
|Cash flows from operating activities                                                                                    |  |                                  |         |      |   |         |  
|Net loss                                                                                                                |  | $                                | (4,646  | )    | $ | (20,596 | )
|Adjustments to reconcile net loss to net
cash used in operating activities:                                             |  |                                  |         |      |   |         |  
|Depletion & amortization                                                                                                |  |                                  | 64      |      |   |        |  
|Dry-hole costs                                                                                                          |  |                                  | 1,503   |      |   | 20,588  |  
|Casualty loss                                                                                                           |  |                                  | 3,191   |      |   |        |  
|Interest earned on marketable securities                                                                                |  |                                  | (1,265  | )    |   | (1,911  | )
|Accretion expense                                                                                                       |  |                                  | 2       |      |   |        |  
|Changes in assets and liabilities:                                                                                      |  |                                  |         |      |   |         |  
|Increase
 in production receivable                                                                                      |  |                                  | (303    | )    |   |        |  
|Decrease
 (increase) in other current assets                                                                            |  |                                  | 76      |      |   | (34     | )
|(Decrease)
 increase in accrued expenses payable                                                                        |  |                                  | (13     | )    |   | 55      |  
|Increase
 (decrease) in due to affiliates                                                                               |  |                                  | 20      |      |   | (12     | )
|                                                                                                                        |  |                                  |         |      |   |         |  
|Net
 cash used in operating activities                                                                                  |  |                                  | (1,371  | )    |   | (1,910  | )
|                                                                                                                        |  |                                  |         |      |   |         |  
|                                                                                                                        |  |                                  |         |      |   |         |  
|Cash flows from investing activities                                                                                    |  |                                  |         |      |   |         |  
|Capital expenditures for oil and gas
properties                                                                         |  |                                  | (10,136 | )    |   | (16,938 | )
|Proceeds from insurance recovery                                                                                        |  |                                  | 11,150  |      |   |        |  
|Salvage fund investments                                                                                                |  |                                  | (38     | )    |   | (33     | )
|Proceeds from the sale of marketable
securities                                                                         |  |                                  | 51,613  |      |   | 75,000  |  
|Investment in marketable securities                                                                                     |  |                                  | (65,319 | )    |   | (40,000 | )
|                                                                                                                        |  |                                  |         |      |   |         |  
|Net
 cash (used in) provided by investing activities                                                                    |  |                                  | (12,730 | )    |   | 18,029  |  
|                                                                                                                        |  |                                  |         |      |   |         |  
|                                                                                                                        |  |                                  |         |      |   |         |  
|Cash flows from financing activities                                                                                    |  |                                  |         |      |   |         |  
|Syndication costs paid                                                                                                  |  |                                  |        |      |   | (22     | )
|                                                                                                                        |  |                                  |         |      |   |         |  
|Net
 cash used in financing activities                                                                                  |  |                                  |        |      |   | (22     | )
|                                                                                                                        |  |                                  |         |      |   |         |  
|Net
 (decrease) increase in cash and cash equivalents                                                                   |  |                                  | (14,101 | )    |   | 16,097  |  
|                                                                                                                        |  |                                  |         |      |   |         |  
|Cash
 and cash equivalents, beginning of period                                                                         |  |                                  | 33,188  |      |   | 8,624   |  
|                                                                                                                        |  |                                  |         |      |   |         |  
|Cash
 and cash equivalents, end of period                                                                               |  | $                                | 19,087  |      | $ | 24,721  |  
|                                                                                                                        |  |                                  |         |      |   |         |  
|                                                                                                                        |  |                                  |         |      |   |         |  
|Supplemental schedule of non-cash investing
 activities                                                                 |  |                                  |         |      |   |         |  
|Advances
 used for capital expenditures in oil and gas properties reclassified to
 dry-hole costs and proved properties |  | $                                |        |      | $ | 9,957   |  
|                                                                                                                        |  |                                  |         |      |   |         |  

The accompanying notes are an integral part
of these unaudited condensed financial statements.

5

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RIDGEWOOD
ENERGY O FUND, LLCNOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

1. Organization and Purpose

The Ridgewood
Energy O Fund, LLC (the Fund), a Delaware limited liability company, was
formed on December 21, 2004 and operates pursuant to a limited liability
company agreement (LLC Agreement) dated as of February 16, 2005 by and among
Ridgewood Energy Corporation (the Manager) and the shareholders of the Fund.
Although the date of formation is December 21, 2004, the Fund did not begin
operations until February 16, 2005 when it began its private offering of
shares.

The Fund was
organized to acquire, drill, construct and develop oil and natural gas
properties located in the United States offshore waters of Texas, Louisiana and
Alabama in the Gulf of Mexico. The Fund has devoted most of its efforts to
raising capital and oil and natural gas exploration activities. As of August
2007, the Fund began earning revenue from its operations and has ceased to be
in the exploratory stage. In prior periods, the Fund had been classified as an
exploratory stage enterprise.

The Manager
performs (or arranges for the performance of) the management, administrative
and advisory services required for Fund operations. Such services include,
without limitation, the administration of shareholder accounts, shareholder
relations and the preparation, review and dissemination of tax and other
financial information. In addition, the Manager provides office space,
equipment and facilities and other services necessary for Fund operations. The
Manager also engages and manages the contractual relations with outside
custodians, depositories, accountants, attorneys, broker-dealers, corporate
fiduciaries, insurers, banks and others as required (Notes 2, 5 and 7).

2. Summary of Significant Accounting Policies

Basis
of Presentation


These unaudited interim
condensed financial statements have been prepared by the Funds management in
accordance with accounting principles generally accepted in the United States
of America (GAAP) and in the opinion of management, contain all adjustments
(consisting of only normal recurring adjustments) necessary to present fairly
the Funds financial position, results of operations and cash flows for the
periods presented. Certain information and note disclosures normally included
in annual financial statements prepared in accordance with GAAP have been
omitted in these unaudited interim condensed financial statements. The results
of operations, financial position, and cash flows for the periods presented herein
are not necessarily indicative of future financial results. These unaudited
interim condensed financial statements should be read in conjunction with the
annual financial statements and the notes thereto for the year ended December
31, 2006 included in the Funds Annual Report on Form 10-K filed with the
Securities and Exchange Commission (SEC).


Use
of Estimates


The preparation of financial
statements in conformity with GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities as of the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. On an ongoing basis, the Manager reviews its estimates,
including those related to amounts advanced to and billed by operators,
determination of proved reserves, impairments and environmental liabilities.
Actual results may differ from those estimates.


Cash
and Cash Equivalents


All highly liquid investments
with maturities when purchased of three months or less are considered cash and
cash equivalents. At times, bank deposits may be in excess of federally insured
limits. At September 30, 2007 and December 31, 2006, bank balances, inclusive
of salvage fund, exceeded federally insured limits by $15.9 million and $8.0
million, respectively. The Fund maintains bank deposits with accredited
financial institutions.


6

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Short-term
Investments in Marketable Securities


At times the Fund may purchase
short-term investments comprised of US Treasury Notes with maturities greater
than three months that are considered held-to-maturity investments.
Held-to-maturity securities are those investments that the Fund has the ability
and intent to hold until maturity. Held-to-maturity investments are recorded at
cost plus accrued income, adjusted for the amortization of premiums and
discounts, which approximate fair value. Interest income is accrued as earned.
At September 30, 2007, the Fund owned held-to-maturity investments totaling
$41.2 million, inclusive of salvage fund, which will mature in January and
February 2008.


Salvage
Fund


The Fund deposits in a separate
interest-bearing account, or a salvage fund, money to provide for dismantling
production platforms and facilities, plugging and abandoning the wells and
removing the platforms, facilities and wells after their useful lives, in
accordance with applicable federal and state laws and regulations. Interest
earned on the account will become part of the salvage fund; there are no legal
restrictions on the withdrawal from the salvage fund.


Oil
and Natural Gas Properties


Investments in oil and natural
gas properties are operated by unaffiliated entities (Operators) who are
responsible for drilling, administering and producing activities pursuant to
the terms of the applicable operating agreements with working interest owners.
The Funds portion of exploration, drilling, operating and capital equipment
expenditures relating to the wells are advanced and billed by the Operators
through authorization for expenditures.


The successful
efforts method of accounting for oil and natural gas producing activities is
followed. Acquisition costs are capitalized when incurred. Other oil and
natural gas exploration costs, excluding the costs of drilling exploratory
wells, are charged to expense as incurred. The costs of drilling exploratory
wells are capitalized pending the determination of whether the wells have
discovered proved commercial reserves. If proved commercial reserves have not
been found, exploratory drilling costs are expensed to dry-hole expense. Costs
to develop proved reserves, including the costs of all development wells and
related facilities and equipment used in the production of crude oil and
natural gas, are capitalized. Expenditures for ongoing repairs and maintenance
of producing properties are expensed as incurred.

Upon the sale
or retirement of a proved property (i.e. a producing well), the cost and
related accumulated depletion and amortization will be eliminated from the
property accounts, and the resultant gain or loss is recognized. On the sale or
retirement of an unproved property, gain or loss on the sale is recognized.
Currently it is not the Managers intention to sell any of the Funds property
interests.

Capitalized
acquisition costs of producing oil and natural gas properties are depleted by
the unit-of-production method.

As of
September 30, 2007 and December 31, 2006, $3.0 million and $6.3 million,
respectively, were recorded in due to operators related to the acquisition of
oil and gas property. The balance at December 31, 2006 was paid during the
first quarter of 2007.

Advances
to Operators for Working Interests and Expenditures


The Funds acquisition of a
working interest in a well or a project requires it to make a payment to the
seller for the Funds right, title and interest. The Fund is required to
advance its share of estimated cash expenditures for the succeeding months
operation. The Fund accounts for such payments as advances to operators for
working interests and expenditures. As drilling costs are incurred, the
advances are transferred to unproved properties.


Asset
Retirement Obligations


For oil and natural gas properties, there are obligations to perform
removal and remediation activities when the properties are retired. When a
project reaches drilling depth and is determined to be either proved or dry, an
asset retirement obligation is recorded. Plug and abandonment costs associated
with unsuccessful properties are expensed as dry-hole costs. The following
table presents changes to the asset retirement obligations.


7

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|                               |  |                                                |      |                                       |   |      |  
|------------------------------ |  | ---------------------------------------------- | ---- | ------------------------------------- | - | ---- | -
|                               |  | For the nine
 months ended
 September 30, 2007 |      | For the year ended
 December 31, 2006 |  
|                               |  |                                                |      |                                       |  
|                               |  | (in thousands)                                 |     
|Balance -
 Beginning of period |  | $                                              | 37   |                                       | $ |     |  
|                               |  |                                                |      |                                       |   |      |  
|Liabilities
 incurred          |  |                                                | 803  |                                       |   | 469  |  
|Liabilities
 settled           |  |                                                | (803 | )                                     |   | (432 | )
|Accretion
 expense             |  |                                                | 2    |                                       |   |     |  
|                               |  |                                                |      |                                       |   |      |  
|Balance -
 End of period       |  | $                                              | 39   |                                       | $ | 37   |  
|                               |  |                                                |      |                                       |   |      |  

Syndication
Costs


Direct costs associated with
offering the Funds shares including professional fees, selling expenses and
administrative costs payable to the Manager, an affiliate of the Manager and
outside brokers are reflected as a reduction of shareholders capital.


Revenue
Recognition and Production Receivable


Oil and natural gas sales are
recognized when delivery is made by the Operator to the purchaser and title is
transferred (i.e. production has been delivered to a pipeline or transport
vehicle). At the time of transfer a production receivable is recorded.


The volume of
oil and natural gas sold on the Funds behalf may differ from the volume of oil
and natural gas to which the Fund is entitled. The Fund will account for such
oil and natural gas production imbalances by the entitlements method. Under the
entitlements method, the Fund will recognize a receivable from other working
interest owners for volumes oversold by other working interest owners, and a
payable to other working interest owners for volumes oversold by the Fund. At
September 30, 2007 and December 31, 2006, there were no material oil or natural
gas balancing arrangements between the Fund and other working interest owners.

Impairment
of Long-Lived Assets


In accordance with the
provisions of Statement of Financial Accounting Standards No. 144, Accounting
for the Impairment of Long-Lived Assets, long-lived assets, such as oil
and natural gas properties, are evaluated when events or changes in
circumstances indicate the carrying value of such assets may not be
recoverable. The determination of whether impairment has occurred is made by
comparing the carrying values of long-lived assets to the estimated future
undiscounted cash flows attributable to the asset. The impairment loss
recognized is the excess of the carrying value over the future discounted cash
flows attributable to the asset or the estimated fair value of the asset. For
the three and nine months ended September 30, 2007 and 2006, no impairments
have been recorded.


Depletion
and Amortization


Depletion and amortization of
the cost of proved oil and natural gas properties are calculated using the
units-of-production method. Proved developed reserves are used as the base for
depleting the cost of successful exploratory drilling and development costs.
The sum of proved developed and proved undeveloped reserves is used as the base
for depleting (or amortizing) leasehold acquisition costs, the costs to acquire
proved properties and platform and pipeline costs. The Fund began production
during the third quarter 2007 and has recorded depletion of $64 thousand for
the three and nine months ended September 30, 2007.


Income
Taxes


No provision is made for income
taxes in the financial statements. The Fund is a limited liability corporation,
and as such, the Funds income or loss is passed through and included in the
tax returns of the Funds shareholders.


Income
and Expense Allocation


Profits and losses are
allocated 85% to shareholders in proportion to their relative capital
contributions and 15% to the Manager, except for interest income and certain
expenses such as dry-hole costs, fiduciary fees, depletion and amortization,
which are allocated 99% to shareholders and 1% to the Manager.


8

---



3. Unproved Properties - Capitalized
Exploratory Well Costs

Leasehold acquisition and
exploratory drilling costs are capitalized pending determination of whether the
well has found proved reserves. Unproved properties are assessed on a quarterly
basis by evaluating and monitoring if sufficient progress is made on accessing
the reserves. Capitalized costs are expensed as dry-hole costs in the event
that reserves are not found or are not in sufficient quantities to complete the
well and develop the field. The following table reflects the net changes in
unproved properties for the periods ended September 30, 2007 and December 31, 2006.
At September 30, 2007, the Fund had no capitalized exploratory well costs
greater than one year.

|                                                                                              |  |                                              |       |                                     |   |         |  
|--------------------------------------------------------------------------------------------- |  | -------------------------------------------- | ----- | ----------------------------------- | - | ------- | -
|                                                                                              |  | For the nine
 months endedSeptember 30, 2007 |       | For the year endedDecember 31, 2006 |  
|                                                                                              |  |                                              |       |                                     |  
|                                                                                              |  | (in thousands)                               |      
|Balance - Beginning of the period                                                             |  | $                                            |      |                                     | $ | 16,873  |  
|Additions to capitalized exploratory well costs pending the
 determination of proved reserves |  |                                              | 3,637 |                                     |   | 3,879   |  
|Reclassifications to proved properties based on the determination of
 proved reserves         |  |                                              |      |                                     |   | (3,879  | )
|Capitalized exploratory well costs charged to dry-hole
costs                                  |  |                                              |      |                                     |   | (16,873 | )
|                                                                                              |  |                                              |       |                                     |   |         |  
|Balance - End of the period                                                                   |  | $                                            | 3,637 |                                     | $ |        |  
|                                                                                              |  |                                              |       |                                     |   |         |  

Dry-hole costs are detailed in
the table below.

|                   |  |                                           |      |                                          |   |      |  |      |       |   |   |        | 
|------------------ |  | ----------------------------------------- | ---- | ---------------------------------------- | - | ---- |  | ---- | ----- | - | - | ------ | 
|                   |  | For the three months ended
 September 30, |      | For the nine months ended
 September 30, |  
|Lease Block        |  | 2007                                      |      | 2006                                     |   | 2007 |  | 2006 |      
|                   |  |                                           |      |                                          |   |      |  |      |      
|                   |  | (in thousands)                            |     
|Eugene Island 334  |  | $                                         | (60  | )                                        | $ |     |  | $    | (57   | ) | $ | 8,676  | 
|Eugene Island 357  |  |                                           | (8   | )                                        |   | 38   |  |      | (8    | ) |   | 4,119  | 
|West Cameron 78/95 |  |                                           | 101  |                                          |   | 270  |  |      | 117   |   |   | 7,793  | 
|West Delta 95      |  |                                           | (385 | )                                        |   |     |  |      | 1,451 |   |   |       | 
|                   |  |                                           |      |                                          |   |      |  |      |       |   |   |        | 
|                   |  | $                                         | (352 | )                                        | $ | 308  |  | $    | 1,503 |   | $ | 20,588 | 
|                   |  |                                           |      |                                          |   |      |  |      |       |   |   |        | 

4. Distributions

Distributions
to shareholders are allocated in proportion to the number of shares held.

The Manager
will determine whether available cash from operations, as defined in the Funds
Agreement, is to be distributed. Such distributions will be allocated 85% to
the shareholders and 15% to the Manager, as defined in the Funds Agreement.

Available cash
from dispositions, as defined in the Funds Agreement, will be paid 99% to
shareholders and 1% to the Manager until the shareholders have received total
distributions equal to their capital contributions. After shareholders have
received distributions equal to their capital contributions, 85% of available
cash from dispositions will be distributed to shareholders and 15% to the
Manager.

There have
been no distributions made by the Fund.

5. Related Parties

The LLC
Agreement provides that the Manager render management, administrative and advisory
services. For such services, the Manager originally received an annual
management fee, payable monthly, of 2.5% of total capital contributions.
Effective January 1, 2007, the Manager changed its policy regarding the annual
management fee.

9

---



Under the new
policy, the management fee is equal to 2.5% of the total shareholder capital
contributions, net of cumulative dry-hole costs and casualty losses incurred by
the Fund. Management fees for the three months ended September 30, 2007 and
2006 were $0.6 million and $0.8 million, respectively. For the nine months
ended September 30, 2007 and 2006, management fees were $1.7 million and $2.4
million, respectively.

From time to
time, short-term payables and receivables, which do not bear interest, arise from
transactions with affiliates in the ordinary course of business. At September
30, 2007, the Fund owed the Manager $20 thousand, which is included in due to
affiliates. At December 31, 2006, there were no such amounts payable or
receivable.

None of the compensation
to be received by the Manager has been derived as a result of arms length
negotiations.

The Fund has
working interest ownership in certain projects to acquire and develop oil and
natural gas projects with other entities that are likewise managed by the
Manager.

6. Fair Value of Financial Instruments

As of
September 30, 2007 and December 31, 2006, the carrying value of cash and cash
equivalents, short-term investments in marketable securities and salvage fund
approximates fair value.

7. Commitments and Contingencies

Environmental
Considerations


The exploration for and
development of oil and natural gas involves the extraction, production and
transportation of materials which, under certain conditions, can be hazardous
or cause environmental pollution problems. The Manager and the Operators are
continually taking action they believe appropriate to satisfy applicable
federal, state and local environmental regulations and do not currently
anticipate that compliance with federal, state and local environmental
regulations will have a material adverse effect upon capital expenditures,
results of operations or the competitive position of the Fund in the oil and
natural gas industry. However, due to the significant public and governmental
interest in environmental matters related to those activities, the Manager
cannot predict the effects of possible future legislation, rule changes, or
governmental or private claims. At September 30, 2007 and December 31, 2006,
there were no known environmental contingencies that required the Fund to
record a liability.


Insurance
Coverage


The Fund is subject to all
risks inherent in the exploration for and development of oil and natural gas.
Insurance coverage as is customary for entities engaged in similar operations is
maintained, but losses may occur from uninsurable risks or amounts in excess of
existing insurance coverage. The occurrence of an event which is not insured or
not fully insured could have an adverse impact upon earnings and financial
position.


In August 2005, the West Delta
95 project sustained storm damage from Hurricane Katrina, for which the Fund
has incurred $12.9 million of recovery costs. In addition, on May 22, 2006, the
Fund reported a claim to its insurance carrier for $4.0 million of costs related
to insured damages to the West Cameron 78/95 project. During the fourth quarter
2006, the Fund recorded $16.6 million for insurance recovery receivables
related to these projects. During the third quarter 2007, the Fund has settled
both of these claims, resulting in a casualty gain of $0.3 million for the
three months ended September 30, 2007 and a casualty loss of $3.2 million for
the nine months ended September 30, 2007. The Fund received the proceeds for
the West Delta 95 claim of $11.2 million during the third quarter and expects
to receive the West Cameron 78/95 proceeds of $2.3 million in the fourth
quarter 2007. The Fund records receivables when the proceeds are probable and
reasonably estimable and adjusts its estimates of such receivables based upon
currently known facts.

10

---



ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Cautionary Statement Regarding
Forward-Looking Statements

This Quarterly
Report on Form 10-Q, including all documents incorporated by reference,
includes forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended (the Securities Act) and Section 21E of
the Securities Exchange Act of 1934, as amended, and the Private Securities
Litigation Reform Act of 1995, and the safe harbor provisions thereof. These
forward-looking statements are usually accompanied by the words anticipates,
believes, plan, seek, expects, intends, estimates,
projects,
will likely result, future and similar terms and expressions. The
forward-looking statements in this Quarterly Report on Form 10-Q reflect
Ridgewood Energy O Fund, LLCs (the Fund) current views with respect to
future events and financial performance. These forward-looking statements are
subject to certain risks and uncertainties, including, among other things, the
high-risk nature of natural gas exploratory operations, the fact that the
Funds drilling activities are managed by third parties, the volatility of
natural gas prices and extraction, and those other risks and uncertainties
discussed in the Funds 2006 Annual Report on Form 10-K filed with the
Securities and Exchange Commission that could cause actual results to differ
materially from historical results or those anticipated. Readers are urged to
carefully consider all such factors.

In light of
these risks and uncertainties, there can be no assurance that the
forward-looking information contained in this Quarterly Report on Form 10-Q
will in fact occur or prove to be accurate. Readers should not place undue
reliance on the forward-looking statements contained herein, which speak only
as of the date of this filing. The Fund undertakes no obligation to publicly
revise these forward-looking statements to reflect events or circumstances that
may arise after today. All subsequent written or oral forward-looking
statements attributable to the Fund or persons acting on its behalf are
expressly qualified in their entirety by this section.

Critical Accounting Policies and Estimates

The following
discussion and analysis of the Funds financial condition and operating results
is based on its financial statements. The preparation of this Quarterly Report
on Form 10-Q requires the Fund to make estimates and assumptions that affect
the reported amount of assets and liabilities, disclosure of contingent assets
and liabilities at the date of the Funds financial statements, and the
reported amount of revenue and expenses during the reporting period. Actual
results may differ from those estimates and assumptions. See Notes to
Unaudited Condensed Financial Statements in Part I of this Quarterly Report on
Form 10-Q for a presentation of the Funds significant accounting policies. No
changes have been made to the Funds critical accounting policies and estimates
disclosed in its 2006 Annual Report on Form 10-K.

Overview of the Funds Business

The Fund is an
independent oil and natural gas producer. The Funds primary investment
objective is to generate cash flow for distribution to the Funds shareholders
through participation in oil and natural gas exploration and development
projects in the Gulf of Mexico.

Ridgewood
Energy Corporation (the Manager) performs certain duties on the Funds behalf
including the evaluation of potential projects for investment and ongoing
management, administrative and advisory services associated with these
projects. For these services, the Manager receives an annual management fee
(2.5% of capital contributions, net of cumulative dry-hole costs), payable
monthly. The Fund does not currently, nor is there any plan to operate any
project in which the Fund participates. The Manager enters into operating
agreements with third-party operators (Operators) for the management of all
exploration, development and producing operations, as appropriate. The Manager
also participates in distributions.

Business Update

The Fund owns
working interests and has participated in the drilling of nine wells, four of
which were determined to be dry-holes, three that are currently drilling or
scheduled to drill, and two that have been determined to have proved reserves.

11

---



Currently Drilling

Mississippi
Canyon 360In the third
quarter 2007, the Fund acquired a 10% working interest in Mississippi Canyon
360 from Andex Resources, L.L.C. and Howard Energy Co., Inc.  The operator of this property is Challenger Minerals Inc.  This property
was originally scheduled to begin drilling in October 2007. Due to new safety regulations regarding drilling during hurricane season adopted by the Minerals Management Service, the federal agency that regulates offshore oil and gas exploration, drilling has been delayed. The property is currently
expected to begin drilling in the first half of 2008. Through September 30,
2007, the Fund has spent $0.1 million related to this property, for which the
total estimated budget is $14.0 million.

West
Cameron 296In the third
quarter 2007, the Fund acquired a 16.67% working interest in West Cameron 296
from Newfield Exploration Company (Newfield), the operator. The property
began drilling in September 2007 and results are expected during the fourth quarter
2007. Through September 30, 2007, the Fund has spent $0.9 million related to
this property, for which the total estimated budget is $3.9 million.

Walker
Ridge 155In the third
quarter 2007, the Fund paid $0.7 million as consideration for a 1% allocation
of the Managers interest in the Walker Ridge 155 project. Anadarko Petroleum
Corporation (Anadarko) is the operator of the project. Drilling for Walker
Ridge 155, a deep-water project, began in mid-August 2007 and is expected to be
completed late in the fourth quarter of 2007. Through September 30, 2007, the
Fund has spent $0.7 million related to this property, for which the total
estimated budget is $14.4 million.

Successful Wells

South
Pelto 9In July 2006, the Fund acquired a 16.67%
working interest from Newfield, the operator. On September 26, 2006, the
operator started drilling South Pelto 9, a 17,700 foot single well project in
approximately 257 feet of water offshore Louisiana. South Pelto 9 was deemed
successful in late-2006 and production commenced in late-August 2007. In August
2007, Newfield sold its interest in this property to McMoRan  Exploration
Co. (McMoRan). At that time, McMoRan assumed Newfields responsibilities as the
operator of this property. The Fund has spent $5.6 million on this property.

Eugene
Island 346/347In March 2007,
the Fund acquired a 5% working interest in the exploratory project Eugene
Island 346/347 from Newfield, the operator. Drilling commenced in April 2007
and during June 2007 the well was determined to be a commercial discovery. In
August 2007, Newfield sold its interest in this property to McMoRan. At that time, McMoRan assumed Newfields responsibilities as
the operator of this property. Completion efforts are currently ongoing and
production is expected to begin during the second quarter of 2008. Total
budgeted expenditures for this project are $3.2 million, of which $1.9 million
has been spent through September 30, 2007.

Dry Hole Wells

West
Delta 95
The Fund
acquired a 20% working interest in West Delta 95 from GOM Shelf LLC (Apache
Corporation) (Apache), and an 8.05% working interest from BP America
Production Co. (BP). BP was the operator of West Delta 95 until July 26,
2006, at which time Apache took over the project as operator. On May 11, 2005
the first exploratory well began drilling. In August 2005, before reaching its
target depth, the project was evacuated in preparation for Hurricane Katrina.
As a result of Hurricane Katrina, the well sustained damage. On April 15, 2006,
recovery operations began, but were suspended in July 2006 as a result of the
onset of hurricane season. Recovery operations totaling $12.9 million were
completed and drilling resumed in January 2007. The Fund filed a claim with its
insurance carrier for these recovery amounts and, during the three months ended
September 30, 2007, has received $11.2 million from its insurance provider.
During the three and nine months ended September 30, 2007, the Fund has
recorded a casualty gain of $0.1 million and a casualty loss of $1.7 million,
respectively. The gain and loss were a result of changes in estimates to, and
the ultimate settlement of, the insurance claim.

12

---



On February
12, 2007, the well was determined to not have commercially productive
quantities of either natural gas or oil and therefore was deemed to be a
dry-hole. As a result of the dry-hole, West Delta 95 was plugged and abandoned.
The abandonment and impairment resulted in a charge of $15.2 million in the
fourth quarter 2006 and $1.4 million in 2007, bringing the total dry-hole costs
to $16.6 million, net of insurance recovery amounts.

West
Cameron 78/95The Fund
acquired a 30% working interest from the Operator, El Paso Production Company
(El Paso). The well began drilling on April 21, 2006. Drilling went according
to plan until the well reached a depth of 10,781 feet on May 17, 2006 when the
drill string became stuck. The smaller drill pipe was recovered and the well
was sidetracked (re-drilled) at a depth of 4,880 feet. Drilling continued to
14,500 feet, at which point the well was determined to be a dry-hole. On July
6, 2006 the decision was made to plug and abandon the well. Dry-hole costs
including plug and abandonment expenses incurred by the Fund for the year ended
December 31, 2006, totaled $4.4 million, net of insurance recovery amounts. An
insurance recovery receivable of $2.3 million is recorded at September 30,
2007, which is $1.5 million less than the Funds previous recorded receivable
of $3.8 million at December 31, 2006 and $0.2 million more than the June 30,
2007 estimate. The Fund records receivables for insured losses when the
expected insurance proceeds are probable and reasonably estimable based upon
assumptions and estimates derived from currently known facts. The Fund expects
to receive the proceeds for this settlement during the fourth quarter.

Results of Operations

The following
review of operations for the three and nine months ended September 30, 2007 and
2006 should be read in conjunction with the Funds financial statements and the
notes thereto. The following table summarizes the Funds results of operations.

|                                          |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|----------------------------------------- |  | --------------------------------- | ---- | -------------------------------- | - | ------ | - | ---- | ------ | - | - | ------- | -
|                                          |  | Three months ended  September 30, |      | Nine months ended  September 30, |  
|                                          |  | 2007                              |      | 2006                             |   | 2007   |   | 2006 |       
|                                          |  |                                   |      |                                  |   |        |   |      |       
|                                          |  | (in thousands)                    |     
|Revenue                                   |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Oil and gas
 revenue                      |  | $                                 | 303  |                                  | $ |       |   | $    | 303    |   | $ |        |  
|                                          |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Expenses                                  |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Depletion and
 amortization               |  |                                   | 64   |                                  |   |       |   |      | 64     |   |   |        |  
|Dry-hole costs                            |  |                                   | (352 | )                                |   | 308    |   |      | 1,503  |   |   | 20,588  |  
|Management fees
 to affiliate             |  |                                   | 565  |                                  |   | 806    |   |      | 1,739  |   |   | 2,419   |  
|Lease operating
 expense                  |  |                                   | 9    |                                  |   |       |   |      | 9      |   |   |        |  
|Casualty (gain)
 loss                     |  |                                   | (277 | )                                |   |       |   |      | 3,191  |   |   |        |  
|Other operating
 expenses                 |  |                                   | 6    |                                  |   |       |   |      | 46     |   |   |        |  
|General and
 administrative expenses      |  |                                   | 153  |                                  |   | 105    |   |      | 387    |   |   | 310     |  
|                                          |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Total expenses                            |  |                                   | 168  |                                  |   | 1,219  |   |      | 6,939  |   |   | 23,317  |  
|                                          |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Income (loss)
 from operations            |  |                                   | 135  |                                  |   | (1,219 | ) |      | (6,636 | ) |   | (23,317 | )
|Other income                              |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Interest income                           |  |                                   | 618  |                                  |   | 948    |   |      | 1,990  |   |   | 2,721   |  
|                                          |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Net income (loss)                         |  |                                   | 753  |                                  |   | (271   | ) |      | (4,646 | ) |   | (20,596 | )
|Other comprehensive loss                  |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Unrealized loss
 on marketable securities |  |                                   |     |                                  |   |       |   |      |       |   |   | (45     | )
|                                          |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  
|Total
 comprehensive income (loss)        |  | $                                 | 753  |                                  | $ | (271   | ) | $    | (4,646 | ) | $ | (20,641 | )
|                                          |  |                                   |      |                                  |   |        |   |      |        |   |   |         |  

Oil and Gas Revenue.
The Funds first successful well, South Pelto 9, has begun production during
the three months ended September 30, 2007. Prior to this time, the Fund had not
earned revenue and was classified as an exploratory stage enterprise. The Fund
is no longer an exploratory stage enterprise. Production for a second well,
Eugene Island 346/347 is scheduled to begin during the second quarter of 2008,
upon successful completion efforts.

13

---



During the
three and nine months ended September 30, 2007, revenues were $0.3 million. Oil
prices averaged approximately $78 per barrel and gas prices averaged
approximately $5.93 per mcf. South Pelto 9 produced and sold approximately
1,450 barrels of oil and 28 thousand mcf of gas.

Operating and Other Expenses

Depletion
and Amortization. For the three and nine
months ended September 30, 2007, depletion and amortization was $64 thousand.
The Funds first producing well, South Pelto 9, was placed in service in August
2007. Prior to that time, the Fund did not have production and therefore did
not have depletion or amortization expense.

Dry-hole
Costs. Dry-hole costs are those costs incurred
to drill and develop a well that is ultimately found to be incapable of
producing either oil or natural gas in sufficient quantities to justify
completion of the well. The following table summarizes dry-hole costs inclusive
of plug and abandonment costs. During the three months ended September 30,
2007, certain wells received credits from their respective operators upon
review and audit of the wells costs.

|                   |  |                                            |      |                                           |   |      |  |      |       |   |   |        | 
|------------------ |  | ------------------------------------------ | ---- | ----------------------------------------- | - | ---- |  | ---- | ----- | - | - | ------ | 
|                   |  | For the three months ended 
 September 30, |      | For the nine months ended 
 September 30, |  
|Lease
 Block       |  | 2007                                       |      | 2006                                      |   | 2007 |  | 2006 |      
|                   |  |                                            |      |                                           |   |      |  |      |      
|                   |  | (in thousands)                             |     
|Eugene Island 334  |  | $                                          | (60  | )                                         | $ |     |  | $    | (57   | ) | $ | 8,676  | 
|Eugene Island 357  |  |                                            | (8   | )                                         |   | 38   |  |      | (8    | ) |   | 4,119  | 
|West Cameron 78/95 |  |                                            | 101  |                                           |   | 270  |  |      | 117   |   |   | 7,793  | 
|West Delta 95      |  |                                            | (385 | )                                         |   |     |  |      | 1,451 |   |   |       | 
|                   |  |                                            |      |                                           |   |      |  |      |       |   |   |        | 
|                   |  | $                                          | (352 | )                                         | $ | 308  |  | $    | 1,503 |   | $ | 20,588 | 
|                   |  |                                            |      |                                           |   |      |  |      |       |   |   |        | 

Management
Fees.  For the three and nine months ended
September 30, 2006, the Manager received an annual management fee of $0.8
million and $2.4 million, representing 2.5% of total capital contributions,
payable monthly, to cover expenses associated with overhead incurred by the
Manager for its ongoing management, administrative and advisory services. Such
overhead expenses include but are not limited to rent, payroll and benefits for
employees of the Manager, and other administrative costs. Commencing on January
1, 2007, the management fee, was reduced by 2.5% of the cumulative dry-hole
expenses and casualty losses incurred by the Fund, resulting in a decrease of
$0.2 million and $0.7 million, for the three and nine month periods ending
September 30, 2007, respectively. Management fees for the three and nine months
ended September 30, 2007 were $0.6 million and $1.7 million, respectively.

Lease
Operating Expense. For the three and nine
months ended September 30, 2007, lease operating expense was $9 thousand
related to the onset of production for the Funds first producing well, South
Pelto 9, which was placed in service in August 2007. Prior to that time, the
Fund did not have production and therefore did not have lease operating
expense.

Casualty
Loss. For the three months ended September 30,
2007, the Fund recorded a casualty gain of $0.3 million as a result of the
settlement of its two insurance claims for West Delta 95 and West Cameron
78/95. The Fund had previously recorded casualty losses totaling $3.8 million
as the result of damages sustained to the West Delta 95 and West Cameron 78/95
wells. For the nine months ended September 30, 2007, the Fund recorded a
casualty loss of $3.2 million related to revision of estimates of the
recoverability and the ultimate settlement of these claims.

Other
Operating Expense. Other operating expenses
for the three and nine months ended September 30, 2007 were $6 thousand and $46
thousand, respectively. For the three months ended September 30, 2007,
geological costs totaling $5 thousand were incurred related to Eugene Island
346/347. For the nine months ended September 30, 2007, geological costs
totaling $44 thousand were incurred related to Mississippi Canyon 360 and
Eugene Island 346/347. Accretion expense for the three and nine months ended
September 30, 2007 was $1 thousand and $2 thousand, respectively for the South
Pelto property. There were no other operating expenses for the three and nine
month periods ended September 30, 2006.

14

---



General
and Administrative Expense. Accounting, legal,
fiduciary fees and insurance expenses represent costs specifically identifiable
or allocable to the Fund. Accounting and legal fees represent annual audit and
tax preparation fees, quarterly reviews and filing fees of the Fund. Insurance
expense represents premiums related to well control insurance and production
insurance, which increased due to the onset of production for South Pelto 9 as
well as the increase in drilling activities.

The following
table summarizes general and administrative expenses.

|                          |  |                                            |     |                                           |   |      |  |      |     |  |   |     | 
|------------------------- |  | ------------------------------------------ | --- | ----------------------------------------- | - | ---- |  | ---- | --- |  | - | --- | 
|                          |  | For the three months ended 
 September 30, |     | For the nine months ended 
 September 30, |  
|                          |  | 2007                                       |     | 2006                                      |   | 2007 |  | 2006 |    
|                          |  |                                            |     |                                           |   |      |  |      |    
|                          |  | (in thousands)                             |    
|Accounting and legal fees |  | $                                          | 46  |                                           | $ | 41   |  | $    | 157 |  | $ | 135 | 
|Insurance                 |  |                                            | 84  |                                           |   | 16   |  |      | 155 |  |   | 50  | 
|Trust fees                |  |                                            | 23  |                                           |   | 48   |  |      | 74  |  |   | 125 | 
|Other                     |  |                                            |    |                                           |   |     |  |      | 1   |  |   |    | 
|                          |  |                                            |     |                                           |   |      |  |      |     |  |   |     | 
|                          |  | $                                          | 153 |                                           | $ | 105  |  | $    | 387 |  | $ | 310 | 
|                          |  |                                            |     |                                           |   |      |  |      |     |  |   |     | 

Interest Income. Interest
income represents interest earned on money market accounts and short-term US
Treasury Notes. For the three months ended September 30, 2007, interest income
was $0.6 million, a $0.3 million decrease from the three months ended September
30, 2006. For the nine months ended September 30, 2007, interest income was
$2.0 million, a $0.7 million decrease from the nine months ended September 30,
2006. Increased interest rates during the nine months ended September 30, 2007
were offset by a decrease in average outstanding balances earning interest due
to property expenditures during the period.

Other
Comprehensive Loss.Other comprehensive loss
is comprised solely of the unrealized losses on short-term investments and
represents unrealized losses on available for sale marketable debt securities.
For nine months ended September 30, 2006, the unrealized loss totaled $45
thousand. During 2006, the US Treasury Note reached its maturity and the
unrealized loss was recorded to offset the previously recorded unrealized gain.

Capital Resources and Liquidity

Operating Cash FlowsCash flows
used in operating activities for the nine months ended September 30, 2007 were
$1.4 million. Management fees and general and administrative and other expenses
totaling $2.2 million and unfavorable working capital of $0.1 million, were
partially offset by interest income received of $0.9 million.



Cash flows
used in operating activities for the nine months ended September 30, 2006 were
$1.9 million. Management fees and general and administrative expenses totaling
$2.7 million were partially offset by interest income received of $0.8 million.

Investing Cash FlowsCash flows
used in investing activities for the nine months ended September 30, 2007 were
$12.7 million, related to capital expenditures for oil and gas properties of
$10.1 million and investments in marketable securities, inclusive of salvage
fund, of $65.4 million, partially offset by proceeds from the maturity of US
Treasury Notes of $51.6 million as well as insurance proceeds of $11.2 million
related to the West Delta 95 claim.

Cash flows
provided by investing activities for the nine months ended September 30, 2006
were $18.0 million, related to proceeds from the maturity of US Treasury Notes
of $75.0 million, partially offset by investments in US Treasury Notes of $40.0
million, and capital expenditures for oil and gas properties of $16.9 million.

Financing Cash FlowsThere were no cash flows
related to financing activities for the nine months ended September 30, 2007.

15

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Cash flows used in financing
activities for the nine months ended September 30, 2006 were $22 thousand
related to the payment of syndication costs.

Estimated Capital Expenditures

The Fund has entered into
several participation and operating agreements for the drilling and development
of its investment properties. The estimated capital expenditures associated
with these agreements can vary depending on the stage of development on a
property-by-property basis. As of September 30, 2007, such estimated capital expenditures
totaled $31.9 million, all of which is expected to be paid out of unspent cash.

The table below presents
exploration and development capital expenditures for currently drilling
projects as well as estimated budgeted amounts.
Remaining unspent cash will be reallocated to one or more new unspecified
projects.

|                       |  |                                 |       |                             |   |                        |  |                  |       |  |   |        | 
|---------------------- |  | ------------------------------- | ----- | --------------------------- | - | ---------------------- |  | ---------------- | ----- |  | - | ------ | 
|Lease
 Block           |  | Spent throughSeptember 30, 2007 |       | To be spentless than 1 year |   | To be spent1 - 2 years |  | Totalto be spent |      
|                       |  |                                 |       |                             |   |                        |  |                  |      
|                       |  | (in thousands)                  |      
|South Pelto # 9        |  | $                               | 5,564 |                             | $ |                       |  | $                |      |  | $ |       | 
|Eugene Island 346/347  |  |                                 | 1,903 |                             |   | 1,337                  |  |                  |      |  |   | 1,337  | 
|Mississippi Canyon 360 |  |                                 | 90    |                             |   | 13,930                 |  |                  |      |  |   | 13,930 | 
|Walker Ridge 155       |  |                                 | 721   |                             |   | 4,179                  |  |                  | 9,450 |  |   | 13,629 | 
|West Cameron 296       |  |                                 | 923   |                             |   | 3,007                  |  |                  |      |  |   | 3,007  | 
|                       |  |                                 |       |                             |   |                        |  |                  |       |  |   |        | 
|                       |  | $                               | 9,201 |                             | $ | 22,453                 |  | $                | 9,450 |  | $ | 31,903 | 
|                       |  |                                 |       |                             |   |                        |  |                  |       |  |   |        | 

Liquidity Needs


The Funds primary
short-term liquidity needs are to fund its 2007 operations, including
management fees and capital expenditures, with existing cash on-hand and income
earned from its short-term investments and cash and cash equivalents. The
Manager is entitled to receive an annual management fee from the Fund
regardless of whether the Fund is profitable in that year. The annual fee, payable
monthly, is equal to 2.5% of total capital contributed by shareholders.
Effective January 1, 2007, the Manager changed its management fee policy
reducing, the management fee payable to 2.5% of the total shareholder capital
contributions, net of cumulative dry-hole expenses and casualty losses incurred
by the Fund.

On a long-term basis, until
one of the Funds projects begins producing, all or a portion of the management
fee is paid generally from the interest or dividend income generated by the
Funds development capital that has not been spent, although the management fee
can be paid out of capital contributions. Such interest and/or dividend income
is more than enough to cover Fund expenses, including the management fee.
Generally, it can take anywhere from 18 to 24 months to bring a project to
production, however deeper well projects, such as Walker Ridge 155, can take
longer. Once a well is on production, the management fee and Fund expenses are
paid from operating income. Over time as a well produces the Fund may recover
some or the entire management fee that may have been paid out of capital
contributions.

Distributions, if any, are
funded from cash flow from operations, and the frequency and amount are within
the Managers discretion subject to available cash from operations, reserve
requirements and Fund operations.

The capital raised by the
Fund in its private placement is more than likely all the capital it will be
able to obtain for investments in projects. The number of projects in which the
Fund can invest will naturally be limited and each unsuccessful project the
Fund experiences, if any, will not only reduce its ability to generate revenue,
but also exhaust its limited supply of capital. Typically, the Manager seeks an
investment portfolio that combines high and low risk exploratory projects.

When the Manager makes a
decision for participation in a particular project, it assumes that the well
will be successful and allocates enough capital to budget for the completion of
that well and the additional development wells that are anticipated to be
drilled. If the exploratory well is deemed a dry-hole or if it is
un-economical, the capital allocated to the completion of that well and to the
development of additional wells is then reallocated to a new project or used to
make additional investments.

16

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Off-Balance Sheet Arrangements

The Fund had no off-balance
sheet arrangements as of September 30, 2007 and December 31, 2006 and does not
anticipate the use of such arrangements in the future.

Contractual Obligations

The Fund enters into
operating agreements with Operators. On behalf of the Fund, as well as the
other working interest owners, the Operator will enter into various contractual
commitments pertaining to exploration, development and production activities.
Pursuant to the terms of the operating agreement, the Operator has the
authority to enter into such contracts and the Fund does not execute or
negotiate any such contracts. No contractual obligations exist at September 30,
2007 and December 31, 2006 pursuant to agreements executed directly by the
Fund.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK

Projects drilled may not
have commercially productive oil and natural gas reservoirs. In such an event,
the Funds revenue, future results of operations and financial condition would
be adversely impacted.

The Fund does not have or
use, any derivative instruments nor does it have any plans to enter into such
derivative arrangements. The Fund will generally invest cash in high-quality
credit instruments consisting primarily of money market funds, bankers
acceptance notes and government agency securities with maturities of six months
or less. The Fund does not expect any material loss from cash equivalents and
therefore believes its potential interest rate exposure is not material. The
Fund has no plan to conduct any international activities and therefore believes
it is not subject to foreign currency risk.

The principal market risks
to which the Fund is exposed that may adversely impact the Funds results of
operations and financial position are changes in oil and natural gas prices.

Low commodity prices could
have an adverse affect on the Funds future profitability and, in such an event
the Fund may be required by accounting rules to write down the carrying value
of the Funds projects. Revenue to the Fund will be sensitive to changes in
price to be received for oil and natural gas production. Prevailing market
prices fluctuate in response to many factors that are outside of the Funds
control such as the supply and demand for oil and natural gas. Availability of
alternative fuels as well as seasonal risks such as hurricanes can also impact
the supply and demand.

High oil and natural gas
prices have resulted in a strong demand for and a tight supply of drilling rigs
necessary to drill new projects. The increased cost in daily rig rates could
have a negative impact on the return to shareholders in the Fund. The shortage
of drilling rigs could delay the application of capital to such projects and
thus delay revenue from operations.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Fund maintains
disclosure controls and procedures, as such term is defined under Securities
and Exchange Act of 1934 (Exchange Act) Rule 13a-15(e), that are
designed to ensure that information required to be disclosed in the Funds
Exchange Act reports is recorded, processed, summarized and reported within the
same time periods specified in the SECs rules and forms, and that such
information is accumulated and communicated to its management, including its
Chief Executive Officer and Chief Financial Officer, as appropriate, to allow
timely decisions regarding required disclosures. In designing and evaluating
the disclosure controls and procedures, the Funds management recognized that
any controls and procedures, no matter how well designed and operated, can
provide only reasonable assurance of achieving the desired control objectives
and its management necessarily was

17

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required to apply its
judgment in evaluating the cost-benefit relationship of possible controls and
procedures. The Fund has carried out an evaluation, as of September 30, 2007,
under the supervision and with the participation of its management, including
its Chief Executive Officer and Chief Financial Officer, of the effectiveness
of the design and operation of the Funds disclosure controls and procedures.
Based upon their evaluation and subject to the foregoing, such procedures were
effective.

Because the Fund is not an
Accelerated Filer as defined in Rule 12b-2 of the Exchange Act, the Fund is
not presently required to file Managements annual report on internal control
over financial reporting and the Attestation report of the registered public
accounting firm required by Item 308(a) and (b) of Regulation S-K promulgated
under the Securities Act. Under current rules, because the Fund is neither a
large accelerated filer nor an accelerated filer, the Fund is not required
to provide managements report on internal control over financial reporting
until the Fund files its annual report for 2007 and compliance with the
auditors attestation report requirement is not required until the Fund files
its annual report for 2008. The Fund currently expects to comply with these
requirements at such time as the Fund is required to do so.

Changes in Internal Controls over Financial Reporting

In the course of the Funds
initial evaluation of disclosure controls and procedures, management considered
certain internal control areas in which the Fund has made and are continuing to
make changes to improve and enhance controls. Based upon that evaluation, the
CEO and CFO concluded that there were no changes in the Funds internal control
over financial reporting identified in connection with the evaluation required
by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during
the quarter ended September 30, 2007 that have materially affected, or are
reasonably likely to materially affect, the Funds internal control over
financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

There have been no changes
to the legal proceedings disclosed in the Funds most recent Annual Report on
Form 10-K.

ITEM 1A. RISK FACTORS

For
information regarding factors that could affect the Funds results of
operations, financial condition and liquidity, see risk factors discussed under
Managements Discussion and Analysis of Financial Condition and Results of
Operations in Item 7 of the Funds 2006 Annual Report on Form 10-K. There have
been no material changes from the risk factors previously disclosed in the
Funds most recent Annual Report on Form 10-K.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND
USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. SUBMISSIONS OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5. OTHER INFORMATION

None.

18

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ITEM 6. EXHIBITS

|              |  |                                                                                                                                                                                                                                                              | 
|------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 
|              |  |                                                                                                                                                                                                                                                             
|EXHIBITNUMBER |  | TITLE OF EXHIBIT                                                                                                                                                                                                                                             | 
|              |  |                                                                                                                                                                                                                                                             
|              |  |                                                                                                                                                                                                                                                             
|10.1          |  | Participation
 Agreement between Newfield Exploration Company and Ridgewood Energy
 Corporation as Manager for Eugene Island 346/347. (previously filed)                                                                                                    
|              |  |                                                                                                                                                                                                                                                             
|10.2          |  | Participation Agreement between Devon Energy Production
 Company L.P. and Ridgewood Energy Corporation as Manager for Eugene Island
 334. (previously filed)                                                                                                
|              |  |                                                                                                                                                                                                                                                             
|10.3          |  | Participation
 Agreement between Kerr-McGee Oil & Gas Corporation and Ridgewood Energy
 Corporation as Manager for Walker Ridge 155                                                                                                                         
|              |  |                                                                                                                                                                                                                                                             
|10.4          |  | Participation Agreement between Newfield Exploration
 Company and Ridgewood Energy Corporation as Manager for West Cameron 296                                                                                                                              
|              |  |                                                                                                                                                                                                                                                             
|31.1          |  | Certification of Robert E.
 Swanson, Chief Executive Officer, pursuant to Securities Exchange Act Rule
 13a-14(a).                                                                                                                                          
|              |  |                                                                                                                                                                                                                                                             
|31.2          |  | Certification of Kathleen
 P. McSherry, Chief Financial Officer, pursuant to Securities Exchange Act Rule
 13a-14(a).                                                                                                                                       
|              |  |                                                                                                                                                                                                                                                             
|32            |  | Certifications pursuant to
 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of The
 Sarbanes-Oxley Act of 2002, signed by Robert E. Swanson, Chief Executive
 Officer of the Fund and Kathleen P. McSherry, Chief Financial Officer of the
 Fund.

SIGNATURES

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

|       |  |                  |     |  |        |  |                                                      
|------ |  | ---------------- | --- |  | ------ |  | -----------------------------------------------------
|Dated: |  | November 2, 2007 |     |  |        |  | RIDGEWOOD ENERGY O FUND,
 LLC                        
|       |  |                  |     |  |        |  |                                                      
|       |  |                  | By: |  | /s/    |  | ROBERT E. SWANSON                                    
|       |  |                  |     |  | Name:  |  | Robert E. Swanson                                    
|       |  |                  |     |  | Title: |  | President and Chief
 Executive Officer               
|       |  |                  |     |  |        |  | (Principal Executive
 Officer)                       
|       |  |                  |     |  |        |  |                                                      
|Dated: |  | November 2, 2007 |     |  |        |  |                                                      
|       |  |                  | By: |  | /s/    |  | KATHLEEN P. MCSHERRY                                 
|       |  |                  |     |  | Name:  |  | Kathleen P. McSherry                                 
|       |  |                  |     |  | Title: |  | Executive Vice President
 and Chief Financial Officer
|       |  |                  |     |  |        |  | (Principal Financial and
 Accounting Officer)        

19

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