---

UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWASHINGTON, 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, 2008                                      
|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 No. 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)

Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act:

Shares of LLC Membership Interest

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.           Yesx   
Noo

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

| |                                                |   |  |                           |  
| | ---------------------------------------------- | - |  | ------------------------- | -
| | Large accelerated filer                        | o |  | Accelerated filer         | o
| | Non-accelerated filer                          | o |  | Smaller reporting company | x
| | (Do not check if a smaller
 reporting company) |  

Indicate by check mark
whether the registrant is a shell company (as defined in Rule 12b-2 of the
Act). Yeso   Nox

There is no market for the
shares. As of November 10, 2008 there are 870.6486 shares outstanding.

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Table of Contents

|                               |                                                                                                               |  |     
|------------------------------ | ------------------------------------------------------------------------------------------------------------- |  | ----
|                               |                                                                                                               |  | Page
|PART I - FINANCIAL INFORMATION |                                                                                                               | 
|Item 1.                        | Financial Statements:                                                                                         |  |     
|                               | Unaudited
Condensed Balance Sheets
 as of September 30, 2008 and December 31, 2007                            |  | 2   
|                               | Unaudited
Condensed Statements of
 Operations for the three and nine months ended September 30, 2008 and 2007 |  | 3   
|                               | Unaudited
Condensed Statements of
 Cash Flows for the nine months ended September30, 2008 and 2007            |  | 4   
|                               | Notes to
Unaudited Condensed
 Financial Statements                                                            |  | 5   
|Item 2.                        | Managements Discussion and Analysis of
 Financial Condition and Results of Operations                        |  | 11  
|Item 3.                        | Quantitative and Qualitative Disclosures
 about Market Risk                                                   |  | 18  
|Item 4.                        | Controls and Procedures                                                                                       |  | 18  
|                               |                                                                                                               | 
|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                                                                                             |  | 19  
|Item 6.                        | Exhibits                                                                                                      |  | 19  
|                               |                                                                                                               |  |     
|                               | SIGNATURES                                                                                                    |  | 20  

1

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PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

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

|                                                                                |  |                    |         |                   |   |         |  
|------------------------------------------------------------------------------- |  | ------------------ | ------- | ----------------- | - | ------- | -
|                                                                                |  | September 30, 2008 |         | December 31, 2007 |  
|                                                                                |  |                    |         |                   |  
|ASSETS                                                                          |  |                    |         |                   |   |         |  
|Current assets:                                                                 |  |                    |         |                   |   |         |  
|Cash and cash equivalents                                                       |  | $                  | 3,145   |                   | $ | 14,546  |  
|Short-term investments in marketable
securities                                 |  |                    | 38,221  |                   |   | 40,602  |  
|Production receivable                                                           |  |                    | 306     |                   |   | 598     |  
|Prepaid royalties                                                               |  |                    | 1,422   |                   |   |        |  
|Other current assets                                                            |  |                    | 171     |                   |   | 372     |  
|                                                                                |  |                    |         |                   |   |         |  
|Total current assets                                                            |  |                    | 43,265  |                   |   | 56,118  |  
|Salvage fund                                                                    |  |                    | 1,132   |                   |   | 1,110   |  
|Oil and gas properties:                                                         |  |                    |         |                   |   |         |  
|Advances to operators for working interests and
expenditures                    |  |                    |        |                   |   | 1,866   |  
|Unproved properties                                                             |  |                    | 4,208   |                   |   | 5,961   |  
|Proved properties                                                               |  |                    | 12,955  |                   |   | 5,603   |  
|Less: accumulated depletion and
amortization                                    |  |                    | (4,005  | )                 |   | (701    | )
|                                                                                |  |                    |         |                   |   |         |  
|Total oil and gas properties                                                    |  |                    | 13,158  |                   |   | 12,729  |  
|                                                                                |  |                    |         |                   |   |         |  
|                                                                                |  |                    |         |                   |   |         |  
|Total assets                                                                    |  | $                  | 57,555  |                   | $ | 69,957  |  
|                                                                                |  |                    |         |                   |   |         |  
|                                                                                |  |                    |         |                   |   |         |  
|LIABILITIES AND MEMBERS CAPITAL                                                |  |                    |         |                   |   |         |  
|Current liabilities:                                                            |  |                    |         |                   |   |         |  
|Due to operators                                                                |  | $                  | 3,440   |                   | $ | 2,070   |  
|Accrued expenses payable                                                        |  |                    | 231     |                   |   | 126     |  
|Due to affiliates (Note 6)                                                      |  |                    |        |                   |   | 652     |  
|                                                                                |  |                    |         |                   |   |         |  
|Total current liabilities                                                       |  |                    | 3,671   |                   |   | 2,848   |  
|                                                                                |  |                    |         |                   |   |         |  
|Asset retirement obligations                                                    |  |                    | 312     |                   |   | 39      |  
|                                                                                |  |                    |         |                   |   |         |  
|Total liabilities                                                               |  |                    | 3,983   |                   |   | 2,887   |  
|                                                                                |  |                    |         |                   |   |         |  
|                                                                                |  |                    |         |                   |   |         |  
|Commitments and
 contingencies (Note 8)                                         |  |                    |         |                   |   |         |  
|Members capital:                                                               |  |                    |         |                   |   |         |  
|Manager:                                                                        |  |                    |         |                   |   |         |  
|Distributions                                                                   |  |                    | (971    | )                 |   | (73     | )
|Accumulated deficit                                                             |  |                    | (485    | )                 |   | (1,447  | )
|                                                                                |  |                    |         |                   |   |         |  
|Managers total                                                                 |  |                    | (1,456  | )                 |   | (1,520  | )
|                                                                                |  |                    |         |                   |   |         |  
|                                                                                |  |                    |         |                   |   |         |  
|Shareholders:                                                                   |  |                    |         |                   |   |         |  
|Capital contributions (935 shares authorized;
870.6486 issued and
 outstanding) |  |                    | 128,990 |                   |   | 128,990 |  
|Syndication costs                                                               |  |                    | (14,742 | )                 |   | (14,742 | )
|Distributions                                                                   |  |                    | (5,500  | )                 |   | (414    | )
|Accumulated deficit                                                             |  |                    | (53,720 | )                 |   | (45,244 | )
|                                                                                |  |                    |         |                   |   |         |  
|Shareholders total                                                             |  |                    | 55,028  |                   |   | 68,590  |  
|                                                                                |  |                    |         |                   |   |         |  
|                                                                                |  |                    |         |                   |   |         |  
|Total members capital                                                          |  |                    | 53,572  |                   |   | 67,070  |  
|                                                                                |  |                    |         |                   |   |         |  
|                                                                                |  |                    |         |                   |   |         |  
|Total liabilities and members
capital                                          |  | $                  | 57,555  |                   | $ | 69,957  |  
|                                                                                |  |                    |         |                   |   |         |  

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

2

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

|                                      |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  
|------------------------------------- |  | --------------------------------- | ----- | -------------------------------- | - | ---- | - | ---- | ------ | - | - | ------ | -
|                                      |  | Three months ended
 September 30, |       | Nine months ended
 September 30, |  
|                                      |  | 2008                              |       | 2007                             |   | 2008 |   | 2007 |       
|                                      |  |                                   |       |                                  |   |      |   |      |       
|                                      |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  
|Revenue                               |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  
|Oil and gas revenue                   |  | $                                 | 3,279 |                                  | $ | 303  |   | $    | 9,740  |   | $ | 303    |  
|                                      |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  
|Expenses                              |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  
|Depletion and amortization            |  |                                   | 1,135 |                                  |   | 64   |   |      | 3,304  |   |   | 64     |  
|Dry-hole costs                        |  |                                   | 1,961 |                                  |   | (352 | ) |      | 12,242 |   |   | 1,503  |  
|Management fees to affiliate (Note 6) |  |                                   | 486   |                                  |   | 565  |   |      | 1,587  |   |   | 1,739  |  
|Casualty (gain) loss                  |  |                                   |      |                                  |   | (277 | ) |      |       |   |   | 3,191  |  
|Operating expenses                    |  |                                   | 138   |                                  |   | 15   |   |      | 275    |   |   | 55     |  
|General and administrative expenses   |  |                                   | 191   |                                  |   | 153  |   |      | 648    |   |   | 387    |  
|                                      |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  
|Total expenses                        |  |                                   | 3,911 |                                  |   | 168  |   |      | 18,056 |   |   | 6,939  |  
|                                      |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  
|(Loss) income from operations         |  |                                   | (632  | )                                |   | 135  |   |      | (8,316 | ) |   | (6,636 | )
|Other
 income                         |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  
|Interest income                       |  |                                   | 186   |                                  |   | 618  |   |      | 802    |   |   | 1,990  |  
|                                      |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  
|Net (loss) income                     |  | $                                 | (446  | )                                | $ | 753  |   | $    | (7,514 | ) | $ | (4,646 | )
|                                      |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  
|                                      |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  
|Manager Interest                      |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  
|Net income (loss)                     |  | $                                 | 352   |                                  | $ | (48  | ) | $    | 962    |   | $ | (292   | )
|                                     
|Shareholder Interest                  |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  
|Net (loss) income                     |  | $                                 | (798  | )                                | $ | 801  |   | $    | (8,476 | ) | $ | (4,354 | )
|Net (loss) income per share           |  | $                                 | (917  | )                                | $ | 920  |   | $    | (9,735 | ) | $ | (5,001 | )

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 CASH FLOWS
(in thousands)

|                                                                                                 |  |                                  |         |      |   |         |  
|------------------------------------------------------------------------------------------------ |  | -------------------------------- | ------- | ---- | - | ------- | -
|                                                                                                 |  | Nine months ended
 September 30, |        
|                                                                                                 |  | 2008                             |         | 2007 |  
|                                                                                                 |  |                                  |         |      |  
|                                                                                                 |  |                                  |         |      |   |         |  
|Cash flows
 from operating activities                                                            |  |                                  |         |      |   |         |  
|Net loss                                                                                         |  | $                                | (7,514  | )    | $ | (4,646  | )
|Adjustments to reconcile net loss to net cash
provided by (used in)
 operating activities        |  |                                  |         |      |   |         |  
|Depletion and amortization                                                                       |  |                                  | 3,304   |      |   | 64      |  
|Dry-hole costs                                                                                   |  |                                  | 12,242  |      |   | 1,503   |  
|Casualty loss                                                                                    |  |                                  |        |      |   | 3,191   |  
|Accretion expense                                                                                |  |                                  | 5       |      |   | 2       |  
|Interest earned on marketable securities                                                         |  |                                  | (508    | )    |   | (1,265  | )
|Changes in assets and liabilities:                                                               |  |                                  |         |      |   |         |  
|Decrease (increase) in production
receivable                                                     |  |                                  | 292     |      |   | (303    | )
|Increase in prepaid royalties                                                                    |  |                                  | (1,422  | )    |   |        |  
|(Increase) decrease in other current
assets                                                      |  |                                  | (18     | )    |   | 76      |  
|Increase (decrease) in accrued expenses
payable                                                  |  |                                  | 561     |      |   | (13     | )
|(Decrease) increase in due to affiliates                                                         |  |                                  | (652    | )    |   | 20      |  
|                                                                                                 |  |                                  |         |      |   |         |  
|Net cash provided by (used in) operating
activities                                              |  |                                  | 6,290   |      |   | (1,371  | )
|                                                                                                 |  |                                  |         |      |   |         |  
|                                                                                                 |  |                                  |         |      |   |         |  
|Cash flows
 from investing activities                                                            |  |                                  |         |      |   |         |  
|Capital expenditures for oil and gas
properties                                                  |  |                                  | (14,574 | )    |   | (10,136 | )
|Proceeds from insurance recovery                                                                 |  |                                  |        |      |   | 11,150  |  
|Interest reinvested in salvage fund                                                              |  |                                  | (22     | )    |   | (38     | )
|Proceeds from the sale of marketable
securities                                                  |  |                                  | 40,889  |      |   | 51,613  |  
|Investment in marketable securities                                                              |  |                                  | (38,000 | )    |   | (65,319 | )
|                                                                                                 |  |                                  |         |      |   |         |  
|Net cash used in investing activities                                                            |  |                                  | (11,707 | )    |   | (12,730 | )
|                                                                                                 |  |                                  |         |      |   |         |  
|                                                                                                 |  |                                  |         |      |   |         |  
|Cash flows
 from financing activities                                                            |  |                                  |         |      |   |         |  
|Distributions                                                                                    |  |                                  | (5,984  | )    |   |        |  
|                                                                                                 |  |                                  |         |      |   |         |  
|Net cash used in financing activities                                                            |  |                                  | (5,984  | )    |   |        |  
|                                                                                                 |  |                                  |         |      |   |         |  
|                                                                                                 |  |                                  |         |      |   |         |  
|Net decrease in cash and cash equivalents                                                        |  |                                  | (11,401 | )    |   | (14,101 | )
|Cash and cash equivalents, beginning of
period                                                   |  |                                  | 14,546  |      |   | 33,188  |  
|                                                                                                 |  |                                  |         |      |   |         |  
|Cash and cash equivalents, end of period                                                         |  | $                                | 3,145   |      | $ | 19,087  |  
|                                                                                                 |  |                                  |         |      |   |         |  
|                                                                                                 |  |                                  |         |      |   |         |  
|Supplemental
 schedule of non-cash investing activities                                          |  |                                  |         |      |   |         |  
|                                                                                                 |  |                                  |         |      |   |         |  
|Advances used for capital expenditures in oil and
gas properties
 reclassified to dry-hole costs |  | $                                | 1,866   |      | $ |        |  
|                                                                                                 |  |                                  |         |      |   |         |  

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

4

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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 (the LLC Agreement) dated as of February
16, 2005 by and among Ridgewood Energy Corporation (the Manager) and the
shareholders of the Fund.

The Fund was organized to acquire interests in oil and gas properties
located in the United States offshore waters of Texas, Louisiana and Alabama in
the Gulf of Mexico. During 2007, the Fund began earning revenue and as a result
was determined by the Manager to no longer be an exploratory stage enterprise.

The Manager performs, or arranges for the performance of, the
management and administrative 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
unaffiliated custodians, depositories, accountants, attorneys, broker-dealers,
corporate fiduciaries, insurers, banks and others as required. See Notes 2, 6
and 8.

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, 2007 included in the Funds
Annual Report on Form 10-K filed with the Securities and Exchange Commission
(the SEC). The year-end condensed balance sheet data was derived from audited
financial statements, but does not include all disclosures required by GAAP.

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 asset retirement
obligations. 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, 2008 and December 31, 2007, bank
balances, inclusive of salvage fund, exceeded federally insured limits by $3.0
million and $14.4 million, respectively. At September 30, 2008, $2.1 million of
the Funds uninsured balances were invested in money market accounts that
invest solely in U.S. Treasury bills and notes. The Fund maintains bank
deposits with accredited financial institutions. Effective October 3, 2008
through December 31, 2009, federally insured limits have been increased from
$0.1 million to $0.25 million.

Investments in
Marketable Securities

At times the
Fund may invest in U.S. Treasury bills and notes. These investments are
considered short-term when their maturities are greater than three months and
one year or less, and long-term when their maturities are in excess of twelve
months. The Fund currently has short-term investments that are classified as
held-to-maturity. Held-to-maturity securities are those investments that the
Fund has the ability and intent to hold until maturity, and are recorded at
cost plus accrued income, adjusted for the amortization of premiums and
discounts, which approximates fair value. At September 30, 2008, the Fund had
short-term, held-to-maturity investments totaling $38.2 million, which mature
in October 2008, November 2008 and February 2009. At December 31, 2007 the Fund
had short-term, held-to-maturity investments totaling $40.6 million.

5

---



For all
investments, interest income is accrued as earned and amortization of premium
or discount, if any, is included in interest income.

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. At September 30, 2008, the Fund had held-to-maturity investments
within its salvage fund totaling $1.1 million. The held-to-maturity investment
held within the salvage fund at September 30, 2008 matures in February 2012.

Interest
earned on the account will become part of the salvage fund. There are no
restrictions on withdrawals from the salvage fund.

Oil and Gas
Properties

Investments in
oil and 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 gas producing activities is followed.
Acquisition costs are capitalized when incurred. Other oil and 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 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, the cost and related accumulated depletion
and amortization will be eliminated from the property accounts, and the
resultant gain or loss is recognized. Upon the sale or retirement of an
unproved property, gain or loss on the sale is recognized. The Manager does not
currently intend to sell any of the Funds property interests.

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

As of
September 30, 2008, amounts recorded in due to operators totaling $2.9 million
related to capital expenditures for oil and gas property.

Advances to
Operators for Working Interests and Expenditures

The Funds
acquisition of a working interest in a well or a project may require it to make
a payment to the seller for the Funds rights, title and interest. The Fund may
be 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
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 incurred. Plug and abandonment costs associated with unsuccessful
projects are expensed as dry-hole costs. The table below presents changes in
asset retirement obligations for the nine months ended September 30, 2008 and
the year ended December 31, 2007.

|                              |  |                    |     |                   |   |    | 
|----------------------------- |  | ------------------ | --- | ----------------- | - | -- | 
|                              |  | September 30, 2008 |     | December 31, 2007 |  
|                              |  |                    |     |                   |  
|                              |  | (in thousands)     |    
|Balance - Beginning of period |  | $                  | 39  |                   | $ | 37 | 
|Liabilities incurred          |  |                    | 268 |                   |   |   | 
|Liabilities settled           |  |                    |    |                   |   |   | 
|Accretion expense             |  |                    | 5   |                   |   | 2  | 
|                              |  |                    |     |                   |   |    | 
|Balance - End of period       |  | $                  | 312 |                   | $ | 39 | 
|                              |  |                    |     |                   |   |    | 

6

---



As indicated
above, the Fund maintains a salvage fund to provide for the funding of future
asset retirement obligations.

Syndication Costs

Syndication
costs are 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 unaffiliated broker-dealers, which are
reflected on the Funds balance sheet as a reduction of shareholders capital.

Revenue Recognition
and Imbalances

Oil and gas
revenues are recognized when production is sold to a purchaser at a fixed or
determinable price, when delivery has occurred and title has transferred, and
if collectibility of the revenue is probable.

The Fund uses
the sales method of accounting for gas production imbalances. The volumes of
gas sold may differ from the volumes to which the Fund is entitled based on its
interests in the properties. These differences create imbalances that are
recognized as a liability only when the properties estimated remaining
reserves net to the Fund will not be sufficient to enable the underproduced
owner to recoup its entitled share through production. The Funds recorded
liability, if any, would be reflected in other non-current liabilities. No
receivables are recorded for those wells where the Fund has taken less than its
share of production. Gas imbalances are reflected as adjustments to estimates
of proved gas reserves and future cash flows.

Impairment of
Long-Lived Assets

In accordance
with the provisions of the Statement of Financial Accounting Standards (SFAS)
No. 144, Accounting for the Impairment of Long-Lived Assets, long-lived
assets, such as oil and 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.
During the three and nine months ended September 30, 2008 and 2007, no
impairments were recorded.

Depletion and
Amortization

Depletion and
amortization of the cost of proved oil and 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.

Income Taxes

No provision
is made for income taxes in the financial statements. The Fund is a limited liability
company, 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.

3. Recent Accounting Standards

In May 2008,
the Financial Accounting Standards Board (FASB) issued SFAS No. 162, The
Hierarchy of Generally Accepted Accounting Principles, (SFAS No.162), which
identifies the sources of accounting principles and the framework for selecting
the principles used in the preparation of financial statements that are
presented in conformity with GAAP. SFAS No. 162 will be effective sixty days
following the Securities and Exchange Commissions approval of the Public
Company Accounting Oversight Board amendments to AU Section 411. The Fund does
not expect the adoption of SFAS No. 162 will have a material impact on its
financial condition or results of operation.

7

---



In September
2006, the FASB issued SFAS No. 157, Fair Value Measurements, (SFAS No.157),
which applies under most other accounting pronouncements that require or permit
fair value measurements. SFAS No. 157 provides a common definition of fair
value as the price that would be received to sell an asset or paid to transfer
a liability in a transaction between market participants. The new standard also
provides guidance on the methods used to measure fair value and requires
expanded disclosures related to fair value measurements. SFAS No. 157 had
originally been effective for financial statements issued for fiscal years
beginning after November 15, 2007, however the FASB has agreed on a one year
deferral for all non-financial assets and liabilities. On January 1, 2008, the
Fund adopted SFAS No. 157 for financial assets and liabilities.

4. 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 assessing the reserves.

At September
30, 2008, the Fund had no capitalized exploratory well costs greater than one
year. The following table reflects the net changes in unproved properties for
the nine months ended September 30, 2008 and the year ended December 31, 2007.

|                                                                                              |  |                    |        |                   |   |        |  
|--------------------------------------------------------------------------------------------- |  | ------------------ | ------ | ----------------- | - | ------ | -
|                                                                                              |  | September 30, 2008 |        | December 31, 2007 |  
|                                                                                              |  |                    |        |                   |  
|                                                                                              |  | (in thousands)     |       
|                                                                                              |  |                    |        |                   |   |        |  
|Balance - Beginning of the period                                                             |  | $                  | 5,961  |                   | $ |       |  
|Additions to capitalized exploratory well
 costs pending the determination of proved reserves |  |                    | 7,577  |                   |   | 7,647  |  
|Reclassifications to proved properties
 based on the determination of proved reserves         |  |                    | (5,561 | )                 |   | (1,686 | )
|Capitalized exploratory well costs charged
 to dry-hole costs                                 |  |                    | (3,769 | )                 |   |       |  
|                                                                                              |  |                    |        |                   |   |        |  
|Balance - End of the period                                                                   |  | $                  | 4,208  |                   | $ | 5,961  |  
|                                                                                              |  |                    |        |                   |   |        |  

Capitalized
exploratory well 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. During the three and nine months ended September 30,
2008 and 2007, certain wells received credits from their respective operators upon
review and audit of the wells costs. Dry-hole costs, inclusive of credits, are
detailed in the table below.

|                              |  |                                   |       |                                  |   |      |   |      |        |   |   |       | 
|----------------------------- |  | --------------------------------- | ----- | -------------------------------- | - | ---- | - | ---- | ------ | - | - | ----- | 
|                              |  | Three months ended
 September 30, |       | Nine months ended
 September 30, |  
|Lease
 Block                  |  | 2008                              |       | 2007                             |   | 2008 |   | 2007 |       
|                              |  |                                   |       |                                  |   |      |   |      |       
|                              |  | (in thousands)                    |      
|Ruby Project                  |  | $                                 | 1,924 |                                  | $ |     |   | $    | 1,924  |   | $ |      | 
|High Island 38                |  |                                   | 104   |                                  |   |     |   |      | 6,510  |   |   |      | 
|Walker Ridge 155              |  |                                   | (9    | )                                |   |     |   |      | 2,237  |   |   |      | 
|South Marsh Island 213        |  |                                   |      |                                  |   |     |   |      | 1,688  |   |   |      | 
|Eugene Island 346/347 well #3 |  |                                   |      |                                  |   |     |   |      | 275    |   |   |      | 
|West Delta 95                 |  |                                   | (42   | )                                |   | (385 | ) |      | (376   | ) |   | 1,451 | 
|Other wells                   |  |                                   | (16   | )                                |   | 33   |   |      | (16    | ) |   | 52    | 
|                              |  |                                   |       |                                  |   |      |   |      |        |   |   |       | 
|                              |  | $                                 | 1,961 |                                  | $ | (352 | ) | $    | 12,242 |   | $ | 1,503 | 
|                              |  |                                   |       |                                  |   |      |   |      |        |   |   |       | 

5. 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
LLC Agreement, is to be distributed. Such distributions will be allocated 85%
to the shareholders and 15% to the Manager, as required by the Funds LLC
Agreement.

Available cash
from dispositions, as defined in the Funds LLC 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.

8

---



The Fund began
making distributions to eligible early investors in December 2007 and to all
investors in October 2008. The shareholders and Manager received distributions
of $5.1 million and $0.9 million for the nine months ended September 30, 2008,
respectively. There were no distributions paid during the nine months ended
September 30, 2007.

6. Related Parties

The Funds LLC
Agreement provides that the Manager render management, administrative and
advisory services. For such services, the Manager receives an annual management
fee, payable monthly, of 2.5% of total capital contributions, net of cumulative
dry-hole and related well costs incurred by the Fund. Management fees for the
three and nine months ended September 30, 2008 were $0.5 million and $1.6
million, respectively. For the three and nine months ended September 30, 2007
management fees were $0.6 million and $1.7 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, 2008 there were no such amounts outstanding. At December 31,
2007, the Fund owed affiliates $0.7 million related to insurance proceeds and
revenue allocations.

None of the compensation
paid to 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
gas projects with other entities that are likewise managed by the Manager.

7. Fair Value of Financial Instruments

At September
30, 2008 and December 31, 2007, the carrying value of cash and cash
equivalents, short-term investments in marketable securities, salvage fund,
production receivable and accrued expenses approximated fair value.

8. Commitments and Contingencies

Capital Commitments

The Fund has
entered into multiple offshore operating agreements for the drilling and
development of its investment properties. The estimated capital expenditures
associated with these agreements vary depending on the stage of development on
a property-by-property basis. As of September 30, 2008, the Fund had committed
to spend an additional $9.9 million relating to its investment properties.

Environmental
Considerations

The
exploration for and development of oil and gas involves the extraction,
production and transportation of materials which, under certain conditions, can
be hazardous or cause environmental pollution problems. 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
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, 2008 and December 31, 2007,
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
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. Moreover, insurance is obtained as a package
covering all of the Managers investment programs. Claims made by other such
programs can reduce or eliminate insurance for the Fund.

9

---



Suspension of MMS
Royalty Relief

Under Mineral
Management Services (MMS) rules, the Fund is eligible for annual royalty
relief provided that the average New York Mercantile Exchange (NYMEX) sales
price for shallow water, deep gas (Average NYMEX Price) does not exceed price
thresholds established by the MMS, which will be published during the first
quarter of 2009. The Average NYMEX Price during the nine months ended September
30, 2008 was $9.73. Based upon current estimations of the 2008 price threshold
by the MMS, in the event the Average NYMEX Price exceeds $12.15 for the second
half of 2008, royalty relief would be suspended and the Fund would be obligated
to pay its previously relieved MMS royalties. In addition, the Funds future
reserve estimates report for gas would be reduced by 16.67%. The reduction in
revenues resulting from an obligation to pay these royalties and subsequent
reduction of proved reserves could have a material adverse effect on the Funds
results of operations. If the Average NYMEX Price is below the threshold
established by the MMS, the Fund would not have an obligation to pay royalties
for those properties which qualify for royalty relief and the reserve balances would
not be reduced. With regard to the shallow water, deep gas properties, there
was no reduction in reserves for potential future royalties as of December 31,
2007 as a result of the average 2007 NYMEX price for gas being below the price
threshold.

The Funds gas
revenues for the nine months ended September 30, 2008 would be reduced by $1.1
million if the 2008 annual Average NYMEX Price ultimately exceeds the price
threshold established by the MMS. At September 30, 2008, the Fund has not
recorded a liability associated with this contingency, based upon the Managers
assessment of its probability; however, the Fund has prepaid the MMS this
amount, which is included in prepaid royalties, to avoid the incurrence of
potential interest charges.

10

---



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

Cautionary Statement Regarding
Forward-Looking Statements

Certain statements in this quarterly report on Form 10-Q (Quarterly
Report) and the documents Ridgewood Energy O Fund, LLC (the Fund) has
incorporated by reference into this Quarterly Report, other than purely
historical information, including estimates, projections, statements relating
to the Funds business plans, strategies, objectives and expected operating
results, and the assumptions upon which those statements are based, are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as
amended (the Securities Act) and Section 21E of the Securities Exchange Act
of 1934 (the Exchange Act). These forward-looking statements generally are
identified by the words believe, project, expect, anticipate,
estimate, intend, strategy, plan, target, pursue,
may, will,
would, will be, will continue, will likely result, and similar
expressions. Forward-looking statements are based on current expectations and
assumptions that are subject to risks and uncertainties which may cause actual
results to differ materially from the forward-looking statements. Examples of
such events that could cause actual results to differ materially from
historical results or those anticipated include weather conditions, such as
hurricanes, changes in market conditions affecting the pricing of oil and gas,
the cost and availability of equipment, and changes in governmental
regulations. The Fund undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information, future
events or otherwise.

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 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
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 2007 Annual Report on Form 10-K.

Overview of the Funds Business

The Fund is a Delaware limited liability company formed on December 21,
2004 to acquire interests primarily in oil and gas projects located in the U.S.
waters of the Gulf of Mexico. Ridgewood Energy Corporation (Ridgewood Energy
or the Manager) a Delaware corporation, is the Manager. As the Manager,
Ridgewood Energy has direct and exclusive control over the management and
control of Fund operations. The Funds primary investment objective is to
generate cash flow for distribution to the Funds shareholders through
participation in oil and gas exploration and development projects in the Gulf
of Mexico.

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 equal to 2.5% of
capital contributions, net of cumulative dry-hole and related well costs
incurred by the Fund, 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
sixteen wells, ten of which have been determined to be dry holes, four that
have been determined to be successful, and two that are currently drilling.

Recent hurricane activity in the Gulf of Mexico has not caused material
damage to any of the Funds wells or facilities. However, damage to certain
pipelines, coastal refineries and gas processing plants have caused them to be
shut-down for several weeks or months. Accordingly, certain of the Funds
producing properties generated little or no revenue during the month of
September and will be offline for an additional period of weeks or months. The
reserves associated with these properties remain intact and the value of the
properties is recoverable, however, the delay in production and revenue will
result in the delay in the payment of distributions related to certain
properties.

11

---



Currently Drilling

Eos Project

In August 2008, the Fund acquired a 3.0% working interest in the Eos
Project, an exploratory project, from Mariner Energy (Mariner), the operator.
Drilling commenced on this project in August 2008 and was temporarily suspended
due to hurricane activity. Drilling resumed in late-September 2008 and results
are expected in December 2008. Through September 30, 2008, the Fund has spent
$1.2 million on this well, for which the total estimated capital expenditure is
$8.6 million.

South Timbalier 287

In November 2007, the Fund acquired a 4.0% working interest in the
exploratory project South Timbalier 287 from GOM Shelf LLC (Apache Corporation)
(Apache), the operator. Drilling commenced on this project in March 2008 and
was temporarily suspended due to hurricane activity. Drilling resumed in
late-September 2008 and results are expected in December 2008. Through
September 30, 2008, the Fund has spent $3.0 million related to this property,
for which the total estimated capital expenditure is $4.0 million.

Successful Projects

Liberty Project

In April 2008, the Fund acquired a 5.0% working interest in the Liberty
Project, an exploratory project from LLOG Exploration Offshore, Inc. (LLOG),
the operator. This project began drilling in May 2008 and was determined to be
successful on July 4, 2008. Completion efforts are ongoing and production is
expected in the second quarter 2009. Through September 30, 2008, the Fund has
spent $2.8 million on this well, for which the total estimated capital
expenditure is $4.3 million.

South Pelto 9

In July 2006, the Fund acquired a 16.67% working interest from Newfield
Exploration Company (Newfield), the operator. South Pelto 9 was determined to
be successful in late-2006 and production commenced in September 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 South Pelto 9 well did not produce for
approximately two months due to hurricane activity during late-August 2008 and
September 2008. Production resumed for South Pelto 9 in mid-October 2008. The
Fund has spent $5.6 million related to this property.

Eugene Island
346/347

Well #1

In March 2007, the Fund acquired a 5.0% working interest in the
exploratory project Eugene Island 346/347 from Newfield, the operator. In June
2007, the well was determined to be successful. 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. The well was
completed and production commenced in June 2008. The Fund has spent $3.6
million related to this property.

Well #2

As a result of the drilling success of the first exploratory well for
Eugene Island 346/347, the second and third wells commenced drilling in May
2008. In late-May 2008, Eugene Island 346/347 well #2 was determined to be
commercially successful and production commenced in July 2008. The Fund has
spent $0.8 million related to this property. In June 2008, Eugene Island
346/347 Well #3 was determined to be a dry hole. See additional discussion
under Dry Holes below.

As indicated above in the business update, none of the Funds wells,
including Eugene Island 346/347 wells #1 and 2, were materially damaged as a
result of recent hurricane activity in the Gulf of Mexico. However, the
pipeline utilized to transport these wells oil and gas production has suffered
severe damage thereby shutting down production for these wells. As a result,
these wells have been shut-in until the pipeline repairs are completed by its
owner. There is no cost to the Fund related to these repair activities,
however, these wells will not produce oil and gas or earn revenue during this
period. The Eugene Island properties are currently expected to resume
production during the second quarter 2009.

12

---



Dry Holes

Ruby Project

In May 2008, the Fund acquired an 10% working interest in the Ruby
Project, an exploratory project from PetroQuest Energy, L.L.C. (PetroQuest),
the operator. The project is located in the Eugene Island region of the Gulf of
Mexico. The project began drilling in June 2008 and was determined to be an
unsuccessful well, or dry hole, in August 2008. Dry-hole costs related to this
well, including plug and abandonment expenses, for the nine months ended
September 30, 2008 were $1.9 million.

High Island 38

In the fourth quarter 2007, the Fund acquired a 12.5% working interest
in the High Island 38 project, from W&T Offshore, Inc. (W&T
Offshore), the operator. In June 2008, the well was determined to be
unsuccessful, or a dry hole, and has been plugged and abandoned. Dry-hole costs
related to this well, including plug and abandonment expenses, for the nine
months ended September 30, 2008 were $6.5 million.

Eugene Island
346/347

Well #3

In June 2008, the Fund was informed by McMoRan that Eugene Island
346/347 well #3 did not have commercially productive quantities of either gas
or oil and had been determined to be an unsuccessful well, or dry hole.
Dry-hole costs related to this well for the nine months ended September 30,
2008 were $0.3 million.

Walker Ridge 155

In 2007 the Fund acquired a 1.0% working interest in the exploratory
project Walker Ridge 155 from Kerr-McGee Oil & Gas Corporation (Kerr
McGee), a wholly owned subsidiary of Anadarko Petroleum Corporation
(Anadarko), the operator of the project. Drilling for Walker Ridge 155, a
deepwater project began in mid-August 2007.

On June 3, 2008, the Fund was informed by Anadarko that based upon its
evaluation of the three-dimensional data surrounding the Walker Ridge 155 lease
block, they have elected not to continue drilling this well. The well has been
determined to be unsuccessful, or a dry hole, and has been plugged and
abandoned. Dry-hole costs related to this well, including plug and abandonment
expenses, for the nine months ended September 30, 2008 were $2.2 million.

South Marsh Island
213

In March 2008, the Fund acquired a 5.5% working interest in the
exploratory project South Marsh Island 213 from LLOG, the operator. This
project began drilling in March 2008. On April 30, 2008 the Fund was informed
by LLOG that the well being drilled on the South Marsh Island 213 lease block
did not have commercially productive quantities of either gas or oil and had
been determined to be an unsuccessful well, or dry hole. Dry-hole costs related
to this well, including plug and abandonment expenses, for the nine months
ended September 30, 2008 were $1.7 million.

13

---



Results of Operations

The following review of operations for the three and nine months ended
September 30, 2008 and 2007 should be read in conjunction with the Funds
financial statements and the notes thereto.

|                                    |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  
|----------------------------------- |  | --------------------------------- | ----- | -------------------------------- | - | ---- | - | ---- | ------ | - | - | ------ | -
|                                    |  | Three months ended
 September 30, |       | Nine months ended
 September 30, |  
|                                    |  | 2008                              |       | 2007                             |   | 2008 |   | 2007 |       
|                                    |  |                                   |       |                                  |   |      |   |      |       
|                                    |  | (in thousands)                    |      
|Revenue                             |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  
|Oil and gas revenue                 |  | $                                 | 3,279 |                                  | $ | 303  |   | $    | 9,740  |   | $ | 303    |  
|                                    |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  
|Expenses                            |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  
|Depletion and amortization          |  |                                   | 1,135 |                                  |   | 64   |   |      | 3,304  |   |   | 64     |  
|Dry-hole costs                      |  |                                   | 1,961 |                                  |   | (352 | ) |      | 12,242 |   |   | 1,503  |  
|Management fees to affiliate        |  |                                   | 486   |                                  |   | 565  |   |      | 1,587  |   |   | 1,739  |  
|Casualty (gain) loss                |  |                                   |      |                                  |   | (277 | ) |      |       |   |   | 3,191  |  
|Operating expenses                  |  |                                   | 138   |                                  |   | 15   |   |      | 275    |   |   | 55     |  
|General and administrative expenses |  |                                   | 191   |                                  |   | 153  |   |      | 648    |   |   | 387    |  
|                                    |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  
|Total expenses                      |  |                                   | 3,911 |                                  |   | 168  |   |      | 18,056 |   |   | 6,939  |  
|                                    |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  
|(Loss) income from operations       |  |                                   | (632  | )                                |   | 135  |   |      | (8,316 | ) |   | (6,636 | )
|Other
 income                       |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  
|Interest income                     |  |                                   | 186   |                                  |   | 618  |   |      | 802    |   |   | 1,990  |  
|                                    |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  
|Net (loss) income                   |  | $                                 | (446  | )                                | $ | 753  |   | $    | (7,514 | ) | $ | (4,646 | )
|                                    |  |                                   |       |                                  |   |      |   |      |        |   |   |        |  

As previously discussed in the Business Update, hurricane activity in
the third quarter of 2008 did not cause material damage to any of the Funds
wells or facilities, however, damage to certain pipelines, coastal refineries
and gas processing plants have caused certain wells to be shut-down for several
weeks or months. Accordingly, revenues were affected in August 2008 and
September 2008 and will continue to be affected during these periods of
shutdown.

Oil and Gas Revenue.
During the three and nine months ended September 30, 2008, the Fund had three
producing wells, South Pelto 9, Eugene Island 346/347 well #1 and well #2,
which came onto production in September 2007, June 2008 and July 2008,
respectively. Oil and gas revenue for the three months ended September 30, 2008
was $3.3 million, a $3.0 million increase from the three months ended September
30, 2007. The increase is attributable to an increase in production and sales
volumes totaling $1.3 million and an increase in the average prices totaling
$1.7 million. Prior to September 2007, the Fund earned no operating revenues
and was classified as an exploratory stage enterprise.

The Funds wells produced approximately 8 thousand barrels of oil
during the three months ended September 30, 2008. During the three months ended
September 30, 2007, oil production was approximately 1 thousand barrels. The
Funds oil prices averaged approximately $123 per barrel during the three
months ended September 30, 2008 compared to approximately $78 per barrel during
the three months ended September 30, 2007.

Gas production during the three months ended September 30, 2008 was
approximately 155 thousand mcf compared to approximately 28 thousand mcf,
during the three months ended September 30, 2007. During the three months ended
September 30, 2008, the Funds gas prices, inclusive of processing revenue,
averaged $14.77 per mcf compared to $5.93 per mcf during the three months ended
September 30, 2007.

Oil and gas revenue for the nine months ended September 30, 2008 was
$9.7 million, a $9.4 million increase from the nine months ended September 30,
2007. The increase is attributable to an increase in production and sales
volumes totaling $4.8 million and an increase in the average prices totaling
$4.6 million.

The Funds wells produced approximately 25 thousand barrels of oil
during the nine months ended September 30, 2008 compared to approximately 1
thousand barrels during the nine months ended September 30, 2007. The Funds
oil prices averaged approximately $116 per barrel during the nine months ended
September 30, 2008 compared to approximately $78 per barrel during the nine
months ended September 30, 2007.

Gas production during the nine months ended September 30, 2008 was
approximately 532 thousand mcf compared to approximately 28 thousand mcf,
during the nine months ended September 30, 2007. During the nine months ended
September 30, 2008, the Funds gas prices, inclusive of processing revenue,
averaged $12.77 per mcf compared to $5.93 per mcf during the nine months ended
September 30, 2007.

14

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The increase in sales volumes for both the three and nine months ended
September 30, 2008 was principally attributable to the onset of production of
South Pelto 9 and Eugene Island 346/347 well #1 and well #2, which began
production in September 2007, June 2008 and July 2008, respectively.

Depletion and
Amortization. For the three and nine months ended
September 30, 2008, depletion and amortization was $1.1 million and $3.3
million, respectively. For the three and nine months ended September 30, 2007,
depletion and amortization was $64 thousand. The increase in depletion and
amortization resulted from the onset of production of the South Pelto 9 well
and Eugene Island 346/347 well #1 and well #2, which began production in
September 2007, June 2008 and July 2008, respectively. Depletion and
amortization was also affected due to hurricane activity. The South Pelto 9
well did not produce during late-August 2008 and September 2008 and resumed
production in mid-October 2008. The Eugene Island 346/347 wells #1 and #2 have
been shut-in until the pipeline repairs are completed and are currently
expected to resume production during the second quarter 2009. For more
information, please refer to Business Update above.

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 gas in sufficient
quantities to justify completion of the well. The following table summarizes
dry-hole costs inclusive of plug and abandonment costs and credits. During the
three and nine months ended September 30, 2008 and 2007, certain wells received credits
from their respective operators upon review and audit of the wells costs.

|                              |  |                                   |       |                                  |   |      |   |      |        |   |   |       | 
|----------------------------- |  | --------------------------------- | ----- | -------------------------------- | - | ---- | - | ---- | ------ | - | - | ----- | 
|                              |  | Three months ended
 September 30, |       | Nine months ended
 September 30, |  
|Lease
 Block                  |  | 2008                              |       | 2007                             |   | 2008 |   | 2007 |       
|                              |  |                                   |       |                                  |   |      |   |      |       
|                              |  | (in thousands)                    |      
|Ruby Project                  |  | $                                 | 1,924 |                                  | $ |     |   | $    | 1,924  |   | $ |      | 
|High Island 38                |  |                                   | 104   |                                  |   |     |   |      | 6,510  |   |   |      | 
|Walker Ridge 155              |  |                                   | (9    | )                                |   |     |   |      | 2,237  |   |   |      | 
|South Marsh Island 213        |  |                                   |      |                                  |   |     |   |      | 1,688  |   |   |      | 
|Eugene Island 346/347 well #3 |  |                                   |      |                                  |   |     |   |      | 275    |   |   |      | 
|West Delta 95                 |  |                                   | (42   | )                                |   | (385 | ) |      | (376   | ) |   | 1,451 | 
|Other wells                   |  |                                   | (16   | )                                |   | 33   |   |      | (16    | ) |   | 52    | 
|                              |  |                                   |       |                                  |   |      |   |      |        |   |   |       | 
|                              |  | $                                 | 1,961 |                                  | $ | (352 | ) | $    | 12,242 |   | $ | 1,503 | 
|                              |  |                                   |       |                                  |   |      |   |      |        |   |   |       | 

Management Fees to
Affiliate.For the three months ended September
30, 2008 and 2007, the Fund incurred management fees of $0.5 million and $0.6
million, respectively, representing 2.5% of total capital contributions, net of
cumulative dry-hole and related well costs incurred by the Fund. The Fund
incurred $1.6 million and $1.7 million for the nine months ended September 30,
2008 and 2007, respectively. The management fee, payable monthly to the
Manager, is for 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.

Casualty (Gain)
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
relative to these claims. For the nine months ended September 30, 2007, the
Fund recorded a casualty loss of $3.2 million upon settlement of these claims
during the third quarter 2007.

Operating Expenses.Operating expenses represent the costs of operating and maintaining wells
and related facilities, geological costs and accretion expense as detailed in
the schedule below.

|                         |  |                                  |     |                                 |   |      |  |      |     |  |   |    | 
|------------------------ |  | -------------------------------- | --- | ------------------------------- | - | ---- |  | ---- | --- |  | - | -- | 
|                         |  | Three months ended September 30, |     | Nine months ended September 30, |  
|                         |  | 2008                             |     | 2007                            |   | 2008 |  | 2007 |    
|                         |  |                                  |     |                                 |   |      |  |      |    
|                         |  | (in thousands)                   |    
|Lease operating expenses |  | $                                | 76  |                                 | $ | 9    |  | $    | 166 |  | $ | 9  | 
|Geological costs         |  |                                  | 60  |                                 |   | 5    |  |      | 104 |  |   | 44 | 
|Accretion                |  |                                  | 2   |                                 |   | 1    |  |      | 5   |  |   | 2  | 
|                         |  |                                  |     |                                 |   |      |  |      |     |  |   |    | 
|                         |  | $                                | 138 |                                 | $ | 15   |  | $    | 275 |  | $ | 55 | 
|                         |  |                                  |     |                                 |   |      |  |      |     |  |   |    | 

15

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Lease operating expenses for the three and nine months ended September
30, 2008 related to South Pelto 9 and the onset of production of Eugene Island
346/347 well #1 and well #2. For the three and nine months ended September 30,
2007 lease operating expenses related to the onset of production of South Pelto
9. Geological costs for the three and nine months ended September 30, 2008
related primarily to the Liberty, Ruby and Eos projects. Geological costs for
the three and nine months ended September 30, 2007 primarily related to South
Pelto 9.

General and Administrative
Expenses.General and administrative expenses
represent costs specifically identifiable or allocable to the Fund, as detailed
in the schedule below.

|                     |  |                                  |     |                                 |   |      |  |      |     |  |   |     | 
|-------------------- |  | -------------------------------- | --- | ------------------------------- | - | ---- |  | ---- | --- |  | - | --- | 
|                     |  |                                  |     |                                 |   |      |  |      |     |  |   |     | 
|                     |  | Three months ended September 30, |     | Nine months ended September 30, |  
|                     |  | 2008                             |     | 2007                            |   | 2008 |  | 2007 |    
|                     |  |                                  |     |                                 |   |      |  |      |    
|                     |  | (in thousands)                   |    
|Insurance            |  | $                                | 116 |                                 | $ | 84   |  | $    | 373 |  | $ | 155 | 
|Accounting fees      |  |                                  | 54  |                                 |   | 46   |  |      | 205 |  |   | 157 | 
|Trust fees and other |  |                                  | 21  |                                 |   | 23   |  |      | 70  |  |   | 75  | 
|                     |  |                                  |     |                                 |   |      |  |      |     |  |   |     | 
|                     |  | $                                | 191 |                                 | $ | 153  |  | $    | 648 |  | $ | 387 | 
|                     |  |                                  |     |                                 |   |      |  |      |     |  |   |     | 

Insurance expense represents premiums related to producing well and
well control insurance, which varies dependent upon the number of wells
producing and/or drilling and directors and officers liability policy, which
is allocated by the Manager to the Fund based on capital raised by the Fund to
total capital raised by all oil and gas funds managed by the Manager.
Accounting fees represent annual audit and tax preparation fees, quarterly
reviews and filing fees of the Fund. Trust fees represent bank fees associated
with the management of the Funds cash accounts.

Interest Income.Interest
income is comprised of interest earned on money market accounts and investments
in U.S. Treasury securities. For the three months ended September 30, 2008,
interest income was $0.2 million, a $0.4 million decrease from the three months
ended September 30, 2007. For the nine months ended September 30, 2008,
interest income was $0.8 million, a $1.2 million decrease from the nine months
ended September 30, 2007. The decreases were attributable to a reduction in
interest rates during the three and nine months ended September 30, 2008
coupled with a decrease in average outstanding balances earning interest due to
capital expenditures during the period.

Capital Resources and Liquidity

Operating Cash Flows

Cash flows provided by operating activities for the nine months ended
September 30, 2008 were $6.3 million, which were principally attributable to
revenue receipts of $10.5 million, interest income received of $0.3 million and
favorable working capital of $0.1 million. These amounts were partially offset
by management fees of $1.6 million, MMS prepayments for estimated potential
royalties totaling $1.4 million, payments to affiliates of $0.7 million for
amounts outstanding at December 31, 2007, general and administrative expenses
of $0.6 million and operating expenses of $0.3 million.

Cash flows used in operating activities for the nine months ended
September 30, 2007 were $1.4 million, related to management fees of $1.7
million, general and administrative and other expenses of $0.5 million and
unfavorable working capital of $0.1 million partially offset by interest income
received of $0.9 million.

Investing Cash Flows

Cash flows used in investing activities for the nine months ended
September 30, 2008 were $11.7 million related to capital expenditures for oil
and gas properties totaling $14.6 million and investments in marketable
securities of $38.0 million, partially offset by proceeds from the maturity of
U.S. Treasury securities totaling $40.9 million. Additionally, the Fund
increased its salvage fund investments by $22 thousand, which consisted of the
interest earned on this account.

Cash 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 of
$65.3 million, partially offset by proceeds from the maturity of U.S. Treasury
securities of $51.6 million as well as insurance proceeds of $11.2 million
related to the West Delta 95 claim. Additionally, the Fund increased its
salvage fund investments by $38 thousand, which consisted of the interest
earned on this account.

16

---



Financing Cash Flows

Cash flows
used in financing activities were $6.0 million for nine months ended September
30, 2008 related to the payment of Manager and shareholder distributions.

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

Estimated Capital Expenditures

The Fund has
entered into multiple offshore 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, 2008, the Fund had
commitments related to participation agreements totaling $9.9 million for
properties.

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 and infrastructure
anticipated. 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.

Liquidity Needs

The Funds
primary short-term liquidity needs are to fund its operations, including
management fees and capital expenditures, with existing cash on-hand,
short-term investments and income earned therefrom. 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, net of cumulative dry-hole and
related well costs incurred by the Fund.

With respect
to the payment of management fees, 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 expected to be
sufficient to cover Fund expenses, including the management fee. However in
periods of declining interest rates, and as the Fund expends its capital on
projects, interest and/or dividend income may not be sufficient, which would
require the Fund to use capital contributions to fund such expenses. Generally,
it can take anywhere from 18 to 24 months to bring a project to production.
Once a well is on production, the management fee and fund expenses are paid
from operating income. Although the management fee can be paid out of capital
contributions, this is not the Funds intent.

Distributions
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.

Suspension of MMS
Royalty Relief

Under Mineral
Management Services (MMS) rules, the Fund is eligible for annual royalty
relief provided that the average New York Mercantile Exchange
(NYMEX) sales price for shallow water, deep gas (Average NYMEX Price)
does not exceed price thresholds established by the MMS, which will be
published during the first quarter of 2009. The Average NYMEX Price during the
nine months ended September 30, 2008 was $9.73. Based upon current estimations
of the 2008 price threshold by the MMS, in the event the Average NYMEX Price
exceeds $12.15 for the second half of 2008, royalty relief would be suspended
and the Fund would be obligated to pay its previously relieved MMS royalties.
In addition, the Funds future reserve estimates report for gas would be
reduced by 16.67%. The reduction in revenues resulting from an obligation to
pay these royalties and subsequent reduction of proved reserves could have a
material adverse effect on the Funds results of operations. If the Average
NYMEX Price is below the threshold established by the MMS, the Fund would not
have an obligation to pay royalties for those properties which qualify for royalty
relief and the reserve balances would not be reduced. With regard to the
shallow water, deep gas properties, there was no reduction in reserves for
potential future royalties as of December 31, 2007 as a result of the
average 2007 NYMEX price for gas being below the price threshold.

17

---



The Funds gas
revenues for the nine months ended September 30, 2008 would be reduced by $1.1
million if the 2008 annual Average NYMEX Price ultimately exceeds the price
threshold established by the MMS. At September 30, 2008, the Fund has not
recorded a liability associated with this contingency, based upon the Managers
assessment of its probability; however, the Fund has prepaid the MMS this
amount to avoid the incurrence of potential interest charges.

Off-Balance Sheet Arrangements

The Fund had
no off-balance sheet arrangements as of September 30, 2008 and December 31,
2007 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, an
Operator enters into various contractual commitments pertaining to exploration,
development and production activities. The Fund does not discuss or negotiate
any such contracts. No contractual obligations exist at September 30, 2008 and
December 31, 2007 other than those discussed in Estimated Capital
Expenditures above.

ITEM 3. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK

Not required.

ITEM 4. CONTROLS AND PROCEDURES

In accordance
with Exchange Act Rules 13a-15 and 15d-15, the Fund carried out an
evaluation, under the supervision and with the participation of management,
including its Chief Executive Officer and Chief Financial Officer, of the
effectiveness of our disclosure controls and procedures as of the end of the
period covered by this report. Based on that evaluation, our Chief Executive
Officer and Chief Financial Officer concluded that the Funds disclosure
controls and procedures were effective as of September 30, 2008.

There has been
no change in the Funds internal control over financial reporting that occurred
during the three months ended September 30, 2008 that has materially affected,
or is 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

Not required.

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.

18

---



ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

|                |  |                                                                                                                                                                                                                                                              | 
|--------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 
|EXHIBIT
 NUMBER |  | TITLE OF EXHIBIT                                                                                                                                                                                                                                             | 
|                |  |                                                                                                                                                                                                                                                              | 
|10.1            |  | Participation
 Agreement between El Paso E&P Company, L.P. and Ridgewood Energy
 Corporation as Manager and LLOG Exploration Offshore, Inc. for South Marsh
 Island Block 213. (previously filed)                                                           
|                |  |                                                                                                                                                                                                                                                             
|10.2            |  | Participation
 Agreement between LLOG Exploration Offshore, Inc. and Ridgewood Energy
 Corporation as Manager for the Liberty Project. (previously filed)                                                                                                   
|                |  |                                                                                                                                                                                                                                                             
|10.3            |  | Participation
 Agreement between PetroQuest Energy, L.L.C. and Ridgewood Energy Corporation
 as Manager for the Ruby Project. (previously filed)                                                                                                            
|                |  |                                                                                                                                                                                                                                                             
|10.4            |  | Participation
 Agreement between LLOG Exploration Offshore, Inc., Mariner Energy, Inc.,
 Stone Energy Corporation and Ridgewood Energy Corporation as Manager for the
 Eos Project.                                                                         
|                |  |                                                                                                                                                                                                                                                             
|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.

19

---



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 10, 2008 |  |     |        |  | 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 10, 2008 |  |     |        |  |                                                      
|                          |  | By: | /s/    |  | KATHLEEN P.
 McSHERRY                                
|                          |  |     |        |  |                                                      
|                          |  |     | Name:  |  | Kathleen P.
 McSherry                                
|                          |  |     | Title: |  | Executive
 Vice President and Chief Financial Officer
|                          |  |     |        |  | (Principal
 Financial and Accounting Officer)        

20

---