# ** **

# **UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

# **Washington, D.C. 20549**

# ** **

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## **FORM10-Q**

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# **QUARTERLY REPORT PURSUANT TOSECTION 13 OR 15(d) OF**

# **THE SECURITIES EXCHANGE ACT OF 1934**

 

**For the quarterly period endedSeptember 30, 2007**

 

**Commission File Number: 333-122935-04**

 

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

(Exact name of registrant as specified in its charter)

 

| **Nevada**(State or other jurisdiction of  incorporation or organization)                                                       | ** ** | **20-8785577**(I.R.S. employer  identification no.)                          |
|---------------------------------------------------------------------------------------------------------------------------------|------------|------------------------------------------------------------------------------|
| ** **                                                                                                                      | ** ** | ** **                                                                   |
| **1901 N. Central Expressway, Suite 300  Richardson, Texas 75080**(Address of principal executive offices,  including zip code) | ** ** | **(972) 437-6792**(Registrant’s telephone number,  including area code) |

** **

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

 

Indicate by check markwhether the registrant is a large accelerated filer, an accelerated filer, or anon-accelerated filer. See definition of “accelerated filer and largeaccelerated filer” in Rule 12b-2 of the Exchange Act
| Large accelerated  filer o |   | Accelerated  filer o |   | Non-accelerated  filer x |
|----------------------------|--------|----------------------|--------|--------------------------|

 

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

 

**As ofNovember 14, 2007, the registrant had 22.792 units held by the managing generalpartner, 370.561 units of additional general partner interest and 62.480 unitsof limited partner interest outstanding.**

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

**Index**

 
| **PART  I — FINANCIAL INFORMATION**                                                                            |   |
|---------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                |   |
| **ITEM 1. FINANCIAL STATEMENTS  (Unaudited)**                                                                       |   |
| *Condensed Balance Sheet*                                                                                           |   |
| *Condensed Statement of  Operations*                                                                                |   |
| *Condensed Statement of Cash  Flows*                                                                                |   |
| *Notes to Condensed Financial  Statements*                                                                          |   |
|                                                                                                                |   |
| **ITEM  2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND  RESULTS OF OPERATIONS** |   |
|                                                                                                                |   |
| **ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**                                             |   |
|                                                                                                                |   |
| **ITEM 4. CONTROLS AND  PROCEDURES**                                                                                |   |
|                                                                                                                |   |
| **PART II — OTHER  INFORMATION**                                                                               |   |
|                                                                                                                |   |
| **ITEM 1. LEGAL PROCEEDINGS**                                                                                       |   |
|                                                                                                                |   |
| **ITEM 1A. RISK FACTORS**                                                                                           |   |
|                                                                                                                |   |
| **ITEM 2. UNREGISTERED  SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**                                            |   |
|                                                                                                                |   |
| **ITEM 3.  DEFAULTS UPON SENIOR SECURITIES**                                                                        |   |
|                                                                                                                |   |
| **ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**                                                    |   |
|                                                                                                                |   |
| **ITEM 5. OTHER INFORMATION**                                                                                       |   |
|                                                                                                                |   |
| **ITEM 6. EXHIBITS**                                                                                                |   |
|                                                                                                                |   |
| **SIGNATURES**                                                                                                      |   |

 

 

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# **PART I FINANCIAL INFORMATION**

# ** **

## **Item 1. Financial Statements**

## ** **

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

**Condensed Balance Sheet**

 
| ** **                                                   | ** ** | **September 30,** | ** **     |
|--------------------------------------------------------------|------------|------------------------|----------------|
| ** **                                                   | ** ** | **2007**               | ** **     |
| ** **                                                   | ** ** | **(Unaudited)**        | ** **     |
|                                                         |       |                   |           |
| **Assets**                                                   |       |                   |           |
|                                                         |       |                   |           |
| **Current  assets:**                                         |       |                   |           |
| Cash and cash  equivalents                                   | ** ** | $                      | 8,387,411      |   |
| Accounts  receivable from affiliates                         |       | 19,591                 |           |
| **Total  current assets**                                    | ** ** | **8,407,002**          | ** **     |
|                                                         |       |                   |           |
| **Oil and  gas properties, full cost method of accounting:** |       |                   |           |
| Proved  properties, net of accumulated depletion of $0       |       | 2,076,606              |           |
| Unproved  properties                                         |       | 650,454                |           |
| **Net oil  and gas properties**                              | ** ** | **2,727,060**          | ** **     |
| ** **                                                   | ** ** | ** **             | ** **     |
| **Total  assets**                                            | ** ** | **$**                  | **11,134,062** | ** ** |
|                                                         |       |                   |           |
| **Liabilities  and partnership Equity**                      |       |                   |           |
|                                                         |       |                   |           |
| **Current  liabilities:**                                    |       |                   |           |
| Accounts payable  to affiliates                              |       | $                      | 1,336,299      |   |
| **Total  current liabilities**                               | ** ** | **1,336,299**          | ** **     |
|                                                         |       |                   |           |
| **Partnership  Equity**                                      |       |                   |           |
| General partners                                             |       | 7,940,788              |           |
| Limited partners                                             |       | 1,338,890              |           |
| Managing general  partner                                    |       | 518,085                |           |
| **Partnership  equity**                                      | ** ** | **9,797,763**          | ** **     |
| ** **                                                   | ** ** | ** **             | ** **     |
| **Total  liabilities and partnership equity**                | ** ** | **$**                  | **11,134,062** | ** ** |

 

*See accompanying notes to condensed financialstatements.*

 

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

**Condensed Statement of Operations**

 
| ** **                                    | ** ** | **Three months  ended  September 30,  2007** | ** ** | **Period from  inception (April  6, 2007) to  September 30,  2007** | ** ** |
|-----------------------------------------------|------------|--------------------------------------------------------|------------|----------------------------------------------------------------------------------------------|------------|
| ** **                                    | ** ** | **(Unaudited)**                                        | ** ** | **(Unaudited)**                                                                              | ** ** |
| ** **                                    | ** ** | ** **                                             | ** ** | ** **                                                                                   | ** ** |
| **Costs  and expenses:**                      | ** ** | ** **                                             | ** ** | ** **                                                                                   | ** ** |
| General and  administrative expenses          |       | $                                                      | 6,658      |                                                                                         | $          | 7,384 |   |
| Organization  expenses                        |       | —                                                 |       | 50,000                                                                                       |       |
| **Total  costs and expenses**                 | ** ** | **6,658**                                              | ** ** | **57,384**                                                                                   | ** ** |
| ** **                                    | ** ** | ** **                                             | ** ** | ** **                                                                                   | ** ** |
| **Loss  from operations**                     | ** ** | **(6,658**                                             | **)**      | **(57,384**                                                                                  | **)**      |
| ** **                                    | ** ** | ** **                                             | ** ** | ** **                                                                                   | ** ** |
| **Other  income:**                            | ** ** | ** **                                             | ** ** | ** **                                                                                   | ** ** |
| Interest income                               |       | 73,989                                                 |       | 99,110                                                                                       |       |
| **Total  other income**                       | ** ** | **73,989**                                             | ** ** | **99,110**                                                                                   | ** ** |
| ** **                                    | ** ** | ** **                                             | ** ** | ** **                                                                                   | ** ** |
| **Net  income**                               | ** ** | **$**                                                  | **67,331** | ** **                                                                                   | **$**      | **41,726** | ** ** |
| ** **                                    | ** ** | ** **                                             | ** ** | ** **                                                                                   | ** ** |
| Net income per  general partner unit          |       | $                                                      | 148.75     |                                                                                         | $          | 63.63 |   |
| Net income per  limited partner unit          |       | $                                                      | 148.75     |                                                                                         | $          | 63.63 |   |
| Net income per  managing general partner unit |       | $                                                      | 414.32     |                                                                                         | $          | 621.82 |   |

 

*See accompanying notes tocondensed financial statements.*

 

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

**Condensed Statement of Cash Flows**

 
| ** **                                                                            | ** ** | **Period from  inception (April  6, 2007) to  September 30,  2007** | ** **    |
|---------------------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------------|---------------|
| ** **                                                                            | ** ** | **(Unaudited)**                                                                              | ** **    |
|                                                                                  |       |                                                                                         |          |
| **Operating  Activities**                                                             |       |                                                                                         |          |
| Net income                                                                            |       | $                                                                                            | 41,726        |   |
| Adjustments to  reconcile net income to net cash provided by in operating activities: | ** ** | ** **                                                                                   | ** **    |
| **Changes  in operating assets and liabilities:**                                     | ** ** | ** **                                                                                   | ** **    |
| Accounts payable  to affiliates                                                       |       | 48,647                                                                                       |          |
| **Net  cash provided by operating activities**                                        | ** ** | **90,373**                                                                                   | ** **    |
| ** **                                                                            | ** ** | ** **                                                                                   | ** **    |
| **Investing  Activities**                                                             | ** ** | ** **                                                                                   | ** **    |
| Property  acquisition and development                                                 |       | (1,593,120                                                                                   | )             |
| **Net  cash used in investing activities**                                            | ** ** | **(1,593,120**                                                                               | **)**         |
| ** **                                                                            | ** ** | ** **                                                                                   | ** **    |
| **Financing  Activities**                                                             | ** ** | ** **                                                                                   | ** **    |
| Partner capital  contributions                                                        |       | 11,310,350                                                                                   |          |
| Offering costs                                                                        |       | (1,420,192                                                                                   | )             |
| **Net  cash provided by financing activities**                                        | ** ** | **9,890,158**                                                                                | ** **    |
| ** **                                                                            | ** ** | ** **                                                                                   | ** **    |
| **Net  increase in cash and cash equivalents**                                        | ** ** | **8,387,411**                                                                                | ** **    |
| Cash and cash  equivalents at inception                                               |       | —                                                                                       |          |
| **Cash  and cash equivalents at end of period**                                       | ** ** | **$**                                                                                        | **8,387,411** | ** ** |
| ** **                                                                            | ** ** | ** **                                                                                   | ** **    |
| Non-cash  investing transactions:                                                     | ** ** | ** **                                                                                   | ** **    |
| Property  additions included in accounts payable to affiliates                        |       | $                                                                                            | 1,133,940     |   |
| Non-cash  financing transactions:                                                     |       |                                                                                         |          |
| Managing partner  contributions included in accounts receivable from affiliates       |       | $                                                                                            | 19,591        |   |
| Offering costs  included in accounts payable to affiliates                            |       | $                                                                                            | 153,712       |   |

 

*See accompanying notes to condensedfinancial statements.*

 

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**ReefGlobal Energy IX, L.P.**

**Notes to Condensed Financial Statements(unaudited)**

**September 30, 2007**

 

**1.Organization and Basis of Presentation**

 

ReefGlobal Energy IX, L.P. (the Partnership) is the fourth in a series of fourNevada limited partnerships comprising a program called Reef Global EnergyVentures II (the Program), pursuant to an S-1 Registration Statement declaredeffective by the Securities and Exchange Commission (the SEC) on July 7, 2005.In order to be formed, each partnership was required to sell a minimum of 40partnership units at $25,000 per unit, including units purchased by themanaging general partner. The Program was authorized to sell up to 1,600 limitedpartner units and 6,400 general partner units during the period beginning July8, 2005 thru July 7, 2007. Reef Global Energy IX, L.P. offered 2,000 units forsale ($50,000,000), consisting of up to 400 limited partner units and up to1,600 general partner units. Investor funds were held in escrow and weresubject to reimbursement with interest if the minimum number of units was notsold. The Program filed a prospectus supplement with the SEC on February 15,2007 describing the Partnership, and commenced offering units in thePartnership. Upon reaching the minimum subscription level, the Partnership wasformed on April 6, 2007. The Partnership offering closed July 7, 2007, withsales to outside investors totaling 370.561 general partner units and 62.480limited partner units, and sales to the managing general partner totaling22.792 general partner units.

 

ThePartnership is a Nevada limited partnership formed under the Nevada UniformLimited Partnership Act. Reef Oil & Gas Partners, L.P. (Reef) serves as thePartnership’s managing general partner. Partnership interests are held by themanaging general partner and investor partners who are general and limitedpartners (investor partners). The managing general partner received a 10%interest in the Partnership as compensation for forming the Partnership, andalso holds a 1% interest in the Partnership as a result of paying 1% of allleasehold, drilling and completion costs when incurred. This 11% interest isnot represented by Partnership units. In addition, Reef purchased 5% of thePartnership units and, therefore, holds 5% of the 89% interest in thePartnership (4.45%) held by the unit holders. The Partnership purchases workinginterests in exploratory and developmental drilling prospects and drills oiland gas wells located primarily onshore in the continental United States. Otherpartnerships formed as a part of this Program, as well as other privatedrilling partnerships managed by Reef may also own interests in the wellspurchased by this Partnership. In instances where Reef affiliated entities owna majority interest in a well, the well may be operated by Reef Exploration,L.P. (RELP), an affiliate of the managing general partner. The Partnershipbegan drilling activities during July 2007. As of September 30, 2007, thePartnership has purchased working interests in two developmental prospects uponwhich a total of nine wells are expected to be drilled. The Partnership expectsto purchase working interests in additional prospects and conduct drillingactivities during 2007 and 2008 on those prospects purchased by thePartnership.

 

Duringthe year following completion of the drilling phase of the Partnership, allinvestor general partner units will be converted into limited partner units.Limited partners do not have any rights to convert their units to generalpartner units.

 

Underthe terms of the partnership agreement, certain expense items are allocateddifferently between the managing general partner and the investor partners.Organization and offering costs are allocated 100% to investor partners as themanaging general partner purchases its units net of the 15% fee fororganization and offering costs. Cash distributions to partners of the net cashflow from interest income and oil and gas sales revenues, less operating,general and administrative, and other costs will be distributed 15.45% to themanaging general partner (based upon the 11% interest not represented by unitsand the 4.45% interest represented by Partnership units) and 84.55% to investorpartners. Cash distributions to partners are expected to begin during thefourth quarter of 2007.

 

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**2.Summary of Accounting Policies**

 

**Use ofEstimates**

 

Thepreparation of financial statements in conformity with accounting principlesgenerally accepted in the United States of America requires management to makeestimates and assumptions that affect the amounts reported in the financialstatements and accompanying notes. Actual results could differ from these estimates.

 

**Cashand Cash Equivalents**

 

ThePartnership considers all highly liquid investments with maturity dates of nomore than three months from the purchase date to be cash equivalents. Cash andcash equivalents consist of demand deposits and money market investmentsinvested with a major national bank. The carrying value of the Partnership’scash equivalents approximates fair value.

 

**Risksand Uncertainties**

 

Historically,the oil and gas market has experienced significant price fluctuations. Pricesare impacted by various factors, including, but not limited to, local weather,supply in the area, availability and price of competitive fuels, seasonalvariations in local demand, limited transportation capacity to other regions,and the worldwide supply and demand balance for crude oil.

 

ThePartnership does not expect to engage in commodity futures trading or hedgingactivities and does not expect to enter into derivative financial instrumenttransactions for trading or other speculative purposes. Accordingly, thePartnership is at risk for the volatility in commodity prices inherent in theoil and gas industry, and the level of commodity prices will have a significantimpact on the Partnership’s results of operations.

 

**Organizationand Offering Costs**

 

Organizationand offering costs total 15% of investor capital contributions, except forunits purchased by the managing general partner, which are purchased net of the15% cost. Partnership organization costs totaling $50,000 have been expensed inthe financial statements for the period from inception (April 6, 2007) toSeptember 30, 2007. Offering costs represent costs incurred in conjunction withthe offering of partnership units. These costs, totaling $1,573,904, have beenrecorded as a reduction of the proceeds of the offering.

 

**Oil andGas Properties**

 

The Partnership followsthe full cost method of accounting for crude oil and natural gas properties.Under this method, all direct costs and certain indirect costs associated withacquisition of properties and successful as well as unsuccessful explorationand development activities are capitalized. Depreciation, depletion, andamortization of capitalized crude oil and natural gas properties and estimatedfuture development costs, excluding unproved properties, are based on theunit-of-production method using proved reserves. Proved gas reserves areconverted to equivalent barrels at a rate of 6 Mcf to 1 Bbl. Net capitalizedcosts of crude oil and natural gas properties, as adjusted for asset retirementobligations, are limited to the lower of unamortized cost or the cost ceiling,defined as the sum of the present value of estimated future net revenues fromproved reserves based on un-escalated prices discounted at 10 percent, plus thecost of properties not being amortized, if any, plus the lower of cost orestimated fair value of unproved properties included in the costs beingamortized, if any. Pursuant to full cost accounting rules, the Partnershipperforms a ceiling test quarterly as of the balance sheet date on its provedoil and gas properties. Excess capitalized costs are charged to propertyimpairment expense. No gain or loss is recognized upon sale or disposition ofproved crude oil and natural gas properties, except in unusual circumstances.Unproved properties consist of undeveloped leasehold interests. Investments inunproved properties are not depleted pending determination of the existence ofproved reserves. Unproved properties are assessed for impairment quarterly asof the balance sheet date by considering the remaining lease term as well asgeographic and geologic data obtained

 

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relating to theproperties. During the three month period ended September 30, 2007 and theperiod from inception (April 6, 2007) to September 30, 2007, the Partnershiprecognized no property impairment expense.

 

**Restoration, Removal, andEnvironmental Liabilities**

 

ThePartnership is subject to extensive Federal, state and local environmental lawsand regulations. These laws regulate the discharge of materials into theenvironment and may require the Partnership to remove or mitigate theenvironmental effects of the disposal or release of petroleum substances atvarious sites. Environmental expenditures are expensed or capitalized dependingon their future economic benefit. Expenditures that relate to an existingcondition caused by past operations and that have no future economic benefitare expensed.

 

Liabilitiesfor expenditures of a non-capital nature are recorded when environmentalassessments and/or remediation is probable, and the costs can be reasonablyestimated. Such liabilities are generally undiscounted values unless the timingof cash payments for the liability or component is fixed or reliablydeterminable.

 

Statementof Financial Accounting Standards No. 143, “Accounting for RetirementObligations” (SFAS 143) addresses accounting and reporting for obligationsassociated with the retirement of tangible long-lived assets and the associatedasset retirement costs. SFAS 143 requires that the fair value of a liabilityfor an asset’s retirement obligation be recorded in the period in which it isincurred and the corresponding cost capitalized by increasing the carryingamount of the related long-lived asset. The liability is accreted to its thenpresent value each period, and the capitalized cost is depreciated over theuseful life of the related asset. As of September 30, 2007 thePartnership had no productive long-lived assets and therefore had no assetretirement obligations.

 

**Recognitionof Revenue**

 

The Partnership expectsto enter into sales contracts for disposition of its share of oil and gasproduction from productive wells. Revenues are recognized based upon thePartnership’s share of metered volumes delivered to its purchasers each month.

 

Gas imbalances sometimesoccur when certain working interest parties do not take their entitled share ofgas production. The Partnership will utilize the sales method of accounting forrecording imbalances. Under this method, the Partnership records as revenue allgas delivered for its account. Any significant over or under balanced gaspositions will be recorded in the financial statements. As of September 30,2007, the Partnership had no oil and gas production, and, therefore, had no gasimbalances.

 

**IncomeTaxes**

 

ThePartnership’s net income or loss flows directly through to its partners, whoare responsible for the payment of Federal taxes on their respective share ofany income or loss. Therefore, there is no provision for federal income taxesin the accompanying financial statements.

 

**3.Transactions with Affiliates**

 

Reef, as the managinggeneral partner, contributes 1% of all leasehold, drilling and completion costswhen incurred. In addition, Reef purchased 5% of the Partnership units and pays5% of the 99% of these costs paid by the unit holders (4.95%). During the threemonth period ended September 30, 2007 and the period from inception (April 6,2007) to September 30, 2007, this 1% obligation totaled $19,591 and $19,591.This obligation for the third quarter is shown in accounts receivable fromaffiliates on the accompanying balance sheet. The Partnership settles itsbalances with Reef on a quarterly basis.

 

RELP, an affiliate ofReef, processes joint interest billings on behalf of the Partnership. AtSeptember 30, 2007, the Partnership owed RELP $1,016,396 for net drillinginvoices processed by RELP on behalf of the Partnership. The Partnershipsettles its balances with RELP on a quarterly basis.

 

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The Partnership has noemployees. RELP employs a staff including geologists, petroleum engineers,landmen and accounting personnel who administer all of the Partnership’soperations. The Partnership reimburses RELP for technical and administrativeservices at cost. During the three month period ended September 30, 2007 andthe period from inception (April 6, 2007) to September 30, 2007, thePartnership incurred technical services costs totaling $117,544 and $117,544,which have been capitalized as project costs. At September 30, 2007, thepartnership owed RELP $117,544 for technical services.

 

 Accounts payable to affiliates at September30, 2007 also includes $202,359 for the unpaid portion of the 15% managementfee due Reef for organization and offering costs, including sales commissions.The management fee is payable in two parts. Reef receives reimbursement foractual commissions and organization and offering costs as incurred. Theremaining balance will be paid to Reef from cash flows available for partnerdistributions, at a rate not to exceed $1 million per year. The September 30,2007 balance includes $48,647 for actual commissions and organization andoffering costs which will be paid to Reef during the fourth quarter of 2007, and$153,712 to be paid from cash flows available for partner distributions. ThePartnership expects to begin recovery of the $153,712 unpaid management fee inJanuary 2008.

 

Ifan affiliate of Reef serves as operator of a Partnership prospect, thenoperator fees will be payable to the affiliate. Under such circumstances, suchaffiliate will receive fees at the competitive rate in the area during thedrilling and production phase of operations. Often these are charged as amonthly fee per well as agreed to in an operating agreement signed by thePartnership as well as outside third party working interests in the well.During the third quarter, the Partnership paid $7,015 of drilling fees and $0of operator fees to RELP in connection with this obligation.

 

**4. MajorCustomers**

 

ThePartnership will sell crude oil and natural gas on credit terms to refiners,pipelines, marketers, and other users of petroleum commodities. Revenues willbe received directly from these parties or, in certain circumstances, paid tothe operator of the property who disburses to the Partnership its percentageshare of the revenues. As of September 30, 2007, the Partnership had no oil andgas production and, therefore, had no customers. Due to the competitive natureof the market for purchase of crude oil and natural gas, the Partnership doesnot believe that the loss of any particular purchaser would have a materialadverse impact on the Partnership.

 

**5.Commitments and Contingencies**

 

ThePartnership is not currently involved in any legal proceedings.

 

**6.Partnership Equity**

 

Salesof Partnership units began on February 15, 2007. Proceeds received were placedinto an interest bearing escrow account until the Partnership reached theminimum subscription level of 40 units. The Partnership was formed on April 6,2007, and the sale of Partnership units was closed on July 7, 2007. Thepartnership raised $10,826,028 from the sale of 433.041 Partnership units toinvestor partners. Reef purchased 22.792 units (5%) for $484,322. Reef willalso contribute 1% of all leasehold, drilling, and completion costs whenincurred, in addition to paying its pro rata share (4.95%) of the leasehold,drilling, and completion costs paid by the Partnership. As of September 30,2007, Reef had accrued $19,591in connection with this obligation, which waspaid to the Partnership in November 2007.

 

ThePartnership has $9,706,037 available for Partnership oil and gas operations,net of the 15% management fee of $1,623,904. This amount includes fundsreceived from the sale of Partnership units, plus the $19,591 additional 1%capital contribution accrued at September 30, 2007. Of the $1,623,904management fee, offering costs were $1,573,904 and organization costs were$50,000.

 

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

 

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**7.Partnership Projects**

 

Asof September 30, 2007, the Partnership has purchased working interests in twodevelopmental prospects operated by RELP upon which a total of nine wells areexpected to be drilled. At September 30, 2007, three wells had completeddrilling on a prospect where a total of eight developmental wells are expectedto be drilled before December 31, 2007. These three wells were being completedat September 30. Production from these three wells is expected to beginsometime during November 2007, as soon as RELP completes construction of a gassales line. Drilling operations are continuing on the other five wells on thisprospect. Another developmental well on a second prospect is currently drillingas of the date of this report. The Partnership expects to purchase workinginterests in additional prospects and conduct drilling operations during 2007and 2008 on those prospects. The Partnership expects to drill a total ofapproximately 10-12 wells with the capital raised by the Partnership.

 

**Item 2. Management’s Discussion and Analysis of FinancialCondition and Results of Operations.**

 

The following is a discussion of the Partnership’s financialposition, results of operations, liquidity and capital resources. Theinformation below should be read in conjunction with the condensed financial statementsand the related notes to the condensed financial statements.

 

This Report on Form 10-Qcontains forward-looking statements that involve risks and uncertainties. Youshould exercise extreme caution with respect to all forward-looking statementsmade in this Report.  Specifically, the following statements areforward-looking:

 

•                                     statementsregarding the Partnership’s overall strategy for acquiring prospects, includingits intent to diversify the Partnership’s investments;

 

•                                     statementsestimating any number or specific type or size of prospects the Partnership mayacquire or size of the interest the Partnership may acquire in such prospects;

 

•                                     statementsregarding the state of the oil and gas industry and the opportunity to profitwithin the oil and gas industry, competition, pricing, level of production, orthe regulations that may affect the Partnership;

 

•                                     statementsregarding the plans and objectives of Reef for future operations, including,without limitation, the uses of Partnership funds and the size and nature ofthe costs the Partnership expects to incur and people and services thePartnership may employ;

 

•                                     anystatements using the words “anticipate,” “believe,” “estimate,” “expect” andsimilar such phrases or words; and

 

•                                     anystatements of other than historical fact.

 

Reef believes that it isimportant to communicate its future expectations to the partners. Forward-looking statements reflect the current view of management with respectto future events and are subject to numerous risks, uncertainties andassumptions, including, without limitation, the factors listed in thesection captioned “RISK FACTORS” contained in the Program’s prospectusdated July 14, 2006 and prospectus supplement dated February 15, 2007. AlthoughReef believes that the expectations reflected in such forward-lookingstatements are reasonable, Reef can give no assurance that such expectationswill prove to have been correct.  Should any one or more of these or otherrisks or uncertainties materialize or should any underlying assumptions proveincorrect, actual results are likely to vary materially from those describedherein.  There can be no assurance that the projected results will occur,that these judgments or assumptions will prove correct or that unforeseen developmentswill not occur.

 

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

 

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**Overview**

 

ReefGlobal Energy IX, L.P. is a Nevada limited partnership formed to acquire,explore, develop and produce crude oil, natural gas, and natural gas liquidsfor the benefit of its investor partners. The Partnership’s primary purposesare to generate revenues from the production of oil and gas, distribute cashflow to investors, and provide tax benefits to investors. The majority of thePartnership’s proceeds will be used to purchase prospects upon which thePartnership will conduct drilling operations, and to pay for such drillingoperations.

 

Todate, the Partnership has purchased working interests in two developmentalprospects operated by RELP - one located in Texas and one in New Mexico, uponwhich it expects to drill a total of nine developmental wells. The Partnershipexpects to purchase interests in additional prospects and drill approximately10-12 wells in total with its available capital. The Partnership expects tooperate solely in the United States, although there are no restrictions regardingprospect locations. RELP and its predecessor entity, OREI, Inc., haveexpertise and have drilled and operated wells primarily in Texas and Louisianasince 1987.

 

ThePartnership does not operate in any other industry segment. Should any prospectin which the Partnership has an interest be determined to warrant additionaldevelopment activity, the Partnership may borrow any amount up to 25% ofthe Partnership’s aggregate capital contributions without the consent of theinvestor partners, provided the lender agrees it will have no recourse againstindividual investor partners. The Partnership is prohibited from issuingadditional cash calls to investor partners. Total borrowings cannot exceed 25%of the Partnership’s aggregate capital contributions without the approval ofthe investor partners. The Partnership is not allowed to borrow funds duringthe drilling phase of Partnership operations. Should the Partnership elect toborrow monies for additional development activity on Partnership properties, itwill be subject to the interest rate risk inherent in borrowing activities. ThePartnership is permitted but has not and is not expected to engage in commodityfutures trading or hedging activities, and therefore is subject to commodityprice risk.  See “Item 3—Quantitative andQualitative Disclosures About Market Risk.”

 

**Critical AccountingPolicies**

 

Thepreparation of financial statements in conformity with accounting principlesgenerally accepted in the United States requires us to make estimates and use assumptionsthat can affect the reporting of assets, liabilities,equity, revenues, and expenses. We base our estimates on historical experienceand various other assumptions that are believed to be reasonable under thecircumstances. Actual results may differ from these estimates underdifferent assumptions or conditions. We are also required to select amongalternative acceptable accounting policies. See Note 2 to the condensedfinancial statements for a complete list of significant accounting policies.

 

**Oil and Gas Properties**

 

ThePartnership follows the full cost method of accounting for crude oil andnatural gas properties. Under this method, all direct costs and certainindirect costs associated with acquisition of properties and successful as wellas unsuccessful exploration and development activities are capitalized.Depreciation, depletion, and amortization of capitalized crude oil and naturalgas properties and estimated future development costs, excluding unprovedproperties, are based on the unit-of-production method using proved reserves. Provedgas reserves are converted to equivalent barrels at a rate of 6 Mcf to 1 Bbl.Net capitalized costs of crude oil and natural gas properties, as adjusted forasset retirement obligations, are limited to the lower of unamortized cost orthe cost ceiling, defined as the sum of the present value of estimated futurenet revenues from proved reserves based on un-escalated prices discounted at 10percent, plus the cost of properties not being amortized, if any, plus thelower of cost or estimated fair value of unproved properties included in thecosts being amortized, if any. Pursuant to full cost accounting rules, thePartnership performs a ceiling test quarterly as of the balance sheet date onits proved oil and gas properties. Excess capitalized costs are charged toproperty impairment expense. No gain or loss is recognized upon sale ordisposition of proved crude oil and natural gas properties, except in unusualcircumstances. Unproved properties consist of undeveloped leasehold interests.Investments in unproved properties are not depleted pending determination ofthe existence of proved reserves. Unproved properties are assessed forimpairment quarterly as of the balance sheet date by considering the remaining leaseterm as well as geographic and geologic data obtained relating to theproperties. During the three month period ended September 30, 2007 and theperiod from inception (April 6, 2007) to September 30, 2007, thePartnership recognized no property impairment expense.

 

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The estimate of proved oil and gas reservesused to determine property impairment expense, and also utilized in thePartnership’s disclosures of supplemental information regarding oil and gasproducing activities, including the standardized measure of discounted cashflows, is prepared by a petroleum engineer employed by RELP utilizing theperiod end prices and costs as promulgated by the SEC. Reserve engineering is asubjective and inexact process of estimating underground accumulations of oiland natural gas that cannot be measured in an exact manner. The accuracy of anyreserve estimate is a function of the quality of available data and ofengineering and geological interpretation and judgment. Accordingly, reserveestimates may be subject to upward or downward adjustments. Actualproduction, revenues and expenditures with respect to reserves will likely varyfrom estimates, and such variances could be material.

 

The determination of depreciation,depletion and amortization expense recognized in the financial statements isalso dependent upon the estimates of proved oil and gas reserves. ThePartnership utilizes a petroleum engineer employed by RELP to prepare anestimate of proved reserves, utilizing the period end prices and costs aspromulgated by the SEC, which is used to determine depreciation, depletion andamortization for financial statement purposes. Depreciation, depletion andamortization expense is computed using the units-of-production method basedupon this estimate of proved reserves. During the period from inception (April 6,2007) to September 30, 2007, the Partnership had no production of provedreserves and therefore has no depreciation, depletion, and amortization expense.

 

The Partnership follows Statement ofFinancial Accounting Standards No. 143, “Accounting for Asset RetirementObligations,” for all productive oil and gas wells drilled by the Partnership.This statement requires the Partnership to estimate the fair value of assetretirement obligations (dismantlement and abandonment of oil and gas wells andsite restoration) in the period in which the asset is placed in service. Theliability recognized is offset by a corresponding increase in the carryingvalue of the asset. Each period the liability is accreted to its net presentvalue with a corresponding charge to accretion expense, and the additionalasset cost is amortized using the units-of-production method. Upon settlementof the obligation a gain or loss is recognized to the extent actual charges areless than or exceed the liability recorded. As of September 30, 2007, thePartnership had no productive long-lived assets and therefore had no assetretirement obligations.

 

**Recognition of Revenue**

 

The Partnership will enter into salescontracts for disposition of its share of oil and gas production fromproductive wells. Revenue is recognized based upon the metered volumesdelivered to those purchasers each month.

 

Gas imbalances sometimes occur when certainworking interest parties do not take their entitled share of gas production.The Partnership will utilize the sales method of accounting for recording gasimbalances. Under this method, the Partnership will record as revenue all gasdelivered for its account. Any significant over or under balanced gas positionswill be disclosed in the financial statements. As of September 30, 2007,the Partnership had no gas production and therefore had no gas imbalances.

 

For a discussion of risk factors that couldimpact the Partnership’s financial results, please see Item 1A of this Report.

 

**Liquidity and Capital Resources**

 

Duringthe offering period, the Partnership raised $10,826,028 from the sale of433.041 Partnership units to investor partners. Reef purchased 5% of the totalpartnership units (22.792 units) for $484,322. Reef will alsocontribute 1% of all leasehold, drilling, and completion costs when incurred,in addition to paying its pro rata share (4.95%) of the leasehold, drilling,and completion costs paid by the Partnership. As of September 30, 2007,Reef had accrued $19,591 in connection with its obligation to pay 1% of suchcosts. Organization and offering costs totaled $1,623,904, leaving thePartnership $9,706,037 for drilling operations and pre-production administrativecosts. These funds are expected to be expended over a period of approximatelytwelve months beginning in July 2007.

 

Todate, the Partnership has acquired working interests in two developmentalprospects with a total of nine planned wells having aggregate estimated costsof $8.38 million. During this quarter, the Partnership acquired a working

 

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interestin the Cole Ranch prospect located in Glasscock County, Texas and increased itsownership in the Sand Dunes prospect, located in Eddy County, New Mexico, from33% to 42%. Approximately $600,000 has been expended to acquire these leaseholdinterests. The Partnership will acquire additional working interests. Drillingactivity will be conducted solely with initial capital. Should additionaldevelopment activity on certain Partnership prospects be required, thePartnership Agreement allows the Partnership to either use available funds orborrow money from banks or other financial sources in any amount up to 25% ofPartnership capital contributions without investor partner consent. Anyaggregate borrowings in excess of 25% of Partnership capital contributions mustbe approved by the investor partners.

 

Duringthe quarter, the Partnership completed the drilling operations on the firstthree of a total of eight wells located on the Sand Dunes prospect in Eddy,County New Mexico. Completion operations and testing are currently in progress,and the Partnership will drill the remaining five wells on this prospect duringthe fourth quarter. Oil and gas production is expected to begin during thefourth quarter of 2007. The Partnership is currently drilling a developmentalwell on its Cole Ranch prospect in Glasscock County, Texas.

 

Untilinitial drilling operations are completed it is not known whether anyborrowings will be required for additional developmental activities. ThePartnership is prohibited from raising additional capital through voluntary orinvoluntary partner cash calls.

 

ThePartnership has working capital of $7,070,703 at September 30, 2007, whichincludes $99,110 of interest income available for distribution to investorpartners and $6,971,593 available for drilling operations and pre-productionadministrative costs. The Partnership has expended $2,734,444 to date inconnection with the purchase of leasehold interests, drilling activity, andpre-production administrative costs. The Partnership will expend all of thesefunds during the next 6-9 months. Because all nine of the currently budgeted wellsare expected to complete drilling prior to December 31, 2007, thePartnership expects to expend most of its remaining working capital during thefourth quarter of 2007. Subsequent to its drilling phase, the Partnership willhave minimal working capital, primarily consisting of cash and accountsreceivable from oil and gas sales, which the Partnership will use to paymonthly cash distributions to investors.

 

**Results of Operations**

 

Becausethe Partnership was formed on April 6, 2007, there is no comparableinformation for the three and nine month periods ended September 30, 2006.

 

**Three months ended September 30, 2007**

 

ThePartnership had net income of $67,331 during the three months ended September 30,2007. The Partnership earned $73,989 of interest income from the investment ofinvestor partner funds, offset by $6,658 of general and administrative costs.Drilling operations began in July 2007, and the Partnership completeddrilling operations on three wells in the Sand Dunes prospect in Eddy County,New Mexico. The Partnership expects to complete the drilling of nine totalwells prior to December 31, 2007, and it is expected that each of thewells capable of production in commercial quantities will begin productionoperations during the latter part of the fourth quarter. Interest incomeis expected to substantially decrease during the fourth quarter as investorcapital is expended on drilling operations. In addition, general andadministrative costs will begin increasing for such items as administrative servicesprovided by RELP, and for legal, accounting, and printing costs associated withthe Partnership’s required SEC filings. Results for the fourth quarter will behighly dependent upon when during the fourth quarter productive wells beginselling oil and gas. As of the date of this report, no wells are producing oiland gas. The Partnership is currently constructing a gas sales pipeline for itsSand Dunes prospect wells, and the Cole Ranch well is currently drilling.

 

**Period from Inception (April 6, 2007) thru September 30, 2007**

 

ThePartnership had net income of $41,726 for the period from inception (April 6,2007) to September 30, 2007. This includes interest income of $99,110earned from the investment of investor partner funds, offset by $50,000 of organizationexpenses (a one time charge) and $7,384 of general and administrative costs.During the period, the Partnership purchased an interest in two developmentalprospects upon which nine total wells are expected to be

 

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drilledand completed by December 31, 2007. The Partnership had no income from oiland gas sales as of September 30, and none of the wells are producing oiland gas as of the date of this report. All nine wells are expected to beginproduction operations during the latter portion of the fourth quarter. ThePartnership is currently constructing a gas sales pipeline for its Sand Dunesprospect wells, and the Cole Ranch well is currently drilling.

 

Interestincome from the investment of partner contributions will substantially decreaseduring the fourth quarter as funds are expended on drilling operations. Generaland administrative expenses will increase as the Partnership will beginincurring legal, accounting and printing costs in connection with required SECfilings. Administrative services costs provided by RELP will begin at such timeas the Partnership has production activities. Where possible, the Partnershipwill attempt to maximize intangible drilling cost deductions to investor partnersfor 2007 by prepaying costs associated with wells the Partnership expects tobegin drilling prior to March 31, 2008. Results for the fourth quarter andfor the year will be highly dependent upon when the Partnership’s wells beginselling oil and gas, and the levels of production from the wells.

 

Theoil and gas reserves associated with the nine wells currently being drilled bythe Partnership are classified as proved undeveloped reserves. The Partnershiphas no proved developed reserves at September 30, 2007. Net provedreserves at September 30, 2007 are presented below. The estimated provedreserves of the Partnership include only those quantities which are reasonablyexpected to be recovered from known oil and gas reservoirs under currenteconomic and operating conditions. Proved reserves include only quantities weexpect to recover commercially using current prices, costs, existing regulatorypractices, and technology. Therefore, any changes in future prices, costs,regulations, technology or other unforeseen factors could materially increaseor decrease the estimate of proved reserves. The estimates of proved reservesat September 30, 2007 use closing NYMEX prices of $81.66 per barrel and$6.87 per mmBtu, adjusted by property for energy content, quality andtransportation costs.

 
| Net proved reserves     |   | Oil  (BBL) |   | Gas  (MCF) |
|-------------------------|--------|------------|--------|------------|
| September 30, 2007 |   | 272,781    |   | 473,857    |

 

**Item 3. Quantitative and Qualitative Disclosures about Market Risk.**

 

**Interest Rate Risk**

 

ThePartnership Agreement allows borrowings from banks or other financial sourcesin any amount up to 25% of the Partnership’s aggregate capital contributionswithout investor approval, and allows aggregate borrowings in excess of 25% ofthe aggregate capital contributions to the Partnership with the consent ofinvestor partners. Borrowings are not allowed during the initial drilling phaseof the Partnership, but only for additional development drilling and facilitiescosts on Partnership prospects already drilled. Should the Partnership elect toborrow monies for additional development activity on Partnership properties, itwill be subject to the interest rate risk inherent in borrowing activities.Changes in interest rates could significantly affect the Partnership’s resultsof operations and the amount of net cash flow available for partnerdistributions. Also, to the extent that changes in interest rates affectgeneral economic conditions, the Partnership will be affected by such changes.

 

**Commodity Price Risk**

 

ThePartnership is permitted but is not expected to engage in commodity futurestrading or hedging activities or enter into derivative financial instrumenttransactions for trading or other speculative purposes. The Partnership expectsto sell a vast majority of its production from successful oil and gas wells ona month-to-month basis at current spot market prices. Accordingly, thePartnership is at risk for the volatility in commodity prices inherent in theoil and gas industry, and the level of commodity prices will have a significantimpact on the Partnership’s results of operations.

 

**Exchange Rate Risk**

 

ThePartnership currently has not committed funds to any foreign projects and hasno income from foreign sources or operations in foreign countries that wouldsubject it to currency exchange rate risk. The Partnership does not currentlyexpect to purchase any prospects located outside of the United States.

 

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**Item 4. Controls and Procedures**

 

ThePartnership, under the supervision and with the participation of itsmanagement, including the principal executive officer and principal financialofficer of the Partnership’s managing general partner, Reef, evaluated theeffectiveness of its “disclosure controls and procedures,” as such term isdefined in Rule 13a-15(e) under the Securities Exchange Act of 1934,as amended (Exchange Act), as of the end of the period covered by thisquarterly report on Form 10-Q.

 

Basedon that evaluation, the principal executive officer and principal financialofficer of our managing general partner have concluded that the Partnership’sdisclosure controls and procedures are effective to ensure that informationrequired to be disclosed by the Partnership in reports that it files or submitsunder the Exchange Act is recorded, processed, summarized and reported withinthe time periods specified in SEC rules and forms, and includes controlsand procedures designed to ensure that information required to be disclosed byus in such reports is accumulated and communicated to our management, includingthe principal executive officer and principal financial officer of our managinggeneral partner, as appropriate to allow timely decisions regarding requireddisclosure. During our fiscal quarter ended September 30, 2007, no changesoccurred in our internal control over financial reporting (as defined in Rule 13a-15(f) underthe Exchange Act) that have materially affected, or are reasonably likely tomaterially affect, our internal control over financial reporting.

 

**PART II – OTHER INFORMATION**

 

**Item 1. Legal Proceedings**

 

None

 

**Item 1A. Risk Factors**

 

**Oil and gas drilling is a speculative activity involving numerous risksand substantial and uncertain costs which could adversely affect thePartnership.**

 

Drillingfor oil and natural gas involves numerous risks, including the risk that nocommercially productive oil and/or natural gas reserves will be discovered.There can be no assurance that wells drilled by the Partnership will beproductive or recover all or any portion of the investment in such wells.Drilling and completion costs are substantial and uncertain, and drillingoperations may be curtailed, delayed, or cancelled due to a variety offactors beyond our control, including shortages or delays in the availabilityof drilling rigs and crews, unexpected drilling conditions, title problems,pressure or irregularities in formations, equipment failures or accidents,adverse weather conditions, and compliance with environmental and othergovernmental regulations. Our drilling activities may not be successfuland, if unsuccessful, will have an adverse effect on the Partnership’s resultsof operations and cash flow available for distribution to the partners.Unexpected costs incurred in the drilling of certain wells may limit thetotal number of wells the Partnership is able to drill with the capital raisedby the Partnership, thus increasing the overall risk of the Partnership’sdrilling program.

 

**Oil and natural gas prices are volatile.**

 

Thefinancial condition, results of operations, and the carrying value of our oiland natural gas properties depend primarily upon the prices received for ouroil and natural gas production. Oil and natural gas prices historically havebeen volatile and likely will continue to be volatile given currentgeopolitical conditions. Cash flow from operations is highly dependent upon thesales prices received from oil and natural gas production. The prices for oiland natural gas are subject to a variety of factors beyond our control. Thesefactors include:

 

•                                          the level of consumer demand for oil and natural gas;

•                                          the domestic and foreign supply of oil and natural gas;

•                                          the ability of the members of OPEC to agree to and maintain oil priceand production controls;

•                                          the price of foreign oil and natural gas;

•                                          domestic government regulations and taxes;

 

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•                                          the price and availability of alternative fuel sources;

•                                          weather conditions, including hurricanes and tropical storms in andaround the Gulf of Mexico;

•                                          market uncertainty;

•                                          political conditions in oil and natural gas producing regions, includingthe Middle East; and

•                                          worldwide economic conditions.

 

Thesefactors and the volatility of the energy markets make it extremely difficult topredict price movements. Also, oil and natural gas prices do not necessarilymove in tandem. Declines in oil and natural gas prices would not only reducerevenues and cash flow available for distributions to partners, but couldreduce the amount of oil and natural gas that can be economically produced fromsuccessful wells drilled by the Partnership, and, therefore, have an adverseeffect upon financial condition, results of operations, oil and gas reserves,and the carrying value of the Partnership’s oil and natural gas properties.

 

ThePartnership, while not prohibited from engaging in commodity trading or hedgingactivities in an effort to reduce exposure to short-term fluctuations in theprice of oil and natural gas, currently does not expect to engage in suchactivities. Accordingly, the Partnership will be at risk for the volatility inoil and natural gas prices, and the level of commodity prices will have asignificant impact upon the partnership’s results of operations.

 

**We are subject to substantial operating risks that may adverselyaffect the results of operations.**

 

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

 

**We cannot control activities on non-operated properties.**

 

ThePartnership may purchase minority non-operated working interests in someof the prospects it acquires. As a result, the Partnership will have limitedability to exercise influence over and control the risks associated withoperations of these properties. The failure of an operator of our wells toadequately perform operations, an operator’s breach of the applicableagreements, or an operator’s failure to act in ways that are in our bestinterest could reduce our production and/or revenues. The success and timing ofdrilling and development activities on properties operated by others depends upona number of factors outside of our control, including the operator’s

 

•                                          timing and amount of capital expenditures;

•                                          expertise and financial resources;

•                                          inclusion of other participants in drilling wells; and

•                                          use of technology.

 

Inaddition, the Partnership could be held liable for the joint interestobligations of other working interest owners, such as nonpayment of costs andliabilities arising from the actions of the other working interest owners. Fulldevelopment of prospects may be jeopardized in the event other workinginterest owners cannot pay their share of drilling and completion costs.

 

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

 

Dueto current industry demands, drilling contractors, well service providers andrelated equipment and personnel are in short supply. This is causing escalatingprices, delays in drilling and other exploration activities, and the

 

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possibilityof poor service coupled with potential damage to downhole reservoirs andpersonnel injuries. Such pressures will likely increase the actual cost ofservices, extend the time to secure such services, and add costs for damagesdue to any accidents sustained from overuse of equipment and inexperiencedpersonnel.

 

**We face strong competition from larger oil and natural gas companies.**

 

Theoil and gas industry is highly competitive. Competition is encountered in allaspects of Partnership operations, including the acquisition of prospects fordrilling and requisition of drilling and service contractors. Many of ourcompetitors are larger, well-established companies with substantially largeroperating staffs and greater capital resources than those of the Partnership,Reef and its affiliates. We may not be able to conduct our operationssuccessfully, evaluate and select suitable prospects, obtain drilling andservice contractors, consummate transactions, or obtain technical, managerialand other professional personnel in this highly competitive environment.Specifically, larger competitors may be able to pay more for prospects andcompetent personnel than the Partnership, Reef and its affiliates. In addition,such competitors may be able to expend greater resources on the existingand changing technologies that will be increasingly important to success. Suchcompetitors may also be in a better position to secure drilling andoilfield services, as well as equipment, more timely or on more favorableterms.

 

**Oil and natural gas reserve data are estimates based upon assumptionsthat may be inaccurate and existing economic and operating conditions thatmay differ from future economic and operating conditions.**

 

Uponthe successful drilling of Partnership oil and gas wells, SEC rules willrequire the Partnership to present annual estimates of reserves. Reservoirengineering is a subjective and inexact process of estimating undergroundaccumulations of oil and natural gas that cannot be measured in an exactmanner, and is based upon assumptions that may vary considerably fromactual results. Accordingly, reserve estimates may be subject to upward ordownward adjustments. Actual production, revenues and expenditures with respectto reserves will likely vary from estimates, and such variances could bematerial.

 

**If the Partnership acquires prospects outside the United States, itwill be subject to certain risks of international operations.**

 

Todate the Partnership has not purchased any foreign prospects, and currently hasno plans to acquire prospects outside of the United States. If the Partnershipwere to acquire prospects outside of the United States, it would be subject torisks generally associated with conducting business in foreign countries, suchas:

 

•                                          foreign laws and regulations that may bematerially different from those of the United States;

•                                          changes in applicable laws and regulations;

•                                          challenges to or failure of title;

•                                          labor and political unrest;

•                                          foreign currency fluctuation;

•                                          changes in foreign economic and politicalconditions;

•                                          export and import restrictions;

•                                          tariffs, customs, duties and other tradebarriers;

•                                          difficulties in staffing and managing foreignoperations;

•                                          longer time periods in collecting revenues;

•                                          difficulties in collecting accounts receivableand enforcing agreements;

•                                          possible loss of properties due tonationalization or expropriation; and

•                                          limitations on repatriation of income orcapital.

 

Inaddition, in the event of a dispute, the Partnership may be subject to theexclusive jurisdiction of foreign courts and agencies, or may not besuccessful in obtaining jurisdiction over foreign persons in state or federalcourts in the United States. The Partnership also may be hindered orprevented from enforcing its rights against foreign governments and theiragencies because international law may grant foreign governments and theiragencies immunity from our courts or prohibit the Partnership from bringingsuit in their courts.

 

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**Reef and its affiliates have sponsored ventures in the past that haveproduced dry holes and abandoned wells.**

 

Reef Global Energy Ventures II is the second public drilling programsponsored by Reef as the managing general partner, and Reef Global Energy IX,L.P. is the fourth in a series of four limited partnerships offered underthat Program. Reef and its affiliate, RELP, have sponsored 69 ventures from1996 to the present. Twelve of these ventures are “income funds” or “income anddevelopment funds”. Among these twelve ventures, (i) eight were dedicatedalmost exclusively to the purchase of interests in already producing reserves, (ii) onewas dedicated primarily to the purchase of interests in already producingreserves but has the ability to use up to 20% of capital raised for developmentpurposes, and (iii) three were dedicated to both the purchase of interestsin producing wells and the use of up to 50% of capital raised for developmentof proven reserves. We refer to the programs described in clauses (i) and (ii) ofthe preceding sentence as “income fund” ventures and to the programs describedin (iii) as “income and development fund” ventures. We have also sponsored57 drilling ventures since 1996, 48 of which were ventures privately organized,and 9 of which (including Reef Global Energy IX, L.P.) are ventures formedpursuant to the Reef Global Energy Ventures and Reef Global Energy Ventures IIprograms. Together, these 69 ventures have drilled 135 wells (121 by drillingventures and 14 by income fund and income and development fund ventures). Ofthe wells drilled by Reef and its affiliates’ ventures, 59 were exploratorywells and 76 were developmental wells. Forty-seven of the wells drilled weredry holes, and 4 wells were completed but were non-commercial. One well isbeing completed. Of the 83 wells that were commercial, 57 are still owned byReef or its affiliates’ ventures and are currently producing, 9 have beenplugged and abandoned, 15 have been sold, 1 is currently shut-in, and 1 iscurrently being used as a salt water disposal well and is expected to bere-completed as a gas well at a future time. Using this data, approximately61.5% of the wells drilled by these ventures were completed as commerciallyproducing and 38.5% were dry holes (including the four wells that werecompleted but failed to become commercial producers). Approximately 6.7% of thewells drilled by our ventures initially produced in commercial quantities, butwere subsequently abandoned.

 

**The Partnership has limited external sources of funds, which couldresult in a shortage of working capital.**

 

ThePartnership intends to utilize substantially all available capital for thedrilling and completion of wells and acquisition of prospects. The Partnershiponly has nominal funds available for partnership purposes until there arerevenues from Partnership operations. The Partnership Agreement permits thePartnership to borrow money only after drilling has been completed and alladditional general partnership interests have been converted into limitedpartnership interests. Any future requirement for additional funding will haveto come, if at all, from the Partnership’s revenues or from borrowings. Reefcannot assure the partners that Partnership operations will be sufficient toprovide the Partnership with necessary additional funding. Reef is prohibitedunder the Partnership Agreement from loaning money to the Partnership, and Reefcannot assure the partners that the Partnership will be able to borrow fundsfrom third parties on commercially reasonable terms or at all.

 

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

 

Reefplans to offer interests in other partnerships to be formed for substantiallythe same purposes as those of the Partnership. Therefore, a number ofpartnerships with unexpended capital funds, including those partnerships to beformed in future oil and gas programs sponsored by Reef, may exist at thesame time. Due to competition among the partnerships for suitable prospects andavailability of equipment, contractors, and Reef’s personnel, the fact thatpartnerships previously organized by Reef and its affiliates may still bepurchasing prospects when the Partnership is attempting to purchase prospects may makethe completion of prospect acquisition activities by the Partnership moredifficult.

 

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

 

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

 

•                                          Reef determines in good faith that its actionwas in the best interest of the Partnership;

•                                          Reef was acting on behalf of or performingservices for the Partnership; and

 

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•                                          Reef’s actions did not constitute negligence ormisconduct.

 

**Drilling exploratory wells is riskier than drilling developmentalwells.**

 

Manyof the wells drilled by Reef and its affiliates since 1996 have beenexploratory wells. Drilling exploratory wells involves greater risks of dryholes and loss of the partners’ investment than the drilling of developmentalwells. Drilling developmental wells generally involves less risk of dry holes,although sometimes developmental acreage is more expensive and subject to greaterroyalties and other burdens on production. To date, the Partnership has notpurchased any exploratory prospects with available capital.

 

**The Partnership may be required to pay delay rentals to holdproperties, which may deplete Partnership capital.**

 

Oiland gas leases generally require that the property must be drilled upon by acertain date or additional funds known as delay rentals must be paid to keepthe lease in effect. Delay rentals typically must be paid within a year of theentry into the lease if no production or drilling activity has commenced. Ifdelay rentals become due on any property the Partnership acquires, thePartnership will have to pay its share of such delay rentals or lose its leaseon the property. These delay rentals could equal or exceed the cost of theproperty. Further, payment of these delay rentals could seriously deplete thePartnership’s capital available to fund drilling activities when they docommence.

 

**The Partnership may incur liability for liens against itssubcontractors.**

 

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

 

**Shut-in wells and delays in production may adversely affectPartnership operations.**

 

Productionfrom wells drilled in areas remote from marketing facilities may bedelayed until sufficient reserves are established to justify construction ofnecessary pipelines and production facilities. In addition, production fromwells may be reduced or delayed due to seasonal marketing demands. Wellsdrilled for the Partnership may have access to only one potential market.Local conditions, including closing businesses, conservation, shiftingpopulation, pipeline maximum operating pressure constraints, and development oflocal oversupply or deliverability problems could halt sales from Partnershipwells.

 

**The production and producing life of Partnership wells is uncertain.**

 

Productionfrom successful Partnership wells will decline. It is not possible to predictthe life and production of any well. The actual lives could differ from thoseanticipated. Sufficient oil or natural gas may not be produced for apartner to receive a profit or even to recover his initial investment. Inaddition, production from the Partnership’s oil and natural gas wells, if any,will decline over time, and does not indicate any consistent level of futureproduction. This production decline may be rapid and irregular whencompared to a well’s initial production.

 

**Extreme weather conditions may adverselyaffect drilling operations and distributions.**

 

ThePartnership may conduct drilling operations in the Gulf of Mexico regionof Louisiana and Texas. This region is susceptible to extreme weatherconditions, especially those associated with hurricanes. In the event of ahurricane and related storm activity, such as windstorms, storm surges, floodsand tornados, Partnership operations in the region may be adverselyaffected. The occurrence of a hurricane or other extreme weather may harmor delay the Partnership’s drilling operations or distribution of revenues, ifany.

 

**Our dependence on third parties for the processing and transportationof oil and gas may adversely affect the Partnership’s revenues and,consequently, the distribution of net cash flows to investor partners.  **

 

Werely on third parties to process and transport the oil and gas produced by thePartnership’s successful wells. In the event a third party upon whom we rely isunable to provide transportation or processing services, and another

 

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thirdparty is unavailable to provide such services, the Partnership may have totemporarily shut-in successful wells, and revenues to the Partnership anddistributions to investor partners related to those wells may be delayedor reduced.

 

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

 

**Use of Proceeds**

 

Inconnection with the Registration Statement filed on Form S-1 (No. 333-122935)and declared effective July 7, 2005, Reef filed a final prospectus for theProgram and filed a prospectus supplement describing the Partnership on February 15,2007. At such time Reef commenced the offering of units in the Partnership. Allsales of Partnership units were made through the Program’s dealer manager, ReefSecurities, Inc., and a number of soliciting dealers. The offering periodended July 7, 2007.

 

Duringthe offering period ending on July 7, 2007, the Partnership sold 433.041units to investor partners, consisting of 62.480 units of limited partnerinterest and 370.561 units of additional general partner interest. Reefpurchased 22.792 general partner units, equaling 5.00% of the total Partnershipunits sold. Total offering proceeds were $11,310,350. Reef will also contribute1% of all leasehold, drilling, and completion costs as incurred. As of September 30,2007, Reef has accrued $19,591 in connection with this obligation.

 

Allunits except those purchased by Reef paid a 15% management fee to Reef to payfor the Partnership organization and offering costs, including salescommissions. These costs totaled $1,623,904, leaving capital contributions of$9,709,037 available for Partnership oil and gas operations. These net capitalcontributions are the total amount available to the partnership for drillingand pre-production administrative costs. As of September 30, 2007, thePartnership had expended $2,727,060 on property acquisitions and $7,384 ongeneral and administrative expenses, including amounts in accounts payable at September 30,2007. The Partnership intends to utilize the remaining capital for oil and gasdrilling activities and pre-production administrative costs during the next 6-9months.

 

**Item 3. Defaults Upon Senior Securities**

 

None

 

**Item 4. Submission of Matters to a Vote of Security Holders**

 

None

 

**Item 5. Other Information**

 

None

 

**Item 6. Exhibits**

 

Exhibits

 
|   | 31.1   |   | Certification of Chief Executive Officer required by  Rule 13a-14(a)/15d-14(a) pursuant to Section 302 of the  Sarbanes-Oxley Act of 2002.     |
|--------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                          |
|   | 31.2   |   | Certification of Chief Financial Officer required by  Rule 13a-14(a)/15d-14(a) pursuant to Section 302 of the  Sarbanes-Oxley Act of 2002.     |
|   |   |   |                                                                                                                                                          |
|   | 32.1   |   | Certification of Chief Executive Officer pursuant to 18 U.S.C.  Section 1350 as adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of 2002. |
|   |   |   |                                                                                                                                                          |
|   | 32.2   |   | Certification of Chief Financial Officer pursuant to 18 U.S.C.  Section 1350 as adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of 2002. |

 

18

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** **

**SIGNATURES**

 

Pursuantto the requirements of the Securities Exchange Act of 1934, the registrant hasduly caused this report to be signed on its behalf by the undersigned thereuntoduly authorized.

 
|       |                   |   | REEF GLOBAL ENERGY IX, L.P.                    |
|------------|------------------------|--------|------------------------------------------------|
|       |                   |   |                                           |
|       | .                      | By:    | Reef Oil & Gas Partners, L.P.         |
|       |                   |   | Managing General Partner                       |
|       |                   |   |                                           |
|       |                   |   | By: Reef Oil & Gas Partners, GP, LLC  |
|       |                   |   |                                           |
|       |                   |   |                                           |
| Dated:     | November 14, 2007 | By:    |  /s/ Michael J. Mauceli                   |   |
| ** ** | ** **             |   | **Michael J. Mauceli**                         |
|       |                   |   | Manager and Member                             |
|       |                   |   | (p*rincipal executive officer)*                |
|       |                   |   |                                           |
|       |                   |   |                                           |
| Dated:     | November 14, 2007 | By:    |  /s/ Daniel C. Sibley                     |   |
| ** ** | ** **             |   | **Daniel C. Sibley**                           |
|       |                   |   | Chief Financial Officer                        |
|       |                   |   | (p*rincipal financial and accounting officer)* |
|            |                        |        |                                                |  |  |

 

19

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