UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2010 or

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2010
	or

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from _______________________to____________________________

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. 000-51266

RIDGEWOOD ENERGY K FUND, LLC

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of

incorporation or organization)

68-0580588

(I.R.S. Employer

Identification No.)

14 Philips Parkway, Montvale, NJ 07645

(Address of principal executive offices) (Zip code)

(800) 942-5550

(Registrant’s telephone number, including area code)

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o

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 the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

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

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

As of ~~August~~November 109, 2010 the Fund had 480.7046 shares of LLC Membership Interest outstanding.

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PART I - FINANCIAL INFORMATION			~~Page~~	Page
	Item 1.	Financial Statements:	1	1
		Unaudited Condensed Balance Sheets as of June 30, 2010 and December 31, 2009	1
			Unaudited Condensed Balance Sheets as of September 30, 2010 and December 31, 2009	1
		Unaudited Condensed Statements of Operations for the three and six months ended June 30, 2010 and 2009	2
			Unaudited Condensed Statements of Operations for the three and nine months ended September 30, 2010 and 2009	2
		Unaudited Condensed Statements of Cash Flows for the six months ended June 30, 2010 and 2009	3
			Unaudited Condensed Statements of Cash Flows for the nine months ended September 30, 2010 and 2009	3
		~~Notes to Unaudited Condensed Financial Statements~~	4Notes to Unaudited Condensed Financial Statements	4
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	9	9
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	14	14
	Item 4.	Controls and Procedures	14	14
PART II - OTHER INFORMATION
	Item 1.	Legal Proceedings	15	14
	Item 1A.	Risk Factors	15	14
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	15	14
	Item 3.	Defaults Upon Senior Securities	15	14
	Item 4.	(Removed and Reserved)	15	15
	Item 5.	Other Information	15	15
	Item 6.	Exhibits	15	15
		~~SIGNATURES~~	16SIGNATURES	15

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PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
RIDGEWOOD ENERGY K FUND, LLC
UNAUDITED CONDENSED BALANCE SHEETS
(in thousands, except share data)
	June 30, 2010			December 31, 2009
	September 30, 2010			December 31, 2009
ASSETS
Current assets:
Cash and cash equivalents	$	2,~~517~~546		$	2,786
Production receivable		~~111~~132			209
Other current assets		541			25
Total current assets		2,~~633~~719			3,020
Salvage fund		1,~~202~~209			1,189
Oil and gas properties:
Advances to operators for working interests and expenditures		5			-
Proved properties		22,030			21,972
Proved properties		22,003			21,972
Less: accumulated depletion and amortization		(17,433	)		(16,795	)
Less: accumulated depletion and amortization		(17,239	)		(16,795	)
Total oil and gas properties, net		4,597			5,177
Total oil and gas properties, net		4,769			5,177
Total assets	$	8,525		$	9,386
Total assets	$	8,604		$	9,386
LIABILITIES AND MEMBERS' CAPITAL
Current liabilities:
Due to operators	$	4474		$	156
Asset retirement obligations		151			-
Accrued expenses		7256			65
Total current liabilities		~~267~~281			221
Asset retirement obligations		~~331~~332			478
Total liabilities		~~598~~613			699
Commitments and contingencies (Note 7)
Members' capital:
Manager:
Distributions		(290	)		(290	)
Retained earnings		1,~~178~~190			1,153
Manager's total		~~888~~900			863
Shareholders:
Capital contributions (534 shares authorized; 480.7046 issued and outstanding)		70,860			70,860
Syndication costs		(7,775	)		(7,775	)
Distributions		(12,442	)		(11,998	)
Accumulated deficit		(43,~~525~~631	)		(43,263	)
Shareholders' total		7,~~118~~012			7,824
Total members' capital		87,~~006~~912			8,687
Total liabilities and members' capital	$	8,~~604~~525		$	9,386
The accompanying notes are an integral part of these unaudited condensed financial statements.

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

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RIDGEWOOD ENERGY K FUND, LLC
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
	Three months ended June 30,						Six months ended June 30,
	Three months ended September 30,						Nine months ended September 30,
	2010			2009			2010			2009
Revenue
Oil and gas revenue	$	~~146~~288		$	~~571~~470		$	~~558~~846		$	1,~~439~~909
Expenses
Depletion and amortization		~~113~~194			~~773~~664			~~444~~638			12,~~762~~426
Impairment of proved properties		-			-			-			198
Operating expenses		~~139~~137			~~159~~161			~~242~~379			~~314~~475
General and administrative expenses		6359			7270			~~124~~183			~~147~~217
Total expenses		~~315~~390			~~1,004~~895			~~810~~1,200			23,~~421~~316
Loss from operations		(~~169~~102	)		(~~433~~425	)		(~~252~~354	)		(~~982~~1,407	)
Other income
Interest income		8			129			1523			2837
Net loss	$	(~~161~~94	)	$	(~~421~~416	)	$	(~~237~~331	)	$	(~~954~~1,370	)
Manager Interest
Net (loss) income	$	(9	)	$	44		$	25		$	128
Net income	$	12		$	30		$	37		$	158
Shareholder Interest
Net loss	$	(~~152~~106	)	$	(~~465~~446	)	$	(~~262~~368	)	$	(1,~~082~~528	)
Net loss per share	$	(~~316~~221	)	$	(~~967~~928	)	$	(~~545~~766	)	$	(23,~~251~~179	)
The accompanying notes are an integral part of these unaudited condensed financial statements.

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

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RIDGEWOOD ENERGY K FUND, LLC
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
	Six months ended June 30,
	Nine months ended September 30,
	2010			2009
Cash flows from operating activities
Net loss	$	(~~237~~331	)	$	(~~954~~1,370	)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depletion and amortization		~~444~~638			12,~~762~~426
Impairment of proved properties		-			198
Accretion expense		45			46
Changes in assets and liabilities:
Decrease in production receivable		9877			~~174~~215
Decrease in other current assets		21			179
(Increase) decrease in other current assets		(15	)		148
(Decrease) increase in due to operators		(6	)		16
Increase in due to operators		12			8
Increase in accrued expenses		7			26
(Decrease) increase in accrued expenses		(9	)		22
Net cash provided by operating activities		~~331~~377			1,~~405~~653
Cash flows from investing activities
Payments to operators for working interests and expenditures		(5	)		-
Capital expenditures for oil and gas properties		(153	)		(296	)
Capital expenditures for oil and gas properties		(138	)		(314	)
Interest reinvested in salvage fund		(20	)		(20	)
Interest reinvested in salvage fund		(13	)		(13	)
Net cash used in investing activities		(173	)		(316	)
Net cash used in investing activities		(156	)		(327	)
Cash flows from financing activities
Distributions		(444	)		(1,~~409~~833	)
Net cash used in financing activities		(444	)		(1,~~409~~833	)
Net decrease in cash and cash equivalents		(~~269~~240	)		(~~331~~496	)
Cash and cash equivalents, beginning of period		2,786			3,295
Cash and cash equivalents, end of period	$	2,~~517~~546		$	2,~~964~~799
The accompanying notes are an integral part of these unaudited condensed financial statements.

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

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RIDGEWOOD ENERGY K FUND, LLC

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

1.	Organization and Purpose

The Ridgewood Energy K Fund, LLC ( the “Fund”), a Delaware limited liability company, was formed on March 1, 2004 and operates pursuant to a limited liability company agreement (the “LLC Agreement”) dated April 1, 2004 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.

The Manager has direct and exclusive control over the management of the Fund’s operations. With respect to project investment, the Manager locates potential projects, conducts due diligence, negotiates with operators and completes the transactions in which the investments are made. The Manager performs, or arranges for the performance of, the management, advisory 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, 5 and 7.

2.	Summary of Significant Accounting Policies

Basis of Presentation

These unaudited interim condensed financial statements have been prepared by the Fund’s management in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in the opinion of management, contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the Fund’s financial position, results of operations and cash flows for the periods presented. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted in these unaudited interim condensed financial statements. The results of operations, financial position, and cash flows for the periods presented herein are not necessarily indicative of future financial results. These unaudited interim condensed financial statements should be read in conjunction with the Fund’s December 31, 2009 financial statements and notes thereto included in the Fund’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“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 accordance 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 revenue and expense during the reporting period. On an ongoing basis, the Manager reviews its estimates, including those related to property balances, 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, deposits may be in excess of federally insured limits. Federally insured limits of the Fund’s deposits are $250 thousand per insured financial institution. At ~~June~~September 30, 2010, the Fund’s bank balances exceeded federally insured limits by $2.3 million, all of which was invested in money market accounts that invest solely in U.S. Treasury bills and notes.

Salvage Fund

The Fund deposits in a separate interest-bearing account, or salvage fund, money to provide for the dismantling and removal of production platforms and facilities and plugging and abandoning its wells at the end of their useful lives, in accordance with applicable federal and state laws and regulations. At ~~June~~September 30, 2010, the Fund had investments in U.S. Treasury securities within its salvage fund that are classified as held-to-maturity, totaling $1.1 million, which mature in February 2012. Held-to-maturity investments are those securities 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.

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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

The Fund invests in oil and gas properties, which are operated by unaffiliated entities that 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 is billed by operators.

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 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.

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

At September 30, 2010 and December 31, 2009, amounts recorded in due to operators totaling $12 thousand and $0.1 million, respectively, related to capital expenditures for oil and gas properties. ~~There were no such capital expenditure amounts due at June 30, 2010.~~

On April 20, 2010 in the Gulf of Mexico, as reported in the press, an explosion and fire occurred on the Deepwater Horizon drilling rig, which was engaged related to a BP-operated project, with which the Fund has no affiliation. As a result of the explosion and resultant oil spill, the U.S. government placed a six month moratorium on deepwater drilling operations in the Gulf of Mexico. On June 22, 2010, a federal judge ruled against the U.S. government and lifted the moratorium and the 5th Circuit Court of Appeals recently affirmed the lower court’s ruling. However, as of the date of this filing, there have been no deepwater drilling permits issued by the Bureau of Ocean Management, Regulation and Enforcement (“BOE”) (formerly the Minerals Management Service). In compliance with the court’s ruling, the Secretary of the Interior re-issued the moratorium and ordered it in place until the end of November 2010. As of the date of this filing, the Fund’s properties have not been impacted by the moratorium.

Advances to Operators for Working Interests and Expenditures

The Fund’s acquisition of a working interest in a well or a project requires it to make a payment to the seller for the Fund’s 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 reclassified 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. As indicated above, the Fund maintains a salvage fund to provide for the funding of future asset retirement obligations.

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Syndication Costs

Syndication costs are direct costs incurred by the Fund in connection with the offering of 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 oil and gas 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 ~~under-produced~~underproduced owner to recoup its entitled share through production. The Fund’s recorded liability, if any, would be reflected in other liabilities. No receivables are recorded for those wells where the Fund has taken less than its share of production.

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Impairment of Long-Lived Assets

The Fund reviews the value of its oil and gas properties whenever management determines that events and circumstances indicate that the recorded carrying value of properties may not be recoverable. Impairments of producing properties are determined by comparing future net undiscounted cash flows to the net book value at the time of the review. If the net book value exceeds the future net undiscounted cash flows, the carrying value of the property is written down to fair value, which is determined using net discounted future cash flows from the producing property. The Fund provides for impairments on unproved properties when it determines that the property will not be developed or ~~that~~ a permanent impairment in value has occurred. The fair value determinations require considerable judgment and are sensitive to change. Different pricing assumptions, reserve estimates or discount rates could result in a different calculated impairment. Given the volatility of oil and natural gas prices, it is reasonably possible that the Fund’s estimate of discounted future net cash flows from proved oil and natural gas reserves could change in the near term. If oil and natural gas prices decline significantly, even if only for a short period of time, it is possible that write-downs of oil and gas properties could occur. ~~During~~ the six months ended June 30, 2009, the Fund recorded an impairment of $0.2 million relating to Vermilion 344, which was attributable to lower oil and gas commodity prices. The fair value of the impaired well was determined based on level 3 inputs, which include projected income from proved and probable reserves utilizing forward price curves, net of anticipated costs, discounted. The Fund had no impairments to its oil and gas properties during the three months ended June 30, 2010 and 2009 and during the six months ended June 30, 2010.

During the nine months ended September 30, 2009, the Fund recorded an impairment of $0.2 million relating to Vermilion 344, which was attributable to lower oil and gas commodity prices. The fair value of the impaired well was determined based on level 3 inputs, which include projected income from proved and probable reserves utilizing forward price curves, net of anticipated costs, discounted. The Fund did not record any impairments during the three and nine months ended September 30, 2010 or during the three months ended September 30, 2009.

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 capitalized costs associated with successful exploratory well 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.

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, trust fees, depletion and amortization, which are allocated 99% to shareholders and 1% to the Manager.

3.	Recent Accounting Standards

In January 2010, the Financial Accounting Standards Board (“FASB”) issued guidance on improving disclosures about fair value measurements. This guidance has new requirements for disclosures related to recurring or nonrecurring fair-value measurements including significant transfers into and out of Level 1 and Level 2 fair-value measurements and information on purchases, sales, issuances, and settlements in a rollforward reconciliation of Level 3 fair-value measurements. This guidance was effective for the Fund beginning January 1, 2010. The adoption of this guidance did not have a material impact on the Fund’s financial statements. The Level 3 reconciliation disclosures are effective for fiscal years beginning after December 15, 2010, which will be effective for the Fund December 31, 2011. The adoption of the guidance is not expected to have a material impact on the Fund’s financial statements.

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4.	Distributions

Distributions to shareholders are allocated in proportion to the number of shares held. The Manager determines whether available cash from operations, as defined in the LLC Agreement, will be distributed. During 2006, the Manager elected to waive its right to distributions of available cash from operations for the remaining life of the Fund.

Available cash from dispositions, as defined in the 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.

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5.	Related Parties

Effective October 1, 2005 and continuing for the remaining life of the Fund, the Manager elected to waive its management fee. Upon the waiver of the management fee, the Fund began recording costs relating to services provided by the Manager for accounting and investor relations. Such costs, totaling $20 thousand for each of the three months ended ~~June~~September 30, 2010 and 2009, and $4060 thousand for each of the ~~six~~nine months ended ~~June~~September 30, 2010 and 2009, were included in general and administrative expenses.

At times, short-term payables and receivables, which do not bear interest, arise from transactions with affiliates in the ordinary course of business.

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 natural gas projects with other entities that are likewise managed by the Manager.

6.	Fair Value Measurements

At ~~June~~September 30, 2010 and December 31, 2009, cash and cash equivalents, production receivable, salvage fund and accrued expenses approximate fair value.

7.	Commitments and Contingencies

Capital Commitments

The Fund has entered into multiple 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 ~~June~~September 30, 2010, the Fund had committed to spend an additional $0.45 million related to its investment properties, of which $0.24 million is expected to be ~~incurred~~spent during the next twelve months.

Environmental Considerations

The exploration for and development of oil and natural gas involves the extraction, production and transportation of materials which, under certain conditions, can be hazardous or cause environmental pollution problems. The Manager and operators of the Fund’s properties 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 ~~June~~September 30, 2010 and December 31, 2009, there were no known environmental contingencies that required the Fund to record a liability.

7In response to the recent oil spill in the Gulf of Mexico, the United States Congress is considering a number of legislative proposals relating to the upstream oil and gas industry both onshore and offshore. Such proposals could result in significant additional laws or regulations governing the Fund’s operations in the United States, including a proposal to raise or eliminate the cap on liability for oil spill cleanups under the Oil Pollution Act of 1990. Although it is not possible at this time to predict whether proposed legislation or regulations will be adopted as initially written, if at all, or how legislation or new regulation that may be adopted would impact our business, any such future laws and regulations could result in increased compliance costs or additional operating restrictions, which could have a material adverse effect on the Fund’s operating results and cash flows.

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Insurance Coverage

The Fund is subject to all risks inherent in the exploration for and development of oil and natural gas. Insurance coverage as is customary for entities engaged in similar operations is maintained, but losses may occur from uninsurable risks or amounts in excess of existing insurance coverage. The occurrence of an event that 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 funds managed by the Manager. Claims made by other funds managed by the Manager can reduce or eliminate insurance for the Fund.

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8. Subsequent Events

The Fund has assessed the impact of subsequent events through the date of issuance of its financial statements, and has concluded that there were no such events that require adjustment to, or disclosure in, the notes to the financial statements.

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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 K 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 US Private Securities Litigation Reform Act of 1995 that are based on current expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially from the forward-looking statements. You are therefore cautioned against relying on any such forward-looking statements. Forward-looking statements can generally be identified by words such as “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “plan,” “target,” “pursue,” “may,” “will,” “will likely result,” and similar expressions and references to future periods. Examples of 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 natural gas, the cost and availability of equipment, and changes in governmental regulations. Examples of forward-looking statements made herein include statements regarding future projects, investments and insurance. Forward-looking statements made in this document speak only as of the date on which they are made. 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, except as required by law.

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 expense 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 2009 Annual Report on Form 10-K.

Overview of the Fund’s Business

The Fund is a Delaware limited liability company formed on March 1, 2004 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. 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 of the Fund’s operations. The Fund’s primary investment objective is to generate cash flow for distribution to its shareholders by generating returns across a portfolio of exploratory or development stage shallow water or deepwater projects. However, the Fund is not required to make distributions to shareholders except as provided in the LLC Agreement.

The Manager performs certain duties on the Fund’s behalf including the ongoing management, administrative and advisory services associated with the Fund’s projects. 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 for the management of all exploration, development and producing operations, as appropriate.

Revenues are subject to market pricing for oil and natural gas, which has been extremely volatile, and is likely to continue to be volatile in the future. This volatility is caused by numerous factors and market conditions that the Fund cannot control or influence. Therefore, it is impossible to predict the future price of oil and natural gas with any certainty. Low commodity prices could have an adverse affect on the Fund’s future profitability.

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Business Update

Information regarding the Fund’s ~~current~~ongoing projects is provided in the following table.

				Total spent	~~Total spent~~
	Working			through	~~through~~		Total Estimated	~~Total Estimated~~
	Interest			September 30, 2010	~~June 30, 2010~~		Budget	~~Budget~~		Status	~~Status~~
				(in thousands)	~~(in thousands)~~
Producing Properties
South Marsh Island 111		3.75%	%	$	$1,032	~~1,031~~	$	$1,145	~~1,144~~	Production commenced February 2009. Recompletion efforts to access behind the pipe reserves are expected to commence in December 2010 at an estimated cost of $0.1 million.	~~Production commenced February 2009. Recompletion efforts to access behind the pipe reserves are expected to commence in 2012 at an estimated cost of $0.1 million.~~
West Delta 67		3.75%	%	$	$504	~~493~~	$	$521	~~511~~	Production commenced in 2008. Recompletion activities completed in July 2010 at a cost of $11 thousand. An additional recompletion is expected to commence in November 2010 at an estimated cost of $17 thousand.	Production commenced July 2008. Recompletion activities were completed in July 2010 at a cost of $10 thousand. An additional recompletion is currently scheduled for 2011 at an estimated cost of $8 thousand.
West Delta 68		3.75%	%	$	$782	~~777~~	$	$917	~~917~~	Production commenced in 2008. Recompletion activities completed in July 2010 at a cost of $15 thousand. An additional recompletion is planned for 2011 at an estimated cost of $0.1 million.	Production commenced July 2008. Recompletion activities were completed in July 2010 at a cost of $11 thousand. An additional recompletion is currently scheduled for 2011 at an estimated cost of $0.1 million.
West Cameron 76 A-1		11.24%	%	$	$1,781	~~1,781~~	$	$1,781	~~1,781~~	Production commenced in 2007.	~~Production commenced October 2007.~~
West Cameron 556		20.0%	%	$	$11,604	~~11,604~~	$	$11,604	~~11,604~~	Production commenced in 2005.	~~Production commenced September 2005.~~
East Cameron 299		10.00%	%	$	$6,020	~~6,015~~	$	$6,295	~~6,165~~	Production commenced in 2004. Workover completed in second quarter 2010 at a cost of $34 thousand. Additional maintenance efforts scheduled for first quarter 2011 at an estimated cost of $0.3 million.	Production commenced September 2004. Workover completed in second quarter 2010 at a cost of $29 thousand. Additional maintenance efforts scheduled for third quarter 2010 at an estimated cost of $0.1 million.

OnIn April ~~20,~~ 2010 ~~in the Gulf of Mexico~~, ~~as reported in~~ the ~~press, an explosion and fire occurred on the~~ Deepwater Horizon ~~drilling rig~~, which was ~~engaged~~drilling ~~related to~~ a BP-operated project, ~~with~~in ~~which~~ the ~~Fund~~deepwater ~~has no affiliation. As a result~~ of the ~~explosion and resultant oil spill, the U.S. government placed a six month moratorium on deepwater drilling operations in the~~ Gulf of Mexico~~. On June 22~~, ~~2010,~~sank aafter ~~federal~~an ~~judge~~apparent ~~ruled~~blowout ~~against the U.S. government~~ and ~~lifted the moratorium and the 5th Circuit Court of Appeals recently affirmed the lower court’s ruling~~fire. As ~~However, as~~ of the date of this filing, ~~there~~the ~~have~~well has been nopermanently ~~deepwater~~capped ~~drilling~~and ~~permits~~environmental ~~issued~~remediation byefforts ~~the~~are ~~Bureau~~ongoing. ofNeither ~~Ocean~~the ~~Management,~~Fund ~~Regulation~~nor ~~and~~any ~~Enforcement~~operators ~~(“BOE”)~~of ~~(formerly~~ the ~~Minerals~~Fund’s ~~Management~~projects ~~Service). In~~owns ~~compliance~~an ~~with~~interest in the ~~court’s~~affected ~~ruling,~~field. As ~~the~~a ~~Secretary~~result of the ~~Interior~~explosion ~~re-issued the moratorium~~ and ~~ordered~~resultant itoil inspill, ~~place~~the ~~until~~U.S. ~~the~~government ~~end~~placed ofa ~~November~~six ~~2010. As~~month ofmoratorium ~~the~~on ~~date~~deepwater ofdrilling ~~this~~operations ~~filing,~~in the ~~Fund’s~~Gulf ~~properties~~of ~~have~~Mexico, ~~not~~which has been ~~impacted~~lifted byeffective ~~the~~October ~~moratorium~~12, 2010. The extent to which these recent events may impact the Fund’s future results is uncertain. The Fund cannot predict how federal and state authorities will further respond to the incident or whether additional changes in laws and regulations governing oil and gas operations in the Gulf of Mexico will result. Such changes, if any, may impact the way the Fund conducts business and may increase the Fund’s cost of doing business. ~~A prolonged interruption may adversely impact the Fund’s financial position, results of operations and cash flows.~~

Results of Operations

The following table summarizes the Fund’s results of operations for the three and ~~six~~nine months ended ~~June~~September 30, 2010 and 2009 and should be read in conjunction with the Fund’s financial statements and notes thereto included within Item 1 “Financial Statements” in Part I of this Quarterly Report.

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	Three months ended June 30,						Six months ended June 30,
	Three months ended September 30,						Nine months ended September 30,
	2010			2009			2010			2009
	(in thousands)
Revenue
Oil and gas revenue	$	~~146~~288		$	~~571~~470		$	~~558~~846		$	1,~~439~~909
Expenses
Depletion and amortization		~~113~~194			~~773~~664			~~444~~638			12,~~762~~426
Impairment of proved properties		-			-			-			198
Operating expenses		~~139~~137			~~159~~161			~~242~~379			~~314~~475
General and administrative expenses		6359			7270			~~124~~183			~~147~~217
Total expenses		~~315~~390			~~1,004~~895			~~810~~1,200			23,~~421~~316
Loss from operations		(~~169~~102	)		(~~433~~425	)		(~~252~~354	)		(~~982~~1,407	)
Other income
Interest income		8			129			1523			2837
Net loss	$	(~~161~~94	)	$	(~~421~~416	)	$	(~~237~~331	)	$	(~~954~~1,370	)

Overview. During ~~the three and six months ended June 30,~~ 2010 and 2009, the Fund had six and seven producing wells, respectively. ~~Vermilion~~One ~~344,~~of ~~which~~the ~~commenced~~Fund’s ~~production~~producing inwells ~~December 2008,~~ was determined to be fully depleted at December 31, 2009. ~~During the three and six months ended June 30, 2010, West Delta 67 and West Delta 68 each underwent recompletions, resulting in temporary shut-ins through July 2010.~~

~~Oil~~The Fund’s revenue, depletion and ~~Gas~~amortization ~~Revenue. Oil~~and lease operating expense were affected by the timing of the onset of production and ~~gas~~depletion ~~revenue~~of ~~for~~the Fund’s wells and by the ~~three~~impact of temporary shut-ins. During the nine months ended ~~June~~September 30, 2010, ~~was~~West ~~$0.1~~Delta ~~million~~67 and West Delta 68 each underwent recompletions, aresulting $0in temporary shut-ins through July 2010.4 Additional ~~million~~recompletions ~~decrease~~to ~~from~~access behind the ~~three~~pipe ~~months~~reserves ~~ended~~for ~~June~~West ~~30,~~Delta ~~2009~~67 ~~primarily~~and ~~attributable~~West Delta 68 are expected to ~~the~~commence ~~impact~~in ofNovember ~~decreased~~2010 ~~sales~~and ~~volumes~~October 2011, respectively.

Oil ~~sales~~and ~~volumes~~Gas ~~were~~Revenue. Oil ~~4 hundred barrels~~ and 14gas ~~hundred~~revenue ~~barrels~~ for the three months ended ~~June~~September 30, 2010 ~~and~~was ~~2009, respectively~~$0. ~~The~~3 ~~Fund’s~~million, ~~oil~~a ~~prices averaged~~ $800.2 ~~per~~million ~~barrel~~decrease ~~during~~from the three months ended ~~June~~September 30, ~~2010~~2009. The ~~compared~~decrease is attributable to the impact of decreased sales volumes totaling $500.3 ~~per~~million, ~~barrel~~partially ~~during~~offset ~~the~~by ~~three~~increased ~~months~~average ~~ended~~prices ~~June~~totaling ~~30,~~$0.1 ~~2009~~million.

~~Gas~~Oil sales volumes were 277 ~~thousand~~hundred ~~mcf~~barrels and ~~126~~13 ~~thousand~~hundred ~~mcf~~barrels for the three months ended ~~June~~September 30, 2010 and 2009, respectively. The Fund’s ~~gas~~oil prices averaged $~~4.43~~75 per ~~mcf~~barrel during the three months ended ~~June~~September 30, 2010 compared to $~~3.88~~64 per ~~mcf~~barrel during the three months ended ~~June~~September 30, 2009.

~~Oil~~Gas sales volumes were 32 thousand mcf and ~~gas~~113 ~~revenue~~thousand mcf for the ~~six~~three months ended ~~June~~September 30, 2010 ~~was~~and $02009, respectively.6 The ~~million,~~Fund’s agas prices averaged $04.953 ~~million~~per ~~decrease~~mcf ~~from~~during the ~~six~~three months ended ~~June~~September 30, ~~2009. The~~2010 ~~decrease~~compared ~~is attributable~~ to ~~the impact of decreased sales volumes totaling~~ $13.041 ~~million,~~per ~~partially~~mcf ~~offset~~during bythe ~~increased~~three ~~average~~months ~~prices~~ended ~~totaling~~September ~~$0.1~~30, ~~million~~2009.

Oil ~~sales volumes were 8 hundred barrels~~ and 3gas ~~thousand~~revenue ~~barrels~~ for the ~~six~~nine months ended ~~June~~September 30, 2010 ~~and~~was ~~2009, respectively~~$0. ~~The~~8 ~~Fund’s~~million, ~~oil~~a ~~prices averaged~~ $781.1 ~~per~~million ~~barrel~~decrease ~~during~~from the ~~six~~nine months ended ~~June~~September 30, ~~2010~~2009. The ~~compared~~decrease is attributable to the impact of decreased sales volumes totaling $431.2 ~~per~~million, ~~barrel~~partially ~~during~~offset ~~the~~by ~~six~~increased ~~months~~average ~~ended~~prices ~~June~~totaling ~~30,~~$0.2 ~~2009~~million.

~~Gas~~Oil sales volumes were 902 thousand ~~mcf~~barrels and ~~290~~4 thousand ~~mcf~~barrels for the ~~six~~nine months ended ~~June~~September 30, 2010 and 2009, respectively. The Fund’s ~~gas~~oil prices averaged $~~5.12~~76 per ~~mcf~~barrel during the ~~six~~nine months ended ~~June~~September 30, 2010 compared to $~~4.40~~49 per ~~mcf~~barrel during the ~~six~~nine months ended ~~June~~September 30, 2009.

~~The~~Gas ~~decreases~~sales ~~in oil and gas~~ volumes were ~~primarily~~137 ~~attributable~~thousand tomcf ~~decreased~~and ~~production~~403 ~~rates~~thousand mcf for the ~~Fund’s~~nine ~~wells~~months ~~due~~ended toSeptember ~~natural~~30, ~~declines~~2010 inand ~~production~~2009, ~~coupled~~respectively. The ~~with~~Fund’s agas ~~decline~~prices inaveraged $5.00 per mcf during the ~~total~~nine ~~production~~months ~~days~~ended ~~primarily~~September ~~attributable~~30, 2010 compared to ~~the~~$4.13 ~~fully~~per ~~depleted~~mcf ~~Vermilion~~during ~~344~~the ~~well. See~~nine ~~“Overview”~~months ~~above~~ended ~~for~~September ~~additional~~30, ~~information~~2009.

~~Depletion~~The ~~and~~decreases ~~Amortization. Depletion~~in ~~and~~oil ~~amortization~~volumes for the three and ~~six~~nine months ended ~~June~~September 30, 2010 ~~was~~were ~~$0.1~~attributable ~~million~~to ~~and~~decreased ~~$0.4~~production ~~million,~~rates ~~respectively,~~for ~~compared~~the toFund’s ~~$0.8~~wells ~~million~~due ~~and~~to ~~$1.8~~natural ~~million~~declines ~~for~~in ~~the~~production ~~three~~ and ~~six~~lower ~~months~~production ~~ended~~volumes ~~June~~for ~~30,~~West ~~2009. The~~Delta ~~decreases~~67 ~~resulted~~and ~~primarily~~West ~~from~~Delta a68, ~~decrease~~which inwere ~~production~~temporarily ~~volumes,~~shut-in aswhile ~~discussed~~undergoing ~~above~~recompletions. See in “~~Oil~~Overview” ~~and~~above ~~Gas~~for ~~Revenue”~~additional information.

The decreases in gas volumes for the three and nine months ended September 30, 2010 were attributable to decreased production rates for the Fund’s wells due to natural declines in production, the impact of fully depleted wells, and lower production volumes for West Delta 67 and West Delta 68, which were temporarily shut-in while undergoing recompletions. See “Overview” above for additional information.

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~~Impairment~~Depletion ofand ~~Proved Properties~~Amortization. ~~During~~Depletion and amortization for the ~~six~~three and nine months ended ~~June~~September 30, ~~2009,~~2010 ~~the~~was ~~Fund~~$0.2 ~~recorded~~million ~~impairments~~and of$0.6 ~~proved~~million, ~~properties~~respectively, a decrease of $0.25 million, ~~relating~~and to$1.8 ~~Vermilion~~million ~~344~~from ~~due~~the tothree ~~lower~~and ~~oil~~nine ~~and~~months ~~gas~~ended ~~commodity~~September ~~prices~~30, 2009, respectively. ~~There~~The ~~were~~decrease noin ~~impairments~~the ~~recorded~~three ~~during~~month period resulted primarily from the ~~three~~decrease ~~months~~in ~~ended~~production ~~June~~volumes. The ~~30,~~decrease ~~2010~~in ~~and~~the ~~2009~~nine ~~and~~month ~~during~~period resulted primarily from a decrease in production volumes totaling $1.6 million coupled with a decrease in average depletion rates totaling $0.2 million. The decrease in average depletion rates was primarily the ~~six~~result ~~months~~of ~~ended~~the ~~June~~composite ~~30,~~of ~~2010~~productive wells.

~~Operating~~Impairment ~~Expenses~~of Proved Properties. ~~Operating~~ During ~~expenses~~the ~~include~~nine months ended September 30, 2009, the ~~costs~~Fund ofrecorded ~~operating~~impairments ~~and~~of ~~maintaining~~proved ~~wells~~properties ~~and~~of ~~related~~$0.2 ~~facilities~~million, ~~accretion~~relating ~~expense~~to ~~related~~Vermilion to344 ~~asset~~due ~~retirement~~to ~~obligations~~lower oil and ~~dry-hole~~gas ~~costs~~commodity asprices. There ~~detailed~~were inno impairments recorded during the ~~following~~three ~~table~~months ended September 30, 2010 and 2009 and during the nine months ended September 30, 2010.

	Three months ended June 30,				Six months ended June 30,
	2010		2009		2010			2009
	(in thousands)
Lease operating expense	$	136	$	157	$	239		$	310
Accretion expense		3		2		4			4
Dry-hole costs		-		-		(1	)		-
	$	139	$	159	$	242		$	314

Operating Expenses. Operating expenses represent costs specifically identifiable or allocable to the Fund's wells, as detailed in the following table.

Lease operating expense was related to the Fund’s producing properties during each period as outlined above in “Overview”. For the three and six months ended June 30, 2010, average production cost was $4.32 per mcfe and $2.33 per mcfe, respectively, compared to $1.10 per mcfe and $0.97 per mcfe, respectively, for the three and six months ended June 30, 2009. Accretion expense is related to the asset retirement obligations established for the Fund’s proved properties. Dry-hole costs are those costs incurred to drill and develop a well that is ultimately found to be incapable of producing either oil or natural gas in sufficient quantities to justify completion of the well. At times, the Fund receives credits on certain wells from their respective operators upon review and audit of the wells’ costs.

	Three months ended September 30,					Nine months ended September 30,
	2010			2009		2010			2009
	(in thousands)
Lease operating expense	$	138		$	159	$	377		$	469
Accretion expense		1			2		5			6
Dry-hole costs		(2	)		-		(3	)		-
	$	137		$	161	$	379		$	475

Lease operating expense was related to the Fund’s producing properties during each period as outlined above in “Overview”. For the three months ended September 30, 2010 and 2009, the average production cost was $3.39 per mcfe and $1.25 per mcfe, respectively. For the nine months ended September 30, 2010 and 2009, the average production cost was $2.33 per mcfe and $1.05 per mcfe, respectively. Accretion expense is related to the asset retirement obligations established for the Fund’s proved properties. Dry-hole costs are those costs incurred to drill and develop a well that is ultimately found to be incapable of producing either oil or natural gas in sufficient quantities to justify completion of the well. At times, the Fund receives credits on certain wells from their respective operators upon review and audit of the wells’ costs.

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

	Three months ended June 30,				Six months ended June 30,
	Three months ended September 30,				Nine months ended September 30,
	2010		2009		2010		2009
	(in thousands)
Accounting fees	$	3226	$	3536	$	6288	$	70106
Management reimbursement and other		20		1920		4060		4161
Insurance expense		1113		1814		2235		3650
	$	6359	$	7270	$	~~124~~183	$	~~147~~217

Accounting fees represent audit and tax preparation fees, quarterly reviews and filing fees incurred by the Fund. Management reimbursement and other expenses relate primarily to reimbursements for various administrative costs incurred on the Fund’s behalf. Insurance expense represents premiums related to producing well insurance, which varies dependent upon the number of wells producing, and directors’ and officers’ liability insurance.

Interest Income. Interest income is comprised of interest earned on money market accounts and investments in U.S. Treasury securities ~~within the Fund’s salvage fund~~. Interest income was $8 thousand for the three ~~and six~~ months ended ~~June~~September 30, 2010, ~~was~~a $81 thousand ~~and~~decrease ~~$15~~from ~~thousand,~~the ~~respectively~~three months ended September 30, a2009. Interest ~~decrease~~income ofwas $423 thousand ~~and~~for ~~$13~~the ~~thousand~~nine months ended September 30, ~~respectively~~2010, ~~from~~a ~~the~~$14 ~~three~~thousand ~~and~~decrease ~~six~~from the nine months ended ~~June~~September 30, 2009. The decreases were the result of a reduction in average outstanding balances earning interest, due to ongoing capital expenditures for oil and gas properties, coupled with lower interest rates earned.

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Capital Resources and Liquidity

Operating Cash Flows

Cash flows provided by operating activities for the ~~six~~nine months ended ~~June~~September 30, 2010 were $0.34 million, primarily related to revenue received of $0.79 million, partially offset by operating expenses of $0.24 million and general and administrative expenses of $0.12 million.

Cash flows provided by operating activities for the ~~six~~nine months ended ~~June~~September 30, 2009 were $1.47 million, primarily related to revenue received of $12.~~6 million, $0.~~1 million ~~received as a refund of estimated royalty payments made in 2008~~ and favorable working capital of $0.12 million, partially offset by operating expenses of $0.35 million and general and administrative expenses oftotaling $0.1 million.

Investing Cash Flows

Cash flows used in investing activities for the ~~six~~nine months ended ~~June~~September 30, 2010 were $0.2 million, primarily related to capital expenditures for oil and gas properties~~, inclusive of advances~~.

Cash flows used in investing activities for the ~~six~~nine months ended ~~June~~September 30, 2009 were $0.3 million, primarily related to capital expenditures for oil and gas properties.

Financing Cash Flows

Cash flows used in financing activities for the ~~six~~nine months ended ~~June~~September 30, 2010 were $0.4 million, related to shareholder distributions.

Cash flows used in financing activities for the ~~six~~nine months ended ~~June~~September 30, 2009 were $1.48 million, related to ~~shareholders~~shareholder distributions.

Estimated Capital Expenditures

The Fund has entered into multiple agreements for the drilling and development of its investment properties. The estimated expenditures associated with these agreements can vary depending on the stage of development on a property-by-property basis. As of ~~June~~September 30, 2010, the Fund had committed to spend an additional $0.45 million related to its investment properties, of which $0.24 million is expected to be ~~incurred~~spent during the next twelve months.

~~When~~Capital ~~the~~expenditures ~~Manager~~for ~~makes~~investment aproperties ~~decision~~were tofunded ~~participate~~with inthe ancapital ~~exploratory~~raised ~~project,~~by itthe ~~assumes~~Fund ~~that~~in ~~the~~its ~~well~~private ~~will~~placement beoffering, ~~successful~~which ~~and~~is ~~allocates~~all ~~enough~~the capital toit ~~budget~~will ~~for~~obtain. The ~~the~~number ~~completion~~ of ~~that~~projects ~~well~~in ~~and~~which the ~~additional~~Fund ~~development~~can ~~wells~~invest ~~and~~was ~~infrastructure~~limited, ~~anticipated.~~and Ifeach anunsuccessful ~~exploratory~~project ~~well~~the isFund ~~deemed~~experienced areduced ~~dry~~its ~~hole~~ability ~~or if it is determined~~ to begenerate ~~un-economical,~~revenue ~~the capital allocated to the completion of that well~~ and toexhausted ~~the~~its ~~development~~capital. The ofManager ~~additional~~has ~~wells~~sought isan ~~then~~investment ~~reallocated~~portfolio tothat acombines ~~new~~high ~~project~~and orlow ~~used~~risk toexploratory ~~make additional investments.~~projects

Capital expenditures for investment properties are funded with the capital raised by the Fund in its private placement offering, which is all the capital it will obtain. The number of projects in which the Fund can invest will be limited and each unsuccessful project the Fund experiences reduces its ability to generate revenue and exhaust its capital. Typically, the Manager seeks an investment portfolio that combines high and low risk exploratory projects.

Liquidity Needs

The Fund’s primary short-term liquidity needs are to fund its operations and ~~capital~~ expenditures for its investment properties. Operations are funded utilizing operating income, existing cash on-hand and income earned therefrom.

Distributions, if any, are funded from available cash from operations, as defined in the LLC Agreement, and the frequency and amount are within the Manager’s discretion. During 2006, the Manager elected to waive its right to distributions of available cash from operations for the remaining life of the Fund.

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Off-Balance Sheet Arrangements

The Fund had no off-balance sheet arrangements at ~~June~~September 30, 2010 and December 31, 2009 and does not anticipate the use of such arrangements in the future.

Contractual Obligations

The Fund enters into participation and 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 negotiate any such contracts. No contractual obligations exist at ~~June~~September 30, 2010 and December 31, 2009 other than those discussed in “Estimated Capital Expenditures” above.

Recent Accounting Pronouncements

See Note 3 of Notes to Unaudited Condensed Financial Statements – “Recent Accounting Standards” contained in this Quarterly Report for a discussion of recent accounting pronouncements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required.

ITEM 4. CONTROLS AND PROCEDURES

In accordance with Rules 13a-15 and 15d-15 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Fund’s management, including its Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the Fund’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Fund’s disclosure controls and procedures were effective as of ~~June~~September 30, 2010.

There has been no change in the Fund’s internal control over financial reporting that occurred during the three months ended ~~June~~September 30, 2010 that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

On August 16, 2006, the Manager of the Fund filed a lawsuit against the former independent registered public accounting firm for the Fund, Perelson Weiner, LLP, (“Perelson”) in New Jersey Superior Court, captioned Ridgewood Energy Corporation v. Perelson Weiner, LLP, Docket No. L-6092-06. The suit alleged professional malpractice and breach of contract in connection with audit and accounting services performed for the Fund by Perelson. Thereafter, Perelson filed a counterclaim against the Manager on October 20, 2006, alleging breach of contract due to unpaid invoices in the amount of $326,554. During May 2010, a settlement was reached by the parties at no cost to the Fund. Legal costs related to this claim were borne by the Manager.

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.

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ITEM 4. (REMOVED AND RESERVED)

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

Exhibit
Number	Title of Exhibit	Method of Filing
31.1	Certification of Robert E. Swanson, Chief Executive Officer of the Fund, pursuant to Exchange Act Rule 13a-14(a)	Filed herewith
31.2	Certification of Kathleen P. McSherry, Chief Financial Officer of the Fund, pursuant to Exchange Act Rule 13a-14(a)	Filed herewith
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	Filed herewith

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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.

				RIDGEWOOD ENERGY K FUND, LLC	~~RIDGEWOOD ENERGY K FUND, LLC~~
Dated:	~~August~~November 109, 2010	By:	/s/	ROBERT E. SWANSON	~~ROBERT E. SWANSON~~
			Name:	Robert E. Swanson	~~Robert E. Swanson~~
			Title:	Chief Executive Officer	~~Chief Executive Officer~~
				(Principal Executive Officer)	~~(Principal Executive Officer)~~
Dated:	~~August~~November 109, 2010	By:	/s/	KATHLEEN P. MCSHERRY	~~KATHLEEN P. MCSHERRY~~
			Name:	Kathleen P. McSherry	~~Kathleen P. McSherry~~
			Title:	Executive Vice President and Chief Financial Officer	~~Executive Vice President and Chief Financial Officer~~
				(Principal Financial Officer)	~~(Principal Financial Officer)~~

1615

Filing Compare · RIDGEWOOD ENERGY K FUND LLC