Information about Oil and Gas Producing Activites

12 Months Ended

Dec. 31, 2011

Information about Oil and Gas Producing Activities [Abstract]

Information about Oil and Gas Producing Activities

In accordance with the Financial Accounting Standards Board guidance on disclosures of oil and gas producing activities, this section provides supplementary information on oil and gas exploration and producing activities of the Fund. The Fund is engaged solely in oil and gas activities, all of which are currently located in the United States offshore waters of Louisiana in the Gulf of Mexico.

Table I - Capitalized Costs Relating to Oil and Gas Producing Activities
	December 31,
	2011			2010
	(in thousands)
Advances to operators for working interests and expenditures	$	-		$	156
Proved properties		6,658			10,430
Total oil and gas properties		6,658			10,586
Accumulated depletion and amortization		(2,932	)		(6,983	)
Oil and gas properties, net	$	3,726		$	3,603

Table II - Costs Incurred in Oil and Gas Property Acquisition, Exploration, and Development

	Year ended December 31,
	2011			2010
	(in thousands)
Exploration costs	$	(84	)	$	164
Development costs		843			528
	$	759		$	692

Table III - Reserve Quantity Information

Oil and gas reserves of the Fund have been estimated by an independent petroleum engineer, Ryder Scott Company, L.P. at December 31, 2011 and 2010. These reserve disclosures have been prepared in compliance with the Securities and Exchange Commission rules. Due to inherent uncertainties and the limited nature of recovery data, estimates of reserve information are subject to change as additional information becomes available.

	December 31, 2011						December 31, 2010
	United States
	Oil (BBLS)			Gas (MCF)			Oil (BBLS)			Gas (MCF)

Proved developed and undeveloped reserves:
Beginning of year		44,204			607,360			49,139			1,406,986
Revisions of previous estimates (a)		(15,769	)		(151,858	)		(1,616	)		(238,429	)
Production		(2,990	)		(55,840	)		(3,319	)		(561,197	)
End of year		25,445			399,662			44,204			607,360

Proved developed reserves:
Beginning of year		44,204			607,360			48,205			664,653
End of year		25,445			399,662			44,204			607,360

Proved undeveloped reserves:
Beginning of year		-			-			934			742,333
End of year		-			-			-			-

(a) Revisions of previous estimates during the year ended December 31, 2011 were primarily attributable to the determination that two of the Fund's wells were fully depleted coupled with revisions due to well performance. Revisions of previous estimates during the year ended December 31, 2010 were primarily attributable to well performance.

Table IV - Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves

Summarized in the following table is information for the Fund with respect to the standardized measure of discounted future net cash flows relating to proved oil and gas reserves. At December 31, 2011 and 2010, future cash inflows were determined based on average first-of-the-month pricing for the prior twelve-month period. Future production and development costs are derived based on current costs assuming continuation of existing economic conditions.

	December 31,
	2011			2010
	(in thousands)
Future cash inflows	$	4,662		$	6,222
Future production costs		(836	)		(930	)
Future development costs		(1,199	)		(2,174	)
Future net cash flows		2,627			3,118
10% annual discount for estimated timing of cash flows		(503	)		(469	)
Standardized measure of discounted future net cash flows	$	2,124		$	2,649

Table V - Changes in the Standardized Measure for Discounted Cash Flows

The changes in present values between years, which can be significant, reflect changes in estimated proved reserve quantities and prices and assumptions used in forecasting production volumes and costs.

	Year ended December 31,
	2011			2010
	(in thousands)
Net change in sales and transfer prices and in production costs related to future production	$	492		$	1,241
Sales and transfers of oil and gas produced during the period		(413	)		(2,306	)
Changes in estimated future development costs		975			(923	)
Net change due to revisions in quantities estimates		(1,402	)		(1,063	)
Accretion of discount		265			484
Other		(442	)		375
Aggregate change in the standardized measure of discounted future net cash flows for the year	$	(525	)	$	(2,192	)

It is necessary to emphasize that the data presented should not be viewed as representing the expected cash flow from, or current value of, existing proved reserves as the computations are based on a number of estimates. Reserve quantities cannot be measured with precision and their estimation requires many judgmental determinations and frequent revisions. The required projection of production and related expenditures over time requires further estimates with respect to pipeline availability, rates and governmental control. Actual future prices and costs are likely to be substantially different from the current price and cost estimates utilized in the computation of reported amounts. Any analysis or evaluation of the reported amounts should give specific recognition to the computational methods utilized and the limitation inherent therein.

Ridgewood Energy M Fund LLC 10-K