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  As Of               Filer                 Filing     As/For/On Docs:Pgs              Issuer               Agent

11/15/04  Reef Global Energy IV/L/P         424B3                  1:88                                     Merrill Corp/New/- FA

Document/Exhibit                   Description                      Pages   Size 

 1: 424B3       Prospectus                                          HTML    671K 

PROSPECTUS SUPPLEMENT
(to the prospectus dated January 10, 2002)

REEF GLOBAL ENERGY IV, L.P.

375 Units of Preformation Limited Partner Interests and
125 Units of Preformation Additional General Partner Interests

        Reef Global Energy IV, L.P. is a limited partnership to be formed to drill and own interests in oil and natural gas properties. The partnership intends to enter into agreements with major or independent oil and gas companies to drill and own interests in oil and natural gas properties in the United States and in U.S. waters in the Gulf of Mexico. At times, the partnership may drill and own interests without such strategic partners. The primary purposes of the partnership will be to generate revenue from the production of oil and gas, distribute cash to the partners, and provide tax benefits. We are Reef Partners LLC ("Reef Partners") and we will be the managing general partner of the partnership. This partnership is the fourth to be offered in a series of partnerships to be formed by us comprising a program called Reef Global Energy Ventures.

        Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

        These securities are speculative and involve a high degree of risk. Before buying units, you should consider carefully the risk factors beginning on page S-4 in this prospectus supplement, including:

        Oil and gas operations are highly speculative    •    We will manage and control the partnership     •     You will be unable to evaluate drilling or investment prospects    •    Third parties may control drilling, completion and production operations    •    Personal liability of additional general partners    •     Limited transferability of partnership interests    •    Cash distributions are not guaranteed    •     Conflicts of interest     •    Tax risks

        Reef Securities, Inc. is the dealer manager for this offering. It is offering the units on a "best efforts minimum/maximum" basis. The dealer manager was required to sell the minimum number of units in the partnership (50) in order for the partnership to be formed. The dealer manager is required to use only its best efforts to sell the units offered in the partnership. The offering period began on September 21, 2004. As of October 31, 2004, approximately $2,764,000 of units had been sold, satisfying the minimum offering amount.

November 10, 2004

   
IMPORTANT NOTICE ABOUT INFORMATION IN THIS
PROSPECTUS SUPPLEMENT AND THE ACCOMPANYING PROSPECTUS

        This prospectus supplement describes the specific terms of the units we are offering in Reef Global Energy IV, L.P. The base prospectus gives more general information regarding Reef Global Energy Ventures, some of which may not apply to the units we are offering by this prospectus supplement.

        If the description of the units varies between this prospectus supplement and the accompanying prospectus, you should rely on the information in this prospectus supplement.

        You should rely only on the information contained in or incorporated by reference in this prospectus supplement or in the accompanying prospectus. We have not authorized anyone to provide you with different information. We are not offering to sell the units in any state where the offer or sale is not permitted. You should not assume that the information contained in or incorporated by reference in this prospectus supplement or the accompanying prospectus is accurate as of any date later than November 10, 2004.

        We include cross references in this prospectus supplement to captions in the prospectus and this prospectus supplement where you can find further related information. The following table of contents tells you where to find these captions.

TABLE OF CONTENTS
PROSPECTUS SUPPLEMENT

i

ii

iii

   
PROSPECTUS SUMMARY

        This summary highlights some information contained in this prospectus supplement. It is not complete and may not contain all of the information that is important to you. You should read the entire prospectus supplement and accompanying prospectus carefully, including the risk factors, the financial statements and the notes to the financial statements. You will find definitions of many terms, including those relating to the oil and gas business, in the "GLOSSARY OF TERMS" beginning on page 74 of the accompanying prospectus.

Terms of the Offering

S-1

Risk Factors

        The units are a speculative investment and involve a high degree of risk. You should consider the risk factors described on pages S-4 to S-11 of this prospectus supplement, together with the other information in this prospectus, in evaluating an investment in the units.

S-2

Our Compensation

        The following table summarizes the compensation to be received by us from the partnership.

        Our "partnership interest," as described in the table above, refers only to our interest as managing general partner and does not include the interest we will have as a result of our purchase of any units, nor the 1% interest we will have as the result of our payment of 1% of all lease costs, intangible drilling and development costs, and well completion costs. Direct costs cannot be quantified until the partnership is conducting business.

Participation in Distributions, Profits, Losses, Costs and Revenues

        Cash distributions, if any, from the partnership will be distributed 89% to the holders of units and 11% to us.

        Partnership profits will be generally allocated 89% to the holders of units and 11% to us, not including any partnership units we purchase. We will buy at least 5% of the units issued by the partnership at the offering price of $20,000 per unit, net of the management fee.

        Deductions for organization and offering expenses and the management fee will be allocated 100% to the holders of units, except for those units purchased by the managing partner. Lease costs, intangible drilling and development costs and completion costs will be allocated 1% to us and 99% to the holders of units. Partnership direct costs, administrative costs and operating costs will be allocated 11% to us and 89% to the holders of units. We will also pay the percentage of partnership costs allocable to the partnership units we buy.

Use of Proceeds

        Eighty-five percent of the proceeds from the aggregate contributions to the capital of the partnership will be applied to acquisition, drilling and completion costs. The remaining 15% of the proceeds from the aggregate contributions to partnership capital will pay for organization and offering costs associated with the formation and sale of the partnerships and, if applicable, our management fee. We will receive a fee equal to 15% of subscriptions received to pay for these offering costs, including sales commissions. If the organization and offering costs, including commissions paid by us, are less than 15% of the subscription proceeds, we will keep the difference as a one-time management fee. If these costs exceed 15% of the subscription proceeds, we will pay the difference. The amount of our management fee that is not used to pay organization and offering costs, if any, therefore cannot be determined until all of the partnerships have been formed.

S-3

Tax Considerations; Opinion of Counsel

        We have received an opinion from our counsel, Baker & McKenzie LLP, concerning certain federal income tax considerations applicable to an investment in the partnership. The full text of the opinion is attached as Appendix D to the accompanying prospectus. We encourage you to read the opinion in its entirety and to read the discussion of "TAX CONSIDERATIONS" in the accompanying prospectus for a full understanding of the opinion, including the assumptions made and matters considered by Baker & McKenzie LLP in providing its opinion.

RISK FACTORS

        Investment in the partnership involves a high degree of risk and is suitable only for investors of substantial financial means who have no need for liquidity in their investments. You should consider carefully the following factors, in addition to the other information in this prospectus supplement and the accompanying prospectus, prior to making your investment decision.

Special Risks of the Partnership

        We will manage and control the partnership's business. Third parties may manage and control the prospects. We will exclusively manage and control all aspects of the business of the partnership and will make all decisions concerning the business of the partnership. You will not be permitted to take part in the management or in the decision making of the partnership. Third parties may act as the operator of partnership prospects, and in many cases, the partnership may acquire a less than 50% working interest in various oil and natural gas properties. Accordingly, third parties may manage and control the drilling, completion and production operations on the properties.

        You may not be able to evaluate the partnership's prospects before making your investment decision. You may not have an opportunity before purchasing units to evaluate geophysical, geological, economic or other information regarding the prospects to be selected. Delays are likely in the investment of proceeds from your subscription because the offering period for the partnership can extend over a number of months, and no prospects will be acquired until after the formation of the partnership.

        Additional general partners have unlimited liability for partnership obligations. Under Nevada law, the state in which the partnership will be formed, general partners of a partnership have unlimited liability for obligations and liabilities of that partnership. If you purchase units as an additional general partner you will be liable for all obligations and liabilities arising from partnership operations if these liabilities exceed both the assets and insurance of the partnership, and our assets and insurance. Even if you convert your general partner interest into a limited partner interest, you will continue to be liable as a general partner for matters that occurred while you owned a general partner interest. Your liability as an additional general partner may exceed the amount of your subscription.

        Cash distributions are not guaranteed. Cash distributions are not guaranteed and will depend on the partnership's future operating performance. See "PARTICIPATION IN DISTRIBUTIONS, PROFITS, LOSSES, COSTS AND REVENUES—Cash Distribution Policy" in the accompanying prospectus. We will review the accounts of the partnership at least quarterly to determine the cash available for distribution. Distributions will depend primarily on the partnership's cash flow from operations, which will be affected, among other things, by the price of oil and natural gas and the level of production of the partnership's prospects. See "—Risks of Oil and Natural Gas Investments."

        Your ability to resell your units is limited due to the lack of a public market and restrictions contained in the partnership agreement. You may not be able to sell your partnership interests. No public market for the units exists or is likely to develop. Your ability to resell your units also is restricted by the partnership agreement. The partnership itself may continue in existence for thirty years from its

S-4

formation, unless earlier terminated. See "TRANSFERABILITY OF UNITS" in the accompanying prospectus.

        We and our affiliates may have conflicts of interest with you and the partnership. The continued active participation by us and our affiliates in oil and gas activities individually, and on behalf of other partnerships organized or to be organized by us, and the manner in which partnership revenues are allocated, create conflicts of interest with the partnership. We and our affiliates have interests that inherently conflict with those of the unaffiliated partners, including the following:

•

We and our affiliates manage other oil and natural gas drilling programs. We will owe a duty of good faith to each of the partnerships that we manage. Actions taken with regard to other partnerships may not be advantageous to this partnership.



•

We decide which prospects each partnership will acquire. We could benefit, as a result of cost savings or reduction of risk, for instance, by assigning or not assigning particular prospects to a partnership.



•

One of our affiliates may act as operator on some partnership wells for which it will be compensated (at rates competitive with the rates charged by unaffiliated persons for similar services). Our affiliate could have an incentive to operate wells that were no longer economic to the partnership, in order to continue to receive operating fees.

        There can be no assurance that any transaction with us will be on terms as favorable as could have been negotiated with unaffiliated third parties.

        We and our affiliates have sponsored ventures in the past that have produced dry holes and abandoned wells. Reef Partners LLC and our affiliate, Reef Exploration, Inc., have sponsored 43 ventures from 1996 to the present. These ventures have drilled 50 wells. Of these 50 wells, 28 were exploratory wells and 22 were developmental wells. Of these wells, 37 were completed and 13 were dry holes. Of the 37 wells completed as producers, 34 were commercially producing, 10 of which were subsequently plugged and abandoned. Using this data, approximately 26% of the wells drilled by these ventures were dry holes and 20% of the wells were subsequently abandoned.

        Compensation payable to us will effect distributions. We will receive compensation from each partnership throughout the life of the partnership. Our affiliates may enter into transactions with the partnership for services, supplies, and equipment and will be entitled to compensation at competitive prices and terms as determined by reference to charges of unaffiliated companies providing similar services, supplies, and equipment. Compensation payments to us and our affiliates will be due regardless of the partnership's profitability and will reduce the amount of cash available to the partnership for distribution to its partners. See "COMPENSATION TO THE MANAGING GENERAL PARTNER" in the accompanying prospectus.

        Your subscription for units is irrevocable. Your execution of the subscription agreement is a binding offer to buy units in the partnership. Once you subscribe for units, you will not be able to revoke your subscription.

        The partnership's ability to diversify risks depends upon the number of units issued and the availability of suitable prospects. We intend to spread the risk of oil and natural gas drilling and ownership of interests in oil and natural gas properties by purchasing smaller percentage working interests in multiple prospects, primarily participating as a minority working interest owner with major and independent oil and gas companies as partners. If the partnership is subscribed at the minimum level, it will be able to participate in fewer prospects, thereby increasing the risk to the partners. As the partnership size increases, the diversification of the partnership will increase because the partnership can obtain interests in and drill on a greater number of prospects. However, if we are unable to secure sufficient attractive prospects for a larger partnership, it is possible that the average quality of the

S-5

partnership prospects could decline. In addition, greater demands will be placed on our management capabilities in the event of a larger partnership.

        The partnership may become liable for joint activities of other working interest owners. The partnership will usually acquire less than the full working interest in prospects and, as a result, will engage in joint activities with other working interest owners. Additionally, it is expected that the partnership will purchase less than a 50% working interest in most prospects, with the result that someone other than us or the partnership may control such prospects. The partnership could be held liable for the joint activity obligations of the other working interest owners, such as nonpayment of costs and liabilities arising from the actions of the working interest owners. Full development of the prospects may be jeopardized in the event other working interest owners cannot pay their shares of drilling and completion costs.

        The partnership has limited external sources of funds, which could result in a shortage of working capital. The partnership intends to utilize substantially all available capital from this offering for the acquisition of drilling prospects and the drilling and completion of wells on those prospects. The partnership will have only nominal funds available for partnership purposes until there are revenues from partnership operations. The partnership agreement permits the partnership to borrow money only after drilling has been completed and all additional general partnership interests have been converted into limited partnership interests. Any future requirement for additional funding will have to come, if at all, from the partnership's revenues, from assessments against the partners, or from borrowings. We cannot assure you that partnership operations will be sufficient to provide the partnership with necessary additional funding. The partnership cannot require you to pay any assessments. We are prohibited under the partnership agreement from loaning money to the partnerships, and we cannot assure you that the partnership will be able to borrow funds from third parties on commercially reasonable terms or at all.

        Other partnerships we sponsor will compete with this partnership for prospects, equipment, contractors, and personnel. We plan to offer interests in other partnerships to be formed for substantially the same purposes as those of this partnership. Therefore, multiple partnerships with unexpended capital funds, including partnerships formed before and after this partnership, may exist at the same time. Due to competition among the partnerships for suitable prospects and availability of equipment, contractors, and our personnel, the fact that partnerships previously organized by us and our affiliates may still be purchasing prospects when the partnership is attempting to purchase prospects may make the completion of prospect acquisition activities by the partnership more difficult.

        Our past experience is not indicative of the results of this partnership. We have limited experience in offerings of this nature. Information concerning the prior drilling experience of previous partnerships sponsored by us and our affiliates, presented under the caption "PRIOR ACTIVITIES," does not indicate the results to be expected by this partnership. This is the first public oil and gas program we are sponsoring. It is also the first time we are sponsoring an energy exploration program to be offered before we have selected prospects for acquisition by the program.

        Because investors bear the partnership's acquisition, drilling and development costs, they bear most of the risk of non-productive operations. Under the cost and revenue sharing provisions of the partnership agreement, we will share costs with you differently than the way we will share revenues with you. Because investor partners will bear a substantial amount of the costs of acquiring, drilling and developing the partnership's prospects, investor partners will bear a substantial amount of the costs and risks of drilling dry holes and marginally productive wells.

        The partnership agreement prohibits your participation in the partnership's business decisions. You may not participate in the management of the partnership business. The partnership agreement forbids you from acting in a manner harmful to the business of the partnership. If you violate the terms of the

S-6

partnership agreement, you may have to pay the partnership or other partners for all damages resulting from your breach of the partnership agreement.

        The partnership agreement limits our liability to you and the partnership and requires the partnership to indemnify us against certain losses. We will have no liability to the partnership or to any partner for any loss suffered by the partnership, and will be indemnified by the partnership against loss sustained by us in connection with the partnership if:

•

we determine in good faith that our action was in the best interest of the partnership;



•

we were acting on behalf of or performing services for the partnership; and



•

our action did not constitute negligence or misconduct by us.

        Because we will act as general partner of several partnerships, other commitments may adversely affect our financial condition. As a result of our commitments as general partner of several partnerships and because of the unlimited liability of a general partner to third parties, our net worth is at risk of reduction. Because we are primarily responsible for the conduct of each partnership's affairs, a significant adverse financial reversal for us could have an adverse effect on the partnership and the value of its units.

        You may be asked for additional funds. The managing general partner may call for voluntary assessments on the partners up to a total of $20,000 per unit for the purpose of conducting subsequent operations on properties the partnership began evaluating during the partnership's initial operations. Although you are not required to pay any assessment, your percentage interest in the partnership will be reduced if other partners pay and you do not. See "ASSESSMENTS AND FINANCING" in the accompanying prospectus.

        Our dealer manager has been the subject of disciplinary proceedings. If the dealer manager were to become involved in future disciplinary proceedings, a partnership's ability to diversify risks could decrease. The dealer manager has twice settled disputes with state securities administrators that have taken the position that certain joint venture interests sold by it, which the dealer manager maintained were not securities as defined by federal and state law, were in fact securities requiring registration under such states' laws. In each of these cases, the dealer manager neither admitted nor denied the factual findings of the relevant state securities administrator, but consented to the entry of an administrative order. While the dealer manager believes that federal and state law supports the proposition that in general, joint venture interests (being an interest in a general partnership) are not securities, litigating the issue is time consuming and expensive and did not seem prudent in these two instances.

        In September 1996, the dealer manager entered into a consent order in the State of Illinois pursuant to which it paid a fine of $10,000 and withdrew its registration as a securities dealer in the State of Illinois (which was reinstated in January 1999). In December 1995, the dealer manager entered into a consent order in the State of Texas pursuant to which it paid a fine of $15,000 and agreed to 180 days probation. During the probation, the dealer manager agreed to restrict its offers to sell securities to those made by registered agents in Texas, to prohibit unregistered individuals from making calls to prospective investors on its behalf, and to maintain and make certain records and books available to the State for examination upon request.

        The dealer manager also was censured in 1995 by the National Association of Securities Dealers ("NASD") and fined $2,500 for failure to maintain its minimum required net capital and monthly balances. In 2000, the NASD fined the dealer manager $5,000 for failure to implement the firm element requirement of the NASD's continuing education program for the firm's covered registered representatives.

        On November 5, 2004, the NASD notified Reef Securities, Inc. that it intended to commence a disciplinary proceeding regarding an NASD September 2003 inspection finding that Reef

S-7

Securities, Inc. did not have a written policy and procedure regarding the NASD's Anti-Money Laundering Policy rule, nor did Reef Securities, Inc. have an updated written policy and procedure regarding certain aspects of its continuing education program. The NASD's notification essentially advised Reef Securities, Inc. that it was required to maintain these policies, notwithstanding the explanations provided by Reef Securities, Inc. that: (i) it did not and does not maintain customer funds or securities on deposit and thus, did not believe it was subject to a requirement for a written policy regarding the handling of customer funds, and (ii) it held daily compliance and staff meetings and maintained a written policy from 1999 that it felt was applicable to the subsequent years. Reef Securities, Inc. has negotiated with the NASD and offered to settle both matters, without admitting or denying any of the allegations of the NASD, by the payment of a fine in the amount of $17,500 and a censure for both the firm and Mr. Paul Mauceli, the firm's principal. Reef Securities, Inc. believes that the settlement will be accepted. Both of these matters relate to policies and procedures of Reef Securities, Inc. and not interests in any program sponsored by Reef Partners LLC, the partnership nor sales practices of Reef Securities, Inc.

        If the dealer manager were to become involved in future disciplinary proceedings, its ability to sell the units could be limited. This could result in the partnership being formed with less offering proceeds than if the dealer manager's sales activities were not limited by such proceedings. If the partnership is subscribed at the minimum level, it will be able to participate in fewer prospects, which would increase the risk to the partners. As partnership size increases, the diversification of the partnership will increase because the partnership can obtain interests in and drill on a greater number of prospects.

Risks of Oil and Natural Gas Investments

        Oil and natural gas investments are highly risky. The selection of prospects for oil and natural gas drilling, the drilling, ownership and operation of oil and natural gas wells, and the ownership of non-operating interests in oil and natural gas properties are highly speculative. There is a possibility you will lose all or substantially all of your investment in the partnership. We cannot predict whether any prospect will produce oil or natural gas or commercial quantities of oil or natural gas. Drilling activities may be unprofitable, not only from non-productive wells, but from wells that do not produce oil or natural gas in sufficient quantities or quality to return a profit. Delays and added expenses may also be caused by poor weather conditions affecting, among other things, the ability to lay pipelines. In addition, ground water, various clays, lack of porosity and permeability may hinder, restrict or even make production impractical or impossible.

        Drilling exploratory wells is riskier than drilling developmental wells. Most of the wells drilled by us and our affiliates since 1996 have been exploratory wells. Although no more than 20% of the partnership's proceeds from this offering that are expended on drilling activities will be used for exploratory drilling, the partnership may drill one or more exploratory wells. Drilling exploratory wells involves greater risks of dry holes and loss of the partners' investment than the drilling of developmental wells. Drilling developmental wells generally involves less risk of dry holes, although sometimes developmental acreage is more expensive and subject to greater royalties and other burdens on production. This investment is suitable for you only if you are financially able to withstand a loss of all or substantially all of your investment.

        The partnership may be required to pay delay rentals to hold drilling prospects, which may deplete partnership capital. Oil and gas leases generally must be drilled upon by a certain date or additional funds known as delay rentals must be paid to keep the lease in effect. Delay rentals typically must be paid after the first year of entering into a lease if no production or drilling activity has commenced. If delay rentals become due on any property the partnership acquires, the partnership will have to pay its share of such delay rentals or lose its lease on the property. These delay rentals could equal or exceed the cost of the property. Further, payment of these delay rentals could seriously deplete the partnership's capital available to fund drilling activities when they do commence.

S-8

        Prices of oil and natural gas are unstable. Global economic conditions, political conditions, and energy conservation have created unstable prices for oil and natural gas. Oil and natural gas prices may fluctuate significantly in response to minor changes in supply, demand, market uncertainty, political conditions in oil-producing countries, activities of oil-producing countries to limit production, global economic conditions, weather conditions and other factors that are beyond our control. The prices for domestic oil and natural gas production have varied substantially over time and may in the future decline, which would adversely affect the partnership and the investor partners. Prices for oil and natural gas have been and are likely to remain extremely unstable.

        Competition, market conditions and government regulation may adversely affect the partnership. A large number of companies and individuals engage in drilling for oil and natural gas. As a result, there is intense competition for the most desirable prospects. The sale of any oil or natural gas found and produced by the partnership will be affected by fluctuating market conditions and regulations, including environmental standards, set by state and federal agencies. Governmental regulations may fix rates of production from partnership wells, and the prices for oil and natural gas produced from the wells may be limited. From time-to-time, a surplus of oil and natural gas occurs in areas of the United States. The effect of a surplus may be to reduce the price the partnership may receive for its oil or gas production, or to reduce the amount of oil or natural gas that the partnership may produce and sell.

        Environmental hazards and liabilities may adversely affect the partnership and result in liability for the additional general partners. There are numerous natural hazards involved in the drilling of oil and natural gas wells, including unexpected or unusual formations, pressures, blowouts involving possible damages to property and third parties, surface damages, bodily injuries, damage to and loss of equipment, reservoir damage and loss of reserves. Uninsured liabilities would reduce the funds available to the partnership, may result in the loss of partnership properties and may create liability for you if you are an additional general partner. Although the partnership will maintain insurance coverage in amounts we deem appropriate, it is possible that insurance coverage may be insufficient. In that event, partnership assets would be utilized to pay personal injury and property damage claims and the costs of controlling blowouts or replacing destroyed equipment rather than for additional drilling activities.

        The partnership may incur liability for liens against its subcontractors. Although we will try to determine the financial condition of nonaffiliated subcontractors, if subcontractors fail to timely pay for materials and services, the properties of the partnership could be subject to materialmen's and workmen's liens. In that event, the partnership could incur excess costs in discharging such liens.

        Shut-in wells and delays in production may adversely affect partnership operations. Production from wells drilled in areas remote from marketing facilities may be delayed until sufficient reserves are established to justify construction of necessary pipelines and production facilities. In addition, production from wells may be reduced or delayed due to seasonal marketing demands. Wells drilled for the partnership may have access to only one potential market. Local conditions, including closing businesses, conservation, shifting population, pipeline maximum operating pressure constraints, and development of local oversupply or deliverability problems could halt sales from partnership wells.

        The production and producing life of partnership wells is uncertain. Production will decline. It is not possible to predict the life and production of any well. The actual lives could differ from those anticipated. Sufficient oil or natural gas may not be produced for you to receive a profit or even to recover your initial investment. In addition, production from the partnership's oil and natural gas wells, if any, will decline over time, and does not indicate any consistent level of future production. This production decline may be rapid and irregular when compared to a well's initial production.

S-9

Tax Risks

        Tax treatment may change. The tax treatment currently available with respect to oil and natural gas exploration and production may be modified or eliminated on a retroactive or prospective basis by future legislative, judicial, or administrative actions.

        Tax treatment depends upon partnership classification. Tax counsel has rendered its opinion to us that the partnership will be classified for federal income tax purposes as a partnership and not as an association taxable as a corporation or as a "publicly traded partnership." This opinion is not binding on the IRS or the courts. The IRS could assert that the partnership should be classified as a "publicly traded partnership." This would mean that any income, gain, loss, deduction, or credit of the partnership would remain at the entity level and not flow through to the partners, that the income of the partnership would be subject to corporate tax rates at the entity level, and that distributions to the investor partners might be considered dividend distributions subject to federal income tax at the partners' level.

        Tax liabilities may exceed cash distributions. You may be required to pay federal income tax based upon your distributive share of partnership taxable income for any year in an amount exceeding the cash distributed to you by the partnership. You must include in your own return for a taxable year your share of the items of the partnership's income, gain, profit, loss, and deductions for the year, whether or not cash proceeds are actually distributed to you.

        Tax treatment will differ for additional general partners and limited partners. An investment as an additional general partner in the partnership may not be advisable for you if your taxable income from all sources is not recurring or is not normally subject to the higher marginal federal income tax rates. An investment as a limited partner may not be advisable for you if you do not anticipate having substantial current taxable income from passive trade or business activities. You will not be able to utilize any passive losses generated by the partnership unless you receive passive income.

        If you invest as an additional general partner, you will have the right to convert your general partner interests into limited partner interests, subject to certain limitations. All units of general partner interest held by investors will be converted into units of limited partner interest as soon as practicable after the end of the year in which drilling by the partnership has been completed. After the conversion, gain will be recognized to the extent that any liabilities of which an additional general partner is considered relieved due to the conversion exceed his adjusted basis in his partnership interest.

        Partnership income, losses, gains, and deductions allocable to a limited partner will be subject to the passive activity rules and those allocable to an additional general partner will generally not be subject to the passive activity rules. Upon conversion of an additional general partner's interest to that of a limited partner, subsequently allocable income and gains will be treated as non-passive, while losses and deductions will be limited under the passive loss rules.

        Audits of the partnership's tax returns could result in increased taxes due by the partners or audits of partners' individual tax returns. The fact that the partnership will not be registered with the IRS as a "tax shelter" does not reduce the possibility that the IRS will audit the partnership's returns. If an audit occurs, tax adjustments might be made that would increase the amount of taxes due or increase the risk of audit of partners' individual tax returns. Costs and expenses may be incurred by the partnership in contesting any audit adjustments. The cost of responding to audits of partners' tax returns will be borne solely by the partners whose returns are audited.

        A material portion of your subscription proceeds is not currently deductible. A material portion of the subscription proceeds of the partnership will be expended for cost and expense items that will not be currently deductible for income tax purposes.

S-10

        The IRS could challenge the partnership's deductions for prepayment of drilling costs. Some drilling cost expenditures may be made as prepayments during a year for drilling and completion operations that in large part may be performed during the following year. All or a portion of these prepayments may be currently deductible by the partnership if:

•

the well to which the prepayment relates is drilled within 90 days after the end of the year the prepayment is made;



•

the payment is not a mere deposit; and



•

the payment serves a business purpose or otherwise satisfies the clear reflection of income rule.

        The partnership could fail to satisfy the requirements for deduction of prepaid intangible drilling and development costs. The IRS may challenge the deductibility of these prepayments. If a challenge were successful, the challenged prepaid expenses would be deductible in the tax year in which the services under the drilling contracts are actually performed, rather than the tax year in which the payment was made.

S-11

   
FORWARD-LOOKING STATEMENTS

        This prospectus supplement contains forward-looking statements that involve risks and uncertainties. You should exercise extreme caution with respect to all forward-looking statements made in this prospectus supplement. Specifically, the following statements are forward-looking:

•

statements regarding our overall strategy for acquiring prospects including our intent to co-invest with major independent oil companies and our intent to diversify our investments;



•

statements estimating any number or specific type or size of prospects we may acquire or size of the interest we may acquire in such prospects;



•

statements regarding the state of the oil and gas industry and the opportunity to profit within the oil and gas industry, our competition, pricing, level of production, or the regulations that may affect us;



•

statements regarding the plans and objectives of our management for future operations, including, without limitation, the uses of partnership funds and the size and nature of the costs we expect to incur and people and services we may employ;



•

any statements using the words "anticipate," "believe," "estimate," "expect" and similar such phrases or words; and



•

any statements of other than historical fact.

        We believe that it is important to communicate our future expectations to our investors. Forward-looking statements reflect the current view of management with respect to future events and are subject to numerous risks, uncertainties and assumptions, including, without limitation, the factors listed above in the section captioned "RISK FACTORS." Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to have been correct. Should any one or more of these or other risks or uncertainties materialize or should any underlying assumptions prove incorrect, actual results are likely to vary materially from those described herein. There can be no assurance that the projected results will occur, that these judgments or assumptions will prove correct or that unforeseen developments will not occur.

        We do not intend to update our forward-looking statements. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the applicable cautionary statements.

   
TERMS OF THE OFFERING

General

        Reef Partners LLC, a Nevada limited liability company ("Reef Partners"), is sponsoring Reef Global Energy IV, L.P., which we refer to in this prospectus supplement as the "partnership." The partnership is the fourth to be offered in a series of Nevada limited partnerships comprising a program called Reef Global Energy Ventures. We are offering 375 units of limited partner interests and 125 units of additional general partner interests in the partnership. Units are being offered at an offering price of $20,000 per unit to prospective investors who meet the suitability standards described in the accompanying prospectus. The minimum required subscription per investor is one-quarter unit ($5,000). If an investor purchases units on more than one occasion during the offering period of the partnership, the minimum required subscription on each occasion is one-quarter unit ($5,000).

        The managing general partner will buy at least 5% of the partnership units. These units may be either additional general partner interests or limited partner interests. The managing general partner and its affiliates may, in their sole and absolute discretion, subscribe for additional units. No more than 500 units ($10,000,000) will be sold in the partnership.

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        The price to be paid by the managing general partner for its minimum subscription, and the price to be paid by the managing general partner and its affiliates for additional units that any of them may subscribe for, if any, is the same price per unit to be paid by investors, net, however, of the management fee. The managing general partner and/or its affiliates will be entitled to the same ratable interest per unit they purchase in the partnership as other unit holders. All units purchased by the managing general partner and/or its affiliates will be made for investment purposes only and not with a view toward redistribution or resale.

Offering Period

        The offering period for the partnership began on September 21, 2004. As of October 31, 2004, we had sold approximately 138.2 units ($2,764,000) in the partnership, excluding the units we will purchase. The offering period may be terminated at any time because the minimum number of units (50) has been subscribed for in the partnership. Unless Reef Partners elects to terminate the partnership's offering period before the maximum number of units (500) in the partnership has been subscribed for, the offering period for the partnership will terminate on December 31, 2004.

Election to Purchase As Limited Partner or Additional General Partner

        A subscriber may elect to purchase units as a limited partner or as an additional general partner, by purchasing units of limited partner interest or units of general partner interest. A maximum of 375 units of limited partner interests and a maximum of 125 units of general partner interests may be issued by the partnership. As long as a total of at least 50 units are sold in the partnership, there is no minimum number of additional general partner or limited partner interests that must be sold.

Subscriptions for Units; Escrow Account

        Subscriptions for units are payable in cash upon subscription. Checks for units should be made payable to "J.P. Morgan Trust Company, N.A., Escrow Agent for Reef Global Energy IV, L.P." and should be given to the subscriber's broker for submission to the dealer manager and escrow agent.

        The execution of the subscription agreement by a subscriber, or by his authorized representative in the case of fiduciary accounts, constitutes a binding offer to buy unit(s) in the partnership and an agreement to hold the offer open until the subscription is accepted or rejected by the managing general partner. Once an investor subscribes for units, he will not have any revocation rights, unless otherwise provided by state law. The managing general partner may not complete a sale of units to any investor until at least five business days after the date the investor has received a final prospectus. In addition, the managing general partner will send to each investor a confirmation of his purchase.

        The managing general partner may refuse to accept any subscription without liability to the subscriber. The managing general partner may reject a subscription if, for example, the prospective investor does not satisfy the suitability standards described in the accompanying prospectus or if the subscription is received after the offering period has terminated. The execution of the subscription agreement and its acceptance by the managing general partner also constitute the execution of the partnership agreement and an agreement to be bound by its terms as a partner, including the granting of a special power of attorney to the managing general partner appointing it as the partner's lawful representative to make, execute, sign, swear to, and file a Certificate of Limited Partnership, governmental reports, certifications, contracts, and other matters.

        Subscription proceeds of the partnership were held in a separate interest-bearing escrow account with J.P. Morgan Trust Company, N.A., as escrow agent until at least 50 units in the partnership were subscribed for, including units subscribed for by the managing general partner and its affiliates. Because at least 50 units have been subscribed for during the partnership's offering period, including units subscribed for by the managing general partner and its affiliates, the managing general partner may

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direct the escrow agent to disburse the funds in the escrow account, in whole or in part, at any time during the remainder of the partnership's offering period, and to pay to the managing general partner all funds in the escrow account upon termination of the partnership's offering period.

        Subscriptions will not be commingled with the funds of the managing general partner or its affiliates, nor will subscriptions be subject to the claims of their creditors. Subscription proceeds will be invested during the offering period only in short-term institutional investments comprised of or secured by securities of the U.S. government. Interest accrued on subscription funds prior to closing of the offering and funding of the partnership will be allocated pro rata to the respective subscriber.

Formation of the Partnership

        The partnership will be formed pursuant to the Nevada Uniform Limited Partnership Act (the "Act") in November 2004. The partnership is and will be a separate and distinct business and economic entity from every other Reef Global Energy Ventures partnership. Thus, the investor partners in one partnership will be partners only of that partnership in which they specifically subscribe and will not have any interest in any of the other partnerships. Therefore, they should consider and rely solely upon the operations and success of their own partnership in assessing the quality of their investment. The performance of this partnership will not be attributable to the performance of other partnerships. Investor partners will not have any interest in the managing general partner or any of its affiliates other than the interest held in the partnership in which they specifically subscribe.

        Upon funding of the partnership, the managing general partner will deposit the subscription funds in interest-bearing accounts or invest such funds in the partnership's name in short-term highly-liquid securities where there is appropriate safety of principal, until the funds are required for partnership purposes. Interest earned on amounts so deposited or invested will be credited to the accounts of the partnership.

        The managing general partner anticipates that within 12 months following the formation of the partnership all subscriptions will have been expended or committed for partnership operations. Unless the managing general partner determines that it is prudent for the partnership to set aside funds for working capital, contingencies, or any other matter, any unexpended and/or uncommitted subscriptions at the end of such 12-month period will be returned pro rata to the investor partners and the managing general partner will reimburse such partners for organization and offering costs and the management fee allocable to the return of capital.

        The managing general partner will file a Certificate of Limited Partnership and any other documents required to form the partnership with the State of Nevada. The managing general partner also will take all other actions necessary to qualify the partnership to do business as a limited partnership or cause the limited partnership status of the partnership to be recognized in any other jurisdiction where the partnership conducts business.

Types of Units

        Investor May Choose to Be a Limited Partner and/or an Additional General Partner.    An investor partner may purchase units as a limited partner and/or as an additional general partner. Although income, gains, losses, deductions, and cash distributions allocable to the investor partners are generally shared pro rata based upon the amount of their subscriptions, there are material differences in the federal income tax effects and the liability associated with these different types of units. Any income, gain, loss, or deduction attributable to partnership activities will generally be allocable to the partners who bear the economic risk of loss with respect to the activities. Additional general partners generally will be permitted to offset partnership losses and deductions against income from any source. Limited partners generally will be allowed to offset partnership losses and deductions only against passive income.

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        An investor must indicate the number of limited partner units or additional general partner units subscribed for and fill in the appropriate line on the investor signature page of the subscription agreement. If a subscriber fails to indicate on the subscription agreement a choice between investing as a limited partner or as an additional general partner, the managing general partner will not accept the subscription and will promptly return the subscription agreement and the tendered subscription funds to the subscriber.

        Limited Partners.    The liability of a limited partner of the partnership for the partnership's debts and obligations will be limited to that partner's capital contributions, his share of partnership assets, and the return of any part of his capital contribution. Under Nevada law, a limited partner is liable for all or part of a returned capital contribution as follows:

•

For a period of one year after the termination of the partnership, if the limited partner received the return of any part of his capital contribution without violation of the partnership agreement or the Act, the limited partner's liability is limited to the amount necessary to discharge the limited partner's liabilities to creditors who extended credit to the partnership during the period the capital contribution was held by the partnership.



•

For a period of six years after the termination of the partnership, if the limited partner has received the return of any part of his contribution in violation of the partnership agreement or the Act, he may be liable for the entire amount of the wrongfully returned capital contribution.

        General Partners.    The general partners of the partnership will consist of the managing general partner and each investor purchasing units of general partner interest. Each additional general partner will be fully liable for the debts, obligations and liabilities of the partnership individually and as a group with all other general partners as provided by the Act to the extent liabilities are not satisfied from the proceeds of insurance, from the indemnification by the managing general partner, or from the sale of partnership assets. See "RISK FACTORS." While the activities of the partnership will be covered by substantial insurance policies and indemnification by the managing general partner (see "PROPOSED ACTIVITIES—Insurance" and "SUMMARY OF PARTNERSHIP AGREEMENT—Indemnification" in the accompanying prospectus), the additional general partners may incur personal liability as a result of the activities of the partnership that are not covered by insurance, partnership assets, or indemnification.

        Conversion of Units by the Managing General Partner and by Additional General Partners.    The managing general partner will convert all units of general partner interest of the partnership into units of limited partner interest as soon as practicable after the end of the year in which drilling by the partnership has been completed. In addition, upon written notice to the managing general partner, and except as provided below and in the partnership agreement, additional general partners of the partnership have the right to convert their interests into limited partner interests:

•

at any time after one year following the closing of the offering of the partnership and the disbursement to the partnership of the proceeds of the offering; and



•

at any time within the 30 day period prior to any material change in the amount of the partnership's insurance coverage.

        Upon conversion, an additional general partner of the partnership will become a limited partner of the partnership. Conversion will not be permitted if it will cause a termination of the partnership for federal income tax purposes.

        Conversion of an additional general partner to a limited partner in the partnership will not be effective until the managing general partner files an amendment to the partnership's Certificate of Limited Partnership. The managing general partner is obligated to file an amendment to its Certificate at any time during the full calendar month after receiving the required notice of the additional general partner requesting conversion, as long as the conversion will not result in a termination of the

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partnership for tax purposes. A conversion made in response to a material change in the partnership's insurance coverage will be made effective prior to the effective date of the change in insurance coverage. After the conversion of his general partner interest to that of a limited partner, each converting additional general partner will continue to have unlimited liability for partnership liabilities arising prior to the effective date of such conversion, and will have limited liability to the same extent as limited partners for liabilities arising after conversion to limited partner status is effected.

        Except with respect to units it buys in the partnership for cash, the managing general partner is not entitled to convert its interests into limited partnership interests. Limited partners do not have any right to convert their units into units of additional general partnership interest.

   
SOURCE OF FUNDS AND USE OF PROCEEDS

Source of Funds

        Upon completion of the offering of units in the partnership, and before borrowing becomes permissible, the sole funds available to the partnership will be the capital contributions of the partners. As of October 31, 2004, approximately $2,764,000 of units had been sold. The maximum capital contributions will be $10,000,000 if the maximum subscription of 500 units is sold. This aggregate capital contribution includes the purchase of units by the managing general partner and its affiliates. The managing general partner will purchase at least 5% of the units in the partnership at the offering price of $20,000 per unit, net of the management fee. There is no limit on the number of units the managing general partner and its affiliates may elect to purchase in the partnership.

Use of Proceeds

        In order to fund the partnership, a minimum of 50 units ($1,000,000) were required to be sold. The following table presents information regarding the financing of the partnership based upon the sale of 50 units ($1,000,000) and the sale of 500 units ($10,000,000), the minimum and maximum number of units, respectively, that can be sold for the partnership. We will receive a fee equal to 15% of the total amount of subscriptions received to pay for costs associated with the organization of the partnerships and the offering, including sales commissions. If the organization and offering costs, including commissions paid by us, are less than 15% of the subscription proceeds, we will keep the difference as a one-time management fee. If these costs exceed 15% of the subscription proceeds, we will pay the difference. The amount of our management fee that is not used to pay organization and offering costs, if any, therefore cannot be determined until all of the partnerships have been formed.

Subsequent Source of Funds

        As indicated above, it is anticipated that substantially all of the partnership's initial capital will be committed or expended following the offering of units in the partnership. The partnership agreement does not permit the partnership to borrow any funds for its activities until drilling has been completed and all additional general partner interests have been converted into limited partner interests. Consequently, any future requirements for additional capital may have to be satisfied from partnership

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production or from assessments voluntarily contributed by the partners to fund subsequent operations. See "ASSESSMENTS AND FINANCING" in the accompanying prospectus and "RISK FACTORS—Special Risks of the Partnership" in this prospectus supplement. The partnership has limited external sources of funds, which could result in a shortage of working capital. Alternatively, the partnership could farm out or sell partnership properties.

   
PROPOSED ACTIVITIES

Introduction

        The partnership will be formed to drill, complete and own oil and natural gas properties. The managing general partner may conduct partnership operations in such locations as it may deem advisable. The managing general partner intends for the partnership primarily to acquire interests in oil and natural gas properties in the United States and U.S. waters in the Gulf of Mexico in which major or independent oil and gas companies also have interests. At times, the partnership may drill and own interests without such strategic partners. The managing general partner believes that these acquisitions from major or independent oil and gas companies may permit the partnership to obtain the benefit of seismic, geological and geophysical exploration and initial drilling efforts conducted by such major companies.

        Risks may be spread to a limited extent by participating in drilling operations on a number of different prospects. Until the amount of funds to be available for the partnership's drilling activities is determined, the precise number of prospects cannot be determined and the drilling budget cannot be formulated. A "prospect" is generally defined as a contiguous oil and gas leasehold estate, or lesser interest in a leasehold estate, upon which drilling operations may be conducted.

        Depending on its attributes, a prospect may be characterized by Reef Partners as an "exploratory", "developmental" or "exploitation" site. At least 80% of the proceeds from this offering that are spent on drilling activities will be used for developmental and exploitation drilling, and no more than 20% of such proceeds will be used for exploratory drilling. Generally speaking, exploratory drilling involves the conduct of either drilling operations in search of a new and yet undiscovered pool of oil and gas or, alternatively, drilling within a discovered pool with the hope of greatly extending the limits of the pool. In contrast, developmental drilling involves drilling to a known producing formation in a previously discovered field, and an exploitation well is a well drilled within or an extension of a proven oil or gas reservoir to the depth of a stratigraphic horizon known to be productive.

        It is anticipated that all prospects will be evaluated utilizing data provided to the managing general partner by Reef Exploration, Inc. ("Reef Exploration"), including well logs, production records from Reef Exploration's and others' wells, seismic, geological and geophysical information, and such other information as may be available and useful. Reef Exploration is an affiliate of the managing general partner. See "MANAGEMENT" in the accompanying prospectus. In addition, prospects will be evaluated by petroleum engineers, geophysicists, and other technical consultants retained by the managing general partner.

Gulf of Mexico Prospects

        One of the ways Reef Partners may identify prospects located in the U.S. Gulf of Mexico is through participation agreements entered into with Challenger Minerals, Inc. Challenger Minerals, Inc. ("CMI"), a subsidiary of GlobalSantaFe Corporation, is a screener of oil and gas prospects in these regions. GlobalSantaFe Corporation is a New York Stock Exchange listed company and one of the largest international drilling contractors providing offshore drilling services to the world's leading oil and gas companies. Its subsidiary, Applied Drilling Technology Inc. ("ADTI"), furnishes competitive turnkey drilling and completion services in the Gulf of Mexico and the North Sea.

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        Under the terms of an October 2001 Gulf of Mexico participation agreement between CMI and Reef Partners, which was subsequently amended effective December 1, 2003, during the period between January 31, 2002 and January 31, 2005, CMI is to identify, initially evaluate, and present to Reef Partners a minimum of 50 prospects per year in the Gulf of Mexico region, as to which working interests are available for participation by Reef Partners or its affiliates, including the Reef Global Energy Ventures partnerships. Pursuant to the original participation agreement, Reef Partners was to pay a participation fee of $1,125,000 ($375,000 per year) for the services provided by CMI under the agreement. Reef Partners was given a 12.5% participation interest in the CMI Gulf of Mexico Exploration JV program and the CMI Gulf of Mexico Field Development JV program. Under the terms of the December 1, 2003 amendment, the participation fee was reduced to $300,000 per year beginning January 31, 2004, and Reef Partners' participation interest in the CMI Gulf of Mexico Exploration JV program was reduced from up to 12.5% to up to 7.5% of the interest made available to CMI.

        Under these agreements, Reef Partners has no obligation to acquire any interest in any prospect or in any minimum number of prospects identified to it by CMI for its own account or for the account of any affiliate, including the Reef Global Energy Ventures partnerships. If Reef Partners believes that a prospect presented to it merits a detailed geo-technical review, CMI will coordinate with and assist Reef Partners' technical personnel to conduct the review. Reef Partners may thereafter elect to participate in a prospect, at times jointly with CMI and its affiliates and at times without the involvement of these entities. Reef Partners will have the right to purchase up to 12.5% of any interest in the CMI Gulf of Mexico Field Development JV program prospects offered to CMI and 7.5% of any interest in the CMI Gulf of Mexico Exploration JV program prospects offered to CMI. Reef Partners may achieve greater participation under these agreements if CMI or any of its joint venture partners elects not to participate. On many prospects in which CMI does participate it will likely bring with it the added benefit of the substantial experience ADTI has acquired in the drilling and completion of prospects in the region, as ADTI may be selected to drill and complete the wells.

        Reef Partners cannot predict how many prospects identified by CMI will be deemed suitable for its participation, nor can it predict how many of these will prove suitable for the partnership. Reef Partners believes that its arrangements with CMI will produce interests in quality prospects for acquisition. In addition, Reef Partners will save the costs of gathering exploration data and evaluation time attendant to these prospects and minimize the risk that wells on these prospects will never be drilled.

Insurance

        The managing general partner will carry blowout, pollution, public liability and workmen's compensation insurance, but such insurance may not be sufficient to cover all liabilities. Each unit held by the additional general partners represents an open ended security for unforeseen events such as blowouts, lost circulation, stuck drillpipe, etc. that may result in unanticipated additional liability materially in excess of the per unit subscription amount.

        The managing general partner has obtained various insurance policies, as described below, and intends to maintain such policies subject to its analysis of their premium costs, coverage and other factors. Reef Partners, in the exercise of its fiduciary duty as managing general partner, will obtain insurance on behalf of the partnership to provide the partnership with such coverage as the managing general partner believes is sufficient to protect the investor partners against the foreseeable risks of drilling and production. The managing general partner will review the partnership insurance coverage prior to commencing drilling operations and periodically evaluate the sufficiency of insurance. The managing general partner will obtain and maintain such insurance coverage for the partnership equal to twice the capitalization of such partnership. In no event will the partnership maintain public liability insurance of less than $10 million. Subject to the foregoing, the managing general partner may, in its

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sole discretion, increase or decrease the policy limits and types of insurance from time to time as it deems appropriate under the circumstances, which may vary materially. The managing general partner is the beneficiary under each policy and pays the premiums for each policy. The following types and amounts of insurance have been obtained and are expected to be maintained:

•

Workmen's compensation insurance in full compliance with the laws of the State of Texas, which will be obtained for any other jurisdictions where the partnership conducts its business;



•

General liability insurance, including bodily injury liability and property damage liability insurance, each with a limit of $1,000,000;



•

Employer's liability insurance with a limit of not less than $1,000,000;



•

Automobile public liability insurance with a limit of not less than $1,000,000 per occurrence, covering all automobile equipment;



•

Energy exploration and development liability insurance with limits of not less than $5,000,000 for land wells and not less than $10,000,000 for wet wells; and



•

Umbrella liability insurance (excess of the General liability, Employer's liability and Automobile liability insurance) with a limit of $25,000,000.

        The managing general partner will notify all additional general partners of the partnership at least 30 days prior to any adverse material change in the amount of the partnership's insurance coverage. Within this 30 day period and otherwise after the expiration of one year following the closing of the offering with respect to the partnership, additional general partners have the right to convert their units into units of limited partnership interest by giving written notice to the managing general partner. Additional general partners will have limited liability as a limited partner for any partnership operations conducted after their conversion date, effective upon the filing of an amendment to the Certificate of Limited Partnership of the partnership. At any time during this 30 day period, upon receipt of the required written notice from the additional general partner of his intent to convert, the managing general partner will amend the partnership agreement and will file the amendment with the State of Nevada prior to the effective date of the change in insurance coverage. This amendment to the partnership agreement will effectuate the conversion of the interest of the former additional general partner to that of a limited partner. Effecting conversion is subject to the express requirement that the conversion will not cause a termination of the partnership for federal income tax purposes. However, even after an election of conversion, an additional general partner will continue to have unlimited liability regarding partnership activities while he was an additional general partner. See "TERMS OF THE OFFERING."

   
MANAGEMENT

General

        The managing general partner of the partnership is Reef Partners LLC, a privately-owned Nevada limited liability company that was formed in February 1999 by the holders of all of the outstanding common stock of Reef Exploration. Reef Exploration was organized in 1987 for the principal purpose of reviewing drilling prospects upon which partnerships and joint ventures formed by Reef Exploration might engage in exploration, development and production activities. Since 1987, Reef Exploration has been engaged continuously in the business of exploring for, developing and producing oil and natural gas both within and outside the continental United States, through partnerships and joint ventures it has formed. Michael J. Mauceli, the manager of the managing general partner, is the Chief Executive Officer of Reef Exploration.

        The managing general partner will actively manage and conduct the business and oversee the day to day operations of the partnership. It will be responsible for maintaining partnership bank accounts,

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collecting partnership revenues, making distributions to the partners, delivering reports to the partners, and supervising the drilling, completion, and operation of the partnership's oil and natural gas wells. Certain officers of the managing general partner are also directors, officers and employees of Reef Exploration. Subject to limitations set forth in the partnership agreement, such individuals, the managing general partner and Reef Exploration itself intend to continue to engage in the oil and gas business for their own account and for the account of others. See "CONFLICTS OF INTEREST" in the accompanying prospectus. The managing general partner and such directors, officers and employees will devote as much of their time and talents to the management of the partnership as necessary for the proper conduct of the partnership's business.

        Reef Exploration employs Dwight E. Roberts, Vice President—Exploration to oversee all aspects of prospect and project generation and review. Working closely with Mr. Roberts is Laura S. Klein, Vice President—Engineering, whose responsibilities encompass drilling design, well completion and production oversight. H. Walt Dunagin, Vice President—Land Management, oversees legal aspects concerning leasing, operating agreements, industry partner joint venture arrangements, and acts as Reef Exploration's chief negotiator. Reef Exploration also retains a number of subcontractors and consulting companies who report to the Vice Presidents. These include, but are not limited to, geologists, geophysicists, petrophysicists, paleontologists, drilling engineers, completion engineers, reservoir engineers, drilling rig supervisors, landmen, surveyors and other specialists with expertise in the search, exploration, development and day to day operations associated with petroleum exploration and production. Mr. Roberts, Ms. Klein and Mr. Dunagin, and these subcontractors and consulting companies are retained by the managing general partner.

        When the opportunity arises, the managing general partner will choose operators of the prospects that are experienced in the operation of oil and natural gas properties. However, in many cases the partnership will own too small an interest in the prospect to make decisions regarding who will act as operator for the property. In such cases, the choice of who acts as operator will be made by parties owning a greater percentage of the particular prospect. Although the managing general partner believes that the operator of partnership prospects will usually be an unrelated third party, Reef Exploration, an affiliate of the managing general partner, may act as operator. Since its inception in 1987, Reef Exploration has served as operator of approximately 125 wells and it is currently the operator of 25 wells.

Reef Partners LLC

        The Manager, officers and key personnel of the managing general partner, their ages, current positions with the managing general partner and/or Reef Exploration, and certain additional information are set forth below:

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        Michael J. Mauceli is the Manager and a member of Reef Partners, as well as the Chief Executive Officer and a Director of Reef Exploration. Mr. Mauceli has held these positions with the managing general partner since its formation in February 1999. He has served in these positions with Reef Exploration since 1987. Since its inception, Mr. Mauceli has also served as manager of Reef Operating Company LLC, a Nevada limited liability company formed in December 2001 by Reef Partners and Reef Exploration. Mr. Mauceli attended the University of Mississippi where he majored in business management and marketing as well as the University of Houston where he received his Commercial Real Estate License. He entered the oil and gas business in 1976 when he joined Tenneco Oil & Gas Company. Mr. Mauceli moved to Dallas in 1979, where he was engaged by several exploration and development firms planning exploratory activities of and assessing the marketing feasibility of privately sponsored drilling programs.

        H. Walt Dunagin is Vice President—Land Manager of Reef Exploration. He has held this position since 1990. He is a 1979 graduate of the University of Mississippi. Mr. Dunagin began his career doing independent land work for Exxon Co. U.S.A. Since that time he has performed land work in Alabama, Mississippi, Louisiana, North Dakota, Montana, Oklahoma and Texas. For six years prior to joining Reef Exploration, he was directly involved in the sale of producing properties for Mobil, Texaco, Oryx Energy and American Exploration Company. He became a Certified Professional Landman in August 1986 and is a member of the American Association of Petroleum Landmen, Dallas Association of Petroleum Landmen and the International Association of Petroleum Negotiators.

        Dwight E. Roberts is Vice President—Exploration at Reef Exploration. He was appointed to this position in 2003. He is a graduate of Eastern New Mexico University with a Bachelor's degree in geology and did post-graduate work at the Colorado School of Mines in 1975-76. Mr. Roberts has worked for several oil and gas companies as a geologist developing exploration prospects, and was also self employed as a geologist from 1992-1997, generating exploration and exploitation prospects for clients as well as performing studies for well re-completions and infield development projects for clients. From 1997 to June 1999 Mr. Roberts was a senior staff geologist at Pioneer Natural Resources USA, Inc. From July 1999 to March 2002 he was the Manager of Geology/Geophysics at Prize Energy Corporation, and supervised the company's exploration activity, which was concentrated in South Texas, the Texas Gulf Coast, Louisiana and the Permian Basin. He is a member of AAPG (American Association of Petroleum Geologists) and the Society of Petroleum Engineers.

        Laura S. Klein is Vice President—Engineering at Reef Exploration, a position she has held since joining the company early in 2000. She is a 1981 graduate of the Colorado School of Mines with a Bachelor's degree in Petroleum Engineering. Since receiving her degree, Ms. Klein has accumulated 21 years of experience as a drilling/completion engineer and as a worldwide rig operations supervisor. From 1996 until coming to Reef Exploration, she held the position of Senior Staff Drilling Engineer with Mobil's International Drilling Services Unit and oversaw projects in Russia, China, Italy and the North Sea. Ms. Klein also managed recruiting and training for Mobil's worldwide drilling organization. Ms. Klein's professional affiliations include SPE (Society of Petroleum Engineers), AADE (American Association of Drilling Engineers) and ASTD (American Society of Training and Development).

        Daniel C. Sibley is Chief Financial Officer of Reef Partners and Reef Exploration. He became General Counsel and Chief Financial Officer of Reef Partners in December 1999 and Reef Exploration in 1998. From 1980 to 1998, Mr. Sibley was involved in the private practice of law. He received a B.B.A. in accounting from the University of North Texas in 1973, a law degree (J.D.) from the University of Texas in 1977, and a Master of Laws-Taxation degree (L.L.M.) from Southern Methodist University in 1984.

        David M. Tierney was employed by Reef Exploration, Inc. in March 2001, and is the Controller of the Reef Global Energy Ventures partnerships. Mr. Tierney received a Bachelor's degree from Davidson College in 1974, a Masters of Business Administration (MBA) from Tulane University in

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1976, and is a Texas Certified Public Accountant. Mr. Tierney has worked in public accounting, and has been employed in the oil and gas industry since 1979. From 1992 through 2000 he served as controller/treasurer of an independent oil and gas exploration company.

Ownership of Reef Partners LLC

        The following table sets forth information with respect to the membership interests of the managing general partner owned by each person who owns beneficially 5% or more of the outstanding membership interests, by all managers of the managing general partner individually, and by all managers and executive officers of the managing general partner as a group. The interest held by Michael J. Mauceli includes a 99% interest held of record by Mr. Mauceli and a 1% interest held of record by Reef Exploration, Inc., a corporation controlled by Mr. Mauceli.

Compensation

        No officer, manager, director or employee of Reef Partners or Reef Exploration will receive any direct remuneration or other compensation from any of the partnerships.

Legal Proceedings

        There are currently no legal proceedings involving Reef Partners LLC or any of the Reef Global Energy Ventures partnerships.

   
PRIOR ACTIVITIES

        Investors in Reef Global Energy IV, L.P. should not assume that they will experience returns similar to those experienced by investors in the other programs described below which were sponsored by Reef Exploration or Reef Partners. There can be no assurance that prior performance will be indicative of future returns. The results described below should be viewed only as indicative of our experience and level of activity.

        Reef Global Energy Ventures is the first public drilling program sponsored by Reef Partners as managing general partner. Reef Global Energy I, L.P., which began operations in January 2003, was the first partnership formed in this program. Reef Global Energy II, L.P. began operations in December 2003. Reef Global Energy III, L.P. was formed in April 2004 and has just completed its offering of partnership units to investors.

        Since its formation in February 1999, Reef Partners has sponsored eighteen private drilling ventures and nine private income fund ventures, as well as the Reef Global Energy Ventures drilling program. Together, these ventures sponsored by Reef Partners have raised approximately $137.6 million from outside investors.

        Between January 1996 and February 1999, Reef Exploration, as managing general partner, sponsored 13 private joint ventures engaged in oil and gas drilling operations. Together, these joint ventures raised approximately $56.8 million.

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        Effective December 31, 2001, nine of the Texas joint ventures sponsored by Reef Partners or Reef Exploration were converted into Texas limited partnerships. Upon each joint venture's conversion, Reef Partners or Reef Exploration, as the case may be, ceased to be the managing venturer, and Reef Operating Company LLC, a Nevada limited liability company owned by Reef Partners and Reef Exploration, became the managing general partner. Bell City 3-D Joint Venture is now Reef—Bell City 3-D L.P. Savoie- Fontenot Joint Venture is now Reef—Savoie-Fontenot L.P. Bell City #1 Joint Venture is now Reef—Bell City #1 L.P. Bell City #5 Joint Venture is now Reef—Bell City #5 L.P. Bell City #6 Joint Venture is now Reef—Bell City #6 L.P. Reef Partners 1999-A Joint Venture is now Reef 1999-A Income Fund L.P. Reef Partners 1999-B Joint Venture is now Reef 1999-B Income Fund L.P. Reef Partners 2000-A Joint Venture is now Reef 2000-A Income Fund L.P. Lastly, Reef Partners 2001-A Joint Venture is now Reef 2001-A Income Fund L.P.

        The tables below set forth certain operating statistics with respect to the ventures sponsored by Reef Partners and Reef Exploration. Both Reef Global Energy III, L.P. and Reef Oil & Gas Income Fund IX, L.P. had been formed but not fully funded as of the dates reported on these tables. The first two tables set forth the contributions to, distributions from and federal income taxable gain or loss from each venture. The third table sets forth the gross revenues earned by the venture and by Reef Exploration, Reef Partners and their affiliates from each prospect. The fourth table sets forth the costs incurred by the venture. The fifth table sets forth the drilling results for each of the 34 drilling ventures sponsored by Reef Partners and Reef Exploration. Note that in Table Five, the well in the Valle Morado Joint Venture was completed and sold prior to beginning production.

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TABLE ONE
Contributions as of July 10, 2004 and
Distributions through June 30, 2004

*

The Reef-Treasure Isle Infield Development Joint Venture #1 well began production during July 2004 and we anticipate distributions to partners will commence in September 2004. The Reef-Broussard Infield Development Joint Venture #1 well began production in August 2004 and we anticipate distributions to partners will commence during the fourth quarter of 2004. The Reef-Bayou Carlin Infield Development No. 1 Joint Venture well reached total depth in September 2004 and is expected to be completed as a productive well during the fourth quarter.

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        In the above table, the column labeled "Number of Units Acquired by Reef and Affiliates in Initial Offering" refers to units purchased in the initial offering of units in each venture. Reef Exploration purchased 3.25 units in Reef-Bell City 3-D L.P., 1.4 units in West Bell City 3-D Joint Venture, 0.25 units in Reef-Bell City #1 L.P., 0.95 units in Northwest Bell City Joint Venture and 1.25 units in Bell City #4 Joint Venture after formation of the ventures. Reef Exploration sold one unit of West Bell City #1-A Joint Venture after formation of the venture. Michael J. Mauceli and H.Walt Dunagin, officers of Reef Exploration, each purchased 0.125 units of Savoie-Fontenot Joint Venture and 0.25 units of Reef-Bell City 3-D L.P. after formation of the ventures. Reef Partners purchased 1.625 units in Reef-Toledo Bend #1 Joint Venture, 0.125 units in Bell City #7 Joint Venture, 0.125 units in Reef 1999-B Income Fund L.P. and 0.50 units in Reef 2001-A Income Fund L.P. after formation of the ventures.

   
TABLE TWO
Taxable Income or Loss