Ridgewood Energy U Fund 10-K 29 Feb 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Feb. 29, 2016
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Entity Registrant Name	Ridgewood Energy U Fund LLC
Entity Central Index Key	1,377,178
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015
Entity Filer Category	Smaller Reporting Company
Entity Units Outstanding		486.4825
Entity Current Reporting Status	Yes
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Public Float	$ 0

BALANCE SHEETS

BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 855	$ 4,071
Salvage fund	117
Production receivable	$ 353	$ 21
Other current assets		8
Total current assets	$ 1,325	4,100
Salvage fund	$ 1,142	1,156
Other assets		30
Investment in Delta House	$ 572	318
Oil and gas properties:
Advances to operators for working interests and expenditures		589
Proved properties	$ 11,218	7,627
Less: accumulated depletion and amortization	(3,508)	(2,167)
Total oil and gas properties, net	7,710	6,049
Total assets	10,749	11,653
Current liabilities:
Due to operators	310	155
Accrued expenses	42	$ 42
Asset retirement obligations	117
Total current liabilities	469	$ 197
Asset retirement obligations	1,365	1,028
Total liabilities	$ 1,834	$ 1,225
Commitments and contingencies (Note 3)
Members' capital:
Distributions	$ (1,236)	$ (1,204)
Accumulated deficit	(38)	(79)
Manager's total	(1,274)	(1,283)
Capital contributions (1,000 shares authorized; 486.4825 issued and outstanding)	72,381	72,381
Syndication costs	(8,541)	(8,541)
Distributions	(9,296)	(9,110)
Accumulated deficit	(44,355)	(43,019)
Shareholders' total	10,189	11,711
Total members' capital	8,915	10,428
Total liabilities and members' capital	$ 10,749	$ 11,653

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - shares	Dec. 31, 2015	Dec. 31, 2014
BALANCE SHEETS [Abstract]
Shares authorized	1,000	1,000
Shares issued	486.4825	486.4825
Shares outstanding	486.4825	486.4825

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenue
Oil and gas revenue	$ 2,386	$ 1,475
Expenses
Depletion and amortization	1,476	1,116
Impairment of oil and gas properties	142	446
Management fees to affiliate (Note 2)	262	355
Operating expenses	1,738	400
General and administrative expenses	141	133
Total expenses	3,759	2,450
Loss from operations	(1,373)	$ (975)
Other income
Dividend income	75
Interest income	3	$ 6
Total other income	78	6
Net loss	(1,295)	(969)
Manager Interest
Net income	41	77
Shareholder Interest
Net loss	$ (1,336)	$ (1,046)
Net loss per share	$ (2,747)	$ (2,150)

STATEMENTS OF CHANGES IN MEMBER

STATEMENTS OF CHANGES IN MEMBERS' CAPITAL - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Balances	$ 10,428	$ 12,266
Balances, shares	486.4825
Distributions	$ (218)	(869)
Net loss	(1,295)	(969)
Balances	$ 8,915	$ 10,428
Balances, shares	486.4825	486.4825
# of Shares [Member]
Balances, shares	486.4825	486.4825
Distributions
Net loss
Balances, shares	486.4825	486.4825
Fund Manager [Member]
Balances	$ (1,283)	$ (1,229)
Distributions	(32)	(131)
Net loss	41	77
Balances	(1,274)	(1,283)
Shareholders [Member]
Balances	11,711	13,495
Distributions	(186)	(738)
Net loss	(1,336)	(1,046)
Balances	$ 10,189	$ 11,711

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities
Net loss	$ (1,295)	$ (969)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depletion and amortization	1,476	1,116
Impairment of oil and gas properties	142	446
Accretion expense	64	23
Changes in assets and liabilities:
(Increase) decrease in production receivable	(332)	193
Decrease in other current assets	8	28
Increase in due to operators	$ 237	13
Increase in accrued expenses		2
Net cash provided by operating activities	$ 300	852
Cash flows from investing activities
Payments to operators for working interests and expenditures		(589)
Capital expenditures for oil and gas properties and investment in Delta House	$ (3,195)	$ (1,430)
Investments in salvage fund	(103)
Net cash used in investing activities	(3,298)	$ (2,019)
Cash flows from financing activities
Distributions	(218)	(869)
Net cash used in financing activities	(218)	(869)
Net decrease in cash and cash equivalents	(3,216)	(2,036)
Cash and cash equivalents, beginning of year	4,071	6,107
Cash and cash equivalents, end of year	855	$ 4,071
Supplemental schedule of non-cash investing activities
Advances used for capital expenditures in oil and gas properties reclassified to proved properties	$ 589

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Organization and Summary of Significant Accounting Policies [Abstract]
Organization and Summary of Significant Accounting Policies	1. Organization and Summary of Significant Accounting Policies Organization The Ridgewood Energy U Fund, LLC (the “Fund”), a Delaware limited liability company, was formed on August 28, 2006 and operates pursuant to a limited liability company agreement (the “LLC Agreement”) dated as of October 1, 2006 by and among Ridgewood Energy Corporation (the “Manager”) and the shareholders of the Fund, which addresses matters such as the authority and voting rights of the Manager and shareholders, capitalization, transferability of membership interests, participation in costs and revenues, distribution of assets and dissolution and winding up. The Fund was organized to primarily 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 Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (“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 the fair value of financial instruments, property balances, determination of proved reserves, impairments and asset retirement obligations. Actual results may differ from those estimates. Reclassifications The Fund's financial statements for prior periods include reclassifications that were made to conform to the current-year presentation. Fair Value Measurements The fair value measurement guidance provides a hierarchy that prioritizes and defines the types of inputs used to measure fair value. The fair value hierarchy gives the highest priority to Level 1 inputs, which consists of unadjusted quoted prices for identical instruments in active markets. Level 2 inputs consist of quoted prices for similar instruments. Level 3 inputs are unobservable inputs and include situations where there is little, if any, market activity for the instrument; hence, these inputs have the lowest priority. Cash and cash equivalents approximate fair value based on Level 1 inputs. 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, which are $ 250 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. Interest earned on the account will become part of the salvage fund. There are no restrictions on withdrawals from the salvage fund. Investment in Delta House The Fund has investments in Delta House Oil and Gas Lateral, LLC and Delta House FPS, LLC (collectively “Delta House”), legal entities that own interests in a deepwater floating production system operated by LLOG Exploration Company. The Fund accounts for its investment in Delta House using the cost method of accounting for investments as it does not have the ability to exercise significant influence over such investment. Under the cost method, the Fund recognizes an investment in the equity of an investee at cost. The Fund recognizes as income dividends received that are distributed from net accumulated earnings of the investee since the date of acquisition by the Fund. Dividends received in excess of earnings subsequent to the date of investment are considered a return of investment and are recorded as reductions of cost of the investment. The fair value of this investment is not estimated because there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. The aggregate prior year balance of the Fund's investment in Delta House was classified as “Equipment and facilities – in progress” within “Oil and gas properties” in the Fund's December 31, 2014 balance sheet. Such amount has been corrected to reclassify these investments in the Fund's December 31, 2014 balance sheet as “Investment in Delta House”. The reclassification had no impact on the Fund's statement of operations or statement of cash flows for the year ended December 31, 2014. 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. Exploration, development and acquisition costs are accounted for using the successful efforts method. Costs of acquiring unproved and proved oil and natural gas leasehold acreage, including lease bonuses, brokers' fees and other related costs are capitalized. Costs of drilling and equipping productive wells and related production facilities are capitalized. The costs of exploratory wells are capitalized pending determination of whether proved reserves have been found. If proved commercial reserves are not found, exploratory costs are expensed as dry-hole costs. At times, the Fund receives adjustments to certain wells from their respective operators upon review and audit of the wells' costs. Annual lease rentals and exploration expenses are expensed as incurred. All costs related to production activity, transportation expense and workover efforts are expensed as incurred. Insurance expense related to operating wells of $ 36 Once a well has been determined to be fully depleted or upon the sale, retirement or abandonment of a property, the cost and related accumulated depletion and amortization, if any, is eliminated from the property accounts, and the resultant gain or loss is recognized. At December 31, 2014, amounts recorded in due to operators totaling $ 0.1 Advances to Operators for Working Interests and Expenditures The Fund may be required to advance its share of the estimated succeeding month's expenditures to the operator for its oil and gas properties. The Fund accounts for such payments as advances to operators for working interests and expenditures. As the costs are incurred, the advances are reclassified to proved properties. Asset Retirement Obligations For oil and gas properties, there are obligations to perform removal and remediation activities when the properties are retired. When a project reaches drilling depth and is determined to be either proved or dry, an asset retirement obligation is incurred. Plug and abandonment costs associated with unsuccessful projects are expensed as dry-hole costs. The following table presents changes in asset retirement obligations for the years ended December 31, 2015 and 2014. 2015 2014 (in thousands) Balance, beginning of year $ 1,028 $ 986 Liabilities incurred 37 19 Accretion expense 64 23 Revisions in estimated cash flows 353 - Balance, end of year $ 1,482 $ 1,028 As indicated above, the Fund maintains a salvage fund to provide for the funding of future asset retirement obligations. Syndication Costs Syndication costs are direct costs 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 collectability of the revenue is probable. Impairment of Long-Lived Assets The Fund reviews the value of its oil and gas properties annually and when management determines that events and circumstances indicate that the recorded carrying value of properties may not be recoverable. Impairments are determined by comparing estimated future net undiscounted cash flows to the carrying value at the time of the review. If the carrying value exceeds the estimated future net undiscounted cash flows, the carrying value of the asset is written down to fair value, which is determined using estimated future net discounted cash flows from the asset. 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. Significant declines in oil and natural gas prices since fourth quarter 2014 have impacted the fair value of the Fund's oil and gas properties. During the year ended December 31, 2015, the Fund recorded an impairment of oil and gas properties of $ 0.1 0.2 0.4 0.2 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, development costs and related facilities. The sum of proved developed and proved undeveloped reserves is used as the base for depleting or amortizing leasehold acquisition costs. During the year ended December 31, 2015, the Fund recorded $ 0.3 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. The Fund files U.S. Federal and State tax returns and the 2012 through 2014 tax returns remain open for examination by tax authorities. Income and Expense Allocation Profits and losses are allocated to shareholders and the Manager in accordance with the LLC Agreement. 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. Such distributions are allocated 85 15 Available cash from dispositions, as defined in the LLC Agreement, will be paid 99 1 85 15 Recent Accounting Pronouncements In January

Related Parties

Related Parties	12 Months Ended
	Dec. 31, 2015
Related Parties [Abstract]
Related Parties	2. Related Parties Pursuant to the terms of the LLC Agreement, the Manager renders management, administrative and advisory services to the Fund. For such services, the Manager is entitled to an annual management fee, payable monthly, of 2.5 1 0.3 0.4 The Manager is entitled to receive a 15 32 0.1 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 amounts paid to the Manager have 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.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	3. Commitments and Contingencies Capital Commitments The Fund has entered into multiple agreements for the acquisition, drilling and development of its oil and gas properties. The estimated capital expenditures associated with these agreements vary depending on the stage of development on a property-by-property basis. As of December 31, 2015, the Fund had two properties, the Diller and Marmalard projects, for which additional development costs must be incurred. The Fund currently expects to spend an additional $ 4.2 As of December 31, 2015, the Fund's estimated capital commitments related to its oil and gas properties were $ 5.3 2.5 0.1 3.2 Based upon its current cash position and its current reserve estimates, the Fund expects cash flow from operations to be sufficient to cover its commitments as well as ongoing operations. Reserve estimates are projections based on engineering data that cannot be measured with precision, require substantial judgment, and are subject to frequent revision. 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 December 31, 2015 and 2014, there were no known environmental contingencies that required the Fund to record a liability. During the past several years, the United States Congress, as well as certain regulatory agencies with jurisdiction over the Fund's business, have considered or proposed legislation or regulation relating to the upstream oil and gas industry both onshore and offshore. If any such proposals were to be enacted or adopted they could potentially materially impact the Fund's operations. It is not possible at this time to predict whether such legislation or regulation, if proposed, will be adopted as initially written, if at all, or how legislation or new regulation that may be adopted would impact the Fund's 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. 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 a material 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.

Information about Oil and Gas P

Information about Oil and Gas Producing Activities	12 Months Ended
	Dec. 31, 2015
Information About Oil And Gas Producing Activities [Abstract]
Information about Oil and Gas Producing Activities	Ridgewood Energy U Fund, LLC Supplementary Financial Information Information about Oil and Gas Producing Activities – Unaudited 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 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, 2015 2014 (in thousands) Advances to operators for working interests and expenditures $ - $ 589 Proved properties 11,218 7,627 Total oil and gas properties (a) 11,218 8,216 Accumulated depletion and amortization (3,508 ) (2,167 ) Oil and gas properties, net $ 7,710 $ 6,049 (a) Capitalized costs relating to oil and gas producing activities as of December 31, 2014 includes a reclassification that was made to conform to the current year presentation. See Note 1 of “Notes to Financial Statements” – “Organization and Summary of Significant Accounting Policies” under the headings “Investment in Delta House” contained in Item 8. “Financial Statements and Supplementary Data” within this Annual Report for more information on the reclassifications. Table II - Costs Incurred in Oil and Gas Property Acquisition, Exploration, and Development Year ended December 31, 2015 2014 (in thousands) Exploration costs $ 5 $ 1 Development costs 3,279 2,171 $ 3,284 $ 2,172 Table III - Reserve Quantity Information Oil and gas reserves of the Fund have been estimated by independent petroleum engineers, Netherland, Sewell & Associates, Inc. at December 31, 2015 and 2014. 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, 2015 December 31, 2014 United States Oil (BBLS) NGL (BBLS) Gas (MCF) Oil (BBLS) NGL (BBLS) Gas (MCF) Proved developed and undeveloped reserves: Beginning of year 477,973 437 1,223,969 475,336 13,634 1,537,866 Revisions of previous estimates (a) 114,384 105,524 (160,076 ) 8,211 (4,840 ) (163,734 ) Production (44,762 ) (7,417 ) (83,834 ) (5,574 ) (8,357 ) (150,163 ) End of year 547,595 98,544 980,059 477,973 437 1,223,969 Proved developed reserves: Beginning of year 1,352 437 51,737 6,841 13,634 426,174 End of year 338,935 53,401 530,719 1,352 437 51,737 Proved undeveloped reserves: Beginning of year 476,621 - 1,172,232 468,495 - 1,111,692 End of year 208,660 45,143 449,340 476,621 - 1,172,232 (a) Revisions of previous estimates were 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. 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, 2015 2014 (in thousands) Future cash inflows $ 30,133 $ 49,326 Future production costs (10,703 ) (11,328 ) Future development costs (5,727 ) (5,715 ) Future net cash flows 13,703 32,283 10% annual discount for estimated timing of cash flows (4,300 ) (12,804 ) Standardized measure of discounted future net cash flows $ 9,403 $ 19,479 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, 2015 2014 (in thousands) Net change in sales and transfer prices and in production costs related to future production $ (13,448 ) $ 1,400 Sales and transfers of oil and gas produced during the period (a) (726 ) (1,125 ) Changes in estimated future development costs (11 ) 1,132 Net change due to revisions in quantities estimates 3,183 (821 ) Accretion of discount 1,948 1,735 Other (a) (1,022 ) (189 ) Aggregate change in the standardized measure of discounted future net cash flows for the year $ (10,076 ) $ 2,132 (a) Changes in the standardized measure for discounted cash flows for the year ended December 31, 2014 includes an insurance expense reclassification that was made to conform to the current year presentation. See Note 1 of “Notes to Financial Statements” – “Organization and Summary of Significant Accounting Policies” under the heading and “Oil and Gas Properties” contained in Item 8. “Financial Statements and Supplementary Data” within this Annual Report for more information on the reclassification 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.

Organization and Summary of S11

Organization and Summary of Significant Accounting Policies (Policy)	12 Months Ended
	Dec. 31, 2015
Organization and Summary of Significant Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (“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 the fair value of financial instruments, property balances, determination of proved reserves, impairments and asset retirement obligations. Actual results may differ from those estimates.
Reclassifications	Reclassifications The Fund's financial statements for prior periods include reclassifications that were made to conform to the current-year presentation.
Fair Value Measurements	Fair Value Measurements The fair value measurement guidance provides a hierarchy that prioritizes and defines the types of inputs used to measure fair value. The fair value hierarchy gives the highest priority to Level 1 inputs, which consists of unadjusted quoted prices for identical instruments in active markets. Level 2 inputs consist of quoted prices for similar instruments. Level 3 inputs are unobservable inputs and include situations where there is little, if any, market activity for the instrument; hence, these inputs have the lowest priority. Cash and cash equivalents approximate fair value based on Level 1 inputs.
Cash and Cash Equivalents	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, which are $ 250
Salvage Fund	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. Interest earned on the account will become part of the salvage fund. There are no restrictions on withdrawals from the salvage fund.
Investment in Delta House	Investment in Delta House The Fund has investments in Delta House Oil and Gas Lateral, LLC and Delta House FPS, LLC (collectively “Delta House”), legal entities that own interests in a deepwater floating production system operated by LLOG Exploration Company. The Fund accounts for its investment in Delta House using the cost method of accounting for investments as it does not have the ability to exercise significant influence over such investment. Under the cost method, the Fund recognizes an investment in the equity of an investee at cost. The Fund recognizes as income dividends received that are distributed from net accumulated earnings of the investee since the date of acquisition by the Fund. Dividends received in excess of earnings subsequent to the date of investment are considered a return of investment and are recorded as reductions of cost of the investment. The fair value of this investment is not estimated because there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. The aggregate prior year balance of the Fund's investment in Delta House was classified as “Equipment and facilities – in progress” within “Oil and gas properties” in the Fund's December 31, 2014 balance sheet. Such amount has been corrected to reclassify these investments in the Fund's December 31, 2014 balance sheet as “Investment in Delta House”. The reclassification had no impact on the Fund's statement of operations or statement of cash flows for the year ended December 31, 2014.
Oil and Gas Properties	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. Exploration, development and acquisition costs are accounted for using the successful efforts method. Costs of acquiring unproved and proved oil and natural gas leasehold acreage, including lease bonuses, brokers' fees and other related costs are capitalized. Costs of drilling and equipping productive wells and related production facilities are capitalized. The costs of exploratory wells are capitalized pending determination of whether proved reserves have been found. If proved commercial reserves are not found, exploratory costs are expensed as dry-hole costs. At times, the Fund receives adjustments to certain wells from their respective operators upon review and audit of the wells' costs. Annual lease rentals and exploration expenses are expensed as incurred. All costs related to production activity, transportation expense and workover efforts are expensed as incurred. Insurance expense related to operating wells of $ 36 Once a well has been determined to be fully depleted or upon the sale, retirement or abandonment of a property, the cost and related accumulated depletion and amortization, if any, is eliminated from the property accounts, and the resultant gain or loss is recognized. At December 31, 2014, amounts recorded in due to operators totaling $ 0.1
Advances to Operators for Working Interests and Expenditures	Advances to Operators for Working Interests and Expenditures The Fund may be required to advance its share of the estimated succeeding month's expenditures to the operator for its oil and gas properties. The Fund accounts for such payments as advances to operators for working interests and expenditures. As the costs are incurred, the advances are reclassified to proved properties.
Asset Retirement Obligations	Asset Retirement Obligations For oil and gas properties, there are obligations to perform removal and remediation activities when the properties are retired. When a project reaches drilling depth and is determined to be either proved or dry, an asset retirement obligation is incurred. Plug and abandonment costs associated with unsuccessful projects are expensed as dry-hole costs. The following table presents changes in asset retirement obligations for the years ended December 31, 2015 and 2014. 2015 2014 (in thousands) Balance, beginning of year $ 1,028 $ 986 Liabilities incurred 37 19 Accretion expense 64 23 Revisions in estimated cash flows 353 - Balance, end of year $ 1,482 $ 1,028 As indicated above, the Fund maintains a salvage fund to provide for the funding of future asset retirement obligations.
Syndication Costs	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	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 collectability of the revenue is probable.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Fund reviews the value of its oil and gas properties annually and when management determines that events and circumstances indicate that the recorded carrying value of properties may not be recoverable. Impairments are determined by comparing estimated future net undiscounted cash flows to the carrying value at the time of the review. If the carrying value exceeds the estimated future net undiscounted cash flows, the carrying value of the asset is written down to fair value, which is determined using estimated future net discounted cash flows from the asset. 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. Significant declines in oil and natural gas prices since fourth quarter 2014 have impacted the fair value of the Fund's oil and gas properties. During the year ended December 31, 2015, the Fund recorded an impairment of oil and gas properties of $ 0.1 0.2 0.4 0.2
Depletion and Amortization	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, development costs and related facilities. The sum of proved developed and proved undeveloped reserves is used as the base for depleting or amortizing leasehold acquisition costs. During the year ended December 31, 2015, the Fund recorded $ 0.3
Income Taxes	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. The Fund files U.S. Federal and State tax returns and the 2012 through 2014 tax returns remain open for examination by tax authorities.
Income and Expense Allocation	Income and Expense Allocation Profits and losses are allocated to shareholders and the Manager in accordance with the LLC Agreement.
Distributions	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. Such distributions are allocated 85 15 Available cash from dispositions, as defined in the LLC Agreement, will be paid 99 1 85 15
Recent Accounting Pronouncements	Recent Accounting Pronouncements In January

Organization and Summary of S12

Organization and Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Organization and Summary of Significant Accounting Policies [Abstract]
Schedule of Changes in Asset Retirement Obligations	2015 2014 (in thousands) Balance, beginning of year $ 1,028 $ 986 Liabilities incurred 37 19 Accretion expense 64 23 Revisions in estimated cash flows 353 - Balance, end of year $ 1,482 $ 1,028

Information about Oil and Gas13

Information about Oil and Gas Producing Activities (Tables)	12 Months Ended
	Dec. 31, 2015
Information About Oil And Gas Producing Activities [Abstract]
Schedule of Capitalized Costs Relating to Oil and Gas Producing Activities	Table I - Capitalized Costs Relating to Oil and Gas Producing Activities December 31, 2015 2014 (in thousands) Advances to operators for working interests and expenditures $ - $ 589 Proved properties 11,218 7,627 Total oil and gas properties (a) 11,218 8,216 Accumulated depletion and amortization (3,508 ) (2,167 ) Oil and gas properties, net $ 7,710 $ 6,049 (a) Capitalized costs relating to oil and gas producing activities as of December 31, 2014 includes a reclassification that was made to conform to the current year presentation. See Note 1 of “Notes to Financial Statements” – “Organization and Summary of Significant Accounting Policies” under the headings “Investment in Delta House” contained in Item 8. “Financial Statements and Supplementary Data” within this Annual Report for more information on the reclassifications.
Schedule of Costs Incurred in Oil and Gas Property Acquisition, Exploration, and Development	Table II - Costs Incurred in Oil and Gas Property Acquisition, Exploration, and Development Year ended December 31, 2015 2014 (in thousands) Exploration costs $ 5 $ 1 Development costs 3,279 2,171 $ 3,284 $ 2,172
Schedule of Reserve Quantity Information	Table III - Reserve Quantity Information Oil and gas reserves of the Fund have been estimated by independent petroleum engineers, Netherland, Sewell & Associates, Inc. at December 31, 2015 and 2014. 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, 2015 December 31, 2014 United States Oil (BBLS) NGL (BBLS) Gas (MCF) Oil (BBLS) NGL (BBLS) Gas (MCF) Proved developed and undeveloped reserves: Beginning of year 477,973 437 1,223,969 475,336 13,634 1,537,866 Revisions of previous estimates (a) 114,384 105,524 (160,076 ) 8,211 (4,840 ) (163,734 ) Production (44,762 ) (7,417 ) (83,834 ) (5,574 ) (8,357 ) (150,163 ) End of year 547,595 98,544 980,059 477,973 437 1,223,969 Proved developed reserves: Beginning of year 1,352 437 51,737 6,841 13,634 426,174 End of year 338,935 53,401 530,719 1,352 437 51,737 Proved undeveloped reserves: Beginning of year 476,621 - 1,172,232 468,495 - 1,111,692 End of year 208,660 45,143 449,340 476,621 - 1,172,232 (a) Revisions of previous estimates were attributable to well performance.
Schedule of Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves	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. 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, 2015 2014 (in thousands) Future cash inflows $ 30,133 $ 49,326 Future production costs (10,703 ) (11,328 ) Future development costs (5,727 ) (5,715 ) Future net cash flows 13,703 32,283 10% annual discount for estimated timing of cash flows (4,300 ) (12,804 ) Standardized measure of discounted future net cash flows $ 9,403 $ 19,479
Schedule of Changes in the Standardized Measure for Discounted Cash Flows	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, 2015 2014 (in thousands) Net change in sales and transfer prices and in production costs related to future production $ (13,448 ) $ 1,400 Sales and transfers of oil and gas produced during the period (a) (726 ) (1,125 ) Changes in estimated future development costs (11 ) 1,132 Net change due to revisions in quantities estimates 3,183 (821 ) Accretion of discount 1,948 1,735 Other (a) (1,022 ) (189 ) Aggregate change in the standardized measure of discounted future net cash flows for the year $ (10,076 ) $ 2,132 (a) Changes in the standardized measure for discounted cash flows for the year ended December 31, 2014 includes an insurance expense reclassification that was made to conform to the current year presentation. See Note 1 of “Notes to Financial Statements” – “Organization and Summary of Significant Accounting Policies” under the heading and “Oil and Gas Properties” contained in Item 8. “Financial Statements and Supplementary Data” within this Annual Report for more information on the reclassification

Organization and Summary of S14

Organization and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Organization and Summary of Significant Accounting Policies [Abstract]
Maximum cash balance federally insured per financial institution	$ 250
Reclassification of general and administrative expenses	36
Value of capital expenditures for oil and gas properties owed to operators		$ 100
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment of oil and gas properties	142	446
Depletion	$ 300
Percentage of cash from operations allocated to shareholders	85.00%
Percentage of cash from operations allocated to fund manager	15.00%
Percentage of available cash from dispositions allocated to shareholders	99.00%
Percentage of available cash from dispositions allocated to fund manager	1.00%
Percentage of available cash from dispositions allocated to shareholders after distributions have equaled capital contributions	85.00%
Percentage of available cash from dispositions allocated to fund manager after distributions have equaled capital contributions	15.00%
Cobalt Project [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment of oil and gas properties	$ 100
Oil and gas properties, fair value	$ 200
Emerald Project [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment of oil and gas properties		400
Oil and gas properties, fair value		$ 200

Organization and Summary of S15

Organization and Summary of Significant Accounting Policies (Schedule of Changes in Asset Retirement Obligations) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Organization and Summary of Significant Accounting Policies [Abstract]
Balance, beginning of year	$ 1,028	$ 986
Liabilities incurred	37	19
Accretion expense	64	$ 23
Revisions in estimated cash flows	353
Balance, end of year	$ 1,482	$ 1,028

Related Parties (Details)

Related Parties (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Oct. 01, 2012	Dec. 31, 2011
Related Party Transaction [Line Items]
Annual management fee percentage rate			1.00%	2.50%
Annual management fees paid to Fund Manager	$ 262	$ 355
Percentage of total distributions allocated to Fund Manager	15.00%
Distributions	$ (218)	(869)
Fund Manager [Member]
Related Party Transaction [Line Items]
Distributions	$ 32	$ 100

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)
Impaired Long-Lived Assets Held and Used [Line Items]
Commitments for the drilling and development of investment properties	$ 5.3
Commitments for asset retirement obligations included in estimated capital commitments	2.5
Commitments for the drilling and development of investment properties expected to be incurred in the next 12 months	0.1
Commitments for the drilling and development of investment properties in excess of working capital	3.2
Diller And Marmalard Projects [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Commitments for the drilling and development of investment properties	$ 4.2

Information about Oil and Gas18

Information about Oil and Gas Producing Activities (Schedule of Capitalized Costs Relating to Oil and Gas Producing Activities) (Details) - USD ($) $ in Thousands		Dec. 31, 2015	Dec. 31, 2014
Information About Oil And Gas Producing Activities [Abstract]
Advances to operators for working interests and expenditures			$ 589
Proved properties		$ 11,218	7,627
Total oil and gas properties	[1]	11,218	8,216
Accumulated depletion and amortization		(3,508)	(2,167)
Total oil and gas properties, net		$ 7,710	$ 6,049
[1]	Capitalized costs relating to oil and gas producing activities as of December 31, 2014 includes a reclassification that was made to conform to the current year presentation. See Note 1 of “Notes to Financial Statements” – “Organization and Summary of Significant Accounting Policies” under the headings “Investment in Delta House” contained in Item 8. “Financial Statements and Supplementary Data” within this Annual Report for more information on the reclassifications.

Information about Oil and Gas19

Information about Oil and Gas Producing Activities (Schedule of Costs Incurred in Oil and Gas Property Acquisition, Exploration, and Development) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Information About Oil And Gas Producing Activities [Abstract]
Exploration costs	$ 5	$ 1
Development costs	3,279	2,171
Total costs	$ 3,284	$ 2,172

Information about Oil and Gas20

Information about Oil and Gas Producing Activities (Schedule of Reserve Quantity Information) (Details)		12 Months Ended
		Dec. 31, 2015bblMcf	Dec. 31, 2014bblMcf
Oil (BBLS) [Member]
Proved developed and undeveloped reserves:
Beginning of year		477,973	475,336
Revisions of previous estimates	[1]	114,384	8,211
Production		(44,762)	(5,574)
End of year		547,595	477,973
Proved developed reserves:
Beginning of year		1,352	6,841
End of year		338,935	1,352
Proved undeveloped reserves:
Beginning of year		476,621	468,495
End of year		208,660	476,621
NGL (BBLS) [Member]
Proved developed and undeveloped reserves:
Beginning of year		437	13,634
Revisions of previous estimates	[1]	105,524	(4,840)
Production		(7,417)	(8,357)
End of year		98,544	437
Proved developed reserves:
Beginning of year		437	13,634
End of year		53,401	437
Proved undeveloped reserves:
Beginning of year
End of year		45,143
Gas (MCF) [Member]
Proved developed and undeveloped reserves:
Beginning of year | Mcf		1,223,969	1,537,866
Revisions of previous estimates | Mcf	[1]	(160,076)	(163,734)
Production | Mcf		(83,834)	(150,163)
End of year | Mcf		980,059	1,223,969
Proved developed reserves:
Beginning of year | Mcf		51,737	426,174
End of year | Mcf		530,719	51,737
Proved undeveloped reserves:
Beginning of year | Mcf		1,172,232	1,111,692
End of year | Mcf		449,340	1,172,232
[1]	Revisions of previous estimates were attributable to well performance.

Information about Oil and Gas21

Information about Oil and Gas Producing Activities (Schedule of Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Information About Oil And Gas Producing Activities [Abstract]
Future cash inflows	$ 30,133	$ 49,326
Future production costs	(10,703)	(11,328)
Future development costs	(5,727)	(5,715)
Future net cash flows	13,703	32,283
10% annual discount for estimated timing of cash flows	(4,300)	(12,804)
Standardized measure of discounted future net cash flows	$ 9,403	$ 19,479

Information about Oil and Gas22

Information about Oil and Gas Producing Activities (Schedule of Changes in the Standardized Measure for Discounted Cash Flows) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014
Information About Oil And Gas Producing Activities [Abstract]
Net change in sales and transfer prices and in production costs related to future production		$ (13,448)	$ 1,400
Sales and transfers of oil and gas produced during the period	[1]	(726)	(1,125)
Changes in estimated future development costs		(11)	1,132
Net change due to revisions in quantities estimates		3,183	(821)
Accretion of discount		1,948	1,735
Other	[1]	(1,022)	(189)
Aggregate change in the standardized measure of discounted future net cash flows for the year		$ (10,076)	$ 2,132
[1]	Changes in the standardized measure for discounted cash flows for the year ended December 31, 2014 includes an insurance expense reclassification that was made to conform to the current year presentation. See Note 1 of “Notes to Financial Statements” – “Organization and Summary of Significant Accounting Policies” under the heading and “Oil and Gas Properties” contained in Item 8. “Financial Statements and Supplementary Data” within this Annual Report for more information on the reclassification