Partnership Equity	12 Months Ended
Partnership Equity	Dec. 31, 2013
Partnership Equity
Partnership Equity	6. Partnership Equity Sales of Partnership units began on November 15, 2005. Proceeds received were placed into an interest bearing escrow account until the Partnership reached the minimum subscription level of 40 units. The Partnership was formed on December 29, 2005 and the sale of Partnership units was closed on April 28, 2006. The Partnership raised $23,094,590 from the sale of 923.784 Partnership units to investor partners. Reef purchased 48.620 units (5%) for $1,033,179. Reef also contributed $202,585 in connection with its obligation to pay 1% of all leasehold, drilling, and completion costs. All units, except those purchased by Reef, paid a 15% management fee to Reef to pay for Partnership organization and offering costs, including sales commissions. These costs totaled $3,464,188, leaving net capital contributions of $20,866,166 available for Partnership oil & gas activities. Of the $3,464,188 management fee, offering costs were $3,414,188 and organization costs were $50,000. The Partnership participated in the drilling of twenty-nine wells and completed drilling operations with the capital raised by the Partnership in 2008. Due to the net loss incurred during the year ended December 31, 2013, Partnership equity attributed to limited partnership interest has been reduced to zero. In accordance with the partnership agreement, limited partners’ capital accounts cannot be reduced to a deficit position. All losses in excess of this limitation are allocated to the managing general partner. As the managing general partner, Reef purchased 1.423 units of limited partner interest from investor partners under the Partnership’s unit repurchase program during 2013. Reef exclusively manages and controls all aspects of the business of the Partnership. The Partnership agreement prohibits participation by investor partners in the Partnership’s day-to-day business decisions.

The entire disclosure for the formation, structure, control and ownership of the partnership. Disclosures related to accounts comprising partners' capital. Includes balances of general partners' capital account, limited partners' capital account, preferred partners' capital account and total partners' capital account and units outstanding; accumulated other comprehensive income; amount and nature of changes to amount of partner's capital and units outstanding by class, rights and privileges for each class of units; distribution policies and distributions paid by unit class; impact of and correction of an error in previously issued financial statements; limitations of partners' liability; redemption, conversion and distribution policies; and deferred compensation related to the issuance of units.

+ References+ Details

Reef Global Energy VII, L.P. 10-K