FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, D.C. 20549


[x]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934

                For the Quarterly Period Ended September 30, 2004


                           Commission File Number: 0-9500


                           MOUNTAINS WEST EXPLORATION, INC.
        (Exact name of small business issuer as specified in its charter)

                 New Mexico                                    85-0280415
        (State or other jurisdiction of                      (I.R.S. Employer
        incorporation or organization)                       Identification No.)

P.O. Box 754, Trinidad, Colorado                              81802
--------------------------------                            --------
(Address of principal executive offices)                   (Zip Code)

Issuer's telephone number, including area code: 719-846-2623

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

The  number of shares outstanding of  the issuer's common stock, par value $.001
per share, at September 30, 2004, was 37,019,271 shares.

<PAGE>
                        MOUNTAINS WEST EXPLORATION, INC.

                          FINANCIAL STATEMENTS FOR THE
                      NINE-MONTHS ENDED SEPTEMBER 30, 2004
                                   (UNAUDITED)











<PAGE>


                           MICHAEL JOHNSON & CO., LLC
                          Certified Public Accountants
                        9175 East Kenyon Ave., Suite 100
                             Denver, Colorado 80237

Michael B. Johnson C.P.A.                             Telephone:  (303) 796-0099
Member:  A.I.C.P.A.                                         Fax:  (303) 796-0137
Colorado Society of C.P.A.s







                            ACCOUNTANTS REVIEW REPORT

Board of Directors
Mountains West Exploration, Inc.
Trinidad, CO

We have reviewed the accompanying balance sheet for Mountains West Exploration,
Inc. for September 30, 2004 and the related statements of operations for the
three and nine-months ended September 30, 2004 and 2003, and cash flows for the
nine-months ended September 30, 2004 and 2003, included in the accompanying
Securities and Exchange Commission 10-QSB for the period ended September 30,
2004. These financial statements are the responsibility of the Company's
management.

We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. The review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with auditing standards generally accepted in the United States and PCAOB, the
objective of which is the expression of an opinion regarding the financial
statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should
be made to the accompanying financial statements for them to be in conformity
with accounting principles generally accepted in the United States.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As discussed in Note 2, conditions
exist which raise substantial doubt about the Company's ability to continue as a
going concern unless it is able to generate sufficient cash flows to meet its
obligations and sustain its operations. Management's plans in regard to these
matters are described in Note 2. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.

We have previously audited, in accordance with auditing standards generally
accepted in the United States, the balance sheet as of December 31, 2003, and
the related statements of operations, stockholders' equity (deficit) and cash
flows for the year then ended (not presented herein). In our report dated
February 23, 2004, we expressed an unqualified opinion on those financial
statements. In our opinion, the information set forth in the accompanying
balance sheet as of September 30, 2004, is fairly stated in all material
respects in relation to the balance sheet from which it has been derived.


Michael Johnson & Co, LLC
November 4, 2004
/s/Michael Johnson & Co., LLC
<PAGE>
<TABLE>
<CAPTION>


                        MOUNTAINS WEST EXPLORATION, INC.
                                 Balance Sheets
                                  (Unaudited)



<S>                                                                        <C>                       <C>

                                                                            September 30,            December 31,
                                                                                 2004                    2003
                                                                           -----------------         --------------

ASSETS

   Current Assets:
      Cash                                                                         $ 34,765               $ 11,711
                                                                           -----------------         --------------

         Total Current Assets                                                        34,765                 11,711
                                                                           -----------------         --------------

   Fixed Assets:
      Office Equipment                                                               15,819                 15,819
      Leases & Well Equipment                                                         1,236                  1,236
                                                                           -----------------         --------------
                                                                                     17,055                 17,055
      Less: Accumulated Depreciation                                                (14,577)               (14,253)
                                                                           -----------------         --------------

         Total Fixed Assets                                                           2,478                  2,802
                                                                           -----------------         --------------

   Other Assets:
      Undeveloped Property                                                            1,540                  1,540
      Well Leases                                                                     9,624                      -
      Mineral Interest                                                               12,740                 12,740
                                                                           -----------------         --------------

         Total Other Assets                                                          23,904                 14,280
                                                                           -----------------         --------------

TOTAL ASSETS                                                                       $ 61,147               $ 28,793
                                                                           =================         ==============

LIABILITIES AND STOCKHOLDERS' EQUITY

   Current Liabilities:
      Accounts Payable                                                                2,500                      -
      Notes Payable - Wells Fargo                                                    27,669                      -
      Current Portion - Long-Term Debt                                                7,029                 18,744
                                                                           -----------------         --------------

         Total Current Liabilities                                                   37,198                 18,744
                                                                           -----------------         --------------

   Long-Term Debt:
      Long-Term Debt                                                                 25,142                 49,516
                                                                           -----------------         --------------

         Total Long-Term Debt                                                        25,142                 49,516
                                                                           -----------------         --------------

   Stockholders' Equity:
     Common stock, no par value, 50,000,000 shares                                1,554,786              1,554,786
        authorized, 37,019,271 shares issued and outstanding
     Retained Earnings (Deficit)                                                 (1,555,979)            (1,594,253)
                                                                           -----------------         --------------

        Total Stockholders' Equity (Deficit0                                         (1,193)               (39,467)
                                                                           -----------------         --------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                         $ 61,147               $ 28,793
                                                                           =================         ==============
</TABLE>
See Accountants Review Report

<PAGE>
<TABLE>
<CAPTION>


                        MOUNTAINS WEST EXPLORATION, INC.
                            Statements of operations
                                  (Unaudited)

<S>                                                  <C>                  <C>                <C>                 <C>

                                                         Three-Months Ended                        Nine-Months Ended
                                                            September 30,                             September 30,
                                                        2004                 2003                2004               2003
                                                        ----                 ----                ----               ----

Revenue:
    Oil & Gas Income                                   $ 57,320             $ 38,926          $ 120,019            $ 63,675
    Cost of Goods Sold                                        -                    -             (1,000)               (271)
                                                     ----------           ----------         ----------          ---------
Total Income                                             57,320               38,926            119,019              63,404
                                                     ----------           ----------         ----------          ---------
Costs and Expenses:
     Operating Expense                                   29,381               21,742             52,456              77,099
     Administrative Expense                               7,550                5,627             24,643              11,195
                                                     ----------           ----------         ----------          ----------
Total Operating Expenses                                 36,931               27,369             77,099              88,294
                                                     ----------           ----------         ----------          ----------
Other Income and Expenses:
     Interest Expense                                    (1,156)                   -             (3,646)                  -
     Interest Income                                          -                    3                  -                  15
                                                     ----------           ----------         ----------          ----------
Total Other Expenses                                     (1,156)                   3             (3,646)                 15
                                                     ----------           ----------         ----------          ----------

Net Profit (Loss)                                      $ 19,233             $ 11,560           $ 38,274           $ (24,875)
                                                     ==========           ==========         ==========          ==========
Per Share Information:

     Weighted average number
     of common shares outstanding                    37,019,271           37,019,271         37,019,271          37,019,271
                                                     ----------           ---------          ---------           ----------
Net Loss per common share                               *                    *                   *                  *
                                                     ==========           ==========         ==========          ==========
* Less than $.01

</TABLE>
See Accountants Review Report

<PAGE>
<TABLE>
<CAPTION>


                        MOUNTAINS WEST EXPLORATION, INC.
                         Stockholders' Equity (Deficit)
                               September 30, 2004
                                  (Unaudited)


                                                                                    Deficit
                                                   COMMON STOCKS                   Accum. During       Total
                                                                                  Development       Stockholders'
                                           # of Shares         Amount                Stage            Equity
                                           -----------         ------                -----            ------
<S>                                          <C>               <C>                  <C>                <C>

Balance - December 31, 2000                  38,010,000        $1,555,777           $(1,546,201)        $ 9,576

Cancellation of Stock                          (990,279)             (991)                    -            (991)

Net Loss for Year                                     -                 -               (27,475)        (27,475)
                                             ----------        ----------           -----------        --------
Balance - December 31, 2001                  37,019,721         1,554,786            (1,573,676)        (18,890)
                                             ----------        ----------           -----------        --------
Net Loss for Year                                     -                 -                (4,094)         (4,094)
                                             ----------        ----------           -----------        --------
Balance - December 31, 2002                  37,019,721         1,554,786            (1,577,770)        (22,984)
                                             ----------        ----------           -----------        --------
Net Loss for Year                                     -                 -               (16,483)        (16,483)
                                             ----------        ----------           -----------        --------
Balance - December 31, 2003                  37,019,721         1,554,786            (1,594,253)        (39,467)
                                             ----------        ----------           -----------        --------
Net Profit for Period                                 -                 -                38,274          38,274
                                             ----------        ----------           -----------        --------
Balance - September 30, 2004                 37,019,721        $1,554,786           $(1,555,979)       $ (1,193)
                                             ==========        ==========           ===========        ========
</TABLE>
See Accountants Review Report

<PAGE>
<TABLE>
<CAPTION>

                        MOUNTAINS WEST EXPLORATION, INC.
                            Statements of Cash Flow
                                  (Unaudited)

                                Indirect Method

                                                                                              Nine-Months Ended
                                                                                                September 30,
                                                                                        2004                   2003
                                                                                        ----                   ----
<S>                                                                                       <C>                   <C>

Cash Flows from Operating Activities:

     Net Profit (Loss)                                                                   $ 38,274               $ (24,875)
     Depreciation                                                                             324                       -
    Adjustments to reconcile net profit/loss to net cash
       used by operating activities:
    Increase in accounts payable                                                            2,500                       -
   (Increase) in other assets                                                              (9,624)                      -
                                                                                         --------               ---------
Net Cash Used in Operating Activities                                                      31,474                 (24,875)
                                                                                         --------               ---------
Cash Flows from Investing Activities:

   Purchase of Equipment                                                                        -                  (1,380)
                                                                                         --------               ---------
Net Cash Used for Investing Activities                                                          -                  (1,380)
                                                                                         --------               ---------
Cash Flows from Financing Activities:

     Payment on Notes Payable                                                             (36,089)                 (3,196)
     Proceeds from Notes Payable                                                           27,669                  37,866
                                                                                         --------               ---------
Net Cash Provided by Financing Activities                                                  (8,420)                 34,670
                                                                                         --------               ---------
Net Increase in Cash & Cash Equivalents                                                    23,054                   8,415

Beginning Cash & Cash Equivalents                                                          11,711                   1,613
                                                                                         --------               ---------
Ending Cash & Cash Equivalents                                                           $ 34,765                $ 10,028
                                                                                         ========               =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
     Cash paid for interest                                                               $ 3,646                 $ 3,714
                                                                                         ========               =========
     Cash paid for Income Taxes                                                               $ -                     $ -
                                                                                         ========               =========
</TABLE>
See Accountants Review Report

<PAGE>


                        MOUNTAINS WEST EXPLORATION, INC.
                          Notes to Financial Statements
                               September 30, 2004




Note 1 - Presentation of Interim Information:

In the opinion of the management of Mountains West Exploration, Inc., the
accompanying unaudited financial statements include all normal adjustments
considered necessary to present fairly the financial position as of September
30, 2004 and the results of operations for the three and nine-months ended
September 30, 2004 and 2003, and cash flows for the nine-months ended September
30, 2004 and 2003. Interim results are not necessarily indicative of results for
a full year.

The financial statements and notes are presented as permitted by Form 10-QSB,
and do not contain certain information included in the Company's audited
financial statements and notes for the fiscal year ended December 31, 2003.

Note 2 - Going Concern:

The Company's financial statements have been presented on the basis that it is a
going concern, which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business.

The Company's ability to continue as a going concern is dependent upon its
ability to develop additional sources of capital or locate a merger candidate
and ultimately, achieve profitable operations. The accompanying financial
statements do not include any adjustments that might result from the outcome of
these uncertainties. Management is seeking new capital to revitalize the
Company.


<PAGE>


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Cautionary and Forward Looking Statements


     In addition to  statements of historical  fact,  this Form 10-QSB  contains
forward-looking statements. The presentation of future aspects of Mountains West
Exploration,   Inc.,  ("Mountains  West  Exploration,  Inc."  the  "Company"  or
"issuer")  found  in these  statements  is  subject  to a  number  of risks  and
uncertainties  that could cause actual results to differ  materially  from those
reflected in such statements.  Readers are cautioned not to place undue reliance
on these forward-looking statements, which reflect management's analysis only as
of the date hereof. Without limiting the generality of the foregoing, words such
as "may," "will," "expect," "believe," "anticipate," "intend," or "could" or the
negative  variations thereof or comparable  terminology are intended to identify
forward-looking statements.

     These forward-looking statements are subject to numerous assumptions, risks
and uncertainties that may cause Mountains West Exploration, Inc. actual results
to be  materially  different  from any future  results  expressed  or implied by
Mountains West Exploration, Inc. in those statements. Important facts that could
prevent  Mountains  West  Exploration,  Inc.  from  achieving  any stated  goals
include, but are not limited to, the following:

         Some of these risks might include, but are not limited to, the
following:

                  (a)      volatility or decline of the Company's stock price;

                  (b)      potential fluctuation in quarterly results;

                  (c)      failure of the Company to earn revenues or profits;

                  (d)      inadequate capital to continue or expand its busi-
                           ness, inability to raise additional capital or financ
                           -ing to implement its business plans;

                  (e)      failure to make sales;

                  (f)      rapid and significant changes in markets;

                  (g)      litigation with or legal claims and allegations by
                           outside parties;

                  (h)      insufficient revenues to cover operating costs.




<PAGE>

         There is no assurance that the Company will be profitable, the Company
may not be able to successfully develop, manage or market its products and
services, the Company may not be able to attract or retain qualified executives
and technology personnel, the Company's products and services may become
obsolete, government regulation may hinder the Company's business, additional
dilution in outstanding stock ownership may be incurred due to the issuance of
more shares, warrants and stock options, or the exercise of warrants and stock
options, and other risks inherent in the Company's businesses.

The Company undertakes no obligation to publicly revise these forward-looking
statements to reflect events or circumstances that arise after the date hereof.
Readers should carefully review the factors described in other documents the
Company files from time to time with the Securities and Exchange Commission,
including the Quarterly Reports on Form 10-QSB and Annual Report on Form 10-KSB
filed by the Company in 2004 and any Current Reports on Form 8-K filed by the
Company.

The Company owns over small ownership interests in coal bed methane wells in Las
Animas  county,  Colorado  and has leases on 4,000 acres for coal bed methane in
northern  New Mexico,  none of which are explored or  developed.  The Company is
currently   considering   developing  these  minerals  itself  as  funds  become
available.

Results of Operations for the Quarter Ended September 30, 2004 Compared to the
Same Period in 2003.

During the quarter  ended  September  30,  2004,  oil and gas sales were $37,320
compared to $38,929 for the same period in the prior year. The Company had other
operating  income during the quarter in the form of  approximately  $20,000 in a
lawsuit settlement over royalty underpayments by an operator.

The company had operating expenses of $29,381 and $21,742 in the quarter in 2004
and 2003 respectively.  The company incurred  administrative  expenses of $7,550
and  $5,627  in 2004 and  2003  respectively  in the  quarter.  Total  operating
expenses  were $36,931 in the quarter in 2004 compared to $27,369 in the quarter
in 2003.  The net  profit  was  $19,233 in the  quarter  in 2004  compared  to a
($11,560)  loss in the quarter in 2003.  The profit per share was nominal in the
quarter in 2004 and there was a nominal loss in 2003.

The large  expense  increase  is as a direct  result of  increased  expenses  of
production.  Even though the company had a profitable quarter,  investors should
view the  results in light of longer  term  averages,  which  historically  show
losses.

<PAGE>


Results of Operations for the Nine Months Ended September 30, 2004 Compared to
Same Period in 2003.

The company had  revenues of $100,019 in the period in 2004  compared to $63,675
in the period in 2003. The dramatic increase was due to increased production and
higher gas prices from production  sales. The Company also had a $20,000 payment
from a lawsuit settlement over royalty underpayments by an operator. The cost of
goods  sold  was  $1,000  and  $271 in the nine  month  period  in 2004 and 2003
respectively.

The company experienced $52,456 in operating expense in the nine month period in
2004  compared to $77,099 in such expense in the same period in 2003.  There was
administrative  expense incurred in the period of $24,643 in 2004 and $11,195 in
2003.  The total  operating  expenses  in the  period  were  $77,099 in 2004 and
$88,294 in 2003. The net profit for the period was $38,274 in 2004 compared to a
loss of  ($24,875)  in 2003.  The profit is due  primarily  to expanded  revenue
generation from gas  production.  The profit per share was nominal in the period
in 2004 and the loss per share was nominal in 2003.

Changes in Financial Condition

Year to date the Company  experienced an increase in cash position to $34,765 at
quarter end due to increased revenue of the Company. The Company's total debt is
$62,340 at the quarter end as a result of expense accruals.  The Company's total
liabilities are approximately  $62,340. The company expects the trend of profits
(year to date) not to continue at the same rate, in the future.

Liquidity and Capital Resources

Year to date, the company had increased revenue, and an increased cash position,
which is insufficient  for any significant  operations.  The company had cash of
$38,765  and  illiquid  assets of  $17,055  (less  accumulated  depreciation  of
$14,577) approximately at quarter end.

The company's only capital resources are its assets which may be illiquid and
its common stock which might be sold to raise capital.

NEED FOR ADDITIONAL FINANCING

The Company does not have capital  sufficient to meet the Company's  cash needs,
to operate,  and pay debt, including the costs of compliance with the continuing
reporting  requirements of the Securities Exchange Act of 1934. The Company will
have to seek  loans or  equity  placements  to cover  such cash  needs.  Lack of
capital may be a sufficient impediment to prevent it from accomplishing the goal
of expanding its operations.  There is no assurance,  that without funds it will
ultimately  allow  company to carry out its  business.  The Company will need to
raise  additional  funds to expand its  business  activities  in the next twelve
months.

<PAGE>

         No commitments to provide additional funds have been made by management
or  other  stockholders.  Accordingly,  there  can  be  no  assurance  that  any
additional  funds  will be  available  to the  Company  to allow it to cover its
expenses as they may be incurred.

         Irrespective   of  whether  the  Company's  cash  assets  prove  to  be
inadequate to meet the Company's  operational  needs,  the Company might seek to
compensate providers of services by issuances of stock in lieu of cash.

GOING CONCERN

     The Company's auditor has issued a "going concern" qualification as part of
his opinion in the Audit Report. There is substantial doubt about the ability of
the  Company to  continue as a "going  concern."  The  Company has no  business,
limited capital, debt in excess of $62,340, $37,198 of which is current, $34,765
in cash, minimal other liquid assets, and no capital commitments. The effects of
such conditions could easily be to cause the Company's bankruptcy.

     Management  hopes  to  seek  and  obtain  funding,  via  loans  or  private
placements  of stock  for  operations,  debt  and to  provide  working  capital.
Management  has  plans to seek  capital  in the  form of loans or stock  private
placements of approximately $250,000.

ITEM 3.  CONTROLS AND PROCEDURES

a.       Evaluation of Disclosure Controls and Procedures:

Disclosure controls and procedures are designed to ensure that information
required to be disclosed in the reports filed or submitted under the Exchange
Act is recorded, processed, summarized and reported, within the time period
specified in the SEC's rules and forms. Disclosure controls and procedures
include, without limitation, controls and procedures designed to ensure that
information required to be disclosed in the reports filed under the Exchange Act
is accumulated and communicated to management, including the Chief Executive
Officer and Chief Financial Officer, as appropriate, to allow timely decisions
regarding required disclosure. As of the end of the period covered by this
report, the Company carried out an evaluation, under the supervision and with
the participation of the Company's management, including the Company's Chief
Executive Officer and Chief Financial Officer, of the effectiveness of the
design and operation of the Company's disclosure controls and procedures. Based
upon and as of the date of that evaluation, the Chief Executive Officer and
Chief Financial Officer concluded that the Company's disclosure controls and
procedures are effective to ensure that information required to be disclosed in
the reports the Company files and submits under the Exchange Act is recorded,
processed, summarized and reported as and when required.

b.       Changes in Internal Control over Financial Reporting:

There were no changes in the Company's internal control over financial reporting
identified in connection with the Company evaluation of these controls as of the
end of the period covered by this report that could have significantly affected
those controls subsequent to the date of the evaluation referred to in the
previous paragraph, including any correction action with regard to significant
deficiencies and material weakness.

<PAGE>


PART II.  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

        NONE

ITEM  2. CHANGES IN SECURITIES

        NONE

ITEM  3. DEFAULTS UPON SENIOR SECURITIES

        NONE

ITEM  4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDER

        NONE

ITEM  5.  OTHER INFORMATION

        NONE

ITEM  6. EXHIBITS AND REPORTS ON FORM 8-K

        (a)     32    906 Sarbanes-Oxley Certification
                31    302 Sarbanes-Oxley Certification

        (b)     Reports on Form 8-K.

                NONE
<PAGE>

  SIGNATURES

In accordance  with section 13 to 15 (d) of the Exchange Act, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.


Denis Iler                                          November 11, 2004
- --------------------------------------------------------
Denis Iler          President, Chief Executive Officer