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 June 30, 2005


                           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.)

7609 Ralston Road, Arvada, Colorado                              80002
--------------------------------                            --------
(Address of principal executive offices)                   (Zip Code)

Issuer's telephone number, including area code: 303 422 8127

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 [X] No [_]

The  number of shares outstanding of  the issuer's common stock, par value $.001
per share, at June 30, 2005, was 1,000,018 shares.

<PAGE>
                        MOUNTAINS WEST EXPLORATION, INC.


                          FINANCIAL STATEMENTS FOR THE
                         SIX-MONTHS ENDED JUNE 30, 2005
                                   (UNAUDITED)











<PAGE>






                               JASPERS + HALL, PC
                          CERTIFIED PUBLIC ACCOUNTANTS
                        9175 E. Kenyon Avenue, Suite 100
                                Denver, CO 80237
                                  303-796-0099

             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


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


We have reviewed the accompanying  balance sheet of Mountains West  Exploration,
Inc. as of June 30, 2005 and the related  statements of operations for the three
and six months ended June 30, 2005, stockholders' equity, and statements of cash
flows for the six-months ended June 30, 2005. These financial statements are the
responsibility of the Company's management.

We conducted  our review in  accordance  with  standards  of the Public  Company
Accounting  Oversight  Board (United  States).  The review of interim  financial
information consists principally of applying analytical  procedures to financial
data and making  inquires of persons  responsible  for financial and  accounting
matters. It is substantially less in scope than an audit conducted in accordance
with standards of the Public Company Accounting Oversight Board (United States),
the objective of which is the  expression of an opinion  regarding the financial
statements as a whole. Accordingly, we do not express such an opinion.

Based on our reviews, 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 of America.

The financial  statements  for the year ended  December 31, 2004 were audited by
other accountants,  whose report dated March 31, 2005,  expressed an unqualified
opinion. They have performed no auditing duties since that date. In our opinion,
the information set forth in the accompanying  balance sheet as of June 30, 2005
is fairly stated in all material  respects in relation to the balance sheet from
which it has been derived.





Jaspers + Hall, PC
Denver, Colorado
August 15, 2005
/s/Jaspers + Hall, PC

<PAGE>
<TABLE>
<CAPTION>

                        MOUNTAINS WEST EXPLORATION, INC.
                                 Balance Sheets

                                   (Unaudited)

                                                                                  Six Months Ending            Year Ending
                                                                                  June 30, 2005                December 31, 2004
<S>                                                                                <C>                          <C>

ASSETS:

Current Assets:
     Cash                                                                                 $ 3,466                     $ 30,637
                                                                                   --------------------         --------------------
          Total current assets                                                              3,466                       30,637

Fixed Assets:
     Office Equipment                                                                           -                       15,819
     Lease & Well Equipment                                                                     -                        1,236
                                                                                   --------------------         --------------------
                                                                                                -                       17,055
        Less: Accumulated Depreciation                                                          -                      (14,685)
                                                                                   --------------------         --------------------
            Total fixed assets                                                                  -                        2,370
                                                                                   --------------------         --------------------

Other Assets:
    Undeveloped Property                                                                        -                        1,540
    Well Leases                                                                                 -                       17,768
    Mineral Interest                                                                            -                       12,740
                                                                                   --------------------         --------------------
        Total other assets                                                                      -                       32,048

TOTAL ASSETS                                                                              $ 3,466                     $ 65,055
                                                                                   ====================         ====================


LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current Liabilities
     Accounts Payable                                                                         $ -                     $ 34,861
    Current Portion - Long-Term Debt                                                            -                       18,744
                                                                                   --------------------         --------------------
          Total Current Liabilities                                                             -                       53,605
                                                                                   --------------------         --------------------
Long-Term Debt
    Long-Term Debt                                                                              -                       24,484
                                                                                   --------------------         --------------------
        Total long-term debt                                                                    -                       24,484
                                                                                   --------------------         --------------------

Stockholders' Equity (Deficit)
     Common stock: authorized 50,000,000 shares, no par value
        1,000,018 issued and outstanding at December and March                         1,579,786                    1,579,786
     Accumulated deficit                                                               (1,576,320)                  (1,592,820)
                                                                                   --------------------         --------------------
Total Stockholder's Equity (Deficit)                                                        3,466                      (13,034)
                                                                                   --------------------         --------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                      $ 3,466                     $ 65,055
                                                                                   ====================         ====================
</TABLE>

See accountants review report


<PAGE>
<TABLE>
<CAPTION>

                        MOUNTAINS WEST EXPLORATION, INC.
                            Statements of Operations
                                   (Unaudited)
<S>                                             <C>                   <C>                       <C>                   <C>


                                                    Three Months Ended June 30,                       Six Months Ended June 30
                                                     2005                  2004                      2005                  2004
                                                --------------------- ---------------------     --------------------- --------------
Revenues:
    Oil and Gas Income                                 $ 49,010              $ 32,712                 $ 111,520            $ 62,699
     Cost of Goods Sold                                                                                       -               1,000
                                                --------------------- ---------------------     --------------------- --------------
        Net Income                                       49,010                32,712                   111,520              61,699

Costs and Expenses:
     Operating Expenses                                   5,782                11,548                    33,431              24,183
     Administration Expenses                              8,375                 4,645                    27,171              17,093
                                                --------------------- ---------------------     --------------------- --------------
Total Operating Expenses                                 14,157                16,193                    60,602              41,276

Net Income (Loss) from operations                        34,853                16,519                    50,918              20,423

Other Expense
     Mineral Interest Transferred                        12,740                                          12,740
     Mineral Leases Expired                              19,308                                          19,308
     Write off of assets                                  2,370                                           2,370
     Interest Expense                                                          (1,383)                        -              (1,383)
                                                --------------------- ---------------------     --------------------- --------------
Total Other Expense                                      34,418                (1,383)                   34,418              (1,383)
                                                --------------------- ---------------------     --------------------- --------------

Net Income (Loss)                                         $ 435              $ 17,902                  $ 16,500            $ 21,806
                                                ===================== =====================     ===================== ==============

Per Share Information
     Weighted average number                          1,000,018            37,019,721                 1,000,018          37,019,721
     of common share outstanding                --------------------- ---------------------     --------------------- --------------

Net loss per common share                             *                     *                         *                     *

*  Less than $0.01
</TABLE>

See accountants review report.

<PAGE>
<TABLE>
<CAPTION>

                        MOUNTAINS WEST EXPLORATION, INC.
                            Statements of Cash Flows
                                   (Unaudited)
                                 Indirect Method



                                                                                     Six Months Ended June 30,

                                                                                     2005                2004
                                                                                     ----                ----
<S>                                                                             <C>                 <C>

Cash Flows from Operating Activities
     Net Income (Loss)                                                            $ 16,500            $ 19,040
     Adjustments to reconcile net loss to cash used
     by operating activities
     Depreciation                                                                                          216
     Changes in operating assets and liabilities
         (Decrease) Increase in accounts payable & accruals                        (78,089)              2,500
         (Increase) Decrease in Other Assets                                        34,418             (17,767)
                                                                                ------------------  ------------------
Net Cash Used in Operating Activities                                              (27,171)              3,989

Cash Flows from Financing Activities
    Payments on Notes Payable                                                                           (5,129)
                                                                                ------------------  ------------------
Net Cash Used for Financing Activities                                                                  (5,129)

Net Decrease in Cash & Cash Equivalents                                            (27,171)             (1,140)

Beginning Cash & Cash Equivalents                                                   30,637              11,711
                                                                                ------------------  ------------------
Ending Cash & Cash Equivalents                                                     $ 3,466            $ 10,571
                                                                                ==================  ==================

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
     Cash paid for interest                                                            $ -             $ 1,383
                                                                                ==================  ==================
     Cash paid for Income Taxes                                                        $ -                 $ -
                                                                                ==================  ==================
</TABLE>

See Accountants Review Report

<PAGE>
<TABLE>
<CAPTION>

              MOUNTAINS WEST EXPLORATION, INC.
               Stockholders' Equity (Deficit)
                         30-Jun-05
                        (Unaudited)


                                                                COMMON STOCK                                                  Total
                                                                                                       Accumulated     Stockholders'
                                                              # of shares            Amount              Deficit    Equity (Deficit)
                                                              -----------            ------              -------    ----------------
<S>                                                             <C>                  <C>                 <C>              <C>


Balance - December 31, 2001                                        740,385           $ 1,554,786         $(1,573,676)     $ (18,890)

Net Loss for Year                                                        -                                    (4,094)        (4,094)
                                                                ----------           -----------         -----------      ----------
Balance - December 31, 2002                                     37,019,271             1,554,786          (1,577,770)       (22,984)
                                                                                                                                  -
Net Loss for Year                                                        -                     -             (16,483)       (16,483)
                                                                ----------           -----------         -----------      ----------
Balance - December 31, 2003                                     37,019,271             1,554,786          (1,594,253)       (39,467)

Issuance of stock for cash                                         259,638                25,000                             25,000
Net Profit for Year                                                      -                     -               1,433          1,433
                                                                ----------           -----------         -----------      ----------
Balance - December 31, 2004                                     49,999,700             1,579,786          (1,592,820)       (13,034)
                                                                                                                                  -
Net Income for Period                                                    -                     -              16,500         16,500
                                                                ----------           -----------         -----------      ----------
*Balance - June 30, 2005                                        1,000,018           $ 1,579,786         $(1,576,320)       $ 3,466
                                                                ==========           ===========         ===========      ==========
*(Includes rounding shares) Adjusted for (1 for 50 reverse split as of April 12,
2005.)
</TABLE>

See Accountants Review Report

<PAGE>

                        MOUNTAINS WEST EXPLORATION, INC.
                          Notes to Financial Statements
                                  June 30, 2005

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 June 30,
2005 and the results of operations  for the  six-months  ended June 30, 2005 and
2004, and cash flows for the three-months  ended June 30, 2005 and 2004. 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, 2004.

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. MANAGEMENTS'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,  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 the 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 business, inability to
         raise additional capital or financing to implement its  business plans;
(e)      failure to commercialize its technology or 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.

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.


<PAGE>




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 owned small ownership  interests in producing coal bed methane wells
in  Las  Animas  county,  Colorado.  Due  to the  unitization  of the  Company's
fractional  interests  in  wells  into the  Spanish  Peaks  Federal  unit by the
operator,  which  resulted  in a revenue  back  charge  estimated  at $35,000 to
$40,000 for overpayment of revenues,  and the  anticipation of future charges to
revenues for development and workover,  the Company has assigned its interest in
the Nichols Lease and its .0007757%  non-operating interest in the Spanish Peaks
unit  to a  non-affiliate  in  consideration  for the  assumption  of all of the
revenue  back  charges and future  assessments.  The Company had leases on 4,000
acres for coal bed methane  exploration  in northern  New Mexico,  none of which
were  explored or  developed,  and which have expired or not been renewed due to
costs. (See RESULTS OF OPERATIONS BELOW.)

RESULTS OF  OPERATIONS  FOR THE QUARTER  ENDED JUNE 30,  2005,  COMPARED TO SAME
PERIOD IN 2004.

The Company  had  revenues  from  methane  production  in the quarter in 2005 of
$49,010  compared to $32,712 in 2004.  The cost of goods sold was $0 in 2005 and
$1,000 in 2004. The operating expenses were $5,782 and $11,548 in the quarter in
2005 and 2004 respectively. Administration expense was $8,375 in 2005 and $4,645
in 2004.  Total expenses were $40,157 in the quarter in 2005 compared to $16,193
in the same  quarter in 2004.  The net income on  operations  was $34,853 in the
quarter in 2005 compared to $16,519 in the same quarter in 2004.  The net income
was  decreased  in the quarter in 2005 due to the  writeoffs  of certain  assets
totalling  $34,418.  Net income  was $435 in the  quarter  in 2005  compared  to
$17,902 in the  quarter in 2004.  The leases that were held by  production  were
unitized  into a Federal  Unit by the owners of majority  interests in the area,
thereby   substantially   reducing  companys  minority  ownership  interest  and
resulting in an  overpayment  assessment  of $35,000 to $40,000 by the operator.
The fractional  interest was transferred to a  non-affiliated  party in exchange
for  their  assumption  of  the  overpayment  assessment  by the  operator,  and
assumption of all liabilities for future  operations and development on the unit
and lease. Since the offices had been previously closed the office equipment and
other  equipment  were  considered  to be abandoned as of the end of the current
quarter.
<PAGE>

The  profit per share was  nominal  in the  period in 2005 and 2004.

RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2005 COMPARED TO
SAME PERIOD IN 2004.

The company had  revenues of $111,520 in the period in 2005  compared to $62,669
in the period in 2004.  The increase was due to increased  production and higher
gas prices from production  sales. The cost of goods sold was none and $1,000 in
the six month period in 2005 and 2004 respectively.

The company  experienced $33,431 in operating expense in the six month period in
2005  compared to $24,183 in such expense in the same period in 2004.  There was
administrative  expense incurred in the period of $27,171 in 2005 and $17,093 in
2004.  The total  operating  expenses  in the  period  were  $60,602 in 2005 and
$41,276 in 2004.  The net  operating  income for the period was  $50,918 in 2005
compared to $20,423 in 2004.  The company had other  expenses from write offs of
interests  in leases  and  equipment  totalling  $34,418  in the period in 2005,
compared  to  interest  income of $1,383 in the  period of 2004.  The profit per
share was  nominal in the period in 2005 and 2004.  Net income was  $16,500  and
$21,806  in the six  month  periods  in 2005 and 2004  respectively.  Since  the
Company has no operating  revenues as of period end, due to disposal of property
for assumption of debt it anticipates  future  quarterly  losses in the range of
$10,000 to $20,000 per quarter  until  additional  revenues can be achieved of a
which there is no assurance.

Changes in Financial Condition

During the period the Company  experienced a decrease in cash position to $3,466
from  year  end  2004  of  $30,637.   The  Company's  total  debt  decreased  by
approximately  $78,089 during the period as a result of payments being made. The
Company's total liabilities are $0 at period end. It is Management's belief that
the Company will not be able to meet its operating expenses during the remainder
of the fiscal year without additional capital infusion. The Company divested its
minority interest in a lease and a unit for assumption of assessments  and
future financial obligations.  The Company wrote off its other carried assets
due to expiration, non renewal, and closing of the office.


<PAGE>




NEED FOR ADDITIONAL FINANCING

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

The  Company  will  need to  raise  additional  funds  to  expand  its  business
activities in the next twelve months.

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 limited  business,
limited capital,  and no debt,  $3,466 in cash, no other 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  in the next
quarter 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


<PAGE>



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's  evaluation of these controls as of
the end of the period  covered  by this  report  that  could have  significantly
affected these controls  subsequent to the date of the evaluation referred to in
the  previous  paragraph,   including  any  corrective  action  with  regard  to
significant deficiencies and material weaknesses.


<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                                         August 15, 2005
- --------------------------------------------------------
Denis Iler,      President, Chief Executive Officer
                             and Chief Financial Officer