Following on the heels of its acquisition of a liquefied natural gas (LNG) provider late last month, Apollo Resources International Inc. announced Tuesday that it has entered into an agreement to acquire Mountain States Petroleum Corp., which owns oil and gas producing assets near the Four Corners area of New Mexico and maintains production operations in New Mexico, Arizona and Utah.

Dallas-based Apollo said Mountain States is capable of producing both oil and natural gas from its areas of operations, which contain a total of 50 wells. During 2005, Mountain States produced approximately 150 b/d of oil. Over the past six months, Mountain States has been in the process of reactivating natural gas production from wells and pipelines previously out of repair.

“These wells are in fairly close proximity to our BC&D production, so we expect to derive operating efficiencies by sharing operations resources between these two areas,” said Wayne McPherson, Apollo’s COO.

Apollo announced last week that it had completed its acquisition of Applied LNG Technologies USA LLC (ALT), a provider of LNG made locally to transportation, industrial and municipal markets in the western United States and portions of Mexico (see Daily GPI, Dec. 16). In a related transaction, Apollo also acquired an LNG processing facility and related equipment in Topock, AZ.

Through its subsidiaries, Apollo engages in the production and transportation of oil and gas, as well as the development of alternative fuels. The company owns interests in 151 wells in the Four Corners area of New Mexico. It focuses on oil production, as well as on the development of approximately 10 Bcf of natural gas reserves. As of Dec. 31, 2004, the company had approximately 1.5 million barrels of oil in recoverable reserves associated with its fields.

Apollo also has approximately 1,800 miles of pipeline, which primarily serves the Woodford Shale and coal-seam gas play in south-central Oklahoma and Osage County, OK.

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