<SUBMISSION>
<ACCESSION-NUMBER>0000950134-07-011974
<TYPE>SC 13E3
<PUBLIC-DOCUMENT-COUNT>1
<FILING-DATE>20070518
<DATE-OF-FILING-DATE-CHANGE>20070518
<SUBJECT-COMPANY>
<COMPANY-DATA>
<CONFORMED-NAME>APOLLO RESOURCES INTERNATIONAL INC
<CIK>0001048237
<ASSIGNED-SIC>1311
<IRS-NUMBER>841431425
<STATE-OF-INCORPORATION>UT
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC 13E3
<ACT>34
<FILE-NUMBER>005-80124
<FILM-NUMBER>07865412
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>3001 KNOX STREET, SUITE 407
<CITY>DALLAS
<STATE>TX
<ZIP>75205
<PHONE>214-389-2151
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>3001 KNOX STREET, SUITE 407
<CITY>DALLAS
<STATE>TX
<ZIP>75205
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>POWERBALL INTERNATIONAL INC
<DATE-CHANGED>20000814
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>NATEX CORP
<DATE-CHANGED>19991029
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>NATEX CORP/UT
<DATE-CHANGED>19990409
</FORMER-COMPANY>
</SUBJECT-COMPANY>
<FILED-BY>
<COMPANY-DATA>
<CONFORMED-NAME>APOLLO RESOURCES INTERNATIONAL INC
<CIK>0001048237
<ASSIGNED-SIC>1311
<IRS-NUMBER>841431425
<STATE-OF-INCORPORATION>UT
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC 13E3
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>3001 KNOX STREET, SUITE 407
<CITY>DALLAS
<STATE>TX
<ZIP>75205
<PHONE>214-389-2151
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>3001 KNOX STREET, SUITE 407
<CITY>DALLAS
<STATE>TX
<ZIP>75205
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>POWERBALL INTERNATIONAL INC
<DATE-CHANGED>20000814
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>NATEX CORP
<DATE-CHANGED>19991029
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>NATEX CORP/UT
<DATE-CHANGED>19990409
</FORMER-COMPANY>
</FILED-BY>
<DOCUMENT>
<TYPE>SC 13E3
<SEQUENCE>1
<FILENAME>d46923sc13e3.htm
<DESCRIPTION>SCHEDULE 13E-3
<TEXT>
<HTML>
<HEAD>
<TITLE>sc13e3</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>SCHEDULE 13E-3</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>RULE 13E-3 TRANSACTION STATEMENT<BR>
(Pursuant to Section&nbsp;13(e) of the Securities Exchange Act of 1934)</B></DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>APOLLO RESOURCES INTERNATIONAL, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></DIV>


<DIV align="center" style="font-size: 10pt">(Name of Issuer)</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>APOLLO RESOURCES INTERNATIONAL, INC.</B></DIV>

<DIV align="center" style="font-size: 10pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></DIV>


<DIV align="center" style="font-size: 10pt">(Name of Person Filing Statement)</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Common Stock, $0.001 par value</B></DIV>

<DIV align="center" style="font-size: 10pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></DIV>


<DIV align="center" style="font-size: 10pt">(Title of Class of Securities)</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>037622107</B></DIV>

<DIV align="center" style="font-size: 10pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></DIV>


<DIV align="center" style="font-size: 10pt">(CUSIP Number of Class of Securities)</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Dennis G. McLaughlin, III<BR>
Chief Executive Officer<BR>
Apollo Resources International, Inc.<BR>
3001 Knox Street, Suite&nbsp;403<BR>
Dallas, Texas 75205<BR>
(214)&nbsp;389-9800</B><BR>
(Name, Address and Telephone Number of Person Authorized to Receive<BR>
Notices and Communications on Behalf of Persons Filing Statement)</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This statement is filed in connection with (check the appropriate box):
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="93%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#254;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">a.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The filing of solicitation materials or an information statement
subject to Regulation&nbsp;14A, Regulation&nbsp;14C or Rule&nbsp;13e-3 (c)&nbsp;under the
Securities Exchange Act of 1934.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">b.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The filing of a registration statement under the Securities Act of 1933.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">c.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">A tender offer.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">d.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None of the above.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the following box if the soliciting materials or information statement referred to in
checking box (a)&nbsp;are preliminary copies: <FONT face="Wingdings">&#254;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the following box if the filing is a final amendment reporting the results of the
transaction: <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Calculation of Filing Fee</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>Amount of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Transaction Value*</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000"><B>Filing Fee**</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$2,179,636</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$66.91</TD>

    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD align="LEFT">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>For purposes of calculating the filing fee only, this amount assumes the aggregate
cash payment of $2,179,636 by the Issuer in lieu of fractional shares immediately following a
1-for-65,000 reverse stock split to holders of fewer than 65,000 shares of the Issuer&#146;s common
stock prior to the reverse stock split. The aggregate cash payment is equal to the product of
the price of $0.035 per pre-split share and 62,275,323 pre-split shares, the estimated
aggregate number of shares held by such holders.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><B>**</B></TD>
    <TD>&nbsp;</TD>
    <TD>Determined pursuant to Rule&nbsp;0-11(b)(1) as the product of $2,179,636 and 30.7 per million.</TD>
</TR>

</TABLE>



<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD> Check the box if any part
of the fee is offset as provided
by Rule&nbsp;0-11(a)(2) of the
Securities Exchange Act of 1934
and identify the filing with
which the offsetting fee was
previously paid. Identify the
previous filing by registration
statement number, or the Form or
Schedule and the date of its
filing.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px">Amount Previously Paid:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">0</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px">Form or Registration No.:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">n/a</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px">Filing Party:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">n/a</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px">Date Filed:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">n/a</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>TABLE OF CONTENTS</B></U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#101">Item&nbsp;1. Summary Term Sheet</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#102">Item&nbsp;2. Subject Company Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#103">Item&nbsp;3. Identity and Background of the Filing Person</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#104">Item&nbsp;4. Terms of the Transaction</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#105">Item&nbsp;5. Past Contacts, Transactions, Negotiations and Agreements</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#106">Item&nbsp;6. Purposes of the Transaction and Plans or Proposals</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#107">Item&nbsp;7. Purposes, Alternatives, Reasons and Effects</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#108">Item&nbsp;8. Fairness of the Transaction</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#109">Item&nbsp;9. Reports, Opinions, Appraisals and Negotiations</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#110">Item&nbsp;10. Source and Amounts of Funds or Other Consideration</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#111">Item&nbsp;11. Interest in Securities of the Subject Company</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#112">Item&nbsp;12. The Solicitation or Recommendation</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#113">Item&nbsp;13. Financial Statements</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#114">Item&nbsp;14. Persons/Assets, Retained, Employed, Compensated or Used</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#115">Item&nbsp;15. Additional Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#116">Item&nbsp;16. Exhibits</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> 2 of 15<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INTRODUCTION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Rule&nbsp;13E-3 Transaction Statement on Schedule&nbsp;13E-3 (the &#147;Schedule&nbsp;13E-3&#148;) is being filed by
Apollo Resources International, Inc., a Utah corporation (the &#147;Company&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Concurrently with the filing of this Schedule&nbsp;13E-3, the Company is filing an Information Statement
(the &#147;Information Statement&#148;) pursuant to Regulation&nbsp;14C under the Securities Exchange Act of 1934,
as amended (the &#147;Exchange Act&#148;). A copy of the Information Statement is attached hereto as Exhibit
1. The information in the Information Statement, including all annexes thereto, is expressly
incorporated by reference herein in its entirety and responses to each item herein are qualified in
their entirety by the information contained in the Information Statement and the annexes thereto.
Capitalized terms used but not defined herein have the meanings given to them in the Information
Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All references to subsections in the Items below are to the subsection of the applicable Item in Regulation&nbsp;M-A
</DIV>

<DIV align="left">
<A name="101"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1. Summary Term Sheet.</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">The information set forth in the Information Statement under the captions &#147;Summary of
Terms of Reverse/Forward Stock Split&#148; and &#147;Questions and Answers About the Reverse/Forward
Stock Split&#148; is incorporated herein by reference.
</DIV>
<DIV align="left">
<A name="102"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;2. Subject Company Information.</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Name and Address</I>. Apollo Resources International, Inc. is the subject company. Its
principal executive office is located at 3001 Knox Street, Suite&nbsp;403 Dallas, Texas 75205 and
its telephone number is (214)&nbsp;389-9800.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Securities</I>. As of April&nbsp;4, 2007, there were 376,738,622 outstanding shares of common
stock, par value $0.001, of the Company (&#147;Common Stock&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Trading Market and Price</I>. The Company&#146;s Common Stock was formerly quoted on the NASD&#146;s
Over the Counter Bulletin Board (&#147;OTCBB&#148;) under the ticker symbol &#147;AOOR.OB.&#148; On or about
April&nbsp;23, 2007, the NASD notified the Company that the Company&#146;s securities were to be
removed from quotation on the OTCBB effective at the open of business on April&nbsp;27, 2007. As
such, the Company now trades on as an OTC &#147;Pink Sheet&#148; security under the ticker symbol
&#147;AOORE.OB&#148; and shall be trading under the symbol &#147;AOOR.PK.&#148; We consider our common stock to
be thinly traded and any reported bid or sale prices may not be a true market-based valuation
of the common stock. On May&nbsp;17, 2007, the last practicable trading day prior to the date of
this Information Statement, our Common Stock&#146;s closing price was $0.034. The information set
forth in the Information Statement under the caption &#147;Trading Market and Price of our Common
Stock and Dividend Policy&#148; is incorporated herein by reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Dividends</I>. No dividends have been paid by the Company on its Common Stock during the past
two years. The information set forth in the Information Statement under the caption &#147;Trading
Market and Price of our Common Stock and Dividend Policy&#148; is incorporated herein by
reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Prior Public Offerings</I>. The Company has not made an underwritten public offering of its
Common Stock for cash during the three years preceding the date of the filing of this
Schedule&nbsp;13E-3.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Prior Stock Purchases</I>. The Company has not purchased any of its Common Stock for cash
during the three years preceding the date of the filing of this Schedule&nbsp;13E-3.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<A name="103"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;3. Identity and Background of the Filing Person.</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Name and Address</I>. Apollo Resources International, Inc., the subject company, is the filing
person of this Schedule&nbsp;13E-3. The business office address for the Company is 3001 Knox
Street, Suite&nbsp;403 Dallas, Texas 75205 and the business telephone number for the Company is
(214)&nbsp;389-9800. The executive officers and directors of the Company are set forth below.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> 3 of 15<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Board of Directors</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Executive Officers</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;Dennis G. McLaughlin, III
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;Chief Executive Officer:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dennis G. McLaughlin, III,</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;Christopher P. (Kit) Chambers
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;Executive Vice President:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Christopher P. (Kit) Chambers</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;Billy A. Mickle
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;Chief Financial Officer:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Darren L. Miles</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;Glenn E. Floyd</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">The address of each executive officer and director of the Company is:<BR>
c/o the Company<BR>
3001 Knox Street<BR>
Suite&nbsp;403<BR>
Dallas, Texas 75205.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Business and Background of Entities</I>. Not applicable.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Business and Background of Natural Persons</I>. The information set forth in Item 3(a) above
is incorporated herein by reference. All of the Company&#146;s directors and executive officers
are United States citizens. During the last five years and to the Company&#146;s knowledge, none
of the Company&#146;s directors or executive officers has been convicted in a criminal proceeding
(excluding traffic violations or similar misdemeanors), or has been a party to any judicial
or administrative proceeding (except for matters that were dismissed without sanction or
settlement) as a result of which any such person was or is subject to a judgment, decree or
final order enjoining future violations of, or prohibiting activities subject to, federal or
state securities laws or finding any violation of those laws<B>. </B>Information concerning the
directors and executive officers of the Company is as follows:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><U>Dennis G. McLaughlin, III</U>, age 41, has served as Chairman of the Board and Chief
Executive Officer of the Company since November&nbsp;12, 2004. Mr.&nbsp;McLaughlin also serves as
Chairman of Blue Wireless &#038; Data, Inc. (a publicly traded company), a position he has held
since June&nbsp;2004. Mr.&nbsp;McLaughlin was formerly CEO and Co-Chairman of Ocean Resources, Inc. (a
publicly traded company) and served as such from September&nbsp;2003 to January&nbsp;2005. Mr.
McLaughlin founded MAC Partners, LP (&#147;MAC Partners&#148;), a merchant banking company, in January
2002 and subsequently resigned all positions and equity interests in March of 2003. Prior to
that he founded Aurion Technologies, LLC in 1998 and served as CEO and was a Director through
2001. He founded Aurora Natural Gas, LLC in 1993 and served as CEO through 2001. Prior to
starting his own companies, he worked as a Manager of Marketing &#038; Transportation for Highland
Energy from 1991 to 1993, and before this worked as a gas marketing representative for
Clinton Natural Gas from 1990 to 1991. Mr.&nbsp;McLaughlin received a Bachelor of Economics
degree from the University of Oklahoma in 1992.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><U>Christopher P. (Kit) Chambers</U>, age 42, has served as Executive Vice President
and as a director of the Company since November&nbsp;12, 2004. Mr.&nbsp;Chambers also currently serves
as Corporate Secretary and as a director for Blue Wireless &#038; Data, Inc. (a publicly traded
company). Mr.&nbsp;Chambers formerly served as Chief Operating Officer and Corporate Secretary for
Ocean Resources, Inc. (a publicly traded company) and served as such from October&nbsp;2003 to
January&nbsp;2005. Prior to these activities he co-founded MAC Partners in January&nbsp;2002 and
subsequently resigned all positions and equity interests in August of 2003. From January
1999 to December&nbsp;2001 he was employed by Aurion Technologies, LLC as Vice President of
Operations, then Vice President of Sales Engineering. From March&nbsp;1994 to December&nbsp;1998 Mr.
Chambers was Vice President of Software Development for Aurora Natural Gas, LP. From January
1998 to February&nbsp;2004 he worked as an independent consultant in the film/video industry in
Dallas, Texas. Mr.&nbsp;Chambers received a B.A. from the University of Oklahoma in 1989.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><U>Darren L. Miles</U>, age 48, has served as Chief Financial Officer of the Company
since April&nbsp;29, 2007. He also serves as Chief Financial Officer of Earth, and brings over 20
years of experience in corporate finance, mergers and acquisitions, and investment banking to
Earth. Prior to joining Company, Mr.&nbsp;Miles consulted for GVC Financial Services, LLC for 3
years. Prior to that, Mr.&nbsp;Miles was a Director in a middle market investment banking firm
specialized in recapitalizations, acquisitions, sales, and capital market funds sourcing.
Mr.&nbsp;Miles also served as Director for Lewis Hollingsworth LP, a private equity fund where he
directed turn-around efforts for portfolio companies while focusing on deal origination,
structure, and negotiations. From September&nbsp;2001 to August&nbsp;2002, Mr.&nbsp;Miles also served as
CEO of Fresh America Corporation (a publicly traded company). Darren holds his B.S. in
accounting from Murray State University.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> 4 of 15<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%"><U>Billy A. Mickle</U>, age 61, is a practicing attorney and Managing Partner of BFM
Investments, LLC in Durant, Oklahoma. He was an Oklahoma State Senator from 1988 to 2002,
and was Majority Leader of the Oklahoma State Senate from 1994 to 2002. While serving under
the Oklahoma State Senate, Mr.&nbsp;Mickle was the Appropriation Chairman of the Sub-Committee on
Judiciary and General Government from 1990 to 1994, and was Chairman of the Judiciary
Committee from 1988 to 1994. He has worked on several economic development projects for the
state of Oklahoma and currently serves as a member of the Oklahoma Housing Finance Agency.
During his tenure as Oklahoma State Senator, Mr.&nbsp;Mickle led international trade missions to
Mexico, Malaysia, Singapore, Hong Kong, Vietnam, The Czech Republic, Pakistan, Cuba, Nigeria,
and The United Arab Emirates. His past experience includes positions as an adjunct professor
at Southeastern Oklahoma State University, a public school educator, a sergeant E-5 with the
United States Marine Corp, an Oklahoma state highway patrol trooper, and he is a Vietnam
Veteran. He has been a practicing attorney since 1974, and has won several state legislative
awards, including National State Legislator of the Year by Safari Club International. Mr.
Mickle received a Bachelor of Science Degree from Northeastern State University in 1967, a
Juris Doctorate Degree from Oklahoma City University in 1974, and graduated from the National
Judicial College of Reno, Nevada in 1983.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%"><U>Glenn
E. Floyd</U>, age 69, is the founding attorney and owner of the Floyd Law
Firm, PC based in Norman, Oklahoma since 1972, where his practice has focused mainly on
public finance, taxation, and business law and has completed approximately 2,000 financings
since that time. Prior to becoming an attorney he taught mathematics at East Central
University, the University of Arkansas and the University of Oklahoma. He was a Special
Lecturer at the University of Oklahoma College of Law from 1969 to 1971. Mr.&nbsp;Floyd was a
Member of the Oklahoma House of Representatives from 1974 to 1978. He has authored several
articles published in the Oklahoma Law Review, the Boston University Law Review, the Tulsa
Law Journal, The Monthly Digest of Legal Articles, and The Bond Lawyer. Additionally, he was
editor and author of the first and several following editions of &#147;Tax-Exempt Municipal Bonds
in Oklahoma&#148; from 1972 to 2005. He was an original Founder of, and has been a Fellow and
Director for the American College of Bond Counsel since 1996. Also in 1996, he was selected
as a Distinguished Alumnus, East Central University, Ada, Oklahoma. Mr.&nbsp;Floyd is a member of
the Oklahoma and American Bar Associations, the National Association of Bond Lawyers, and was
Founder of the Oklahoma Public Finance Forum. He is a member of Phi Delta Phi, Pi Mu
Epsilon, and Order of the Coif. He has been the General Manager for Floyd Land and Cattle
Co. since 1968 and has practiced law since 1967. Mr.&nbsp;Floyd received a Bachelor of Science
degree in Mathematics from East Central State College (Oklahoma) in 1958, a Masters degree in
Mathematics from the University of Arkansas in 1961, a Juris Doctor degree from the
University of Oklahoma Law School in 1967, and a Masters of Law (LLM)&nbsp;degree from Harvard Law
School in 1968.
</DIV>
<DIV align="left">
<A name="104"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;4. Terms of the Transaction.</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Material Terms</I>. The information set forth in the Information Statement under the captions
&#147;Summary of Terms of Reverse/Forward Stock Split,&#148; &#147;Questions and Answers About the
Reverse/Forward Stock Split,&#148; &#147;Special Factors,&#148; &#147;Structure of the Reverse/Forward Stock
Split,&#148; &#147;Fairness of the Reverse/Forward Stock Split to Stockholders,&#148; &#147;Description of the
Reverse/Forward Stock Split,&#148; &#147;Financing of the Reverse/Forward Stock Split,&#148; &#147;Costs of the
Reverse/Forward Stock Split&#148; and &#147;Recommendation of the Board; Fairness of the
Reverse/Forward Stock Split &#151; Reservation of Rights&#148; is incorporated herein by reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Different Terms</I>. The information set forth in the Information Statement under the captions
&#147;Summary of Terms of Reverse/Forward Stock Split,&#148; &#147;Questions and Answers About the
Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151; Potential Disadvantages of the
Reverse/Forward Stock Split to Stockholders; Accretion in Ownership and Control of Certain
Stockholders,&#148; &#147;Special Factors &#151; Effects of the Reverse/Forward Stock Split,&#148; &#147;Special
Factors &#151; Effect of the Reverse/Forward Stock Split on Option Holders,&#148; &#147;Special Factors &#151;
Effect of the Reverse/Forward Stock Split on Warrant Holders,&#148; &#147;Special Factors &#151; Effect of
the Reverse/Forward Stock Split on Holders of Outstanding Convertible Debentures,&#148; &#147;Special
Factors &#151; Financial Effect of the Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151; Federal
Income Tax Consequences of the Reverse/Forward Stock Split,&#148; &#147;Structure of the
Reverse/Forward Stock Split,&#148; &#147;Fairness of the Reverse/Forward Stock Split to Stockholders,&#148;
&#147;Description of the Reverse/Forward Stock Split &#151; Holders as of Effective Date; Net Effect
After Reverse/Forward Stock Split,&#148; and &#147;Description of the Reverse/Forward Stock Split &#151;
Exchange of Certificates for Cash Payment or Shares&#148; is incorporated herein by reference.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> 5 of 15<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Appraisal Rights. </I>The information set forth in the Information Statement under the
captions &#147;Summary of Terms of Reverse/Forward Stock Split,&#148; &#147;Questions and Answers About the
Reverse/Forward Stock Split&#148; and &#147;Description of the Reverse/Forward Stock Split &#151; Appraisal
Rights&#148; is incorporated herein by reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Provisions for Unaffiliated Security Holders</I>. The information set forth in the Information
Statement under the caption &#147;Fairness of the Reverse/Forward Stock Split to Stockholders &#151;
Procedural Fairness to All Stockholders&#148; is incorporated herein by reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Eligibility for Listing or Trading. </I>Not applicable.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<A name="105"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;5. Past Contacts, Transactions, Negotiations and Agreements.</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Transactions</I>. The information set forth in the Information Statement under the caption
&#147;Interests of Certain Persons&#148; is incorporated herein by reference.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the past 2&nbsp;years, Apollo transacted business with the following affiliates:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Effective November&nbsp;22, 2006, Apollo entered into a Share Exchange Agreement with Earth
Biofuels, Inc. for the sale of one hundred percent of its fifty-one percent interest in
Apollo LNG, Inc., a Texas company. Under the Agreement, Apollo agreed to sell to Earth
Biofuels all of the issued and outstanding shares of the LNG Business owned by Apollo.
Apollo agreed to receive 9,422,111 shares of the common stock of Earth Biofuels as
consideration for the Apollo LNG Shares. The transaction was valued at roughly
$36,000,000.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Significant Corporate Events</I>.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the past 2&nbsp;years, the following were significant corporate events:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Merger</I>. None.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Consolidation</I>. None<B>.</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Acquisition</I>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On August&nbsp;19, 2005, Apollo entered into a Securities Purchase Agreement to
acquire additional shares of Earth Biofuels, Apollo&#146;s 50%-owned subsidiary. As a
consequence of the acquisition, Apollo owned 80% of the issued and outstanding
 shares of Earth Biofuels. Pursuant to the transaction, Apollo issued 6&nbsp;million
restricted shares of its common stock to Earth Biofuels shareholders.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On May&nbsp;1, 2006, OGC Pipeline LLC, an Oklahoma limited liability company and
wholly-owned subsidiary of Company, sold approximately 248 miles of its pipeline
system in central Oklahoma and north Texas, as well as the easements, surface lease
agreements, rights-of-way, permits, licenses, leases, and other rights of access and
agreements related to such pipeline segment, to Cimmarron Gathering, LP
(&#147;Cimmarron&#148;). The consideration for the sale was $1&nbsp;million. The Company has begun
leasing mineral rights adjacent to this segment, in anticipation of a strategic
working relationship with Cimmarron;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On May&nbsp;12, 2006, Apollo Resources International, Inc., a Utah corporation (the
&#147;Company&#148;) entered into a Securities Purchase Agreement (the &#147;Agreement&#148;) with Siam
Imports, Inc., a Nevada corporation (&#147;Siam&#148;). Pursuant to the Agreement, the Company
sold to Siam all of the Company&#146;s ownership in Apollo Drilling, LLC, a Texas limited
liability company, in consideration of the issuance to the Company of 13,700,000
restricted shares of common stock of Siam, representing a controlling interest in
Siam. The assets of Apollo Drilling are comprised of one fully operational drilling
rig, two disassembled, partial drilling rigs, an inventory of drill pipe, and spare
equipment;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Effective November&nbsp;22, 2006, Mountain States Petroleum Corporation, Inc.,
ultimately a wholly-owned subsidiary of Company, entered into an asset purchase
agreement with Neptune Leasing, Inc. to acquire a helium processing plant located
near Shiprock, New Mexico. The plant processes gas</TD>
</TR>

</TABLE>
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>from nearby wells owned by the Mountain States to produce helium which is sold to a
third party at the outlet of the plant;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>From approximately June of 2006 to September of 2006, the Company acquired
approximately 35,000 acres of both developed and undeveloped mineral leaseholds
within portions of Sutton, Edwards, and Kimball counties in southwestern Texas. The
developed leaseholds include 45 existing producing wells that currently produce
approximately 466 thousand cubic feet (MCF)&nbsp;of natural gas per day and 25 barrels of
oil per day;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In November of 2006, the Company entered into a participation agreement with
Patriot Exploration Co., Inc. (&#147;Patriot&#148;) to begin a natural gas well infill
drilling program in certain developed areas of these mineral leaseholds. To date,
the program has resulted in the drilling of seven successful natural gas wells, five
of which are being completed. Of the five, initial well tests were completed on
January&nbsp;5, 2007 on two of the wells for completion report purposes. The tests show
initial flow rates of 1,000 MCF/day on one of the wells and over 500 MCF per day on
the other. These tests do not necessarily reflect future production rates. Further,
the participation agreement allows for up to $5&nbsp;million to be used for drilling
operations. Under the terms of the participation agreement, the Company&#146;s working
interest in these new wells has been assigned to Patriot until payout of outstanding
financing amounts contributed by Patriot;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Tender Offer</I>. None.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Directors</I>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Effective April&nbsp;3, 2006, Mr.&nbsp;Philip N. Smith, Jr. was elected to the Board of
Directors of the Company. Philip N. Smith, Jr. has been an employee of Foamex
International Inc. since January&nbsp;2000, and has held various positions including
Senior Vice President and General Counsel. Mr.&nbsp;Smith received a Bachelor of Science
degree from the University of Maryland in 1964, and a law degree from George
Washington University in 1967;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Effective April&nbsp;3, 2006, Mr.&nbsp;George G. Lowrance was elected to the Board of
Directors of the Company. George G. Lowrance is a partner with the law firm of
Chappell, Hill &#038; Lowrance, L.L.P. since 1998. He has been a member of the Board of
Trustees for Falcon Financial Realty Trust (a publicly traded company) since 2003.
Previously, he has been Chairman of the Audi National Dealer Advisory Council and a
member of the Board of Directors for the South Texas Livestock Exposition. He
received a Bachelor of Science degree from the University of Texas (Austin) in 1965,
and a law degree from the University of Texas School of Law in 1967;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Effective September&nbsp;25, 2006, the Company accepted the resignation of Mr.&nbsp;Wayne
McPherson as a Director and Chief Operating Officer;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On October&nbsp;13, 2006, the Company announced the passing of George G. Lowrance (a
member of the Board of Directors) due to illness;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Effective November&nbsp;9, 2006, Philip N. Smith, Jr. resigned as a Director of the
Company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Effective November&nbsp;15, 2006, Mr.&nbsp;Billy A. Mickle was elected to the Board of
Directors of the Company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Effective November&nbsp;15, 2006, Mr.&nbsp;Glenn E. Floyd was elected to the Board of
Directors of the Company; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Effective April&nbsp;18, 2007, J. Mark Ariail resigned as a Director and Chief
Financial Officer of the Company.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Material Sale of Assets</I>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Effective November&nbsp;22, 2006, the Company entered into a Share Exchange Agreement
(the &#147;Agreement&#148;) with Earth for the sale of one hundred percent of its fifty-one
percent interest in Apollo LNG, Inc., a Texas company (the &#147;LNG Business&#148;). Under
the Agreement, the Company agreed to sell to Earth all of the issued and outstanding
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of the LNG Business owned by the Company (the &#147;LNG Shares&#148;). The Company
agreed to receive 9,422,111 shares of the common stock of Earth as consideration for
the LNG Shares. The Agreement contains representations and warranties customary
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> 7 of 15<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for transactions of this type. The foregoing description of the Agreement is a summary
of the material terms of the Agreement and does not purport to be complete and is
qualified in its entirety by reference to the Agreement, a copy of which is as set
forth in Form 8-K as Exhibit&nbsp;10.1 filed with the S.E.C. by the Company on November&nbsp;29,
2006 and is incorporated herein by reference.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Negotiations or Contacts</I>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As regards the LNG Business sale referred to in Item 5(a) herein, the Company
negotiated the terms and conditions with Earth representatives. In addition, an
independent fairness opinion was rendered prior to the transaction by the
independent business valuation firm, Bernstein Conklin &#038; Balcombe, who concluded
that the market value of Apollo LNG was approximately $36&nbsp;million, and that the
consideration being paid was fair. The foregoing description of the fairness
opinion is a summary of the material terms of the opinion and does not purport to be
complete and is qualified in its entirety by reference to the fairness opinion, a
copy of which is as set forth in Form 8-K/A as Exhibit&nbsp;10.3 filed with the S.E.C. by
the Earth on December&nbsp;19, 2006 and is incorporated herein by reference.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Agreements Involving the Company&#146;s Securities</I>. None.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<A name="106"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;6. Purposes of the Transaction and Plans or Proposals.</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Use of Securities Acquired</I>. The Company will make a cash payment of $0.035 per pre-split
share of Common Stock in lieu of issuing fractional shares that would otherwise result from
the Reverse/Forward Stock Split. The fractional shares acquired in the Reverse/Forward Stock
Split will be retired and returned to the status of authorized but unissued shares of Company
Common Stock.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Plans.</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Extraordinary Transactions</I>. None.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Purchase/Sale/Transfer</I>. None.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Dividend Policy Change</I>. The information set forth in the Information Statement
under the captions &#147;Summary of Terms of Reverse/Forward Stock Split,&#148; &#147;Questions and
Answers About the Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151; Reasons for and
Purposes of the Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151; Effects of the
Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151; Effect of the Reverse/Forward Stock
Split on Option Holders,&#148; &#147;Special Factors &#151; Financial Effect of the Reverse/Forward
Stock Split,&#148; and &#147;Conduct of the Company&#146;s Business After the Reverse/Forward Stock
Split&#148; are incorporated herein by reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Director/Management Changes</I>. None.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Corporate Structure Changes</I>. The information set forth in the Information
Statement under the caption &#147;Conduct of the Company&#146;s Business After the Reverse/Forward
Stock Split&#148; are incorporated herein by reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Delisting</I>. The information set forth in the Information Statement under the
captions &#147;Special Factors &#151; Potential Disadvantages of the Reverse/Forward Stock Split
to Stockholders; Accretion in Ownership and Control of Certain Stockholders,&#148; &#147;Fairness
of the Reverse/Forward Stock Split to Stockholders &#151; Termination of Exchange Act
Registration,&#148; and &#147;Conduct of the Company&#146;s Business After the Reverse/Forward Stock
Split&#148; are incorporated herein by reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Termination of Securities Class(es)</I>. The information set forth in the
Information Statement under the captions &#147;Summary of Terms of Reverse/Forward Stock
Split,&#148; &#147;Questions and Answers About Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151;
Reasons for and Purposes of the Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151; Effects
of the Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151; Potential Disadvantages of the
Reverse/Forward Stock Split to Stockholders; Accretion in Ownership and Control of
Certain Stockholders,&#148; &#147;Fairness of the Reverse/Forward Stock Split to Stockholders &#151;
Termination of Exchange Act Registration&#148; and &#147;Conduct of the Company&#146;s Business After
the Reverse/Forward Stock Split&#148; are incorporated herein by reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Suspension of Filing Obligations</I>. The information set forth in the Information
Statement under the captions &#147;Summary of Terms of Reverse/Forward Stock Split,&#148;
&#147;Questions and Answers About</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> 8 of 15<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151; Reasons for and Purposes of the
Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151; Effects of the Reverse/Forward Stock
Split,&#148; &#147;Special Factors &#151; Potential Disadvantages of the Reverse/Forward Stock Split to
Stockholders; Accretion in Ownership and Control of Certain Stockholders,&#148; &#147;Fairness of
the Reverse/Forward Stock Split to Stockholders &#151; Termination of Exchange Act
Registration&#148; and &#147;Conduct of the Company&#146;s Business After the Reverse/Forward Stock
Split&#148; are incorporated herein by reference.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;7. Purposes, Alternatives, Reasons and Effects.</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Purposes</I>. The information set forth in the Information Statement under the captions
&#147;Questions and Answers About the Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151; Reasons for
and Purposes of the Reverse/Forward Stock Split&#148; and &#147;Special Factors &#151; Background of the
Reverse/Forward Stock Split&#148; is incorporated herein by reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Alternatives</I>. The information set forth in the Information Statement under the caption
&#147;Special Factors &#151; Strategic Alternatives Considered&#148; is incorporated herein by reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Reasons</I>. The information set forth in the Information Statement under the captions
&#147;Questions and Answers About the Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151; Reasons for
and Purposes of Reverse/Forward Stock Split&#148; and &#147;Special Factors &#151; Background of the
Reverse/Forward Stock Split&#148; is incorporated herein by reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Effects</I>. The information set forth in the Information Statement under the captions
&#147;Summary of Terms of Reverse/Forward Stock Split,&#148; &#147;Questions and Answers About the
Reverse/Forward Stock Split,&#148; &#147;Structure of the Reverse/Forward Stock Split,&#148; &#147;Special
Factors &#151; Effects of the Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151; Potential
Disadvantages of the Reverse/Forward Stock Split to Stockholders; Accretion in Ownership and
Control of Certain Stockholders,&#148; Special Factors &#151; Effect of the Reverse/Forward Stock Split
on Option Holders,&#148; &#147;Special Factors &#151; Effect of the Reverse/Forward Stock Split on Warrant
Holders,&#148; &#147;Special Factors &#151; Effect of the Reverse/Forward Stock Split on Holders of
Outstanding Convertible Debentures,&#148; &#147;Special Factors &#151; Financial Effect of the
Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151; Federal Income Tax Consequences of the
Reverse/Forward Stock Split,&#148; &#147;Financing of the Reverse/Forward Stock Split,&#148; &#147;Costs of the
Reverse/Forward Stock Split&#148; and &#147;Conduct of the Company&#146;s Business After the Reverse/Forward
Stock Split&#148; is incorporated herein by reference.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<A name="108"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;8. Fairness of the Transaction.</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Fairness</I>. The information set forth in the Information Statement under the captions
&#147;Summary of Terms of Reverse/Forward Stock Split,&#148; &#147;Questions and Answers About the
Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151; Reasons for and Purposes of the
Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151; Background of the Reverse/Forward Stock
Split,&#148; &#147;Fairness of the Reverse/Forward Stock Split to Stockholders&#148; and &#147;Recommendation of
the Board; Fairness of the Reverse/Forward Stock Split&#148; is incorporated herein by reference.
No director dissented or abstained from voting on the Rule&nbsp;13e-3 transaction.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Factors Considered in Determining Fairness</I>. The information set forth in the Information
Statement under the captions &#147;Summary of Terms of Reverse/Forward Stock Split,&#148; &#147;Questions
and Answers About the Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151; Reasons for and
Purposes of the Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151; Background of the
Reverse/Forward Stock Split,&#148; &#147;Fairness of the Reverse/Forward Stock Split to Stockholders&#148;
and &#147;Recommendation of the Board; Fairness of the Reverse/Forward Stock Split&#148; is
incorporated herein by reference</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Approval of Security Holders</I>. The information set forth in the Information Statement under
the captions &#147;Fairness of the Reverse/Forward Stock Split to Stockholders &#151; Procedural
Fairness to All Stockholders&#148; and &#147;Description of the Reverse/Forward Stock Split &#151; Vote
Required&#148; is incorporated herein by reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Unaffiliated Representative</I>. No director who is not an employee of the Company has
retained an unaffiliated representative to act solely on behalf of unaffiliated security
holders for purposes of negotiating the terms of the Rule&nbsp;13e-3 transaction and/or preparing
a report concerning the fairness of the transaction. The information set forth in the
Information Statement under the caption &#147;Fairness of the Reverse/Forward Stock Split to
Stockholders &#151; Procedural Fairness to All Stockholders&#148; is incorporated herein by reference.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> 9 of 15<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Approval of Directors</I>. The information set forth in the Information Statement under the
captions &#147;Special Factors &#151; Background of the Reverse/Forward Stock Split,&#148; and
&#147;Recommendation of the Board; Fairness of the Reverse/Forward Stock Split&#148; is incorporated
herein by reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Other Offers</I>. None.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<A name="109"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9. Reports, Opinions, Appraisals and Negotiations.</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Report, Opinion or Appraisal</I>. None.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Preparer and Summary of the Report, Opinion or Appraisal</I>. Not applicable.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Availability of Documents</I>. Not applicable.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<A name="110"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;10. Source and Amounts of Funds or Other Consideration.</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Source of Funds</I>. The information set forth in the Information Statement under the caption
&#147;Financing of the Reverse/Forward Stock Split&#148; is incorporated herein by reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Conditions. </I>The information set forth in the Information Statement under the caption
&#147;Financing of the Reverse/Forward Stock Split&#148; is incorporated herein by reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Expenses</I>. The information set forth in the Information Statement under the captions
&#147;Questions and Answers About the Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151; Effects of
the Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151; Financial Effect of the Reverse/Forward
Stock Split&#148; and &#147;Costs of the Reverse/Forward Stock Split&#148; is incorporated herein by
reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Borrowed Funds</I>. The information set forth in the Information Statement under the caption
&#147;Financing of the Reverse/Forward Stock Split&#148; is incorporated herein by reference.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<A name="111"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;11. Interest in Securities of the Subject Company.</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Security Ownership</I>. The information set forth in the Information Statement under the
caption &#147;Security Ownership of Certain Beneficial Owners and Management&#148; is incorporated
herein by reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Securities Transactions</I>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>(MAC Settlement)</I>. On or about September&nbsp;28, 2005, MAC Partners, L.P. (&#147;MAC&#148;) and
Mercatus &#038; Partners Limited (&#147;Mercatus&#148;) entered into an agreement (&#147;AOOR Agreement&#148;)
whereby MAC transferred to Mercatus 825,274 free trading shares of common stock of
Company (&#147;AOOR Shares&#148;). In exchange for the AOOR Shares, Mercatus agreed to pay MAC a
purchase price of $0.345 per share, or 284,719.53. A dispute has arisen in connection
with the AOOR Agreement (&#147;<U>Dispute</U>&#148;). The Company acknowledges that MAC entered
into the AOOR Agreement as an accommodation to Company, for the benefit of Company and
its separate agreements with Mercatus. Further, the Company entered into two restricted
stock sale agreements with Mercatus. The understanding of such agreements was that
Company would receive a favorable price for restricted shares if Company could locate
other third parties to provide a portion of the overall shares and free-trading shares.
Several parties agreed to provide such free-trading shares, including MAC (who agreed to
provide a portion of those free-trading shares) as did Mr.&nbsp;Bruce Blackwell. It was
stipulated by Mercatus that clearly that free-trading shares would be required in order
to have Mercatus enter into the purchase of the restricted shares. As such, Mr.&nbsp;Dennis
G. McLaughlin, Chairman and Chief Executive Officer of Company, certified to the best of
his knowledge that the transaction with Mercatus could not have been entered without the
benefit of the free-trading shares that were provide by MAC Partners. Over time, the
Company was able to realize consideration for the restricted shares that had been issued
to Mercatus; however, the free trading shares that had been issued by MAC were lost &#150;
not to be replaced. The Company has elected to compensate MAC Partners for its loss.
Further, the resolution with Mercatus of the restricted shares was done with a new group
to help settle what otherwise may have been a long, drawn out, and costly dispute. It
should be clear that the party that ultimately ended up working out a settlement for the
restricted shares of Company was not the party that originally got into the deal with
the Company. On March&nbsp;20, 2007, MAC and the Company
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> 10 of 15<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in order to resolve the Dispute, in so much as MAC shall not take action against Company
for its dispute with Mercatus, entered into that certain Settlement Agreement whereby
Company agreed to issue to MAC a total of 10,467,629.78 restricted shares of the common
capital stock of Company (&#147;AOOR Restricted Shares&#148;); provided however, if MAC shall
receive, at any time, payment for all that is due and payable to MAC pursuant to the AOOR
Agreement, then MAC shall promptly return all of the AOOR Restricted Shares to Company.
The foregoing description of the Settlement Agreement is a summary of the material terms
of the Settlement Agreement and does not purport to be complete and is qualified in its
entirety by reference to the Settlement Agreement, a copy of which is attached to this
Schedule&nbsp;13E-3 as Exhibit&nbsp;11-5 and are incorporated herein by reference;</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<A name="112"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;12. The Solicitation or Recommendation.</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Intent to Tender or Vote in a Going-Private Transaction</I>. The information set forth in the
Information Statement under the captions &#147;Summary of Terms of Reverse/Forward Stock Split,&#148;
&#147;Questions and Answers About the Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151; Background
of the Reverse/Forward Stock Split,&#148; &#147;Fairness of the Reverse/Forward Stock Split to
Stockholders &#151; Vote Required&#148; &#147;Interests of Certain Persons,&#148; and &#147;Recommendation of the
Board; Fairness of the Reverse/Forward Stock Split&#148; is incorporated herein by reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Recommendations of Others</I>. The information set forth in the Information Statement under
the captions &#147;Summary of Terms of Reverse/Forward Stock Split,&#148; &#147;Questions and Answers About
the Reverse/Forward Stock Split,&#148; &#147;Special Factors &#151; Background of the Reverse/Forward Stock
Split&#148; and &#147;Recommendation of the Board; Fairness of the Reverse/Forward Stock Split&#148; is
incorporated herein by reference.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<A name="113"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;13. Financial Statements.</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Financial Statements</I>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The information set forth in the Information Statement under the caption
&#147;Financial Statements&#150;Financial Information&#148; is incorporated herein by reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The information set forth in the Information Statement under the caption
&#147;Financial Statements&#150;Financial Information&#148; is incorporated herein by reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the period ending September&nbsp;30, 2006, the undiluted book value of the Company
was approximately $0.38 per share as set forth in Form 10-QSB as filed with the S.E.C.
by the Company on November&nbsp;21, 2006 and is incorporated herein by reference.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Pro Forma Information</I>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable as the information is not material to this transaction.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable as the information is not material to this transaction.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable as the information is not material to this transaction.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<A name="114"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;14. Persons/Assets, Retained, Employed, Compensated or Used.</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Solicitations or Recommendations</I>. No persons have been employed, retained or compensated
to make solicitations or recommendations in connection with the transaction.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Employees and Corporate Assets</I>. As authorized, empowered, and directed by the Board of
Directors, the senior executives, and certain key employees as may be necessary, of the
Company shall be used in connection with completing this transaction.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> 11 of 15<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>
<DIV align="left">
<A name="115"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;15. Additional Information.</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Other Material Information</I>. The information set forth in the Information Statement,
including all annexes thereto, and each exhibit hereto, is incorporated herein by reference.
Further, other additional matters:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Non-Filing of Periodic Report</I>. As of the date hereof, the Company has not filed
its Annual Report on Form 10-KSB pursuant to Section&nbsp;13 and 15(d) of the Securities
Exchange Act of 1934 (&#147;Exchange Act&#148;) for the fiscal year ended December&nbsp;31, 2006.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Delisting</I>. On or about April&nbsp;23, 2007, the Company received a letter dated April
18, 2007 from the National Association of Securities Dealers (&#147;NASD&#148;) which was
captioned &#147;OTCBB Ineligibility Notification.&#148; The letter provided that due to three
prior delinquent periodic filings in the past twenty-four month period, the Company&#146;s
securities will be removed from quotation on the OTCBB effective at the open of business
on April&nbsp;27, 2007. The Company did not request a hearing to appeal.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Greenwich Power Matter</I>. On July&nbsp;21, 2006, the Company entered into a securities
purchase agreement with Greenwich Power, Ltd whereby the Company received $8,000,000
before payment of commissions and expenses, in exchange for $8,000,000 notes (the
&#147;Notes&#148;), bearing interest at 7% and maturing on May&nbsp;31, 2011. The Notes are
exchangeable at a price of $1.00 per share into company-owned shares of common stock of
Earth at a price of $1.00 per share. This agreement contains a detachable and separate
right to an option to purchase, from the Company, an additional 8,000,000 shares of
common stock of Earth owned by the Company. Further, on July&nbsp;20, 2006, the Company
entered into that certain Exchangeable Promissory Note in the amount of $1,000,000 with
interest at 7.0% per annum and principal due and payable May&nbsp;31, 2011, exchangeable at
any time into shares of the common capital stock of Earth at an exchange price of $1.00
per share . The Company&#146;s failure to pay those amounts due under the notes constitutes
an event of default and its failure to pay all amounts due upon receipt of a notice of
acceleration issued on January&nbsp;11, 2007 constitutes an event of default. On April&nbsp;9,
2007, the parties entered into a Stipulation of Settlement Agreement whereby Company
agreed to pay to Plaintiff the total amount of $8,858,712 U.S. Dollars in cash with
one-half of the amount due and payable on or before June&nbsp;30, 2007 and the balance due
and payable on September&nbsp;7, 2007 secured by (i)&nbsp;a $2,000,000 account receivable due
Company by Earth and (ii)&nbsp;75% ownership interest in Bobcat, Inc., a wholly-owned
subsidiary of Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>First Capital Matter</I>. On or about April&nbsp;14, 2006, various of Company&#146;s
subsidiaries entered into that certain secured Loan and Loan and Security Agreement and
associated documents (&#147;Loan Documents&#148;), as referenced in Form 10-QSB for the quarter
ended June&nbsp;30, 2006 as Exhibit&nbsp;10.1, as amended with First Capital (&#147;Lender&#148;). On
November&nbsp;22, 2006, the Company through various of its subsidiaries, conveyed all
ownership interests in the LNG Business, as such term is defined in Item&nbsp;5(b)(6) herein,
to such to Earth in alleged contravention of the Loan Documents. The Company did not
believe the conveyance constituted a default of such Loan Documents. On January&nbsp;19,
2007, Lender issued a notice of default for non-payment and breach of covenants and
demanded payment in full in the amount of $6,345,146. On February&nbsp;28, 2007, all amounts
due and payable, including principal and accrued interest, were repaid in full.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Shiprock Helium Plant</I>. Effective November&nbsp;22, 2006, Mountain States Petroleum
Corporation, Inc. (&#147;Mountain States&#148;), a wholly-owned subsidiary of Apollo Resources
International, Inc., entered into an asset purchase agreement with Neptune Leasing, Inc.
to acquire a helium processing plant located near Shiprock, New Mexico for the purchase
price of $2,500,000 under a secured promissory note from Mountain States to Neptune.
The plant processes gas from nearby wells owned by the Company to produce helium which
is sold to a third party at the outlet of the plant. In addition, the parties entered
into that certain Helium Services Agreement on April&nbsp;24, 2007 whereby Golden Spread
Energy, Inc. will provide operational and accounts payable services to Mountain States.
The foregoing description of the purchase agreement and note is a summary of the
material terms of the purchase agreement and note and does not purport to be complete
and is qualified in its entirety by reference to the purchase agreement and note, a copy
of which is attached to this Schedule&nbsp;13E-3 as Exhibit&nbsp;15-15 and are incorporated herein
by reference.</TD>
</TR>

</TABLE>
</DIV>
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</TABLE>
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<DIV align="left">
<A name="116"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;16. Exhibits.</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Information Statement on Schedule&nbsp;14C filed with the Securities and Exchange Commission
concurrently with this form is incorporated herein by reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#060;remainder of page intentionally left blank&#062;
</DIV>


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<DIV align="left">
<A name="117"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">After due inquiry and to the best of my knowledge and belief, the undersigned certifies that the
information set forth in this statement is true, complete and correct.
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">APOLLO RESOURCES INTERNATIONAL, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Dated:  May 18, 2007&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Dennis G. McLaughlin, III
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Dennis G. McLaughlin, III&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


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<A name="118"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Exhibit </B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right" style="border-bottom: 1px solid #000000"><B>No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">(1)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Information Statement on Schedule&nbsp;14C (filed with the Securities and Exchange
Commission concurrently with this form is incorporated herein by reference).</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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