`SECURITIES AND EXCHANGE COMMISSION
                              Washington D.C. 20549

                                   FORM 10_QSB

[X]  Quarterly  Report Under Section 13 or 15(d) of the Securities  Exchange Act
     of 1934

                    For the Quarter Ended: June 30, 2003

[ ]  Transition Report Under Section 13 or 15(d) of the Securities  Exchange Act
     of 1934

          For the Transition Period from _____________ to ____________

                         Commission File Number 0_25951
                         ------------------------------

                            CONSOLIDATED ENERGY INC.
                 ______________________________________________
                 (Name of Small Business Issuer in its charter)

         Nevada                                          86_0852222
_______________________________              __________________________
(State or other jurisdiction of                    (I.R.S. Employer I.D. No.)
 incorporation or organization)

   9900 West Sample Road _ Suite 300, Coral Springs, Florida       33065
   ____________________________________________________________________
              (Address of principal executive offices and Zip Code)

                                 (954) 755_6620
              ____________________________________________________
              (Registrant's telephone number, including area code)

Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of 1934  during
the  preceding  12 months  (or for such  shorter  period  that the registrant was required to
file such reports),  and (2) has been subject to such filing requirements for the past 90 days.

(1)  Yes X    No     (2)  Yes X    No
        ___     ___          ___     ___

Indicate the number of shares  outstanding of each of the issuer's  classes
of common stock, as of the latest practicable date.

Common Stock, Par Value $0.001                         4,183,000
________________________________                ____________________________
       Title of Class                           Number of Shares Outstanding
                                                as of August 8, 2003



                                       1




 2

                                TABLE OF CONTENTS

PART I.  FINANCIAL INFORMATION

Item 1. Financial Statements............................................... 3

        Balance Sheets..................................................... 4

        Statements of Operations........................................... 5

        Statements of Stockholders' Equity (Deficit)....................... 6

        Statements of Cash Flows........................................... 8

        Notes to the Financial Statements.................................. 9

Item 2. Management's   Discussion  and  Analysis  of  Financial
        Condition and Results of  Operation................................10

Item 3. Controls and Procedures............................................13

 PART II.  OTHER INFORMATION

Item 1. Legal Proceedings..................................................13

Item 2. Changes in Securities..............................................13

Item 3. Default Upon Senior Securities.....................................13

Item 4. Submission of Matters to a Vote of Security Holders................13

Item 5. Other Information .................................................13

Item 6. Exhibits and Reports ..............................................13

Signatures ............................................................... 13





 3

PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

                            CONSOLIDATED ENERGY INC.
                              FINANCIAL STATEMENTS
                                   (UNAUDITED)

The financial statements included herein have been prepared by the Company, without  audit,
pursuant to the rules and  regulations  of the  Securities  and Exchange  Commission.
Certain  information  and footnote  disclosures  normally included in financial  statements
prepared in accordance with generally accepted accounting principles have been condensed or
omitted. However, in the opinion of management,  all  adjustments  (which  include only normal
recurring  accruals) necessary to present fairly the financial position and results of
operations for the periods presented have been made. These financial  statements should be
read in conjunction  with the accompanying  notes, and with the historical financial information
of the Company.



 4

Consolidated Energy Inc.
Balance Sheets
Unaudited

                                                     June 30     December 31
                                                       2003          2002
                                                   -----------   -----------
ASSETS
Current Assets
 Cash                                             $          -  $          -
 Prepaid Expenses                                           82             -
                                                   -----------   -----------
   Total Current Assets                                     82             -
                                                   -----------   -----------
TOTAL ASSETS                                      $         82  $          -
                                                   ===========   ===========


LIABILITIES AND STOCKHOLDER'S DEFICIT
Current Liabilities
 Accounts Payable                                       55,103        18,773
                                                   -----------   -----------
TOTAL LIABILITIES                                       55,103        18,773
                                                   -----------   -----------
Shareholders' Deficit
 Common Stock                                            4,183         2,668
  50,000,000 authorized shares, par value $.001
  4,183,000 shares issued and outstanding
 Additional Paid-In-Capital                            338,037       263,802
 Accumulated Deficit during the Development Period    (397,241)     (285,243)
                                                   -----------   -----------
TOTAL STOCKHOLDERS' DEFICIT                            (55,021)      (18,773)
                                                   -----------   -----------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT       $         82  $          -
                                                   ===========   ===========







The accompanying notes are an integral part of these financial statements.

 5

Consolidated Energy Inc.
Statements of Operations
(Unaudited)

                                Three Months Ended          Six Months Ended       From Inception
                                      June 30                     June 30          (Dec 18, 1996)
                                                                                       through
                                2003          2002          2003          2002      June 30, 2003
                             -----------   -----------   -----------   -----------   -----------
Revenues:
 Revenues                   $          -  $          -  $          -  $          -  $          -
                             -----------   -----------   -----------   -----------   -----------
                                       -             -             -             -             -
                             -----------   -----------   -----------   -----------   -----------
Expenses:
 Legal & Professional Fees        24,874             -        24,874             -        42,006
 Consulting Fees                  10,616                      86,366                     248,866
 Other Expenses                      758           559           758         2,327       106,369
                             -----------   -----------   -----------   -----------   -----------
                                  36,248           559       111,998         2,327       397,241
                             -----------   -----------   -----------   -----------   -----------
Loss before Taxes                (36,248)         (559)     (111,998)       (2,327)     (397,241)

Provision for Income Taxes:
Income Tax                             -             -             -             -             -
                             -----------   -----------   -----------   -----------   -----------
Net Income (Loss)           $    (36,248) $       (559) $   (111,998) $     (2,327) $   (397,241)
                             ===========   ===========   ===========   ===========   ===========
Basic and Diluted Earnings
 Per Common Share                (0.0087)      (0.0005)      (0.0268)      (0.0023)      (0.1538)
                             ===========   ===========   ===========   ===========   ===========
Weighted Average number of
 Common Shares used in per
 share calculations            4,183,000     1,023,000     4,183,000     1,023,000     2,583,000
                             ===========   ===========   ===========   ===========   ===========




The accompanying notes are an integral part of these financial statements.

 6

CONSOLIDATED ENERGY INC.
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit)

                                                                     Deficit
                                                                  Accumulated
                                 Common Stock      Additional      During the
                            _____________________    Paid_In      Development
                             Shares        Amount     Capital          Stage       Total
                           __________    _________   __________    ___________    _______

Inception,
 December 18, 1996              _        $       _     $      _       $      _   $      _
Common stock issued
 for cash at $.02 per share  500,000           500        9,500              _     10,000
Net loss from inception
 on December 18, 1996
 through December 31, 1996         _             _            _              _          _
                            ________     _________    _________     __________    _______
Balance,
 December 31, 1996          500,000            500        9,500              _     10,000
Net loss for the year
 ended December 31, 1997           _             _            _           (458)      (458)
                            ________     _________    _________     __________    _______
Balance,
 December 31, 1997           500,000           500        9,500           (458)     9,542
Common stock issued for
 cash at  $0.10 per share    523,000           523       51,777              _     52,300
Stock offering  costs              _             _      (10,906)             _    (10,906)
Net loss for the year
 ended December 31, 1998           _             _            _        (13,186)   (13,186)
                           _________     _________    _________     __________   ________
Balance,
 December 31, 1998         1,023,000         1,023       50,371        (13,644)    37,750
Net loss for the year
 ended December 31, 1999           _             _            _        (30,724)   (30,724)
                           _________     _________    _________     __________    _______
Balance,
 December 31, 1999         1,023,000         1,023      50,371         (44,368)     7,026
Net loss for the year
 ended  December 31, 2000          _             _            _        (11,918)   (11,918)
                           _________     _________    _________     __________   ________
Balance,
 December 31, 2000         1,023,000         1,023       50,371        (56,286)    (4,892)
Net Loss for the year
 ended December 31, 2001           _             _            _        (17,947)   (17,947)
                           _________     _________    _________     __________   ________
Balance,
 December 31, 2001         1,023,000         1,023       50,371        (74,233)   (22,839)
                           ---------     ---------    ---------     ----------   --------



The accompanying notes are an integral part of these financial statements.

 7

CONSOLIDATED ENERGY INC.
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit) (Continued)

                                                                     Deficit
                                                                  Accumulated
                                 Common Stock      Additional      During the
                            _____________________    Paid_In      Development
                             Shares        Amount     Capital          Stage       Total
                           __________    _________   __________    ___________    _______
Balance,
 December 31, 2001         1,023,000         1,023       50,371        (74,233)   (22,839)

Shares Issued for S_8
    Filings                1,645,000         1,645      162,855                   164,500

Debt Assumed by
    Former Owners                                        50,576                    50,576

Net loss for the year
 Ended December 31, 2002           _             _            _      (211,010)   (211,010)
                           _________     _________    _________     _________    ________
Balance,
 December 31, 2002         2,668,000         2,668      263,802      (285,243)    (18,773)

Shares Issued for
    Services              1,515,000         1,515       74,235                     75,750

Net loss of the period
 ended June 30, 2003                                                  (111,998)  (111,998)
                          __________     _________   _________     ___________  _________
Balance June 30, 2003      4,123,000    $    4,123  $  338,037    $   (360,993)$ ( 18,773)
                         ===========     =========   =========     ===========  =========






The accompanying notes are an integral part of these financial statements.


 8

Consolidated Energy Inc.
Statement of Cash Flows
(Unaudited)
                                                              From Inception
                                       Six Months Ended       (Dec 18, 1996)
                                     June 30        June 30       through
                                      2003           2002      June 30, 2003
                                  ------------   ------------   ------------
Cash Flows from
 Operating Activities:
 Net Income (Loss)               $    (111,998) $      (2,327) $    (397,241)

 Adjustments to reconcile net
  loss to net cash provided
 (used) to operating activities:
  Shares Issued for Services           75,750                        245,141
  Prepaid Expenses                        (82)                           (82)
  Increase (Decrease) in
   Working Capital                     36,330           2,327        152,182
                                  ------------   ------------   ------------
   Total Adjustments                   111,998          2,327        397,241
                                  ------------   ------------   ------------
     Net Cash Used in
      Operating Activities                   -              -              -
                                  ------------   ------------   ------------

Cash Flows from Investing
 Activities:
     Net Cash Used in
      Investing Activities                   -              -              -
                                  ------------   ------------   ------------

Cash Flows from Financing
 Activities:
     Net Cash Provided for
      Financing Activities                   -              -              -
                                  ------------   ------------   ------------
Net Increase (Decrease) in Cash              -              -              -

Cash Balance,  Begin Period                  -              -              -
                                  ------------   ------------   ------------
Cash Balance,  End Period        $           -  $           -  $           -
                                  ============   ============   ============

Supplemental Disclosures:
 Cash Paid for interest          $           -  $           -  $           -
 Cash Paid for income taxes      $           -  $           -  $           -





The accompanying notes are an integral part of these financial statements.

 9

                            CONSOLIDATED ENERGY INC.
                          (A Development Stage Company)
                        Notes to the Financial Statements


NOTE 1 _ CONDENSED FINANCIAL STATEMENTS

The accompanying financial statements have been prepared by the Company without audit.
In the opinion of management, all adjustments (which include only normal recurring
adjustments) necessary to present fairly the financial  position, results of operations
and cash flows at June 30, 2003 and 2002 and for all periods presented have been made.

Certain information and footnote disclosures normally included in financial statements
prepared in accordance with accounting principles generally accepted in the United States
of America have been condensed or omitted.  It is suggested that these condensed financial
statements be read in conjunction  with the financial statements and notes thereto included
in the Company's December 31, 2002 audited financial statements.  The results of operations
for periods ended June 30, 2003 and 2002 are not necessarily indicative of the  operating
results for the full years.

NOTE 2 _ GOING CONCERN

The Company's financial statements are prepared using generally accepted accounting principles
applicable to a going concern which contemplates the realization of assets and liquidation of
liabilities in the normal course of business.  The Company has not established revenues sufficient
to cover its operating costs and allow it to continue as a going concern.  The Company is
seeking a merger with an existing operating company.  Currently, management is
committed to cover all operating and other costs until sufficient revenues are generated.

NOTE 3 _ COMMON STOCK

During the quarter ended March 31, 2003, the Company issued 1,515,000 shares of its common stock
for services to the Company. The value of the common stock was recorded at $75,750 and recorded
as consulting fees.


 10

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

SPECIAL NOTE REGARDING FORWARD_LOOKING STATEMENTS
_________________________________________________
This periodic report contains certain forward_looking statements within the
meaning of the Private Securities  Litigation Reform Act of 1995 with respect to the financial
condition, results of operations, business strategies, operating efficiencies  or synergies,
competitive  positions,  growth  opportunities for existing products, plans and objectives of
management. Statements in this periodic report that are not historical facts are hereby
identified as "forward_looking statements."

Business of the Company
_______________________
The Company was incorporated in Nevada on December 18, 1996, to engage in
the manufacture and distribution of commercial size barbecues for individual,
groups, and restaurant use. After two seasonal business cycles of trying to
develop a market for the Company's barbecues, management of the Company
determined that without significant additional funding, the Company would not be able to
compete in the barbecue  business.  Accordingly, after several unsuccessful attempts to
obtain additional capital, the Company determined that it was in the Company's and its
shareholders best interest to cease the barbecue business and search for alternative
businesses while the Company was still solvent. As part of that search for alternative
businesses, in October 2002, majority shareholders of the Company approved a change in
domicile from Nevada to Wyoming and a change of name to Consolidated Energy, Inc.

CURRENT BUSINESS
----------------
The Company has been seeking a business opportunity to enter including
the possibility of an acquisition or merger with an existing operating
business. The Company has not restricted its search for a business
opportunity to any particular industry or geographical area and may,
therefore, engage in essentially any business in any industry. The Company
has unrestricted discretion in seeking and participating in a business
opportunity, subject to the availability of such opportunities, economic
conditions, and other factors.

In June, the Company signed a definitive agreement with Saudi American Minerals Inc. ("SAMI")
to acquire 100% ownership of SAMI with an effective date to coincide with an effective date of
the S-4 which is being prepared and will be filed with the SEC.  The acquisition of SAMI will
be accomplished with a stock exchange of two CEI shares for three SAMI shares.  The total number
of SAM shares owned and outstanding was 17,914,937.  The total number of CEI shares used to
obtain all of the SAMI shares is 11,922,956.  The acquisition shall have the effect of transferring
to CEI Holdings, a wholly owned subsidiary of the Company, one hundred percent (100%) of the ownership
and rights to the items owned by or assigned to SAMI.  This includes a USA patent #6,447,559 issued
on September 10th of 2002 for so-called clean coal technology.  The Company is currently assembling
a registration statement on Form S-4 which will, when effective, register the shares to be issued
to SAMI to complete this transaction. The Company intends to file this registration statement with
the SEC as soon as possible.

 11

The aforementioned acquisition will allow the Company to pursue a global market which is in need of
a technology that can provide for an environmentally clean fuel from the world's vast resource of
unclean, run of mine coal.  The Company believes that the need for such a technology could be applied
to large amounts of low rank coal.  This technology may enable power producers, industry and domestic
markets to utilize coal for their particular needs in an environmentally benign manner.

The technology is a process for treating coal to enhance its rank, wherein the temperature of the
material is gradually increased in a controlled set of atmospheres, to allow for the reduction of surface
and inherent moisture and the controlled reduction of volatile matter while maintaining the coal's natural
structural integrity. The process reduces the time, capitalization, and production costs required to
produce coal of enhanced rank, thus substantially increasing the cost effectiveness and production rate
over prior processes.

Prior tests have proven the effectiveness of the technology in the laboratory on a bench-sized model.
The Company has scheduled more tests to be conducted during the third quarter of 2003.  The Company is
currently in the process of applying for US government grant money to help fund a pilot scale commercial
facility.  This pilot scale facility would be capable of supplying a small to medium sized power production
facility.   The facility would also allow the Company to display the effectiveness of the technology on a
commercial scale.  This display would then be used to show power producers around the world, how they could
implement this technology to cost affectively depend upon the most abundant fuel resource on earth.  CEI
would seek licensing agreements with interested power producers, those with commercial applications and
governments with domestic needs.

The Company has estimated the costs of the acquisition to be approximately $50,000. Management intends to
fund the cost of the acquisition via loan/debenture agreements. The acquisition will be complete upon
receiving an effective date on the registration statement on Form S-4 to be filed with the SEC.

Although the SAMI transaction is a primary focus of the Company, management is continuing to look at
other possible business combinations and acquisitions.  The selection of a business opportunity in which
to participate is complex and risky. Additionally, as the Company has only limited resources, it has
been and may continue to be difficult to find good opportunities. There can be no assurance that the
Company will be able to identify and acquire any business opportunity which will ultimately prove to be
beneficial to the Company and its shareholders. The Company will select any potential business opportunity
based on management's business judgment.

The activities of the Company are subject to several significant risks
which arise primarily as a result of the fact that the Company does not yet have a specific business and
may acquire or participate in a business opportunity based on the decision of management which potentially
could act without the consent, vote, or approval of the Company's shareholders. The risks faced by the
Company are further increased as a result of its lack of resources and its inability to provide a prospective
business opportunity with significant capital. The Company has had to rely on loans from stockholders and
stock sales to fund its operations.

 12

Results of Operations for the three and six months ended June 30, 2003 compared to June 30, 2002
__________________________________________________________________________
Since inception the Company has not generated revenue and it is unlikely that any revenue will be
generated until the Company locates a business opportunity with which to acquire or merge. Management
of the Company is investigating various business opportunities. These efforts will cost the Company
not only out of pocket expenses for its management but also expenses associated with legal and
accounting costs. There can be no guarantee that the Company will receive any benefits from the efforts
of management to locate business opportunities.

If and when the Company locates a business opportunity, management of the Company will give consideration
to the dollar amount of that entity's profitable operations and the adequacy of its working capital in
determining the terms and conditions under which the Company would consummate such an acquisition.
Potential business opportunities, no matter which form they may take, will most likely result in
substantial dilution for the Company's shareholders as it has only limited capital and no operations.

The Company does not intend to employ anyone in the future, unless its present business operations were
to change. The president of the Company is providing the Company with a location for its offices on a
"rent free basis." The Company does intend to reimburse its officers and directors for out of pocket costs.

The Company had no revenues for the three and six months ended June 30, 2003. The Company does not
anticipate any revenue until it locates a new business opportunity. For the three months and six months
ended June 30, 2003, the Company had a total expenses of $36,248 and $111,998, respectively, compared to
total expenses for the three and six months ended June 30, 2002, of $559 and $2,327. The increase in
losses for fiscal 2003 reflects consulting, legal and professional fees in connection with the active
search for a business opportunity. The Company anticipates losses to remain at the present level until
a business opportunity is found.

Liquidity and Capital Resources
_______________________________
As of June 30, 2003, the Company had assets of $82 and liabilities of $55,103. If the Company cannot find
a new business, it will have to seek additional capital either through the sale of its shares of common
stock or through a loan from its officer. The Company has incurred significant consulting expenses related
to its search for alternative business opportunities as well as ongoing expenses associated with maintaining
its corporate status and professional fees associated with accounting and legal costs required to maintain
its SEC filing obligations and corporate status.

Management anticipates that the Company will incur additional expenses,
including legal and accounting fees to locate and complete a merger or acquisition. At the present time the
Company does not have the assets to meet these financial requirements. Additionally, the Company does not
have substantial assets to entice potential business opportunities to enter into transactions with the Company.

 13

ITEM 3. CONTROLS AND PROCEDURES

(a) Evaluation of disclosure controls and procedures. Our principal executive and principal financial
officer believes our disclosure controls and procedures (as defined in Sections 13a_14(c) and 15d_14(c)
of the Securities Exchange Act of 1934, as amended) are adequate, based on our evaluation of such disclosure
controls and procedures on May 1, 2003.

(b) Changes in internal controls. There were no significant changes in our internal controls or in other
factors that could significantly affect these controls subsequent to the date of their evaluation.

PART II _ OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS
None.

ITEM 2. CHANGES IN SECURITIES
None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.

ITEM 5. OTHER INFORMATION
None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8_K

(a)	Exhibits.

31     31     Certification This Filing

32     32     Certification Pursuant to 1350 This Filing

(b) Reports on Form 8_K.
  ____________________
  None.


                               SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                      CONSOLIDATED ENERGY INC.
                                           [Registrant]



Dated: August 14, 2003                By: /s/ David W. Guthrie
                                      _________________________
                                      David W. Guthrie, CEO, President,
                                      Chief Financial Officer, and Director`