<PAGE> 1
                        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, 2004

[ ]  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                         9,564,609
-------------------------------                 ----------------------------
       Title of Class                           Number of Shares Outstanding
                                                as of July 31, 2004



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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.


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Consolidated Energy Inc.
Consolidated Balance Sheets
Unaudited
                                                  Jun 30, 2004  Dec 31, 2003
ASSETS                                             -----------   -----------
Current Assets:
 Cash                                             $          -  $    174,432
 Accounts Receivables                                   67,768             -
 Other Current Assets                                   14,044        19,141
                                                  -----------   -----------
   Total Current Assets                                 81,812       193,573
                                                   -----------   -----------
Fixed Assets:
 Lease Cost Warfield                                 4,843,758     3,889,963
 Equipment, net of depreciation                      1,721,244     1,368,817
                                                   -----------   -----------
   Total Fixed Assets                                6,565,002     5,258,780
                                                   -----------   -----------
Other Assets:
 Deferred Royalty                                      495,358       507,358
 Prepaid Royalty and Mining Permits                     40,273        76,915
                                                   -----------   -----------
   Total Other Assets                                  535,631       584,273
                                                   -----------   -----------
Total Assets                                      $  7,182,445  $  6,036,626
                                                   ===========   ===========
LIABILITIES
Current Liabilities
 Accounts Payable and Accrued Expenses            $  1,138,258  $    493,424
 Cash Overdraft                                         20,858             -
 Royalty Payable                                       180,121        48,786
 Convertible Debentures                                659,399     1,266,400
 Notes Payable                                         514,017       514,017
                                                   -----------   -----------
   Total Current Liabilities                         2,512,653     2,322,627
                                                   -----------   -----------
Long-Term Liabilities:
 Notes Payable                                         315,204       271,610
 Notes Payable - Related Party                         250,346             -
 Deferred Royalties                                  1,096,847     1,268,118
                                                   -----------   -----------
   Total Long-Term Liabilities                       1,662,397     1,539,728
                                                   -----------   -----------
   Total Liabilities                                 4,175,050     3,862,355
                                                   -----------   -----------
Commitments and Contingencies                                -             -

STOCKHOLDERS' EQUITY
 Common Stock,50,000,000 authorized shares,
  with par value of $.001, 9,564,609 and
  7,358,000 shares issued and outstanding                9,565         7,358
 Additional Paid-in-Capital                          5,732,583     3,509,862
 Accumulated Surplus                                (2,734,753)   (1,342,949)
                                                   -----------   -----------
   Total Stockholders' Equity (Deficit)              3,007,395     2,174,271
                                                   -----------   -----------
Total Liabilities and Stockholders' Equity        $  7,182,445  $  6,036,626
                                                   ===========   ===========

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

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Consolidated Energy Inc.
Consolidated Statement of Operations
(Unaudited)
<TABLE>
<CAPTION>
                                                        For the Three Months Ended   For the Six Months Ended
                                                        Jun 30, 2004  Jun 30, 2003  Jun 30, 2004  Jun 30, 2003
                                                         -----------   -----------   -----------   -----------
<S>                                                   <C>           <C>           <C>           <C>
Revenues:
Revenues                                                $    365,826  $          -  $  1,037,409  $          -
                                                         -----------   -----------   -----------   -----------
Total Revenues                                               365,826             -     1,037,409             -

Cost of Revenues:
Cost of Revenues                                             799,327             -     1,596,853             -
                                                         -----------   -----------   -----------   -----------
Gross Profit                                                (433,501)            -      (559,444)            -
Expenses:
Legal & Professional Fees                                     28,958        24,874        75,592        24,874
Consulting Fees                                              102,803        10,616       161,564        86,366
Depreciation & Amortization                                  171,508             -       328,097             -
Other Expenses                                               108,262           758       196,204           758
                                                         -----------   -----------   -----------   -----------
                                                             411,531        36,248       761,457       111,998
                                                         -----------   -----------   -----------   -----------
Net Income from Operations                                  (845,032)      (36,248)   (1,320,901)     (111,998)

Other Expenses:
Interest Expenses                                            (22,442)            -       (70,903)            -
                                                         -----------   -----------   -----------   -----------
Provision for Income Taxes:
Income Tax Benefit (Expense)                                       -             -             -             -
                                                         -----------   -----------   -----------   -----------
Net Income (Loss)                                       $   (867,474) $    (36,248) $ (1,391,804) $   (111,998)
                                                         -----------   -----------   -----------   -----------

Basic and Diluted Earnings Per Common Share                    (0.09)        (0.01)        (0.15)        (0.03)
                                                         -----------   -----------   -----------   -----------
Weighted Average number of Common Shares
used in per share calculations                             9,564,609     4,183,000     9,184,880     4,183,000
                                                         -----------   -----------   -----------   -----------
</TABLE>





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

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Consolidated Energy Inc.
Consolidated Statement of Cashflows
(Unaudited)
                                                   Six Months Ended June 30,
                                                       2004         2003
                                                   -----------   -----------
Cash Flows from Operating Activities:
Net Income (Loss)                                 $ (1,391,804) $   (111,998)

Adjustments to reconcile net loss to net cash
provided (used) to operating activities:
 Depreciation & Amortization                           328,097             -
 Stock Issued for Services                             102,000        75,750
 Accounts Receivable                                   (67,768)            -
 Prepaid Expenses                                        5,097           (82)
 Deferred Royalties                                     12,000             -
 Prepaid Royalties                                      36,642             -
 Royalties Payable                                     131,333             -
 Accounts Payable                                      644,836        36,330
                                                   -----------   -----------

   Net Cash Used in Operating Activities          $   (199,567)            -
                                                   -----------   -----------
Cash Flows from Investing Activities:
 Fixed Assets                                         (118,392)            -
                                                   -----------   -----------
   Net Cash Used in Investing Activities              (118,392)            -
                                                   -----------   -----------
Cash Flows from Financing Activities:
 Deferred Royalties                                   (171,271)            -
 Notes Payable                                         293,940             -
                                                   -----------   -----------
   Net Cash Provided for Financing Activities          122,669             -
                                                   -----------   -----------
Net Increase (Decrease) in Cash                       (195,290)            -

Cash Balance, Beginning of Period                      174,432             -
                                                   -----------   -----------
Cash Balance, End of Period                       $    (20,858) $          -
                                                   ===========   ===========

Supplemental Disclosures:
Cash Paid for interest                            $          -  $          -
Cash Paid for income taxes                        $          -  $          -
Stock Issued for Services                         $    102,000  $     75,750




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

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                           CONSOLIDATED ENERGY INC.
                        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, 2004 and 2003 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, 2003 audited financial statements. The results of operations for
periods ended June 30, 2004 and 2003 are not necessarily indicative of the
operating results for the full years.

Earnings per Common Share

The Company adopted Financial Accounting Standards (SFAS) No. 128, "Earnings
Per Share," which simplifies the computation of earnings per share requiring
the restatement of all prior periods.

Basic earnings per share are computed on the basis of the weighted average
number of common shares outstanding during each year.


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 June 30, 2004, the Company issued 140,000 shares of
common stock for consulting services.  The shares were valued at $70,000 and
included in consulting expenses.

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

Cautionary Statement Regarding Forward-looking Statements
---------------------------------------------------------
This report may contain "forward-looking" statements.  Examples of forward-
looking statements include, but are not limited to: (a) projections of
revenues, capital expenditures, growth, prospects, dividends, capital
structure and other financial matters; (b) statements of plans and objectives
of our management or Board of Directors; (c) statements of our future economic
performance; (d) statements of assumptions underlying other statements and
statements about us and our business relating to the future; and (e) any
statements using the words "anticipate," "expect," "may," "project," "intend"
or similar expressions.

Business of the Company
-----------------------
On September 12, 2003, Consolidated Energy, Inc. (the "Company") acquired
Eastern Consolidated Energy, Inc., a privately-held Kentucky Corporation
("Eastern"). Eastern's assets acquired by the Company include a coal lease in
Martin County, Kentucky that has been developed and is now operating.  The
mine itself is known as the Warfield mine.

Eastern has completed the first and second phase of underground mine
development in the Alma seam of coal at the Warfield mine.  This first and
second phase of mine development was completed in July of 2004.  This mine
development will enable Eastern to have two active working sections even
though at present only one section is in production.  However the second
prepared section provides for immediate additional production as soon as
Eastern acquires some high production equipment which can be placed in this
dormant but ready mining section.  The current active section is being mined
using two production shifts and one maintenance shift.  This active section is
supplied with low production equipment which allows Eastern to produce as much
as 15,000 tons of mined coal per month.  The produced coal is being sold via
spot sales week to week.

Negotiations are being conducted for long term sales contracts for the coal
being mined at Warfield.  Negotiations are also being conducted for capital
which will be used to further develop the Warfield coal reserves and the
Warfield mining operations.

Eastern has initiated discussions with the N & S Railroad in an effort to
obtain an existing rail siding strategically located near the Warfield mine.
Eastern plans to conduct additional discussions to secure an appropriately
located rail loading site.  Management believes that a rail siding will allow
Eastern to increase the number of customers with interest in the Warfield
production.  This increased number of potential customers will help insure
future sales from the increased coal production at Warfield.

Eastern has determined that a coal preparation or coal washing facility is
needed at the Warfield mine in order to maximize the profitability of the
Warfield operation.  The Eastern engineers have developed a plan for the
erection of such a facility.  These plans have been submitted to the
appropriate governing authorities seeking the necessary permits.  Eastern
expects to have permits approving the coal preparation facility during the

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fourth quarter of 2004.  The Warfield washed coal will command an additional
twelve to fifteen dollars per ton for each ton of coal produced, washed and
sold with washing costs estimated to be between three and four dollars per
ton.  Eastern has also requested permits to develop the surface mine coal
reserves located near Warfield.  Management expects to receive approved
permits for this activity during the fourth quarter of 2004.

Eastern Kentucky has historically been an enormous supplier of natural gas and
still contains some of the most abundant gas reserves in the nation.  In order
to capitalize on this opportunity, Consolidated has acquired 400 acres which
are permitted in Morgan County to explore and develop the gas reserves.  The
Company will refurbish one existing gas well which shows significant
production capacity.  The Company is making plans to establish a delivery line
to the main gas line from the existing well and the anticipated other wells
which have already been permitted.  This main line is approximately one half
mile from the 400 acre reserve.  This gas activity is consistent with
management's long term plan to become a multifaceted energy supplier.  The
Company will fund this activity by selling a percentage of the working
interest in the gas wells being developed. As funding is available, the
Company's plans are to continue the further acquisition of gas and oil leases
for further exploration, development and production in the region.

Eastern is being operated as a wholly-owned subsidiary of the Company.  The
results of operations below reflect the financial condition of the combined
entities, including the operations of the subsidiary. Because neither the
Company nor Eastern had any operations prior to June 2003, the comparison of
prior year periods is not relevant to the discussion of operations.

Discussion and Analysis of Financial Condition and Results of Operations
------------------------------------------------------------------------
For the period ended June 30, 2004
-----------------------------------
For the three and six month period ended June 30, 2004, the Company had
revenues of $365,826 and $1,037,409, respectively, with cost of revenues of
$799,327 and $1,596,853, for gross losses of $433,501 and 559,444,
respectively.  Expenses for the three and six months ended June 30, 2004
totaled $411,531 and $761,457, respectively, consisting primarily of
consulting fees, depreciation and amortization and other expenses.  Including
interest expenses of $22,442 and $70,903, respectively, the Company reported a
net losses from operations of $867,474 and $1,391,804, or $.09 and $.15 per
share.

Management hopes to increase revenues over the next twelve months through an
increase in mining activities.  Operating expenses are expected to increase as
well through increased payroll.  This anticipated increase in payroll is
associated with the addition of a second shift in the Alma seam and the
addition of a second mining section.  There will also be in increase in mining
consumables, including replacement parts, equipment and utilities, due to
increased production activities.

Liquidity and Capital Resources
-------------------------------
To date, the Company has funded operations through the issuance of notes
payable and convertible debentures.  The Company has also issued stock for
services in lieu of cash.

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At June 30, 2004, the Company had current assets of $81,812, consisting of
$67,768 in accounts receivable and $14,044 in other assets.  The Company had
current liabilities of $2,512,653, consisting of $1,138,258 in accounts
payable and accrued expenses, $180,121 in royalty payable, $659,399 in
convertible debentures, $514,017 in notes payable, and $20,858 in
a bank overdraft for a working capital deficit of $2,430,841. Management
established an overdraft line with its current bank using the Company's
accounts receivable as collateral to support the overdraft.

At June 30, 2004, the Company had long-term liabilities of $1,662,397
consisting of notes payable and deferred royalties.

At June 30, 2004, the Company had fixed assets of $6,565,002 consisting of the
Warfield Mine lease and equipment (net of depreciation).  The Company had
other assets of $535,631, consisting of deferred royalty and prepaid royalty
and mining permits.

Management intends to retire the short term debt through revenues generated by
increase production from; (1) adding shifts to the existing Alma seam mining
operation; (2) opening an additional mining section within the same Alma seam,
and (3) by issuing convertible debentures.

For the period ended June 30, 2004, cash flows used by operating activities
totaled $199,567.  Cash used by investing activities totaled $118,392 for the
purchase of mining equipment. Cash provided by financing activities totaled
$122,940, including proceeds from notes payable offset by payments on deferred
royalties.

In addition to the liabilities associated with the acquisition of mining
operations, 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.  At June 2004, the Company's revenues
are not sufficient to cover its operating costs, therefore there is
substantial doubt about its ability to continue as a going concern.
Management's plans to address this problem include the increase in production
activities discussed above, and:

1. Issuing additional convertible debentures and/or obtaining funding through
other arrangements;

2. Developing an arrangement with others that will allow Eastern to collect
royalty payments for mining operations conducted on reserves that are
contiguous with Eastern's reserves;

3. Signing sub-leases for coal reserves controlled by Eastern for which
Eastern expects to receive royalty payments when these reserves are mined and
sold.

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Merger with Saudi American Minerals, Inc.
-----------------------------------------
In June 2003, the Company signed a definitive agreement with Saudi American
Minerals Inc. ("Saudi American") to acquire 100% ownership of Saudi American
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 Company has been assembling
a registration statement on Form S-4 related to the planned acquisition of
Saudi American Minerals Inc. ("Saudi American").  The Company hopes to submit
the S-4 to the SEC for review no later than August 2004.  Saudi American owns
a clean technology that the Company plans to further develop and license.  In
anticipation of the SEC'S approval of the Company'S acquisition of Saudi
American, the Company has worked to forward the clean coal technology through
testing and development.  The Company is also establishing plans for the next
testing and developmental phase of the technology.  The most recent tests that
were conducted on the technology provided verification that the technology
does remove over 95% of the mercury inherent in coal.  This result was most
encouraging to management and the Company is now developing a follow-up set of
tests which are designed to answer questions that have been posed by several
potential licensees of the technology. The Company has plans to promote the
technology national and internationally once testing and development are
completed.

Management intends to fund the cost of the acquisition by issuing convertible
debentures or through increased revenues from mining operations. 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 Eastern coal mining operations and the Saudi American transaction
are the primary focus of the Company, management is continuing to look at
other possible business combinations and acquisitions. 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.

ITEM 3. CONTROLS AND PROCEDURES

Our principal executive and financial officer has participated with management
in the evaluation of effectiveness of the controls and procedures required by
paragraph (b) of Rule 13a-15 or Rule 15d-15 under the Exchange Act as of the
end of the period covered by this report.  Based on that evaluation, our
principal executive and financial officer believes that our disclosure
controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under
the Exchange Act) are effective as of the end of the period covered by the
report.  There have been no changes in our internal controls that have
materially affected, or are reasonably likely to materially affect, our
internal controls over financial reporting during the period covered by this
report.



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PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 2. CHANGES IN SECURITIES

Pursuant to the requirements of Item 701 of Regulation SB, the Company is
disclosing the issuance of securities during the quarter ended June 30, 2004
that were not registered under the Securities Act as follows:

During the quarter ended June 30, 2004, the Company issued 140,000 shares of
its common stock to a consultant for services rendered.  The shares were
issued were issued in reliance on the exemption from registration and
prospectus delivery requirements of the Act set forth in Section 3(b) and/or
Section 4(2) of the Securities Act and the regulations promulgated thereunder.

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.
        ---------
Exhibit 31.01 - Certification of Principal Executive Officer Pursuant to
                Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 31.02 - Certification of Principal Financial Officer Pursuant to
                Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 32.01 - Certification of Principal Executive Officer Pursuant to
                Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 32.02 - Certification of Principal Financial Officer Pursuant to
                Section 906 of the Sarbanes-Oxley Act of 2002.

(b)     Reports on Form 8-K.
        --------------------
None.

                                  SIGNATURES

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

                                CONSOLIDATED ENERGY INC.


Date: August 16, 2004              By: /S/David Guthrie, President
                                   (Principal Executive Officer)

Date: August 16, 2004              By: /S/Barry W. Tackett, CFO
                                   (Principal Financial Officer)