FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended              June 30, 1997
                               ----------------------------------------

[  ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to _________________

Commission file number     1-4668

                     COASTAL CARIBBEAN OILS & MINERALS, LTD.
 ................................................................................
              Exact name of registrant as specified in its charter)

            BERMUDA                                                NONE
 ................................                            ....................
(State or other jurisdiction of                              (I.R.S. Employer
 incorporation or organization)                              Identification No.)

Clarendon House, Church Street, Hamilton, Bermuda                  NONE
 ................................................................................
     (Address of principal executive offices)                   (Zip Code)

                                                   441-295-1422
 ................................................................................
              (Registrant's telephone number, including area code)

 ................................................................................
              (Former name, former address and former fiscal year,
                          if changed since last report)

         Indicate by check mark whether the registrant (l) has filed all reports
required to be filed by Section 13 or 15 (d) of the  Securities  Exchange Act of
l934  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.

                                                        X Yes          No

         The number of shares outstanding of the issuer's single class of common
stock as of July 17, 1997 was 40,056,358.



<PAGE>


                         PART 1 - FINANCIAL INFORMATION

                         ITEM 1. - FINANCIAL STATEMENTS

                     COASTAL CARIBBEAN OILS & MINERALS, LTD.
                             (A Bermuda Corporation)
                           A Development Stage Company

                           CONSOLIDATED BALANCE SHEET
                           (Expressed in U.S. dollars)
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                                June 30,          December 31,
                                                                                  1997                1996
                                                                                  ----                ----

                                 ASSETS

<S>                                                                          <C>                 <C>    
Current assets:
  Cash and cash equivalents                                                  $     218,718       $     424,330
  Accounts and interest receivable                                                 139,081             105,115
  U.S. Government securities                                                     2,672,611           3,341,820
  Prepaid insurance                                                                134,388             178,868
                                                                             -------------        ------------
          Total current assets                                                   3,164,798           4,050,133
                                                                             -------------        ------------

U.S. Government securities                                                       2,000,346           2,001,441

Unproved oil, gas and mineral properties (full cost method)                      4,273,879           3,943,520

Other                                                                               26,503              25,644
                                                                             -------------        ------------
                                                                              $  9,465,526         $10,020,738
                                                                              ============         ===========



                  LIABILITIES, MINORITY INTERESTS AND
                          SHAREHOLDERS' EQUITY

Current liabilities:
  Accounts payable and accrued liabilities                                   $      65,693        $    262,422
                                                                             -------------        ------------

Minority interests
                                                                                         -                   -

Shareholders' equity:
  Common stock, par value 12(cent) per share:
  Authorized  - 250,000,000 shares
  Outstanding - 40,056, 358 and 40,046,358 shares                                4,806,763           4,805,563
  Capital in excess of par value                                                28,693,033          28,442,983
                                                                              ------------        ------------
                                                                                33,499,796          33,248,546
  Deficit accumulated during development stage                                 (24,099,963)        (23,490,230)
                                                                              -------------       -------------
  Total shareholders' equity                                                     9,399,833           9,758,316
                                                                              ------------        ------------
                                                                              $  9,465,526         $10,020,738
                                                                              ============         ===========
</TABLE>


<PAGE>



                         PART 1 - FINANCIAL INFORMATION


                          ITEM 1 - FINANCIAL STATEMENTS

                     COASTAL CARIBBEAN OILS & MINERALS, LTD.
                             (A Bermuda Corporation)
                           A Development Stage Company

                      CONSOLIDATED STATEMENT OF OPERATIONS
                           (Expressed in U.S. dollars)
                                   (unaudited)


<TABLE>
<CAPTION>

                                                                                                                     From inception
                                                  Three months ended                  Six months ended               (Jan. 31, 1953)
                                                  ------------------                  ----------------                              
                                                       June 30,                           June 30,                     to June 30,
                                                       --------                           --------                     -----------
                                                1997               1996            1997               1996                1997
                                                ----               ----            ----               ----                ----


<S>                                            <C>                <C>             <C>                 <C>                <C>       
  Interest and other income                    $72,159            $34,344         $154,617            $35,192            $3,381,274
                                               -------            -------         --------            -------            ----------

  Expenses:
    Legal fees and costs                       162,939            121,741          321,151            221,509            10,744,275
    Administrative expenses                    103,021             81,413          226,411            166,004             6,147,938
    Salaries                                    39,000             36,167           78,000             75,667             2,672,278
    Shareholder communications                  93,934             47,604          128,733             61,175             3,377,120
    Exploration costs                            2,503              5,628           10,055              5,651               710,091
    Lawsuit judgments                                -                  -                -                  -             1,941,916
    Minority interests                               -                  -                -                  -              (632,974)
    Other                                            -                  -                -                  -               364,865
    Contractual services                             -                  -                -                  -             2,155,728
                                          --------------     --------------   --------------     --------------           ---------
                                               401,397            292,553          764,350            530,006            27,481,237
                                               -------           --------          -------          ---------            ----------

  Net loss                                   $(329,238)         $(258,209)       $(609,733)         $(494,814)
                                             ==========         ==========       ==========         ==========

  Deficit accumulated during
    development stage                                                                                                  $(24,099,963)

  Average number of shares
    outstanding                             40,056,358         36,709,995       40,054,929         35,275,839
                                            ==========         ==========       ==========         ==========

  Net loss per share                           $(.01)             $(.01)           $(.02)             $(.01)
                                               ======             ======           ======             ======
</TABLE>


<PAGE>





                         PART 1 - FINANCIAL INFORMATION

                         ITEM 1. - FINANCIAL STATEMENTS

                     COASTAL CARIBBEAN OILS & MINERALS, LTD.
                             (A Bermuda Corporation)
                           A Development Stage Company
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                           (Expressed in U.S. Dollars)
                                   (unaudited)

<TABLE>
<CAPTION>

                                                                                                  From inception
                                                                  Six months ended                (Jan. 31, 1953)
                                                                             June 30,               to June 30,

                                                             1997                 1996                 1997
                                                             -----                -----                ----

<S>                                                          <C>                  <C>               <C>          
Operating activities:
Net loss                                                     $(609,733)           $(494,814)        $(24,099,963)
Adjustments to reconcile net loss
  to net cash used for operating activities:
    Minority interest                                                -                    -             (632,974)
    Exploration and other                                            -                    -              755,974
    Net change in:
       Accounts receivable                                     (33,966)             (19,090)            (139,081)
       U.S. Government securities                              669,209             (497,969)          (2,672,611)
       Prepaid insurance                                        44,480                7,183             (134,388)
       Current liabilities                                    (196,729)              22,185               65,693
       Other                                                      (859)              34,321              472,402
                                                             ----------          -----------         ------------
Net cash used for operating activities                        (127,598)            (948,184)         (26,384,948)
                                                             ----------          -----------         ------------

Investing activities:
  Additions to oil, gas, and mineral
    properties net of assets acquired
    for common stock                                          (330,359)             (18,837)          (4,273,879)
  Reimbursement of lease rentals and
    other expenses                                                   -                    -            1,243,086
  Sale (purchase) U.S. Government securities                     1,095                    -           (2,000,346)
  Purchase of fixed assets                                           -                    -              (61,649)
                                                             ----------          -----------         ------------
Net cash provided by (used for) investing activities
                                                              (329,264)             (18,837)          (5,092,788)
                                                             ----------          -----------         ------------

Financing activities:
  Cash proceeds from sale of
    common stock less expenses                                       -            6,357,313           26,342,205
  Shares issued upon exercise of
    options                                                     11,250               13,500              884,249
  Sale of shares by subsidiary                                       -                    -              750,000
  Sale of subsidiary shares                                    240,000              240,000            3,720,000
                                                            -----------          ----------          -----------
Net cash provided by
  financing activities                                         251,250            6,610,813           31,696,454
                                                            -----------          ----------          -----------
Net increase (decrease) in cash
  and cash equivalents                                        (205,612)           5,643,792              218,718
Cash and cash equivalents at
  beginning of period                                          424,330              247,452                    -
                                                            -----------          ----------          -----------
Cash and cash equivalents at
  end of period                                             $  218,718           $5,891,244          $   218,718
                                                            ===========          ==========          ===========
</TABLE>


<PAGE>



                         PART I - FINANCIAL INFORMATION

                     COASTAL CARIBBEAN OILS & MINERALS LTD.

                                  June 30, 1997

ITEM 1   -    Financial Statements

         The information for the three and six month periods ended June 30, 1997
and 1996 is unaudited, but includes all adjustments which Coastal Caribbean Oils
& Minerals, Ltd. (the "Company") considers necessary for a fair statement of the
results of operations for those periods.  The consolidated  financial statements
include  the  Company's  59.25%  owned  subsidiary,  Coastal  Petroleum  Company
("Coastal Petroleum").

         The Company's  principal assets are oil,  gas, and mineral leases,  the
costs of which  total $4.3  million at June 30,  1997.  The Company has been and
continues  to be involved in several  legal  proceedings  which have limited the
Company's ability to commence development activities on its unproved oil and gas
properties or obtain  compensation  for certain property rights it believes have
been confiscated.  These  consolidated  financial  statements do not include any
adjustments  to reflect the possible  future effects on the  recoverability  and
classification  of assets or amounts and  classification of liabilities that may
result from the outcome of this uncertainty.

ITEM 2   -    Management's Discussion and Analysis of Financial Condition and
              ---------------------------------------------------------------
              Results of Operation
              --------------------

Liquidity and Capital Resources

                              Short Term Liquidity

         At  June  30,  1997,   Coastal   Caribbean   had  working   capital  of
approximately  $5.1  million.  These  funds are  expected to be used for general
corporate  purposes,  including  exploration and development and to continue the
litigation against the State of Florida.


<PAGE>


                         PART I - FINANCIAL INFORMATION

                     COASTAL CARIBBEAN OILS & MINERALS LTD.

                                  June 30, 1997

ITEM 2   -    Management's Discussion and Analysis of Financial Condition and
              ---------------------------------------------------------------
              Results of Operation (Cont'd)
              -----------------------------

                               Long Term Liquidity

         The Company estimates that as much as $500,000 per year may be required
in connection with the Florida litigation.  The Company expects that the Florida
litigation  could  continue at least through  1998,  although the State may take
actions that could shorten or lengthen that period. The Company has a program to
evaluate the Company's leases which is estimated to cost approximately  $500,000
for 1997 and $1 million for the 1998-1999 period,  and is subject to the outcome
of the Florida  litigation.  During  1997,  the Company has spent  approximately
$330,000 under its continuing program to identify potential drilling prospects.

         The  Company's  oil and  gas  properties  are  currently  unproved  and
undeveloped.  The Company  has  applied for a drilling  permit from the State of
Florida to drill an exploratory  well in the water near  Apalachicola,  Florida.
The State of Florida has  resisted  the  issuance of a drilling  permit.  If the
Company is successful  in obtaining a state  drilling  permit,  then the Company
must also do the following:

         1.     Obtain a federal drilling permit.
              
         2.     Finance drilling of the well, which is estimated to cost between
                $10-15 million.
              
         3.     Begin drilling  the well within  one year of the  date the state
                permit is issued.
            
         The Company does not  currently  have assets  sufficient  to fund these
expenditures  to drill the  exploration  well, if a permit were granted.  If oil
and/or gas is discovered in commercial  quantities,  a production  program would
require  additional  permitting  and  construction  of  production,  storage and
delivery systems.  The Company would be required to seek additional financing or
partners to fund these expenditures.



<PAGE>


                         PART I - FINANCIAL INFORMATION

                     COASTAL CARIBBEAN OILS & MINERALS LTD.

                                  June 30, 1997

ITEM 2   -    Management's Discussion and Analysis of Financial Condition and
              ---------------------------------------------------------------
              Results of Operation (Cont'd)
              -----------------------------

Results of Operations

Three month period ended June 30, 1997 vs. June 30, 1996

         The Company  incurred a loss of $329,000 for the 1997 quarter, compared
to a loss of $258,000 for the comparable 1996 quarter.

         Interest income  and other  income  increased  from  $34,000 in 1996 to
$72,000  in 1997 due  to the funds  available for  investment from  the May 1996
rights offering to shareholders.

         Legal fees and costs  increased  34% to $163,000 for the 1997  quarter,
compared to $122,000 in the prior period.  These costs  increased due to (1) the
various  appeals filed in connection  with the State of Florida's  opposition to
the issuance of a drilling  permit,  (2) the appeal of the adverse decision that
there  has  not  been a  taking  of the  Company's  royalty  interests,  and (3)
preparation  for the September  29, 1997  administrative  hearing  regarding the
issuance of the pending drilling permit.

         Administrative  expenses increased 27% to $103,000 in 1997 from $81,000
in the prior  quarter.  The  primary  reason for the  increase is the first time
purchase of directors' and officers' liability insurance in 1996.

         Shareholder  communications  increased  97%  from  $48,000  in  1996 to
$94,000 in 1997.  In 1996,  the Company saved the cost of printing and mailing a
separate annual report by utilizing the May 1996 rights  offering  prospectus in
lieu of an annual  report.  In  addition,  the cost of printing and mailing also
increased  in 1997  because  of the  size of the  documents  and  the  number of
mailings.


<PAGE>


                         PART I - FINANCIAL INFORMATION

                     COASTAL CARIBBEAN OILS & MINERALS LTD.

                                  June 30, 1997

ITEM 2   -    Management's Discussion and Analysis of Financial Condition and
              ---------------------------------------------------------------
              Results of Operation (Cont'd)
              -----------------------------

Six month period ended June 30, 1997 vs. June 30, 1996

         The Company incurred  a loss of $610,000  for the 1997 period, compared
to a loss of $495,000 for the comparable 1996 period.

         Interest  income and other  income  increased  from  $35,000 in 1996 to
$155,000  in 1997 due to the funds  available  for investment from  the May 1996
rights offering to shareholders.

         Legal fees and costs  increased  45% to $321,000  for the 1997  period,
compared to $222,000 in the prior period.  These costs  increased due to (1) the
various  appeals filed in connection  with the State of Florida's  opposition to
the issuance of a drilling  permit,  (2) the appeal of the adverse decision that
there  has  not  been a  taking  of the  Company's  royalty  interests,  and (3)
preparation  for the September  29, 1997  administrative  hearing  regarding the
issuance of the pending drilling permit.

         Administrative expenses increased 36% to $226,000 in 1997 from $166,000
in the prior  period.  The  primary  reason for the  increase  is the first time
purchase of directors' and officers'  liability  insurance in 1996. In addition,
accounting and auditing fees also increased during the 1997 period.

         Shareholder  communications  increased  110%  from  $61,000  in 1996 to
$129,000 in 1997. In 1996,  the Company saved the cost of printing and mailing a
separate annual report by utilizing the May 1996 rights  offering  prospectus in
lieu of an annual  report.  In  addition,  the cost of printing and mailing also
increased  in 1997  because  of the  size of the  documents  and  the  number of
mailings.

         Exploration costs increased from $6,000  in 1996 to $10,000  in 1997 in
connection with the Company's continuing  program to identify potential drilling
prospects.



<PAGE>


                           PART II - OTHER INFORMATION

                     COASTAL CARIBBEAN OILS & MINERALS LTD.

                                  June 30, 1997

ITEM 4   -    Submission of Matters to a Vote of Security Holders
              ---------------------------------------------------

         (a)  On  June  23,  1997,  the  Company  held  its  Annual  Meeting  of
Shareholders.  The meeting was adjourned until July 25, 1997 with respect to the
proposal to amend and restate the Bye-laws of the Company.

         (b)  Directors Charles T. Collis,  Nicholas B. Dill, Benjamin W. Heath,
John D. Monroe  and  Phillip W. Ware  were reelected.  In  accordance  with  the
amended and restated  Bye-laws of the Company,  a classified  Board of Directors
was elected.  The results of  the votes cast by the Company's shareholders  were
as follows:

<TABLE>
<CAPTION>
                                        Number of Shares Voted                  Number of Shareholders Voting
Nominee                                For                Withheld                For                 Withheld

<S>                                   <C>                   <C>                    <C>                    <C>
Class I  Directors - Terms Expire at the 1998 Annual Meeting
Nicholas B. Dill                      28,699,489            5,573,600              2,981                  170

Class II  Directors - Terms Expire at the 1999 Annual Meeting
Benjamin W. Heath                     28,697,762            5,575,327              2,980                  171
Phillip W. Ware                       28,717,588            5,555,501              2,981                  170

Class III  Directors - Terms Expire at the 2000 Annual Meeting
Charles T. Collis                     28,513,974            5,759,115              2,808                  173
John D. Monroe                        28,703,870            5,569,219              2,980                  171
</TABLE>

         (c) The  firm  of  Ernst & Young  LLP  was  approved  as the  Company's
independent  auditors for the fiscal year ending  December 31, 1997. The results
of the votes cast by the Company's shareholders were as follows:

<TABLE>
<CAPTION>
                  Number of Shares Voted                                 Number of Shareholders Voting
                  ----------------------                                 -----------------------------
        For               Against            Abstain               For              Against            Abstain
        ---               -------            -------               ---              -------            -------

<S> <C>                  <C>                 <C>                  <C>                 <C>                 <C>
    29,278,974           4,620,292           343,823              2,804               86                  91
</TABLE>


<PAGE>

                           PART II - OTHER INFORMATION

                     COASTAL CARIBBEAN OILS & MINERALS LTD.

                                  June 30, 1997

ITEM 4   -    Submission of Matters to a Vote of Security Holders (Cont'd)
              ------------------------------------------------------------

         (d)  The vote  on the  proposal to  amend  and  restate  the  Company's
Bye-laws which was adjourned until July 25, 1997 was as follows:

<TABLE>
<CAPTION>
                  Number of Shares Voted                                 Number of Shareholders Voting
                  ----------------------                                 -----------------------------
        For               Against            Abstain               For              Against            Abstain
        ---               -------            -------               ---              -------            -------

<S> <C>                  <C>                 <C>                  <C>                 <C>                 <C>
    14,446,907           14,121,382          852,519              3,078               299                 90
</TABLE>

         (e)  The  proposal  to  Increase  the   Authorized   Common   Stock  to
250,000,000 shares was approved.  The results of the votes cast by the Company's
shareholders were as follows:

<TABLE>
<CAPTION>
                  Number of Shares Voted                                 Number of Shareholders Voting
                  ----------------------                                 -----------------------------
        For               Against            Abstain               For              Against            Abstain
        ---               -------            -------               ---              -------            -------

<S> <C>                 <C>                  <C>                  <C>                 <C>                <C>
    18,610,750          15,134,976           527,363              2,386               413                182
</TABLE>


         (f)  The proposal to Authorize 10,000,000 Shares of Preferred Stock was
not approved.  The results of the votes cast  by the Company's shareholders were
as follows:

<TABLE>
<CAPTION>
                  Number of Shares Voted                                 Number of Shareholders Voting
                  ----------------------                                 -----------------------------
        For               Against            Abstain               For              Against            Abstain
        ---               -------            -------               ---              -------            -------

<S> <C>                 <C>                  <C>                  <C>                 <C>                <C>
    10,838,290          15,252,149           661,452              2,325               469                187
</TABLE>

ITEM 5   -    Other Information

         On May 28, 1997,  the Oil and Gas Drilling  Bill (SB550) was enacted in
Florida.  The new  legislation  requires  that a surety will now be based on the
projected  cleanup costs and possible  natural  resource damage  associated with
offshore drilling as estimated by the Department of Environmental Protection and
as set up by the  Governor  and Cabinet.  Previously,  the  required  surety was
satisfied  by a payment of $4,000 to the  Mineral  Trust Fund in the first year,
with a  maximum  $30,000  per year and a  payment  of  $1,500  per well for each
subsequent year.

         The Governor  and Cabinet are  scheduled  to meet on August 26, 1997 to
set a surety  amount with respect to the  Company's drilling permit.
 

<PAGE>

                           PART II - OTHER INFORMATION

                     COASTAL CARIBBEAN OILS & MINERALS LTD.

                                  June 30, 1997

ITEM 5   -    Other Information (Cont'd)
              --------------------------

         The  Company  believes  that  the law does  not  apply to its  drilling
permits.  If it is  determined  that the new law does  apply,  then the  Company
believes the surety  should be based on objective and  supportable  criteria and
facts.

ITEM 6   -    Exhibits and Reports on Form 8-K
              --------------------------------

         (a) On April 9, 1997, the Company filed a Current Report on Form 8-K to
report that Mr.  Nicholas B. Dill  was elected a director to fill the vacancy on
the board created by Mr. C. Dean Reasoner's resignation on March 20, 1997.

         (b) On June 27, 1997, the Company filed a Current Report on Form 8-K to
report the following: (1) five directors were re-elected at the Company's Annual
Meeting on June 23, 1997,  (2) the  appointment of Ernst & Young LLP as auditors
was approved,  (3) the proposal to increase the  authorized  common stock to 250
million shares was approved,  (4) the proposal to authorize 10 million shares of
preferred shares was not approved,  and (5) the meeting was adjourned until July
25, 1997 for additional  consideration  of the proposal to amend and restate the
Bye-laws of the Company.

         (c) On July 2, 1997,  the Company filed a Current Report on Form 8-K to
report  that on June 27,  1997,  an  administrative  judge  denied  a motion  to
relinquish  jurisdiction for a hearing scheduled on September 29, 1997 regarding
Coastal Petroleum Company's drilling permit.


<PAGE>







                                   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.




                                         COASTAL CARIBBEAN OILS & MINERALS, LTD.
                                                       Registrant




Date:  July 28, 1997                    By  /s/ James R. Joyce
                                             ------------------
                                             James R. Joyce
                                             Treasurer and Chief Accounting and
                                             Financial Officer