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            September 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 October 20, 1997 was 40,056,358.



<PAGE>


                                                       
                         PART I - 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>
                                                                              September 30,        December 31,
                                                                                  1997                 1996
                                                                                  ----                 ----

                                 ASSETS

Current assets:
<S>                                                                          <C>                 <C>          
  Cash and cash equivalents                                                  $    125,840        $     424,330
  Accounts and interest receivable                                                  53,650             105,115
  U.S. Government securities                                                     2,212,516           3,341,820
  Prepaid insurance                                                                227,990             178,868
                                                                             -------------       -------------
          Total current assets                                                   2,619,996           4,050,133
                                                                             -------------       -------------

U.S. Government securities                                                       1,999,792           2,001,441

Unproved oil, gas and mineral properties (full cost method)                      4,385,546           3,943,520

Other                                                                               26,634              25,644
                                                                             -------------       -------------
                                                                                $9,031,968         $10,020,738



                  LIABILITIES, MINORITY INTERESTS AND
                          SHAREHOLDERS' EQUITY

Current liabilities:
  Accounts payable and accrued liabilities                                   $     110,719       $     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                                                28,693,032          28,442,983
                                                                             -------------       -------------
                                                                                33,499,795          33,248,546
  Deficit accumulated during development stage                                 (24,578,546)        (23,490,230)
                                                                             -------------       -------------
  Total shareholders' equity                                                     8,921,249           9,758,316
                                                                             -------------       -------------
                                                                             $   9,031,968       $  10,020,738
                                                                             =============       =============
</TABLE>


<PAGE>




                         PART I - 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                     Nine months ended             (Jan. 31, 1953)
                                                ------------------                     -----------------                            
                                                   September 30,                         September 30,                to Sept. 30,
                                                   -------------                         -------------                ------------
                                              1997               1996               1997               1996               1997
                                              ----               ----               ----               ----               ----



<S>                                          <C>                <C>                <C>                <C>                 <C>      
  Interest and other income                  $66,713            $78,698            $221,330           $113,890            3,447,987
                                             -------            -------            --------           --------            ---------

  Expenses:
    Legal fees and costs                     329,379            115,112             650,530            336,621           11,073,654
    Administrative expenses                  107,684             78,677             334,095            244,681            6,255,622
    Salaries                                  39,000             36,500             117,000            112,167            2,711,278
    Shareholder communications                40,298             21,524             169,031             82,699            3,417,418
    Exploration costs                         28,935             17,955              38,990             23,606              739,026
    Lawsuit judgments                              -                  -                   -                  -            1,941,916
    Minority interests                             -                  -                   -                  -             (632,974)
    Other                                          -                  -                   -                  -              364,865
    Contractual services                           -                  -                   -                  -            2,155,728
                                           ----------         ----------        ------------         ----------          -----------
                                             545,296            269,768           1,309,646            799,774           28,026,532
                                           ----------         ----------        ------------         ----------          -----------

  Net loss                                 $(478,583)         $(191,070)        $(1,088,316)         $(685,884)
                                           ==========         ==========        ============         ==========

  Deficit accumulated during
    development stage                                                                                                   $24,578,546
                                                                                                                        ===========
  Average number of shares
    outstanding                            40,056,358         40,046,358         40,055,358          36,706,995
                                           ==========         ==========         ==========          ==========

  Net loss per share                         $(.01)             $( - )             $(.03)              $(.02)
                                             ======             ======             ======              ======
</TABLE>                                      





<PAGE>



                         PART I - 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
                                                                 Nine months ended                (Jan. 31, 1953)
                                                                   September 30,                    to Sept. 30,
                                                             1997                 1996                 1997
                                                             -----                -----                ----

Operating activities:
<S>                                                        <C>                 <C>                  <C>          
Net loss                                                   $(1,088,316)        $   (685,884)        $(24,578,546)
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                                      51,465              (37,805)             (53,650)
       U.S. Government securities                            1,129,304           (5,343,814)          (2,212,516)
       Prepaid insurance                                       (49,122)             (52,725)            (227,990)
       Current liabilities                                    (151,703)             (12,152)             110,719
       Other                                                      (991)              34,193              472,270
                                                           ------------        -------------        -------------
Net cash used for operating activities                        (109,363)          (6,098,187)         (26,366,713)
                                                           ------------        -------------        -------------

Investing activities:
  Additions to oil, gas, and mineral
    properties net of assets acquired
    for common stock                                          (442,026)            (189,360)          (4,385,546)
  Reimbursement of lease rentals and
    other expenses                                                   -                    -            1,243,086
  U.S. Government securities purchased                               -                    -           (1,999,792)
  Purchase of fixed assets                                       1,649                    -              (61,649)
                                                           ------------        -------------        -------------
Net cash provided by (used for) investing activities
                                                              (440,377)            (189,360)          (5,203,901)
                                                            -----------        -------------        -------------

Financing activities:
  Cash proceeds from sale of
    common stock less expenses                                       -            6,356,326           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            6,609,826           31,696,454
                                                           ------------        -------------        -------------
Net increase (decrease) in cash
  and cash equivalents                                        (298,490)             322,279              125,840
Cash and cash equivalents at
  beginning of period                                          424,330              247,452                    -
                                                           ------------        -------------        -------------
Cash and cash equivalents at
  end of period                                             $  125,840          $   569,731         $    125,840
                                                            ==========          ===========         ============
</TABLE>



<PAGE>



                         PART I - FINANCIAL INFORMATION

                     COASTAL CARIBBEAN OILS & MINERALS LTD.

                               September 30, 1997

ITEM 1   -    Financial Statements

         The  information  for the three and nine month periods ended  September
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 $4.4  million at September  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 September 30, 1997,  Coastal  Caribbean  had cash and  securities of
approximately  $4.3  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.

                               September 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  $600,000
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
$442,000 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
                  approximately $5 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>


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

Results of Operations

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

         The Company incurred a loss of $479,000 for the 1997 quarter,  compared
to a loss of $191,000 for the comparable 1996 quarter.

         Interest income and other income  decreased 15% from $79,000 in 1996 to
$67,000 in 1997 because less funds were available for investment during the 1997
period.

         Legal fees and costs  increased  186% to $329,000 for the 1997 quarter,
compared to $115,000 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 October  20,  1997  administrative  hearing  regarding  the
issuance of the pending drilling permit.

         Administrative  expenses increased 37% to $108,000 in 1997 from $79,000
in the prior quarter. The amount of directors' and officers' liability insurance
was increased in 1997.

         Shareholder  communications  increased  87%  from  $22,000  in  1996 to
$40,000 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  61% from  $18,000 in 1996  to $29,000 in
1997 in connection with the  Company's  continuing program to identify potential
drilling prospects.


<PAGE>


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

Nine month period ended September 30, 1997 vs. September 30, 1996

         The Company incurred a loss of $1,310,000 for the 1997 period, compared
to a loss of $686,000 for the comparable 1996 period.

         Interest  income and other income  increased 94% from  $114,000 in 1996
to $221,000 in 1997 due to the funds  available for investment from the May 1996
rights offering to shareholders.

         Legal fees and costs  increased  94% to $651,000  for the 1997  period,
compared to $337,000 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 October  20,  1997  administrative  hearing  regarding  the
issuance of the pending drilling permit.

         Administrative expenses increased 37% to $335,000 in 1997 from $245,000
in the prior  period.  The  primary  reason for the  increase  is the first time
purchase of directors' and officers' liability insurance in 1996 and an increase
in the amount of coverage in 1997.  In addition,  accounting  and auditing  fees
also increased during the 1997 period.

         Shareholder  communications  increased  104%  from  $83,000  in 1996 to
$169,000 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  65% from  $24,000 in 1996  to $39,000 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.

                               September 30, 1997

ITEM 5   -    Other Information

         On October 20, 1997,  an  administrative  hearing  commenced on Coastal
Petroleum  Company's  drilling  permit  application  and the appeal of the $4.25
billion surety requirement.

ITEM 6   -    Exhibits and Reports on Form 8-K

         On August  6,  1997,  the  Company  filed a Current  Report on Form 8-K
reporting  that on August 5, 1997, the First District Court of Appeal in Florida
ruled  against the Company in its appeal of the Circuit  Court's  decision  that
there was no taking of Coastal Petroleum Company's royalty acreage.

         On September 2, 1997,  the Company  filed a Current  Report on Form 8-K
reporting  that the  Company's  majority  owned  subsidiary,  Coastal  Petroleum
Company,  advised  the  State of  Florida  that its  petroleum  consultants  had
evaluated the offshore St. George Island prospect and estimated the structure to
contain  2.19  billion  barrels  of  oil  in  place  with  546  million  barrels
recoverable.  The Company disclosed this evaluation in connection with a pending
drilling permit application to test the prospect.

         On September 10, 1997,  the Company filed a Current  Report on Form 8-K
reporting that Florida's governor and cabinet established a $4.25 billion surety
requirement  as a  condition  for the  issuance of Coastal  Petroleum  Company's
outstanding drilling permit.

         On September 23, 1997,  the Company filed a Current  Report on Form 8-K
reporting  that an  Administrative  Law Judge  rescheduled  a public  hearing on
Coastal Petroleum  Company's offshore drilling permit application from September
29,  1997 to October  20,  1997.  The Judge  combined  the permit  case with the
administrative  appeal of the state's  recently  enacted  $4.25  billion  surety
requirement.



<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:  October 24, 1997                  By  /s/ James R. Joyce
                                             -----------------------------------
                                                 James R. Joyce
                                                 Treasurer and Chief Accounting
                                                 and Financial Officer