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

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

For the quarterly period ended              March 31, 1998
                               ---------------------------------------

[   ]    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 April 20, 1998 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>
                                                                                March 31,         December 31,
                                                                                  1998                1997
                                                                              ------------        ------------
                                 ASSETS

Current assets:
<S>                                                                           <C>                 <C>         
  Cash and cash equivalents                                                   $    517,782        $    316,333
  Accounts and interest receivable                                                  63,407              77,302
  U.S. Government securities                                                     2,945,302           3,433,035
  Prepaid insurance                                                                181,580             213,840
                                                                              ------------        ------------
          Total current assets                                                   3,708,071           4,040,510
                                                                              ------------        ------------

Unproved oil, gas and mineral properties (full cost method)                      4,444,336           4,395,132

Other                                                                               26,894              26,765
                                                                              ------------        ------------
Total assets                                                                  $  8,179,301        $  8,462,407
                                                                              ============        ============

                  LIABILITIES, MINORITY INTERESTS AND
                          SHAREHOLDERS' EQUITY

Current liabilities:
  Accounts payable and accrued liabilities                                    $     56,865        $     63,975
                                                                              ------------        ------------

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           4,806,763
  Capital in excess of par value                                                28,693,033          28,693,033
                                                                              ------------        ------------
                                                                                33,499,796          33,499,796
  Deficit accumulated during development stage                                 (25,377,360)        (25,101,364)
                                                                              ------------        ------------
  Total shareholders' equity                                                     8,122,436           8,398,432
                                                                              ------------        ------------

Total liabilities, minority interests and shareholders' equity                $  8,179,301        $  8,462,407
                                                                              ============        ============
</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               (Jan. 31, 1953)
                                                                      March 31,                    to March 31,
                                                              1998                1997                 1998
                                                           ---------           ---------         ---------------

<S>                                                        <C>                 <C>                  <C>       
Interest and other income                                  $  51,974           $  82,458            $3,558,100
                                                           ---------           ---------            ----------

Expenses:
  Legal fees and costs                                       113,939             158,212            11,583,842
  Administrative expenses                                    133,290             123,390             6,502,439
  Salaries                                                    39,000              39,000             2,789,278
  Shareholder communications                                  34,260              34,799             3,470,291
  Exploration costs                                            7,481               7,552               760,075
  Lawsuit judgments                                                -                   -             1,941,916
  Minority interests                                               -                   -              (632,974)
  Other                                                            -                   -               364,865
  Contractual services                                             -                   -             2,155,728
                                                           ---------           ---------            ----------
                                                             327,970             362,953            28,935,460
                                                           ---------           ---------            ----------

Net loss                                                   $(275,996)          $(280,495)
                                                           ==========          ==========

Deficit accumulated during
  development stage                                                                                $25,377,360
                                                                                                   ===========

Average number of shares
  Outstanding (Basic & Diluted)                           40,056,358          40,053,858
                                                          ==========          ==========

Net loss per share (Basic & Diluted)                         $(.01)              $(.01)
                                                             ======              ======
</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
                                                                  Three months ended              (Jan. 31, 1953)
                                                                        March 31,                  to March 31,
                                                                1998                 1997              1998
                                                             ---------            ---------       ---------------
Operating activities:
<S>                                                          <C>                  <C>              <C>          
Net loss                                                     $(275,996)           $(280,495)       $ (25,377,360)
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                                      13,895              (19,924)             (63,407)
       U.S. Government securities                              487,733              289,839              487,733
       Prepaid insurance                                        32,260               23,015             (181,580)
       Current liabilities                                      (7,109)            (179,586)              56,865
       Other                                                      (130)                (730)             472,011
                                                             ---------            ---------        -------------
Net cash provided by (used for) operating
  activities                                                   250,653             (167,881)         (24,482,738)
                                                             ---------            ---------        -------------

Investing activities:
  Additions to oil, gas, and mineral
    Properties net of assets acquired
    for common stock                                           (49,204)            (193,036)          (4,444,336)
  Reimbursement of lease rentals and
    other expenses                                                   -                    -            1,243,086
  U.S. Government securities sold (purchased)                        -              198,064           (3,433,035)
  Purchase of fixed assets                                           -                    -              (61,649)
                                                             ---------            ---------        -------------
Net cash provided by (used for) investing
  activities                                                   (49,204)               5,028           (6,695,934)
                                                             ---------            ---------        -------------

Financing activities:
  Cash proceeds from sale of
    common stock less expenses                                       -                    -           26,342,205
  Shares issued upon exercise of
    options                                                          -               11,250              884,249
  Sale of shares by subsidiary                                       -                    -              750,000
  Sale of subsidiary shares                                          -                    -            3,720,000
                                                             ---------            ---------        -------------
Net cash provided by financing activities                            -               11,250           31,696,454
                                                             ---------            ---------        -------------
Net increase (decrease) in cash
  and cash equivalents                                         201,449             (151,603)             517,782
Cash and cash equivalents at
  beginning of period                                          316,333              424,330                    -
                                                             ---------            ---------        -------------

Cash and cash equivalents at
  end of period                                              $ 517,782            $ 272,727        $     517,782
                                                             =========            =========        =============
</TABLE>



<PAGE>



                         PART I - FINANCIAL INFORMATION

                     COASTAL CARIBBEAN OILS & MINERALS LTD.

                                 March 31, 1998

ITEM 1   -    Financial Statements

         The  information  for the three month  periods ended March 31, 1998 and
1997 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").

         Statements   included  in  Management's   Discussion  and  Analysis  of
Financial Condition and Results of Operations which are not historical in nature
are intended to be, and are hereby  identified as "forward  looking  statements"
for  purposes  of the  "Safe  Harbor"  Statement  under the  Private  Securities
Litigation Reform Act of 1995. The Company cautions readers that forward looking
statements  are  subject to certain  risks and  uncertainties  that could  cause
actual results to differ  materially from those indicated in the forward looking
statements.

         The Company's  principal  assets are oil, gas, and mineral leases,  the
costs of which total $4.4  million at March 31,  1998.  The Company has been and
continues  to be  involved  in several  legal  proceedings  against the State of
Florida  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 March  31,  1998,  Coastal  Caribbean  had cash  and  securities  of
approximately  $3.5  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.

                                 March 31, 1998

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  $1
million for the 1998-1999  period,  and is subject to the outcome of the Florida
litigation.  During the  quarter  ended  March 31,  1998,  the Company has spent
approximately  $50,000  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  (including  the  cost  of the
                  recommended surety),  which is estimated to cost approximately
                  $5.5 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 March 31, 1998 vs. March 31, 1997

         The Company incurred a loss of $276,000 for the 1998 quarter,  compared
to a loss of $280,000 for the comparable 1997 quarter.

         Interest income and other income  decreased 37% from $82,000 in 1997 to
$52,000 in 1998 because less funds were available for investment during the 1997
period and interest rates were lower.

         Legal fees and costs  decreased  28% to $114,000 for the 1998  quarter,
compared to $158,000 in the prior  period.  In the 1997 period,  the Company had
been involved in various appeals and hearings in opposition to the issuance of a
drilling permit. During the current period, the Company was awaiting a decision.

         Administrative  expenses increased 9% to $133,000 in 1997 from $122,000
in the prior quarter. The amount of directors' and officers' liability insurance
was increased in July 1997.



<PAGE>



                           PART II - OTHER INFORMATION

                     COASTAL CARIBBEAN OILS & MINERALS LTD.

                                 March 31, 1998

ITEM 5   -    Other Information

         On April 8, 1998, a Florida  Administrative  Law Judge recommended that
the Coastal Petroleum Company is entitled to an offshore drilling permit for its
St.  George Island  prospect,  with a  recommended  surety of $225 million.  The
Department of Environmental  Protection  ("DEP") had recommended a $4.25 billion
surety. The Company expects that on May 12, 1998, the Administration  Commission
will take action  regarding the judge's  recommendations.  In addition,  the DEP
must act on the recommendations before May 26, 1998.

         On March 24, 1998,  Coastal  Petroleum  Company  filed a petition for a
Formal  Administrative  Hearing to resolve  the dispute  with the DEP  regarding
their denial of the 12 drilling permit applications (excluding the St.
George Island prospect above).

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

         On January 28, 1998,  the Company filed a Current Report on Form 8-K to
report that the Florida Supreme Court refused to review the First District Court
of  Appeals   decision  denying  Coastal   Petroleum   Company's  claim  that  a
compensatory taking of its royalty interest acreage had occurred.

         On March 26, 1998,  the Company  filed a Current  Report on Form 8-K to
report that the Florida DEP denied 12 drilling  permit  applications  which were
submitted in1997 by Coastal Petroleum Company.



<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:  May 8, 1998                       By /s/ James R. Joyce
                                            ------------------------------------
                                            James R. Joyce
                                            Treasurer and Chief Accounting and
                                            Financial Officer