Form 1O-Q


                  SECURITIES AND EXCHANGE COMMISSION

                        Washington, D.C. 20549



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


              For the Quarterly Period Ended September 30, 2003


                     Commission File No. 0-1392


                    Central Natural Resources, Inc.
      Incorporated in State of Delaware IRS Number:  44-0195290
                      911 Main Street, Suite 1710
                      Kansas City, Missouri 64105

                         Phone:  816-842-2430


Indicate by checkmark whether the registrant (l) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 duringthe preceding twelve months, and (2) has been subject
to suchfiling requirements for the past ninety days.


                            Yes [X]     No [ ]

Indicate by checkmark whether the registrant is an accelerated filer
(as defined in rule 12 6-2 of the Exchange Act)

                            Yes [ ]     No [X]



               Common stock outstanding as of October 31, 2003
                       $1 par value; 491,824 shares

<PAGE>


CENTRAL NATURAL RESOURCES, INC.

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION

        Item 1. Financial Statements:

           Consolidated Balance Sheets - September 30, 2003 and
             December 31, 2002

           Consolidated Statements of Earnings and Retained Earnings
             - Nine months ended September 30, 2003 and 2002 and three
               months ended September 30, 2003 and 2002

           Consolidated Statements of Comprehensive Income
             -Nine months ended September 30, 2003 and 2002 and
              three months ended September 30, 2003 and 2002

           Consolidated Statements of Cash Flows - Nine months
             ended September 30, 2003 and 2002

           Notes to Consolidated Financial Statements

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

        Item 3. Quantitative and Qualitative Disclosures About
          Market Risk

        Item 4. Controls and Procedures

PART II - OTHER INFORMATION

        Item 1. Legal Proceedings

        Item 2. Changes in Securities, and Use of Proceeds

        Item 3. Defaults Upon Senior Securities

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

        Item 5. Other Information

        Item 6. Exhibits and Reports on Form 8-K

SIGNATURES

<PAGE>
<TABLE>

PART I - FINANCIAL INFORMATION         ITEM 1.  FINANCIAL STATEMENTS

CENTRAL NATURAL RESOURCES, INC.

Consolidated Balance Sheets

September 30, 2003 and December 31, 2002
(Unaudited)

(amounts in unit dollars)
<CAPTION>

ASSETS                                          2003         2002

                                                __________   __________
<S>                                             <C>          <C>

Current assets:
,  Cash and cash equivalents                   $   728,369    1,956,795
  Accounts receivable                               52,750       22,500
  Securities maturing within one year,
   at amortized cost (note 2)                    2,998,586    2,994,347
  Notes receivable, current                         58,151       65,221
  Income tax receivable                             44,468      206,867
  Deferred income taxes                                  -        4,204
  Other                                             61,689       11,416
                                                __________   __________

Total current assets                             3,944,013    5,261,350
                                                __________   __________

Equity securities, at fair value (note 2)          620,869      642,637
Other Investments                                  262,720      350,002
Deferred income taxes                                    -       13,200

Coal deposits, surface land,leasehold
 improvements and oil and gas property
 (notes 3 and 4):
  Coal deposits                                  1,602,882    1,602,882
  Mineral rights                                    39,988       39,988
  Surface land                                      25,267       25,562
  Oil and gas property                           1,535,426      150,135
                                                 __________   __________
                                                 3,203,563    1,818,567

  Less accumulated depletion, depreciation
     and amortization                              632,928      583,748
                                                __________   __________

     Net coal deposits, surface land,
      leasehold improvements and oil and
      gas property                               2,570,635    1,234,819
                                                __________   __________

     Total assets                             $  7,398,237    7,502,008
                                                __________   __________

</TABLE>

See accompanying notes to consolidated financial statements.

<TABLE>
<CAPTION>

LIABILITIES AND STOCKHOLDERS' EQUITY

<S>                                             <C>          <C>

Current liabilities:
  Accounts payable and accrued expenses       $     37,329       20,279
  Deferred income advance oil lease bonus                -       11,250
  Federal and state income taxes                    55,154            -
                                                __________   __________

Total current liabilities                           92,483       31,529
                                                __________   __________

  Deferred income taxes                             17,052            -


  Preferred stock of $1 par value; 100,000
   Shares authorized; no shares issued                   -            -
  Common stock of $1 par value; 2,500,000
   Shares authorized; 503,924 issued               503,924      503,924

  Treasury stock 12,100 shares in 2003
    and 5,000 shares in 2002                      (161,775)     (71,250)

  Retained earnings                              6,808,307    6,941,699

  Accumulated other comprehensive income,
   net of deferred taxes of $74,437 in 2003
   and $51,749 in 2002                             138,246       96,106
                                                __________   __________

  Total stockholders' equity                     7,288,702    7,470,479

                                                __________   __________

  Total liabilities and stockholder's equity  $  7,398,237    7,502,008
                                                __________   __________

<FN>

See accompanying notes to consolidated financial statements.

</TABLE>


<PAGE>
<TABLE>

CENTRAL NATURAL RESOURCES, INC.

Consolidated Statements of Earnings and Retained Earnings

Nine months ended September 30, 2003 and 2002 and
three months ended September 30, 2003 and 2002
(Unaudited)

(amounts in unit dollars)
<CAPTION>


                                 Nine months ended   Three months ended
                                    September 30,      September 30,
                                  2003      2002      2003      2002
                                _________ _________  _________ _________
<S>                             <C>       <C>        <C>       <C>

Operating revenue:
  Coal royalties              $    45,000    45,000     22,500    22,500
  Oil and gas royalties           445,781   312,957    152,654   123,401
  Oil and gas revenue             291,183         -     99,551         -
  Oil and other mineral lease
   rentals and bonuses             23,985   100,415      8,710     3,837
                                _________ _________  _________ _________
    Total operating revenue       805,949   458,372    283,415   149,738


Oil and gas operating expenses     94,898         -     26,175         -
DD&A expense                       49,180     1,125     14,283       563
Exploration Expenses              165,503         -    165,503         -
General and administrative
  expenses                        482,588   416,409    145,736   124,972
Gain on sales of real estate      (16,002)        -          -         -
                                _________ _________  _________ _________
    Total expenses                776,167   417,534    351,697   125,534
                                _________ _________  _________ _________

    Operating income (loss)        29,782    40,838    (68,282)   24,204
                                _________ _________  _________ _________

Nonoperating income:
  Investment expense (income)     (14,001) (664,979)    30,575  (193,671)
  Other                               656     2,431         12     2,280
                                _________ _________  _________ _________

    Total nonoperating
      income (loss)               (13,345) (662,548)    30,587  (191,391)
                                _________ _________  _________ _________

    Earnings(loss)from
     continuing operations
     before income taxes           16,437  (621,710)   (37,695) (161,187)

Income taxes                          861  (280,115)    (3,125)  (64,918)
                                _________ _________  _________ _________

   Net earnings (loss)             15,576  (341,595)   (34,570) (102,269)


Retained earnings at
 beginning of period            6,941,699 7,445,022  6,892,059 7,104,910
Deduct cash dividends paid
 of $.30 per share in 2003
 and $.30 per share in 2002      (148,968) (151,177)   (49,182)  (50,393)
                                _________  _________  _________ _________

Retained earnings at end
 of period                    $ 6,808,307  6,952,248  6,808,307 6,952,248


Earnings (loss) per share-
   basic and diluted          $      0.03      (0.68)     (0.07)    (0.20)
                                _________  _________  _________ _________

Weighted average number
 of shares of common stock
    outstanding
  Basic                           497,103    503,924    493,522   503,924
  Diluted                         497,103    503,924    493,522   503,924


<FN>

See accompanying notes to consolidated financial statements.

</TABLE>

<PAGE>
<TABLE>

CENTRAL NATURAL RESOURCES, INC.

Consolidated Statements of Comprehensive Income
Nine months ended September 30, 2003 and 2002 and
three months ended September 30, 2003 and 2002
(Unaudited)

(amounts in unit dollars)
<CAPTION>

                                 Nine months ended    Three months ended
                                    September 30,        September 30,
                                   2003      2002        2003      2002
                                _________ _________   _________ _________
<S>                             <C>       <C>         <C>       <C>

Net earnings (loss)         $      15,576  (341,595)    (34,570) (102,269)
                                _________ _________   _________ _________


Other comprehensive income:
 Realized gains and unrealized
  appreciation (depreciation)
  on investments                   93,031   (41,814)     86,281   (58,125)
 Income taxes                     (32,559)   14,635     (30,198)   20,344
                                _________ _________   _________ _________


    Realized gains and
     unrealized appreciation       60,472   (27,179)     56,083   (37,781)
                                _________ _________   _________ _________

Less:
 Realized investment (gains)
  losses included in net
  earnings                        (28,203)   48,497     (15,534)   65,666

 Income taxes                       9,871   (16,974)      5,437   (22,983)
                                _________ _________   _________ _________

                                  (18,332)   31,523     (10,097)   42,683
                                _________ _________   _________ _________

                                   42,140     4,344      45,986     4,902
                                _________ _________   _________ _________

    Comprehensive
      income (loss)            $   57,716  (337,251)     11,416   (97,367)

<FN>

See accompanying notes to consolidated financial statements.

</TABLE>

<PAGE>
<TABLE>

CENTRAL NATURAL RESOURCES, INC.

Consolidated Statements of Cash Flows

Nine months ended September 30, 2003 and 2002
(Unaudited)

(amounts in unit dollars)
<CAPTION>


                                                   2003         2002
                                                 _________    _________
<S>                                              <C>          <C>

Cash flows from operating activities:
  Net earnings (loss)                         $     15,576     (341,595)
  Adjustments to reconcile net earnings (loss)
    to net cash provided by (used in)
      operating activities:
    Depletion, deprecition, and amortization        49,180        1,125
    Amortization of premiums and discounts of
      Securities, net                              (24,181)     (51,138)
    Impairment charge on equity securities               -      686,229
    Impairment charge on other investments          87,282            -
    Gain on sales of real estate                   (16,002)           -
    Loss(gain)on sales of equity
       securities                                  (28,203)      48,497
    Changes in assets and liabilities:
      Accounts receivable and other assets         (80,523)      94,816
      Income tax receivable                        162,399            -
      Deferred oil lease bonus                     (11,250)     (47,353)
      Accounts payable and accrued expenses         17,050       15,966
      Federal and state income taxes                66,922     (259,237)
                                                 _________    _________

         Total adjustments                         222,674      488,905
                                                 _________    _________

   Net cash provided by
        operating activities                       238,250      147,310
                                                 _________    _________

Cash flows from investing activities:
  Proceeds from note receivable                      7,070       12,885
  Proceeds from matured/called investment
   debt securities                              12,000,000   16,000,000
  Purchases of investment debt securities      (11,980,058) (15,946,547)
  Proceeds from sales of land                       16,297            -
  Purchases of oil and gas lease property       (1,219,843)           -
  Purchases of equity securities                    (1,367)    (296,138)
  Proceeds from sales of equity securities         116,426      149,067
  Purchase of oil and gas lease property        (1,385,291)           -
  Purchase of other investments                          -     (143,256)
                                                  _________    _________

   Net cash provided by
    investing activities                        (1,227,183)    (233,989)
                                                 _________    _________

Cash flows from financing activities:
  Purchase of treasury stock                       (90,525)           -
  Payment of dividends                            (148,968)    (151,177)
                                                 _________    _________


   Net cash used in financing activities          (239,493)    (151,177)
                                                 _________    _________

   Net increase in cash and cash equivalents    (1,228,426)    (227,856)


Cash and cash equivalents,
 beginning of year                               1,956,795    1,285,926

                                                 _________    _________

Cash and cash equivalents,
 end of period                                $    728,369    1,058,070

<FN>

See accompanying notes to consolidated financial statements.

</TABLE>

<PAGE>

CENTRAL NATURAL RESOURCES INC.

Notes to Unaudited Consolidated Financial Statements

September 30, 2003

(1) Basis of Presentation:

In  the  opinion of Central Natural Resources, Inc. (the Company),
the   accompanying  unaudited  consolidated  financial  statements
contain  all  adjustments  (consisting of  only  normal  recurring
(accruals)  necessary to present fairly the financial  position as
of  September  30,  2003, and the results of operations  and  cash
flows for the periods ended September 30, 2003 and 2002.

The  consolidated financial statements are presented in accordance
with  the  requirements  of Form 10-Q and,  consequently,  do  not
include  all  the  disclosures required by  accounting  principles
generally  accepted in the United States of America.  For  further
information,  refer to the consolidated financial  statements  and
notes  thereto  included in the Company's Annual  Report  on  Form
10-K for the year ended December 31, 2002.

The  Company uses the Successful Efforts method of accounting  for
revenue  and  expenses from oil and gas production that  has  been
detailed in the Company's 10-K and previous reports.  Revenue  and
expenses associated with oil and gas production is accrued in  the
period  the  revenue  or  expenses  are  generated.   Revenue  and
expenses  from  oil  and  gas  production  in  the  period   ended
September 30, 2003 was generated by working interests in  oil  and
gas properties acquired in February 2003 and working interests  in
unproved  properties acquired in July 2002. No revenue or expenses
from  oil  and  gas  production was recorded in the  period  ended
September 30, 2002.

Exploration  and  Production  -  Exploration  expenses,  including
geological  and  geophysical  costs, rental  and  exploratory  dry
holes,   are  charged  against  income  as  incurred.   Costs   of
successful   wells   and   related   production   equipment    and
developmental  dry  holes are capitalized and amortized  by  field
using  the  unit-of-production method  as  the  oil  and  gas  are
produced.

Undeveloped acreage costs are capitalized and amortized  at  rates
that  provide  full  amortization on abandonment  of  unproductive
leases.  Costs of abandoned leases are charged to the  accumulated
amortization  accounts,  and  costs  of  productive   leases   are
transferred to the developed property accounts.

Other  -  Property,  plant and equipment is stated  at  cost  less
reserves    for    depreciation,   depletion   and   amortization.
Maintenance  and  repairs are expensed as  incurred,  except  that
costs  of  replacements  or renewals that improve  or  extend  the
lives of existing properties are capitalized.

Impairment  of  Long-Lived Assets - Proved oil and gas  properties
are  reviewed for impairment on a field-by-field basis when  facts
and circumstances indicate that their carrying amounts may not  be
recoverable.   In performing this review, future  cash  flows  are
estimated  by  applying estimated future oil  and  gas  prices  to
estimated  future  production, less estimated future  expenditures
to  develop  and  produce  the reserves.   If  the  sum  of  these
estimated  future  cash flows (undiscounted and  without  interest
charges)  is  less  than the carrying amount of the  property,  an
impairment  loss  is  recognized for the excess  of  the  carrying
amount  over  the  estimated fair value of the property  based  on
estimated future cash flows.

Results  of  operations for interim periods  are  not  necessarily
indicative of results to be expected for a full year.


Stock Option Plans

In  the  first  nine  months  of 2003 the  Company  granted  stock
options  in  the amount of 1,250 shares to each of  the  Directors
under  the  Company's "Director Nonqualified Stock  Option  Plan".
Also  in  the first nine months of 2003, the Company approved  the
grant  of  6,000  options,  vesting in equal  amounts  over  three
years,  to  Phelps  C. Wood, the Chief Executive  Officer  of  the
Company.  In the third quarter of 2003 the Company made no  grants
to  Directors or to employees of the Company.  The Company applies
the  intrinsic  value-based  method of  accounting  prescribed  by
Accounting  Principles Board (APB) Opinion No. 25, Accounting  for
Stock   Issued  to  Employees,  and  related  interpretations   in
accounting   for   its  fixed  plan  stock   options.   As   such,
compensation expense would be recorded on the date of  grant  only
if  the then current market price of the underlying stock exceeded
the  exercise  price. Statement of Financial Accounting  Standards
(SFAS)   No.   123,   Accounting  for  Stock-Based   Compensation,
established  accounting and disclosure requirements using  a  fair
value-based   method   of  accounting  for  stock-based   employee
compensation  plans. As allowed by SFAS No. 123, the  Company  has
elected  to continue to apply the intrinsic value-based method  of
accounting   described  above,  and  has  adopted  the  disclosure
requirements  of  SFAS No. 123.  The following  table  illustrates
the  effect  on net income (loss) if the fair value  based  method
had  been applied to all outstanding and unvested awards  in  each
period:

<TABLE>

<CAPTION>


                                   Nine months ended    Three months ended
                                      September 30,        September 30,
                                    2003      2002       2003      2002
                                  ________   _______     _______  _______

                               <c>        <c>         <c>      <c>


Net Earnings (loss):
 As Reported                 $    15,576    (341,595)   (34,570) (102,269)
 Stock Options                    (4,762)     (4,860)    (4,762)   (4,860)
 Pro Forma                        10,814    (346,455)   (39,332) (107,129)


Earnings (loss) per share:
 As Reported                 $      0.03       (0.68)     (0.07)   (0.20)
 Pro Forma                          0.02       (0.71)     (0.08)   (0.21)

                                 _________   ________    _______  _________


</TABLE>

(2) Investment Securities:

The   amortized  cost,  gross  unrealized  holding  gains,   gross
unrealized  holding  losses, and fair value  for  held-to-maturity
and  available-for-sale  securities  by  major  security  type  at
September 30, 2003 and December 31, 2002 are as follows:


<TABLE>
<CAPTION>

                                    Gross       Gross
                                    unrealized  unrealized
                        Amortized   holding     holding     Fair
September 30, 2003           cost        gains       losses      value
__________________      __________  __________  __________  __________
<S>                     <C>         <C>         <C>         <C>

Held-to-maturity:
 U. S. government
  agency securities   $  2,998,586           -         (3)   2,998,583

Available-for-sale:
  Equity securities   $    408,185     213,264       (580)     620,869

</TABLE>

<TABLE>
<CAPTION>

December 31, 2002
_________________
<S>                     <C>         <C>         <C>         <C>

Held-to-maturity:
 U. S. government
   agency securities  $  2,994,347           -       (347)   2,994,000

Available-for-sale:
  Equity securities   $    494,782     153,461     (5,606)     642,637


<PAGE>


CENTRAL NATURAL RESOURCES INC.

Notes to Unaudited Consolidated Financial Statements

</TABLE>

Investment income (loss) consists of the following for each of the
periods ended September 30:

<TABLE>

<CAPTION>

                                   Nine months ended    Three months ended
                                       September 30,        September 30,
                                     2003      2002       2003      2002
                                  ________   _______     _______  _______

                               <c>        <c>         <c>      <c>

Realized gains on sales
 of equity securities            $  28,203   (48,497)     15,534  (65,666)
Impairment charge                  (87,282) (686,229)          - (151,096)
Interest Income                     39,507    62,943      13,406   18,891
Dividend Income                      5,571     6,804       1,635    4,200
                                   _______   _______     _______  _______

                                 $ (14,001) (664,979)     30,575 (193,671)


</TABLE>

Investments  in debt securities are classified as held-to-maturity
securities,  which are carried at amortized cost.  Investments  in
marketable  equity securities are classified as available-for-sale
securities,  which  are  carried at fair  value,  with  unrealized
gains  and  losses  excluded from earnings and reported  in  other
comprehensive income.

A  decline  in  the  market  value of  any  available-for-sale  or
held-to-maturity security below cost that is deemed  to  be  other
than  temporary results in a reduction in carrying amount to  fair
value. The impairment is charged to earnings and a new cost  basis
for  the  security is established. Other than temporary impairment
is  analyzed  quarterly on an individual security basis  based  on
the  length of time and the extent to which market value has  been
less  than  cost; the financial condition and any specific  events
which  effect the issuer; and the Company's intent and ability  to
hold  the  security. During the three months ended  September  30,
2003,  the  Company recognized no impairment charge for marketable
equity securities.

Other  investments represent an equity interest in  non-marketable
securities  for  which  the Company does not  possess  significant
influence. These  investments are accounted  for  at  cost. An
impairment charge  was recognized in the  amount  of  $87,282 to
reflect an impairment in these securities in the first quarter of
2003.

(3) Investment in Oil and Gas Property

For  the period ended September 30, 2003, working interests in oil
and  gas  producing  properties acquired by the Company's  wholly-
owned  subsidiary,  CNR  Production, L.L.C.  (CNR)  in  the  first
quarter  of  2003,  and discussed in previous  reports,  generated
100%  of  oil and gas production.  In the third quarter  of  2003,
CNR  began development work on its working interest properties  in
the  Flores  and the Tabasco fields in Hidalgo and Starr  Counties
in  south  Texas.   Through the end of the third quarter  CNR  had
paid   $245,750   on  four  wells  in  this  area  (including   an
exploratory  well  on unproved property for  which  a  2%  working
interest  was  acquired in May, 2003, as discussed in  a  previous
report).   At quarter end, two wells were in the process of  being
completed  while drilling activity continued on the remaining  two
wells.

Through  the  end  of  the third quarter of  2003,  CNR  had  paid
$154,870  toward exploratory well development on CNR's east  Texas
working interest property located in Liberty County.  This  amount
includes  $92,785 expensed on the  income  statement  under
"Exploration  expenses" due to unsuccessful exploratory  wells.
At quarter end, one well was in  the process  of  being completed
while drilling activity continued  on the  second well (known as
the Grayburg #1).  After the  close  of the  quarter,  the operator
of the property made the determination that  the Grayburg #1 was a
dry-hole and would need to be  plugged and  abandoned.  Costs
incurred on this well in the third  quarter are included in
Exploration expenses described above.

Oil  and  gas property recorded on the balance sheet is  comprised
of  property  that is both proved and unproved.  At September  30,
2003,  unproved properties amounted to $227,406, which  is net of
a  write-down  of  $72,718 associated  with exploratory dry-holes
expensed in the third quarter of 2003 under Exploration Expenses
on the Income Statement.

<PAGE>

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

Results of Operations

Total operating revenue increased in the first nine months of  2003
over  the  first nine months of 2002, and in the third  quarter  of
2003  over  the third quarter of 2002, due partially  to  increased
revenue  from  oil and gas royalties which, in turn,  were  due  to
increased  production  of oil and gas during  the  current  periods
under comparison, coupled with an increase in average prices during
the  comparable  periods. Additionally, revenue from  oil  and  gas
working  interests  acquired  in the  first  quarter  of  2003,  as
described  in  more  detail in Note 3 to the Financial  Statements,
contributed  to  the increase in operating revenue in  the  current
period.   Oil and other mineral lease rentals and bonuses decreased
in the first nine months of 2003 from the first nine months of 2002
despite  a  slight increase in the third quarter of 2003  over  the
third  quarter  of 2002.  The decrease during the comparable  nine-
month periods was due to reduced lease and bonus activities in  the
periods under comparison as well as lower income recognizable  from
these sources in the current periods under consideration.

As  mentioned  in  prior  reports, a  lessee  continues  to  expand
drilling  operations and production of coal bed  methane  gas  from
certain  of  the  Company's coal properties  located  in  Sebastian
County,  Arkansas,  with revenue continuing  to  be  received  from
royalties  from  this operation during the current  fiscal  periods
under   comparison.   Commercial  production  has   been   somewhat
consistent  over the past two years, however, the lessee  plans  to
further  develop this property over the next 12 to 18  months.   If
this  development  is  successful, it  could  result  in  increased
production  and a corresponding increase in the amount  of  revenue
that  the  Company receives from this lessee.  Current  and  future
revenue  from  this  source will continue to be subject to the
uncertainties of  volume of production and price fluctuations in
the market price of natural gas.  For the nine months ended
September 30, 2003, royalties from coal  bed  methane production
associated with these properties  was $147,221  and  are included
in operating revenue  in  oil  and  gas royalties.

General  and  administrative expenses increased in both  the  third
quarter  of 2003 from the third quarter of 2002 and the first  nine
months of 2003 from the first nine months of 2002 due partially  to
increased  compensation associated with the engagement  of  a  full
time chief executive officer.  Expenses associated with oil and gas
operations,   which  include  lease  operating  costs,   depletion,
depreciation and amortization, and exploration expenses,  increased
due  to  the  acquisition and subsequent operation of  the  working
interests discussed previously.  Exploration expenses increased  in
the  third  quarter due to exploration activity  in  the  Company's
working  interest properties.  Exploration expenses  for  both  the
quarter  and  the nine month period ended September,  30,  includes
costs  relating  to unsuccessful well attempts as  well  as  the
write-down of capitalized lease costs related to those wells.

There  was  positive non-operating income in the third  quarter  of
2003 compared to a non-operating loss in the third quarter of 2002,
and non-operating losses decreased in the first nine months of 2003
from  the  first nine months of 2002. In the first nine  months  of
2002  the  Company recognized impairment charges reflecting  write-
downs  in  the  carrying  value  of certain  marketable  investment
securities  as  described in Note 2 because  decreases  in  current
market values of those securities were deemed by Management  to  be
other than temporary.  There was no impairment charge recognized on
investment  equity  securities in the first  nine  months  of  2003
although  during the first quarter of 2003 an impairment charge  of
$87,282  was taken on the carrying value of an investment  in  non-
marketable securities held by the Company.

The  Company  recorded a decrease in income tax  benefits  for  the
third quarter of 2003 from the third quarter of 2002 due to reduced
losses  in  the  current  period under  comparison.   Income  taxes
increased  in  the first nine months of 2003, from the  first  nine
months  of  2002 due to taxable earnings generated in  the  current
period versus a net loss in the comparable 2002 period.

<PAGE>

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

Financial Condition - Liquidity and Capital Resources

The  financial  condition of the Company  continued  to  be  strong
through the end of the first nine months of 2003 as it was  at  the
end  of  the  fiscal year in 2002.  Although the  Company  utilized
available liquidity to fund the acquisition of working interests in
south  Texas  as  well  as  exploratory and developmental  drilling
activities  in east Texas and south Texas by the Company's  wholly-
owned subsidiary, CNR Production L.L.C. (CNR), the liquidity of the
Company  continues  to  be  high as is evidenced  by  a  continuing
favorable ratio of current assets to current liabilities,  and  the
fact  that  a  significant  portion  of  the  Company's  net  worth
continues to be represented by liquid assets.

The  Company  continues  to  have no  bank  debt  or  other  lender
liability outstanding and no significant other liabilities.   There
are  no  off  balance sheet arrangements.  In addition,  since  the
Company  carries  no  inventory and has  low  amounts  of  accounts
receivable  and  accounts payable, its working  capital  needs  are
minimal, and since it has significant liquid assets, and there  are
no  current  known demands, commitments or contractual obligations,
Management believes that liquidity should continue to be  favorable
and the financial condition of the Company strong.

Regarding  future  capital  expenditures,  as  reported  in   prior
filings, CNR is participating in an oil and gas exploration venture
in  east  Texas  and  continues to expand  both  developmental  and
exploratory  efforts  on its south Texas properties.   Through  the
close  of  the  third  quarter  of  2003,  CNR  had  committed   to
participate in a total of seven wells as mentioned in Note  3,  and
CNR  believes  that  additional exploratory and developmental  well
potential  exists  in these areas.  CNR expects that  in  the  near
term,  these  activities will require additional funds pursuant  to
Authorizations for Expenditures as discussed hereafter.

With  regard  to CNR's working interests in oil and gas  properties
described above, it will be called upon, from time to time, to  pay
its  pro-rata share of expenses and capital expenditures associated
with  the  projects.  As  discussed  in  past  reports,  prior   to
expenditures  being  incurred  on  these  properties,  the  project
operator  will  issue  an Authorization for Expenditure  (AFE)  for
review  and  approval by CNR. Management believes that, based  upon
the  CNR's current liquidity level and the expected future  revenue
from  these  ventures,  sufficient  financial  resources  will   be
available  to  meet  any and all funding requirements  required  by
these projects.

Other  than  these projects, the Company has no specific commitment
for  material  expenditures at the present time.  Management  does,
however,  continue to actively pursue other business  opportunities
which may result in a more productive deployment of its assets  and
ultimately increase earnings, and in pursuit of that objective  has
focused   on   the  possible  acquisition  of  additional   mineral
properties or working interests in selected oil and gas operations.
In   addition,   Management  continues   to   aggressively   pursue
development of its currently owned oil and gas and coal  properties
and to attempt to lease more of its mineral properties in order  to
generate  additional rental, bonus and royalty  income.   The  only
continuing commercial commitment is the operating lease for general
office  space  of the Company and commitments with respect  to  the
Texas oil and gas projects referred to above.

Although, liquidity of the Company continues to be favorable, it is
affected  by cash flows.  The Consolidated Statement of Cash  Flows
in  the  accompanying Consolidated Financial Statements illustrates
that  there was a net decrease in cash and cash equivalents  during
the  first nine months of 2003 and in the same period in 2002,  but
the  decrease  was greater in the current period.  Contributing  to
the  differences was positive net earnings in the first nine months
of 2003 compared to a net loss in the first nine months of 2002 and
an  increase  in the amount of accounts receivable and advances  to
operators  included  in  other assets in 2003  and  a  decrease  in
deferred  oil  lease  bonuses.  The increase  in  cash  flows  from
operating  activities in the first nine months of 2003  versus  the
same period of 2002 was also affected by differences in income  tax
liability  including the receipt of a refund of state income  taxes
for prior years amounting to $70,093 in 2002. A significant use of
cash  from  investing  activities in the  current  period  was  the
acquisition  of  working interests in oil and  gas  properties  and
differences  in  the  amount of proceeds from the  sale  of  equity
securities  and purchase of equity securities, and  the  amount  of
proceeds from matured/called investment debt securities which  were
reinvested.  Both  the 2003 and the 2002 periods  under  comparison
included certain impairment charges which reduced earnings but  did
not reduce cash but the aggregate amount of such impairment charges
were  significantly greater in 2002.  A purchase of Treasury  Stock
in  the  first  nine months of 2003 reduced cash  compared  to  the
comparable period in 2002.

<PAGE>

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

Accounting Policies, Recent Accounting Pronouncements
and Other Matters

A  summary of significant accounting policies was contained in Note
1  to  the  consolidated financial statements of the Company  filed
with  Form 10-K for the year ended December 31, 2002.  One  example
of  a judgment made in applying a critical accounting policy is the
impairment charge made relative to the decline in market  value  of
certain securities that is deemed to be other than temporary as  is
referred  to  above.  The impairment of the value of securities  is
analyzed  quarterly on an individual security basis  based  on  the
length  of  time  (generally six months), and the extent  to  which
market  value has been less than cost; the financial condition  and
any  specific  events which affect the issuers; and  the  Company's
intent  and ability to hold the security. There would be materially
different  reported results if different assumptions or  conditions
were  to  prevail.  In the judgment of Management and the Board  of
Directors,  the indicated charges were appropriate,  however,  they
have  taken  note  of  the  fact that the  overall  return  of  the
portfolio  since  inception  is positive.   Another  example  of  a
judgment  made  in  applying a critical accounting  policy  is  the
periodic review of long-lived assets for impairment whenever events
or changes in circumstances indicate that the carrying amount of an
asset  may  not  be recoverable.  This accounting policy  has  been
applied  in the past, for example, in downward adjustments  to  the
carrying  value  of the Company's coal properties.   However,  this
accounting  policy  does not permit an upward  adjustment  in  such
carrying  values, when Management believes the current fair  market
value of an asset is greater than the carrying value on the balance
sheet  and  in fact Management believes that this may be  the  case
with respect to the carrying value of certain assets on the balance
sheet carried at their historical cost.

Yet  another example of judgment exercised in applying  a  critical
accounting  policy  is  the  election, approved  by  the  Board  of
Directors  of  the  Company, to utilize  the  "Successful  Efforts"
method  of accounting with respect to the operation of the oil  and
gas   working  interests  described  above.   "Successful  Efforts"
typically  results in more of the costs of operations  expensed  as
incurred.

A  cash  dividend of $0.10 per share was paid in each of the first,
second and third quarters of 2003, and a cash dividend of the  same
amount  was paid in the first, second and third quarters  of  2002.
After  the  close  of  the current quarter, the  Board  declared  a
dividend of $0.10 to be paid in the fourth quarter.

The  Company  was  required to adopt SFAS No. 143,  Accounting  for
Asset  Retirement Obligations on January 1, 2003 and SFAS No.  144,
Accounting for the Impairment or Disposal of Long-Lived  Assets  on
January 1, 2002.  The adoption of SFAS No.143 and SFAS No. 144  had
no material impact on the Company's financial statements.

Forward-Looking Statements

This  report contains forward-looking statements that are based  on
current  expectations, estimates, forecasts, and projections  about
the  business  segment in which the Company operates,  Management's
beliefs,  and  assumptions  made by Management.   These  and  other
written   or   oral   statements  that  constitute  forward-looking
statements  may  be  made by or on behalf of  the  Company.   These
statements  are  not guarantees of future performance  and  involve
assumptions and certain risks and uncertainties that are  difficult
to  predict,  such  as future changes in energy  prices,  including
fluctuations  in prevailing prices for oil and gas,  the  Company's
ability  to participate in or co-venture successful exploration  or
production of natural resources (such as oil, gas, coal  and  other
minerals),   results   of  drilling  and  other   exploration   and
development  activities, uncertainties regarding future  political,
economic,  regulatory, fiscal, and tax policies  and  practices  as
well   as  assumptions  concerning  a  relatively  stable  national
economy,  and the absence of a major disruption such as a  domestic
act  of  terrorism and the uncertainties of even routine litigation
in  which the Company is involved from time-to-time in the ordinary
course of its business operations.  In addition, the company relies
on  professional and management services provided by third  parties
in certain of its operating activities.  Therefore, actual outcomes
and  results may differ materially from what is expressed, implied,
or  forecast in such forward-looking statements.  The Company  does
not,  by including this statement, assume any obligation to  review
or  revise  any  particular  forward-looking  statement  referenced
herein in light of future events.

<PAGE>

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK

The  primary market risk exposures of the Company relate to changes
in  interest rates, changes in equity security prices, and  changes
in certain commodity prices.

The Company's exposure to market risk for changes in interest rates
relates solely to its fixed income portfolio which consists  of  U.
S.   government   agency  securities.  All  such   securities   are
held-to-maturity  and have original maturities  of  less  than  one
year. The Company does not use derivative financial instruments  to
hedge interest rates on its fixed income investment securities.

The  Company's  exposure  to  market risk  for  changes  in  equity
security  prices relates solely to its marketable equity investment
portfolio  which consists primarily of common stocks  of  domestic,
publicly held enterprises.

The  Company's  exposure to market risk for  changes  in  commodity
prices  relates to changes in the prices of coal, oil, and  natural
gas,  and  the effect thereof on its royalties and rentals relating
to coal deposits and mineral rights, as is discussed in more detail
in  Management's Discussion and Analysis of Financial Condition and
Results  of Operations, set forth in Part 1, Item 2 of this report.
The  Company does not use derivative commodity instruments to hedge
its commodity risk exposures.

<PAGE>

ITEM 4.  CONTROLS AND PROCEDURES

As  of September 30, 2003, the Company's management, including  the
Chief  Executive Officer and the Chief Financial Officer, evaluated
the  effectiveness of the design and operation of  Central  Natural
Resources, Inc.'s disclosure controls and procedures as defined  in
Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act  of
1934. Based on that evaluation, the Company's management, including
its  Chief  Executive  Officer  and its  Chief  Financial  Officer,
concluded   that  its  disclosure  controls  and  procedures   were
effective  in  timely  alerting  management,  including  the  Chief
Executive  Officer  and the Chief Financial  Officer,  of  material
information  about the Company required to be included in  periodic
Securities  and Exchange Commission filings. However, in evaluating
the  disclosure controls and procedures, management recognized that
any  controls  and  procedures, no matter  how  well  designed  and
operated  can  provide only reasonable assurance of  achieving  the
desired control objectives, and management necessarily was required
to  apply  its judgment in evaluating the cost-benefit relationship
of  possible controls and procedures. There have been no changes in
the  Company's  internal  control  over  financial  reporting  that
occurred  during  the quarter ended September 30,  2003  that  have
materially affected, or are reasonably likely to materially affect,
its internal control over financial reporting.

<PAGE>

PART II - OTHER INFORMATION

Item 1.   Legal Proceedings - None

Item 2.   Changes in Securities, and Use of Proceeds - None

Item 3.   Defaults Upon Senior Securities - None

Item 4.   Submission of Matters to a Vote of Security Holders - None

Item 5.   Other Information - None

Item 6.   Exhibits and Reports on Form 8-K - Attached

<PAGE>

PART II, ITEM 6. - Exhibits and Reports on Form 8-K

(a)  Exhibits required by Item 601 of Regulation S-K are as follows:

Exhibit 31.1 - Certification required by Rule 13a-14(a) or Rule 15d-14(a)
for Chief Executive Officer (Attached as Exhibit 31.1 hereto).

Exhibit 31.2 - Certification required by Rule 13a-14(a) or Rule
15d-14(a) for Chief Financial Officer (Attached as Exhibit 31.2 hereto).

Exhibit 32.1 - Section 1350 Certification for Chief Executive Officer
(Attached as Exhibit 32.1 hereto).

Exhibit 32.2 - Section 1350 Certification for Chief Financial Officer
(Attached as Exhibit 32.2 hereto).

(b)  No Current Reports on Form 8-K were filed during the second
quarter

<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.



      CENTRAL NATURAL RESOURCES INC.
               (Registrant)


Date:   November 13, 2003
        ____________________________

By:     /s/   Phelps C. Wood
        ____________________________
              Phelps C. Wood
              President, and Chief Executive Officer


Date:   November 13, 2003
        ____________________________

By:     /s/ Leonard L. Noah
        ____________________________
            Leonard L. Noah,
            Chief Financial Officer