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 Quarter Ended March 31, 2004


                       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


The Registrant (l) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding twelve months, and (2) has been subject to such
filing requirements for the past ninety days.

                            Yes [X]     No [ ]

Indicate by check mark 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 April 30, 2004
                       $1 par value 493,637 shares

<PAGE>


                        CENTRAL NATURAL RESOURCES, INC.

                               Table of Contents

PART I - FINANCIAL INFORMATION

        Item 1. Financial Statements:

           Consolidated Balance Sheets - March 31, 2004 and
             December 31, 2003

           Consolidated Statements of Earnings and Retained Earnings
             - Three months ended March 31, 2004 and 2003

           Consolidated Statements of Comprehensive Income
             - Three months ended March 31, 2004 and 2003

           Consolidated Statements of Cash Flows - Three months
             ended March 31, 2004 and 2003

           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

        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

March 31, 2004 and December 31, 2003
(Unaudited)

(amounts in unit dollars)
<CAPTION>
ASSETS                                             2004          2003
                                                   __________    __________
                                                  (Unaudited)
<S>                                                <C>           <C>

Current assets:
  Cash and cash equivalents                   $    510,136      629,719
  Accounts receivable                              177,160      127,570
  Securities maturing within one year,
   at amortized cost                             2,997,076    2,999,314
  Note receivable, current                          20,318       21,651
  Income tax receivable                             78,511      110,289
  Advance to operator                              123,026	  6,997
  Other                                             18,687       16,633
                                                __________   __________
Total current assets                             3,924,914    3,912,173

Equity securities, at fair value                   564,523      603,481
Other investments                                  262,720      262,720

Property, plant and equipment
  Oil and gas producing properties
    (successful efforts)                         1,776,274    1,707,419
  Mineral interest properties                    1,668,137    1,668,137
                                                __________    _________

                                                 3,444,411    3,375,556
                                                __________   __________
  Less accumulated depletion, depreciation
   and amortization                                662,051      630,550
                                                __________   __________

      Net property, plant and equipment          2,782,360    2,745,006
                                                __________   __________
     Total assets                             $  7,534,517    7,523,380

</TABLE>


<PAGE>

<TABLE>

CENTRAL NATURAL RESOURCES, INC.
Consolidated Balance Sheets

March 31, 2004 and December 31, 2003
(Unaudited)

(amounts in unit dollars)
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY            2004         2003
                                                _________    _________
<S>                                             <C>          <C>
Current liabilities:
  Accounts payable and accrued expenses             77,751       44,066
                                                __________   __________
Total current liabilities                           77,751       44,066


  Deferred income taxes                            124,153      137,788

Stockholders' equity:
  Preferred stock of $1 par value; 100,000
   shares authorized; no shares issued                   0            0
  Common stock of $1 par value. Authorized
   2,500,000 shares; issued 506,924 shares
     in 2004 and 503,924 in 2003                   506,924      503,924

  Additional paid in capital                        33,750            0
  Unearned restricted stock                        (33,750)           0
  Treasury Stock-12,100 shares in
   2004 and 2003                                  (161,775)    (161,775)
  Retained earnings                              6,869,457    6,856,047
  Accumulated other comprehensive income
   net of deferred taxes of $63,540 in 2004
   and $77,175 in 2003                             118,007      143,330
                                                __________   __________
Total stockholders' equity                       7,332,613    7,341,526

                                                __________   __________
Total liabilities and stockholders' equity    $  7,534,517    7,523,380
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>

<PAGE>
<TABLE>

CENTRAL NATURAL RESOURCES, INC.

Consolidated Statements of Operations

Three months ended March 31, 2004 and 2003
(Unaudited)

(amounts in unit dollars)
<CAPTION>
                                                 2004           2003
                                                 __________     __________
<S>                                              <C>            <C>
Operating revenue:
  Mineral royalties                           $     127,470        146,064
  Oil and gas production                            243,248         93,475
                                                 __________     __________
   Total operating revenue                          370,718        239,539

Oil and gas operating expenses                       54,273         49,456
Depreciation, depletion and amortization             31,501         15,426
Exploration expenses                                    963              0
General and administrative expenses                 199,945        151,084
Gains on sales of real estate                             0        (16,002)
                                                 __________     __________
   Total expenses                                   286,682        199,964
                                                 __________     __________

   Operating income                                  84,036         39,575
                                                 ___________    __________
Nonoperating income (loss):
  Investment income (loss)                           10,616        (56,909)
  Other                                                  16            612
                                                 __________     __________
   Total nonoperating income (loss)                  10,632        (56,297)
                                                 __________     __________
   Earnings (loss)
     before income taxes                             94,668        (16,722)

Income taxes (benefit)                               31,777        (13,301)
                                                 __________     __________
   Net earnings (loss)                               62,891         (3,421)


Retained earnings at
 beginning of period                              6,856,047      6,941,699
Deduct cash dividends paid of $0.10 per
 share in 2004 and$0.10 per share in 2003           (49,481)       (49,892)
                                                  _________      _________
Retained earnings at end
 of period                                    $   6,869,457      6,888,386

Loss per share - basic
 and diluted                                  $        0.13          (0.01)

Weighted average number
 of shares of common
 stock outstanding
   Basic & Diluted                                  493,637        498,924

<FN>
See accompanying notes to consolidated financial statements.
</TABLE>

<PAGE>
<TABLE>

CENTRAL NATURAL RESOURCES, INC.

Consolidated Statements of Comprehensive Income

Three months ended March 31, 2004 and 2003
(Unaudited)

(amounts in unit dollars)
<CAPTION>
                                   2004        2003
                                   ___________  __________
<S>                                <C>          <C>

Net earnings (loss)               $     62,891      (3,421)
                                   ___________  __________

Other comprehensive income (loss):
 Realized gains and unrealized
  appreciation (depreciation)
  on investments                       (38,608)     (2,640)
 Income taxes                           13,513         924
                                   ___________  __________

   Realized gains and unrealized
     appreciation (depreciation)
     on investments, net               (25,095)     (1,716)
                                   ___________  __________
Less:
   Realized investments (gains)
     losses included in net
      earnings                            (350)    (13,660)
   Income taxes                            122       4,781
                                   ___________  __________
                                          (228)     (8,879)
                                   ___________  __________
                                       (25,323)    (10,595)
                                   ___________  __________

    Comprehensive income
      (loss)                    $       37,568     (14,016)



<FN>
See accompanying notes to consolidated financial statements.
</TABLE>

<PAGE>
<TABLE>

CENTRAL NATURAL RESOURCES, INC.

Consolidated Statements of Cash Flows

Three months ended March 31, 2004 and 2003
(Unaudited)

(amounts in unit dollars)
<CAPTION>
                                                   2004          2003
                                                   __________    __________
<S>                                                <C>           <C>
Cash flows from operating activities:
  Net earnings (loss)                            $     62,891        (3,421)

  Adjustments to reconcile net earnings loss
     to net cash provided by (used in) operating
       activities:
      Depletion, depreciation and amortization         31,501        15,426
      Amortization of premiums and discounts
         Of securities, net                            (7,226)       (8,775)
      Impairment charge on other investments                0        87,282
      Gain on sale of real estate                           0       (16,002)
      Gain on sales of equity securities                 (350)      (13,660)
      Changes in assets and liabilities:
        Accounts receivable and other assets          (51,644)      (63,010)
        Advance to operator                          (116,029)       (6,997)
        Deferred oil lease bonus                            0       (11,250)
        Accounts payable and accrued expenses          33,685        37,863
        Federal and state income taxes                 31,778       (18,289)
                                                   __________   ___________
          Total adjustments                           (78,285)        2,588
                                                   __________    __________
Net cash used in
    operating activities                              (15,394)         (833)
                                                   __________    __________

Cash flows from investing activities:
  Proceeds from note receivable                         1,333         2,223
  Proceeds from matured/called
   investment debt securities                       6,000,000     3,000,000
  Purchases of investment debt securities          (5,990,536)   (2,994,050)
  Proceeds from sales of land                               0        16,298
  Purchases of equity securities                            0        (1,082)
  Proceeds from sales of equity securities                350        55,835
  Oil and Gas capital expenditures                    (68,855)      (26,072)
  Acquisition of oil and gas producing properties           0    (1,080,000)
  Sale of restricted common stock                       3,000             0
                                                   __________    __________
   Net cash used in
     investing activities                             (54,708)   (1,026,848)
                                                   __________    __________

Cash flows from financing activities-
  Dividends paid                                      (49,481)      (49,892)
                                                   __________     _________
  Net cash used in
    financing activities                              (49,481)      (49,892)
                                                   __________     _________

Net decrease in cash and cash equivalents            (119,583)   (1,077,573)

Cash and cash equivalents, beginning of year          629,719     1,956,795
                                                   __________    __________

Cash and cash equivalents, end of period       $      510,136       879,222
                                                   __________    __________
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>

<PAGE>

CENTRAL NATURAL RESOURCES, INC.

Notes to Consolidated Financial Statements

March 31, 2004

Note (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 March 31,  2004,  and
the  results of operations and cash flows for the periods ended March
31, 2004 and 2003.

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, 2003.

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 March 31, 2004  was
generated by working interests in oil and gas properties acquired  in
February  2003 and working interests in unproved properties  acquired
in July 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 Based Compensation

In the first three months of 2004 the Company granted 3,000 shares of
restricted  stock  to an employee of the Company,  vesting  in  equal
amounts   over  three  years.   The  employee  purchased  the   3,000
restricted  shares  at  $1 per share and the difference  between  the
purchase  price  and  the then fair market value  of  the  stock  was
recorded  in  shareholders  equity  as  unearned restricted stock.
The unearned restricted stock will be amortized ratably to expense
over the three year vesting period.

<Page>

Also  in  the  first three months of 2004, the Company granted  2,000
options, vesting in equal amounts over four years, to an employee  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>

                                  Three months ended
                                      March 31,
                                   2004       2003
                                  ________   _______

                               <c>        <c>

Net earnings (loss)
 as reported                      $ 62,891    (3,421)
Less stock options, net of taxes    (2,148)   (7,196)
Pro Forma net earnings (loss)       60,743   (10,617)

Earnings (loss) per share
(basic and diluted):
  As Reported                         0.13     (0.01)
Pro Forma                             0.12     (0.02)

</TABLE>


Options outstanding at March 31, 2004 and March 31, 2003 are not
considered dilutive as the exercise price was greater than the
market price at the close of each period under consideration.
However, if the market price were to increase in a future period
to be greater than the exercise price, these options could become
dilutive.

<PAGE>

Note (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  March  31,
2004 and December 31, 2003 are as follows:


<TABLE>
<CAPTION>


                                    Gross       Gross
                                    unrealized  unrealized
                        Amortized   holding     holding     Fair
March 31, 2004          cost        gains       losses      value
_________________       __________  __________  __________  __________
<S>                     <C>         <C>         <C>         <C>
Held-to-maturity:
  U. S. government
   agency securities  $   2,997,076          -        (36)   2,997,040

Available-for-sale:
  Equity securities   $     382,975    181,548          -      564,523
</TABLE>

<TABLE>
<CAPTION>

                                    Gross       Gross
                                    unrealized  unrealized
                        Amortized   holding     holding     Fair
December 31, 2003       cost        gains       losses      value
_________________       __________  __________  __________  __________
<S>                     <C>         <C>         <C>         <C>
Held-to-maturity:
  U. S. government
   agency securities  $  2,994,314           -        (34)   2,994,280

Available-for-sale:
  Equity securities   $    382,975     220,506          -      603,481
</TABLE>

<PAGE>


Investment income (loss) consists of the following for each of the
periods ended March 31:

<TABLE>

<CAPTION>

                                  Three months ended
                                      March 31,
                                   2004       2003
                                  ________   _______

                               <c>        <c>

Realized gains on sales
 of equity securities            $     350    13,660
Impairment charge                        -   (87,282)
Interest Income                      8,971    14,642
Dividend Income                      1,295     2,071
                                   _______   _______
                                 $  10,616   (56,909)


</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 March 31, 2004, 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.

Note (3) Oil and Gas Activity

In  the first quarter of 2004, a wholly owned subsidiary of the
Company had committed to participate  in the  drilling of four gas
wells, two of which are exploratory, in south and east Texas.
At March 31, 2004, two wells were in the process of being completed
while drilling activity had not yet begun on the remaining two wells.
Oil and  gas  property recorded on the balance sheet  is  comprised
of property  that  is  both proved and unproved.  At  March  31,
2004 unproved properties amounted to $134,729.

<PAGE>


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


Overview

The  first  quarter  of  2004 shows the results  of  the  Company's
efforts  in  previous quarters to increase oil and  gas  production
through  exploration and development.  Successful well  completions
and  workovers since the acquisition of producing properties in the
first quarter of 2003 resulted in the more than doubling of revenue
from  oil  and  gas production during this time.  Management  plans
further  exploration and development of its properties in 2004  and
will continue to evaluate potential additions to the Company's  oil
and gas properties through acquisitions. While no assurance can  be
given,  assuming  commodity prices remain strong,  and  subject  to
other  uncertainties  set forth in the section captioned  "Forward-
Looking  Statements" below, management believes that earnings  will
continue  to  grow as revenue from production increases during 2004.


The  cost of maintaining a public, SEC filing company continues  to
rise  and  is reflected in the Company's General and Administrative
expenses discussed below.  While these costs are borne by companies
of all sizes, the burden from both an expense and a management time
standpoint is often disproportionate for smaller companies such  as
Central.    Further  government  requirements  that   mandate
additional  disclosures or specific procedures may  increase  these
costs  in  the future as would the need to hire outside experts  as
well as the need to hire additional internal financial personnel to
assist with the implementation of these regulations.

Management  continues to position the Company to take advantage  of
extractive  mineral  opportunities  and  expects  further  revenue,
expenses  and  capital  expenditures  to  be  generated  in   these
endeavors in 2004, as they were in the first quarter of 2004.

Results of Operations

Total operating revenue increased in the first three months of 2004
over the first three months of 2003 due mainly to increased revenue
from  oil and gas production due to increased production, including
new  production from wells completed in the fourth quarter of  2003
and  the  first  quarter of 2004.  Decreased revenue  from  mineral
royalties  in the first three months of 2004 from 2003 were  offset
by  the increase in revenue from oil and gas production during  the
same  periods.  The table below shows production volume and average
pricing for the periods under comparison:

<TABLE>

<CAPTION>

                                  Three months ended
                                      March 31,
                                   2004       2003
                                  ________   _______

                               <c>        <c>


Volume  (MCF equiv.)                34,907    13,567
Avg. Price                       $    6.97      6.89
Total Revenue                      243,248    93,475

</TABLE>

*Note-Rounding may cause calculated totals to be slightly
different than above.

General  and  administrative expenses increased in both  the  first
three months of 2004 from the same period in 2003 due primarily  to
increases  in  auditing fees.   Oil  and  gas  operating
expenses,  which  include  lease operating  costs,  increased  only
marginally  in  the  first quarter of 2004  from  the  prior  year.
Depletion,  depreciation and amortization  increased  in  the  2004
period  from the prior year due to the increased production in  the
corresponding period.

There  was  positive non-operating income in the first  quarter  of
2004 compared to a non-operating loss in the first quarter of 2003.
In  the  first  three  months  of 2003 the  Company  recognized  an
impairment charge of $87,282 on the carrying value of an investment
in  non-marketable securities held by the Company.  There  were  no
impairments or writedowns taken in the first quarter of 2004.

The  Company  recorded an income tax expense  in  the  first  three
months of 2004 versus an income tax benefit for the same period  in
2003 due to net earnings generated in 2004 versus a net loss in the
same period of 2003.

Financial Condition - Liquidity and Capital Resources

The  financial  condition of the Company  continued  to  be  strong
through the end of the first three months of 2004 as it was at  the
end of the fiscal year in 2003, with substantial liquid assets,  no
debt  and positive net earnings.  The Company continues to  utilize
available  liquidity  to fund exploration and  development  of  its
working interests in south Texas and east Texas through its 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  of  over
50:1, and the fact that a significant portion of the Company's
stock  holders' equity continues to be represented  by  liquid
assets.

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  three  months of 2004 and in the same period  in  2003,
although  the  decrease was much greater in 2003 than  the  current
period  under comparison.  Summary cash flows for the  two  periods
under comparison are shown on the table below:

<TABLE>

<CAPTION>

                                  Three months ended
                                      March 31,
                                   2004       2003
                                  ________   _______

                               <c>        <c>

Cash provided by (used in):
 Operating activities            $ (15,394)       (833)
 Investing activities              (54,708) (1,026,848)
 Financiang activities-
  dividends paid                   (49,481)    (49,892)

</TABLE>

<PAGE>

Contributing  to the cash used in operating activities for  both
periods  was  an  increase in  the  amount  of  accounts
receivable and advances to operators.   Accounts receivable  is
increasing as gas production rates continue to increase.  Advances
to   operators   have  increased  in  conjunction   with   drilling
obligations.   A significant use of cash from investing  activities
in the 2003 periods under comparison was the acquisition of working
interests in oil and gas properties as well as differences  in  the
amount  of proceeds from the sale of equity securities and purchase
of equity securities.


<PAGE>

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

Contractual   Obligations,  Commitments   and   Off-Balance   Sheet
Arrangements

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  material  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  first  quarter  of  2004,  CNR  had  committed   to
participate  in a total of four 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  that  are
uncertain in amount at the present time.

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. 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.   A
tabular presentation of Contractual Obligations is presented below:

<TABLE>
<CAPTION>

                              Payments Due by Period
Contractual               < 1 Year   1-3       3-5       > 5
Obligations    Total                 Years     Years     Years
___________    _____       ______    _____     _____     _____
<S>            <C>         <C>       <C>       <C>       <C>
Long-Term        0          0         0         0         0
Debt
Obligations

Capital Lease    0          0         0         0         0
Obligations

Operating        6,686      6,686     0         0         0
Lease
Obligations

Purchase         172,990    172,990   0         0         0
Obligations*

Other Long-      0          0         0         0         0
Term
Liabilties

Total            179,676    179,676   0         0         0

</TABLE>

*The  entire amount shown in Purchase Obligations is for
Authorizations For Expenditures that were approved prior to
March 31, 2004.

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.

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, 2003.  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  ajudgment  made  in  applying a critical
accounting  policy  is  theperiodic review of long-lived assets for
impairment whenever eventsor changes in circumstances indicate that
the carrying amount of anasset  may  not  be recoverable.  This
accounting policy  has  beenapplied  in the past, for example, in
downward adjustments  to  thecarrying  value  of the Company's coal
properties.   However,  this accounting  policy  does not permit an
upward  adjustment  in  suchcarrying  values, when Management
believes the current fair  marketvalue of an asset is greater than
the carrying value on the balancesheet  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 being deducted
as  incurred rather than those expenditures being capitalized.  The
Company uses the units-of-production method to amortize oil and gas
properties.  This  method  requires the  Company  to  amortize  the
capitalized  costs incurred in developing a property in  proportion
to the amount of oil and gas produced as a percentage of the amount
of  proved  reserves  contained in the property.  Accordingly,  any
changes  in  reserve  estimates  as  described  above  will   cause
corresponding  changes in depletion expense recognized  in  periods
subsequent  to  the  reserve  estimate  revision.   Although  every
reasonable effort is made to ensure that reserve estimates reported
represent  the  most accurate assessments possible, the  subjective
decisions  and variances in available data for various fields  make
these   estimates  generally  less  precise  than  other  estimates
included  in the financial statement disclosures.  Data  for  given
fields  may change substantially over time as a result of  numerous
factors  including,  but  not  limited to,  additional  development
activity, evolving production history and continual reassessment of
the viability of production under varying economic conditions. As a
result, material revisions to existing reserve estimates may  occur
from time to time.

A cash dividend of $0.10 per share was paid in the first quarter of
2004,  and a cash dividend of the same amount was paid in the first
quarter of 2003.  After the close of the current quarter, the Board
declared a dividend of $0.10 to be paid in the second quarter.

FASB's Emerging Issues Task Force has issued new guidance on "Other-
Than-Temporary Impairment" that is effective for reporting  periods
beginning  after June 15, 2004 and requires disclosure  for  annual
reporting  periods ending after June 15, 2004.   The  new  guidance
creates  a  model  for  many  judgements  and  additional  evidence
gathering and applies to investments in debt and equity securities.
Management  has  a  system  in  place to  periodically  review  its
investments in debt and equity securities for such impairments  and
does  not foresee that the new requirements will materially  impact
the  Company in the near future although fluctuations in the market
values of securities may prove otherwise.

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 mineral royalties and oil and gas production,
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 March 31, 2004, 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 or other factors that occurred during the quarter ended
March 31, 2004 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 - None

Item 3.    Defaults Upon Senior Securities - None

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

Item 5.    Other Information - None

Item 6(a). Exhibits - Attached

           31.1 Certification required by Rule 13a-14(a) or Rule
              15d-14(a) for Chief Executive Officer

           31.2 Certification required by Rule 13a-14(a) or Rule
             15d-14(a) for Chief Financial Officer

           32.1 Section 1350 Certification for Chief Executive Officer

           32.2 Section 1350 Certification for Chief Financial Officer

Item 6(b). Reports on Form 8-K - None

<PAGE>

PART II, ITEM 4. - SUBMISSION OF MATTERS TO A
VOTE OF SECURITY HOLDERS

The following meeting of Stockholders was held after the close of the
quarter to which this report pertains, however, it was held prior to the
filing of this report so disclosure is made as hereinafter set forth.

(a)	The Annual Meeting of Stockholders was held April 30, 2004.

(b)	The meeting involved the election of Directors, and the
following are the Directors elected at that meeting:

                       Bruce L. Franke
                       Ray A. Infantino
                       Patrick J. Moran
                       James R. Ukropina
                       Phelps C. Wood
                       Phelps M. Wood

There were no other Directors whose term of office as a Director
continued after the meeting.

    (c)(i) For the election of Directors, the votes received by all
nominees were as follows:

                      Bruce L. Franke        400,426
                      Ray A. Infantino       400,426
                      Patrick J. Moran       400,426
                      James R. Ukropina      400,426
                      Phelps C. Wood         400,426
                      Phelps M. Wood         400,426

Cumulative voting is not permitted.

    (ii)   At the same meeting, the Stockholders  ratified the appointment
by the Audit Committee of the accounting firm KPMG LLP as independent
public accountants to examine the financial statements of the Company for
the year ending December 31, 2004 and to perform other appropriate
accounting services.  The holders of 397,634 shares cast their votes
in favor of that appointment, the votes of 266 shares were cast against
it, and the holders of 3,384 shares abstained.

    (d)   There were no settlements between the Company and any
other participants terminating any solicitation subject to Rule 14a-11.

<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:   May 11, 2004
        ____________________________

By:     /s/ Leonard L. Noah
        ____________________________

            Leonard L. Noah,
         Chief Financial Officer



Date:   May 11, 2004
        ____________________________

By:     /s/ Phelps C. Wood
        ____________________________

            Phelps C. Wood,
            President