**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-K/A**

**(Amendment      No. 1)**

**ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE **
**SECURITIES      EXCHANGE ACT OF 1934**

**December      31, 2005        **

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

**COASTAL      **
**CARIBBEAN**
**      OILS & MINERALS, LTD. **

| BERMUDA                                                 | NONE                               |
|---------------------------------------------------------|------------------------------------|
| State                or other jurisdiction of           | (I.R.S.                Employer    |
| incorporation                or organization            | Identification                No.) |
|                                                    |                               |
| Clarendon                House                          |                               |
| Church                Street                            |                               |
| Hamilton,                Bermuda                        | HM                11               |
| (Address                of principal executive offices) | (Zip                Code)          |

|                               | Name                of each exchange on |
|------------------------------------|-----------------------------------------|
| Title                of each class | which                registered         |
|                               |                                    |
| NONE                               | NONE                                    |

----

**Note**

**Note**

**DOCUMENTS      INCORPORATED BY REFERENCE**

----

**Explanatory        Note:**

**Item      8.** **Financial      Statements and Supplementary Data**

**Report      of Independent Registered Public Accounting Firm**

|                                                          |         |                                                  |
|---------------------------------------------------------------|--------------|-------------------------------------------------------|
|                                                          |              |
|                                                               |    | /s/                Baumann, Raymondo & Company PA |
|                                                          |              |
| Tampa,                FloridaFebruary                15, 2006 |              |

----

**Report      of Independent Registered Public Accounting Firm**

|                                                             |         |                                         |
|------------------------------------------------------------------|--------------|----------------------------------------------|
|                                                             |              |
|                                                                  |    | /s/              James Moore & Co., P.L. |
|                                                             |              |
| March                17, 2005Gainesville,                Florida |              |

----

**COASTAL      CARIBBEAN OILS & MINERALS, LTD.**

**CONSOLIDATED      BALANCE SHEETS**

|                                                                                    |   | December                31, |         |
|-----------------------------------------------------------------------------------------|--------|-----------------------------|--------------|
|                                                                                    |   | 2005                        |         | 2004 |   |
| **Assets**                                                                              |   |                        |         |   |   |
| Current                assets:                                                          |   |                        |         |   |   |
| Cash                and cash equivalents                                                |   | $                           | 2,250,236    |   | $ | 179 |   |
| Prepaid                expenses and other                                               |   |                        | 199,754      |   |   | 16,322 |   |
| Total                current assets                                                     |   |                        | 2,449,990    |   |   | 16,501 |   |
|                                                                                    |   |                        |         |   |   |   |   |
| Certificates                of deposit                                                  |   |                        | 75,000       |   |   | - |   |
| Petroleum                leases                                                         |   |                        | 1,860,614    |   |   | - |   |
| Equipment,                net                                                           |   |                        | 1,771        |   |   | - |   |
| Contingent                litigation claim (Note 4)                                     |   |                        | -            |   |   | - |   |
|                                                                                         |   |                        |    |   |   |   |   |
| Total                assets                                                             |   | $                           | 4,387,375    |   | $ | 16,501 |   |
|                                                                                    |   |                        |         |   |   |   |   |
| **Liabilities                and Shareholders’ (Deficit) Equity**                 |   |                        |         |   |   |   |   |
| Current                liabilities:                                                     |   |                        |         |   |   |   |   |
| Accounts                payable and accrued liabilities                                 |   | $                           | 27,526       |   | $ | 863,127 |   |
| Income                taxes payable                                                     |   |                        | 35,000       |   |   | - |   |
| Amounts                due to related parties                                           |   |                        | -            |   |   | 1,594,369 |   |
| Total                current liabilities                                                |   |                        | 62,526       |   |   | 2,457,496 |   |
|                                                                                    |   |                        |         |   |   |   |   |
| Minority                interests                                                       |   |                        |         |   |   | - |   |
|                                                                                    |   |                        |         |   |   |   |   |
| Shareholders'                (deficit) equity:                                          |   |                        |         |   |   |   |   |
| Common                stock, par value $.12 per share:                                  |   |                        |         |   |   |   |   |
| Authorized                - 250,000,000 shares                                          |   |                        |         |   |   |   |   |
| Outstanding                - 46,211,604 shares,                respectively             |   |                        | 5,545,392    |   |   | 5,545,392 |   |
| Capital                in excess of par value                                           |   |                        | 32,137,811   |   |   | 32,137,811 |   |
|                                                                                    |   |                        | 37,683,203   |   |   | 37,683,203 |   |
| Deficit                accumulated during the development stage     |   |                        | (33,358,354  | ) |   | (40,124,198 | ) |
| Total                shareholders’ (deficit) equity                               |   |                        | 4,324,849    |   |   | _(2,440,995 | ) |
| Total                liabilities and shareholders’ (deficit) equity               |   | $                           | 4,387,375    |   | $ | 16,501 |   |

----

**COASTAL      CARIBBEAN OILS & MINERALS, LTD.**

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

|                                                                                                                                |   |                                    |                  |   |   |       |   | For                the period                from |       |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|-----------------------|--------|--------|------------|--------|---------------------------------------------------|------------|
|                                                                                                                                |   |                                    |                  |   |   |       |   | Jan.                31, 1953                      |       |
|                                                                                                                                |   |                                    |                  |   |   |       |   | (inception)                                       |       |
|                                                                                                                                |   | Years                ended December 31, |                  | to     |   |
|                                                                                                                                |   | 2005                                    |                  | 2004   |   | 2003       |   | Dec.                31, 2005                      |       |
|                                                                                                                                |   |                                    |                  |   |   |       |   |                                              |       |
| **Gain                on settlement**                                                                                               |   | $                                       | 8,124,016             |   | $      | -          |   | $                                                 | -          |   | $ | 8,124,016 |   |
| **Interest                and other income**                                                                                        |   |                                    | 50                723 |   |   | 1          |   |                                              | 658        |   | $ | 3,928,294 |   |
|                                                                                                                                |   |                                    | 8,174,739             |   |   | 1          |   |                                              | 658        |   |   | 12,052,310 |   |
|                                                                                                                                |   |                                    |                  |   |   |       |   |                                              |       |   |   |   |   |
| **Expenses:**                                                                                                                       |   |                                    |                  |   |   |       |   |                                              |       |   |   |   |   |
| Legal                fees and costs                                                                                                 |   |                                    | 155,388               |   |   | 327,091    |   |                                              | 342,451    |   |   | 17,055,067 |   |
| Administrative                expenses                                                                                              |   |                                    | 201,847               |   |   | 208,414    |   |                                              | 457,649    |   |   | 9,937,540 |   |
| Salaries                                                                                                                            |   |                                    | 112,020               |   |   | 112,838    |   |                                              | 118,745    |   |   | 3,867,831 |   |
| Shareholder                communications                                                                                           |   |                                    | 102,817               |   |   | 24,565     |   |                                              | 30,746     |   |   | 4,075,909 |   |
| Goodwill                impairment                                                                                                  |   |                                    | 801,823               |   |   | -          |   |                                              | -          |   |   | 801,823 |   |
| Write                off of unproved properties                                                                                     |   |                                    | -                     |   |   | -          |   |                                              | 59,247     |   |   | 5,560,494 |   |
| Exploration                costs                                                                                                    |   |                                    | -                     |   |   | -          |   |                                              | -          |   |   | 247,465 |   |
| Lawsuit                judgments                                                                                                    |   |                                    | -                     |   |   | -          |   |                                              | -          |   |   | 1,941,916 |   |
| Minority                interests                                                                                                   |   |                                    | -                     |   |   | -          |   |                                              | -          |   |   | (632,974 | ) |
| Other                                                                                                                               |   |                                    | -                     |   |   | -          |   |                                              | -          |   |   | 364,865 |   |
| Contractual                services                                                                                                 |   |                                    | -                     |   |   | -          |   |                                              | -          |   |   | 2,155,728 |   |
|                                                                                                                                |   |                                    | 1,373,895             |   |   | 672,908    |   |                                              | 1,008,838  |   |   | 45,375,664 |   |
|                                                                                                                                |   |                                    |                  |   |   |       |   |                                              |       |   |   |   |   |
| **Income                tax expense**                                                                                               |   |                                    | 35,000                |   |   | -          |   |                                              | -          |   |   | 35,000 |   |
|                                                                                                                                |   |                                    |                  |   |   |       |   |                                              |       |   |   |   |   |
| **Net                income (loss)**                                                                                                |   | $                                       | 6,765,844             |   | $      | (672,907   | )      | $                                                 | (1,008,180 | ) |   |   |   |
|                                                                                                                                |   |                                    |                  |   |   |       |   |                                              |       |   |   |   |   |
| Deficit                accumulated during the                                                                                       |   |                                    |                  |   |   |       |   |                                              |       |   |   |   |   |
| development                stage                                                                                                    |   |                                    |                  |   |   |       |   |                                              |       |   | $ | (33,358,354 | ) |
|                                                                                                                                |   |                                    |                  |   |   |       |   |                                              |       |   |   |   |   |
| Net                income (loss) per share based on weighted average number of shares                outstanding during the period: |   |                                    |                  |   |   |       |   |                                              |       |   |   |   |   |
| Basic                and diluted EPS                                                                                                |   | $                                       | .15                   |   | $      | (.01       | )      | $                                                 | (.02       | ) |   |   |   |
|                                                                                                                                |   |                                    |                  |   |   |       |   |                                              |       |   |   |   |   |
| Weighted                average number of shares outstanding (basic and diluted)                                                    |   |                                    | 46,211,604            |   |   | 46,211,604 |   |                                              | 46,211,604 |   |   |   |   |

----

**COASTAL      CARIBBEAN OILS & MINERALS, LTD.**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

|                                                                      |   |                                    |       |   |   |     |   | For                the period from Jan. 31, 1953 |       |
|---------------------------------------------------------------------------|--------|-----------------------------------------|------------|--------|--------|----------|--------|--------------------------------------------------|------------|
|                                                                      |   |                                    |       |   |   |     |   | (inception)                                      |       |
|                                                                      |   | Years                ended December 31, |       | To     |   |
|                                                                      |   | 2005                                    |       | 2004   |   | 2003     |   | Dec.                31, 2005                     |       |
| **Operating                activities:**                                  |   |                                    |       |   |   |     |   |                                             |       |
| Net                income (loss)                                          |   | $                                       | 6,765,844  |   | $      | (672,907 | )      | $                                                | (1,008,180 | ) | $ | (33,358,355 | ) |
| Adjustments                to reconcile net loss to net cash              |   |                                    |       |   |   |     |   |                                             |       |   |   |   |   |
| used                in operating activities:                              |   |                                    |       |   |   |     |   |                                             |       |   |   |   |   |
| Gain                on settlement                                         |   |                                    | (8,124,016 | )      |   | -        |   |                                             | -          |   |   | (8,124,016 | ) |
| Goodwill                impairment                                        |   |                                    | 801,823    |   |   | -        |   |                                             | -          |   |   | 801,823 |   |
| Minority                interest                                          |   |                                    | -          |   |   | -        |   |                                             | -          |   |   | (632,974 | ) |
| Depreciation                                                              |   |                                    | 120        |   |   | -        |   |                                             | -          |   |   | 120 |   |
| Write                off of unproved properties                           |   |                                    | -          |   |   | -        |   |                                             | 59,247     |   |   | 5,619,741 |   |
| Common                stock issued for services                           |   |                                    | -          |   |   | -        |   |                                             | -          |   |   | 119,500 |   |
| Compensation                recognized for stock option grant             |   |                                    | -          |   |   | -        |   |                                             | -          |   |   | 75,000 |   |
| Recoveries                from previously written off properties          |   |                                    | -          |   |   | -        |   |                                             | -          |   |   | 252,173 |   |
| Net                change in:                                             |   |                                    |       |   |   |     |   |                                             |       |   |   |   |   |
| Prepaid                expenses and other                                 |   |                                    | (183,432   | )      |   | 71,625   |   |                                             | 326,752    |   |   | (199,755 | ) |
| Accrued                liabilities                                        |   |                                    | (2,349,680 | )      |   | 518,296  |   |                                             | 322,208    |   |   | 27,528 |   |
| Income                taxes payable                                       |   |                                    | 35,000     |   |   | -        |   |                                             | -          |   |   | 35,000 |   |
| Other                assets                                               |   |                                    | -          |   |   | -        |   |                                             | -          |   |   | - |   |
| Net                cash used in operating activities                      |   |                                    | (3,054,341 | )      |   | (82,986  | )      |                                             | (299,973   | ) |   | (35,384,215 | ) |
|                                                                      |   |                                    |       |   |   |     |   |                                             |       |   |   |   |   |
| **Investing                activities:**                                  |   |                                    |       |   |   |     |   |                                             |       |   |   |   |   |
| Additions                to oil, gas, and mineral properties              |   |                                    |       |   |   |     |   |                                             |       |   |   |   |   |
| net                of assets acquired for common stock and reimbursements |   |                                    | (1,860,614 | )      |   | -        |   |                                             | (59,247    | ) |   | (5,600,796 | ) |
| Net                proceeds from settlement                               |   |                                    | 8,124,016  |   |   | -        |   |                                             | -          |   |   | 8,124,016 |   |
| Proceeds                from relinquishment of surface rights             |   |                                    | -          |   |   | -        |   |                                             | -          |   |   | 246,733 |   |
| Purchase                of certificates of deposit                        |   |                                    | (75,000    | )      |   | -        |   |                                             | -          |   |   | (75,000 | ) |
| Purchase                of Minority interest in CPC                       |   |                                    | (801,823   | )      |   | —  |   |                                             | -          |   |   | (801,823 | ) |
| Purchase                of equipment                                      |   |                                    | (1,891     | )      |   | -        |   |                                             | -          |   |   | (63,540 | ) |
| Net                cash provided by (used in) investing activities        |   |                                    | 5,384,688  |   |   | -        |   |                                             | (59,247    | ) |   | 1,829,590 |   |
|                                                                      |   |                                    |       |   |   |     |   |                                             |       |   |   |   |   |
| **Financing                activities:**                                  |   |                                    |       |   |   |     |   |                                             |       |   |   |   |   |
| Loans                from Officers                                        |   |                                    | 31,500     |   |   | 80,290   |   |                                             | -          |   |   | 111,790 |   |
| Repayment                of loans to officers                             |   |                                    | (111,790   | )      |   | -        |   |                                             | -          |   |   | (111,790 | ) |
| Sale                of common stock, net of expenses                      |   |                                    | -          |   |   | -        |   |                                             | -          |   |   | 30,380,612 |   |
| Shares                issued upon exercise of options                     |   |                                    | -          |   |   | -        |   |                                             | -          |   |   | 884,249 |   |
| Sale                of shares by subsidiary                               |   |                                    | -          |   |   | -        |   |                                             | 70,000     |   |   | 820,000 |   |
| Sale                of subsidiary shares                                  |   |                                    | -          |   |   | -        |   |                                             | -          |   |   | 3,720,000 |   |
| Net                cash provided by financing activities                  |   |                                    | (80,290    | )      |   | 80,290   |   |                                             | 70,000     |   |   | 35,804,861 |   |
| **Net                increase (decrease) in cash and cash equivalents**   |   |                                    | 2,250,057  |   |   | (2,696   | )      |                                             | (289,220   | ) |   | 2,250,236 |   |
| Cash                and cash equivalents at beginning of period           |   |                                    | 179        |   |   | 2,875    |   |                                             | 292,095    |   |   | - |   |
| Cash                and cash equivalents at end of period                 |   | $                                       | 2,250,236  |   | $      | 179      |   | $                                                | 2,875      |   | $ | 2,250,236 |   |
|                                                                      |   |                                    |       |   |   |     |   |                                             |       |   |   |   |   |

----

**COASTAL      CARIBBEAN OILS & MINERALS, LTD.**

**CONSOLIDATED      STATEMENT OF COMMON STOCK**

**AND      CAPITAL IN EXCESS OF PAR VALUE**

|                                                                                                 |   |                     |       |   |   | Capital                in   |   |
|------------------------------------------------------------------------------------------------------|--------|--------------------------|------------|--------|--------|-----------------------------|--------|
|                                                                                                 |   | Number                of |       | Common |   | Excess                      |   |
|                                                                                                 |   | Shares                   |       | Stock  |   | of                Par Value |   |
| Shares                issued for net assets and unrecovered costs                                    |   |                     |       |   |   |                        |   |
| at                inception                                                                          |   |                     | 5,790,210  |   | $      | 579,021                     |   | $ | 1,542,868 |   |
| Sales                of common stock                                                                 |   |                     | 26,829,486 |   |   | 3,224,014                   |   |   | 16,818,844 |   |
| Shares                issued upon exercise of stock options                                          |   |                     | 510,000    |   |   | 59,739                      |   |   | 799,760 |   |
| Market                value ($2.375 per share) of shares issued in                                   |   |                     |       |   |   |                        |   |   |   |   |
| 1953                to acquire an investment                                                         |   |                     | 54,538     |   |   | 5,454                       |   |   | 124,074 |   |
| Shares                issued in 1953 in exchange for 1/3rd                of                a 1/60th |   |                     |       |   |   |                        |   |   |   |   |
| overriding                royalty (sold in prior year) in nonproducing                               |   |                     |       |   |   |                        |   |   |   |   |
| leases                of Coastal Petroleum                                                           |   |                     | 84,210     |   |   | 8,421                       |   |   | - |   |
| Market                value of shares issued for services rendered                                   |   |                     |       |   |   |                        |   |   |   |   |
| during                the period 1954-1966                                                           |   |                     | 95,188     |   |   | 9,673                       |   |   | 109,827 |   |
| Net                transfers to restate the par value of common stock                                |   |                     |       |   |   |                        |   |   |   |   |
| outstanding                in 1962 and 1970 to $0.12 per share                                       |   |                     | -          |   |   | 117,314                     |   |   | (117,314 | ) |
| Increase                in Company's investment (equity) due to                                      |   |                     |       |   |   |                        |   |   |   |   |
| capital                transactions of Coastal Petroleum in 1976                                     |   |                     | -          |   |   | -                           |   |   | 117,025 |   |
| Balance                at December 31, 1990                                                          |   |                     | 33,363,632 |   |   | 4,003,636                   |   |   | 19,395,084 |   |
| Sale                of subsidiary shares                                                             |   |                     | -          |   |   | -                           |   |   | 300,000 |   |
| Balance                at December 31, 1991                                                          |   |                     | 33,363,632 |   |   | 4,003,636                   |   |   | 19,695,084 |   |
| Sale                of subsidiary shares                                                             |   |                     | -          |   |   | -                           |   |   | 390,000 |   |
| Balance                at December 31, 1992                                                          |   |                     | 33,363,632 |   |   | 4,003,636                   |   |   | 20,085,084 |   |
| Sale                of subsidiary shares                                                             |   |                     | -          |   |   | -                           |   |   | 1,080,000 |   |
| Balance                at December 31, 1993                                                          |   |                     | 33,363,632 |   |   | 4,003,636                   |   |   | 21,165,084 |   |
| Sale                of subsidiary shares                                                             |   |                     | -          |   |   | -                           |   |   | 630,000 |   |
| Balance                at December 31, 1994                                                          |   |                     | 33,363,632 |   |   | 4,003,636                   |   |   | 21,795,084 |   |
| Sale                of subsidiary shares                                                             |   |                     | -          |   |   | -                           |   |   | 600,000 |   |
| Balance                at December 31, 1995                                                          |   |                     | 33,363,632 |   |   | 4,003,636                   |   |   | 22,395,084 |   |
| Sale                of common stock                                                                  |   |                     | 6,672,726  |   |   | 800,727                     |   |   | 5,555,599 |   |
| Sale                of subsidiary shares                                                             |   |                     | -          |   |   | -                           |   |   | 480,000 |   |
| Exercise                of stock options                                                             |   |                     | 10,000     |   |   | 1,200                       |   |   | 12,300 |   |
| Balance                at December 31, 1996                                                          |   |                     | 40,046,358 |   |   | 4,805,563                   |   |   | 28,442,983 |   |
| Sale                of subsidiary shares                                                             |   |                     | -          |   |   | -                           |   |   | 240,000 |   |
| Exercise                of stock options                                                             |   |                     | 10,000     |   |   | 1,200                       |   |   | 10,050 |   |
| Balance                at December 31, 1997,1998 and 1999                                            |   |                     | 40,056,358 |   |   | 4,806,763                   |   |   | 28,693,033 |   |
| Sale                of common stock                                                                  |   |                     | 3,411,971  |   |   | 409,436                     |   |   | 2,729,329 |   |
| Compensation                recognized for stock option grant                                        |   |                     | -          |   |   | -                           |   |   | 75,000 |   |
| Balance                at December 31, 2000 and 2001                                                 |   |                     | 43,468,329 |   |   | 5,216,199                   |   |   | 31,497,362 |   |
| Sale                of common stock                                                                  |   |                     | 2,743,275  |   |   | 329,193                     |   |   | 570,449 |   |
| Balance                as of December 31, 2002                                                       |   |                     | 46,211,604 |   |   | 5,545,392                   |   |   | 32,067,811 |   |
| Sale                of subsidiary shares                                                             |   |                     | -          |   |   | -                           |   |   | 70,000 |   |
| Balance                as of December 31, 2003, 2004 and 2005                                        |   |                     | 46,211,604 |   | $      | 5,545,392                   |   | $ | 32,137,811 |   |

----

**1.  **
**Summary of significant accounting policies**

----

**1.**
**Summary of significant accounting policies      (Cont'd)**

*Accounting      for Stock-Based Compensation *
*Accounting      for Stock-Based Compensation - Transition and Disclosure - an amendment of      SFAS      123 for employee arrangements.*
** **

*Share-Based      Payments*

----

|                                                                                                                                                                                    |   | **2005** |      | **2004** |   | **2003** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|-----------|----------|--------|----------|--------|
| **Net                income (loss):**                                                                                                                                              |   |     |      |     |   |     |   |
| Net                income (loss)                                                                                                                                                   |   | $        | 6,765,844 |     | $      | (672,907 | )      | $ | (1,008,180 | ) |
| Less:                stock-based employee and director compensation determined under the                fair                value method for all awards, net of related tax effect |   |     | 73,000    |     |   | -        |   |   | - |   |
| Proforma                net income (loss)                                                                                                                                          |   | $        | 6,692,844 |     | $      | (672,907 | )      | $ | (1,008,180 | ) |
|                                                                                                                                                                               |   |     |      |     |   |     |   |   |   |   |
| **Earnings                (loss) per share:**                                                                                                                                      |   |     |      |     |   |     |   |   |   |   |
| Basic                and diluted as reported                                                                                                                                       |   | $        | .15       |     | $      | (.01     | )      | $ | (.02 | ) |
| Less:                stock-based employee and director compensation determined under the                fair                value method for all awards, net of related tax effect |   |     | .01       |     |   | -        |   |   | - |   |
| Proforma                earnings (loss) per share                                                                                                                                  |   | $        | .14       |     | $      | (.01     | )      | $ | (.02 | ) |

----

**2.**
**Coastal      Petroleum Company - Minority Interests**

**3.**
**Unproved      Oil, Gas and Mineral Properties **

----

**4.**
**Litigation      **

**Settlement      Agreement with the State of Florida**

| Gross                  settlement proceeds      |   | $      | 12,500,000 |   |
|-------------------------------------------------|--------|--------|------------|--------|
|                                            |   |   |       |   |
| Distribution                  to other parties: |   |   |       |   |
| Lykes                  Mineral Corporation      |   |   | 1,390,000  |   |
| Outside                  Royalty Holders        |   |   | 2,540,000  |   |
| Settlement                  Consultant          |   |   | 465,000    |   |
|                                            |   |   |       |   |
| Gross                  proceeds to Coastal      |   |   | 8,105,000  |   |
|                                            |   |   |       |   |
| Purchase                  of other CPC shares   |   |   | 802,000    |   |
| Paid                  to Coastal Creditors      |   |   | 2,431,000  |   |
|                                            |   |   |       |   |
| Net                  proceeds to Company        |   | $      | 4,872,000  |   |

----

**5.**
**Common Stock**

----

**5.**
**Common Stock      (Cont'd)**
** **

|   |   | Number                   |       | Common |   | Capital                in Excess |   |
|--------|--------|--------------------------|------------|--------|--------|----------------------------------|--------|
| Year   |   | of                Shares |       | Stock  |   | of                Par Value      |   |
| 1953   |   |                     | 300,000    |   | $      | 30,000                           |   | $ | 654,000 |   |
| 1954   |   |                     | 53,000     |   |   | 5,300                            |   |   | 114,265 |   |
| 1955   |   |                     | 67,000     |   |   | 6,700                            |   |   | 137,937 |   |
| 1956   |   |                     | 77,100     |   |   | 7,710                            |   |   | 139,548 |   |
| 1957   |   |                     | 95,400     |   |   | 9,540                            |   |   | 152,492 |   |
| 1958   |   |                     | 180,884    |   |   | 18,088                           |   |   | 207,135 |   |
| 1959   |   |                     | 123,011    |   |   | 12,301                           |   |   | 160,751 |   |
| 1960   |   |                     | 134,300    |   |   | 13,430                           |   |   | 131,431 |   |
| 1961   |   |                     | 127,500    |   |   | 12,750                           |   |   | 94,077 |   |
| 1962   |   |                     | 9,900      |   |   | 990                              |   |   | 8,036 |   |
| 1963   |   |                     | 168,200    |   |   | 23,548                           |   |   | 12,041 |   |
| 1964   |   |                     | 331,800    |   |   | 46,452                           |   |   | 45,044 |   |
| 1965   |   |                     | 435,200    |   |   | 60,928                           |   |   | 442,391 |   |
| 1966   |   |                     | 187,000    |   |   | 26,180                           |   |   | 194,187 |   |
| 1967   |   |                     | 193,954    |   |   | 27,153                           |   |   | 249,608 |   |
| 1968   |   |                     | 67,500     |   |   | 9,450                            |   |   | 127,468 |   |
| 1969   |   |                     | 8,200      |   |   | 1,148                            |   |   | 13,532 |   |
| 1970   |   |                     | 274,600    |   |   | 32,952                           |   |   | 117,154 |   |
| 1971   |   |                     | 299,000    |   |   | 35,880                           |   |   | 99,202 |   |
| 1972   |   |                     | 462,600    |   |   | 55,512                           |   |   | 126,185 |   |
| 1973   |   |                     | 619,800    |   |   | 74,376                           |   |   | 251,202 |   |
| 1974   |   |                     | 398,300    |   |   | 47,796                           |   |   | 60,007 |   |
| 1975   |   |                     | -          |   |   | -                                |   |   | (52,618 | ) |
| 1976   |   |                     | -          |   |   | -                                |   |   | (8,200 | ) |
| 1977   |   |                     | 850,000    |   |   | 102,000                          |   |   | 1,682,706 |   |
| 1978   |   |                     | 90,797     |   |   | 10,896                           |   |   | 158,343 |   |
| 1979   |   |                     | 1,065,943  |   |   | 127,914                          |   |   | 4,124,063 |   |
| 1980   |   |                     | 179,831    |   |   | 21,580                           |   |   | 826,763 |   |
| 1981   |   |                     | 30,600     |   |   | 3,672                            |   |   | 159,360 |   |
| 1983   |   |                     | 5,318,862  |   |   | 638,263                          |   |   | 1,814,642 |   |
| 1985   |   |                     | -          |   |   | -                                |   |   | (36,220 | ) |
| 1986   |   |                     | 6,228,143  |   |   | 747,378                          |   |   | 2,178,471 |   |
| 1987   |   |                     | 4,152,095  |   |   | 498,251                          |   |   | 2,407,522 |   |
| 1990   |   |                     | 4,298,966  |   |   | 515,876                          |   |   | 26,319 |   |
| 1996   |   |                     | 6,672,726  |   |   | 800,727                          |   |   | 5,555,599 |   |
| 2000   |   |                     | 3,411,971  |   |   | 409,436                          |   |   | 2,729,329 |   |
| 2002   |   |                     | 2,743,275  |   |   | 329,193                          |   |   | 570,449 |   |
|   |   |                     | 39,657,458 |   | $      | 4,763,370                        |   | $ | 25,674,221 |   |

----

**5.**
**Common Stock      (Cont'd)**
** **

|   |   | Number                   |    | Common |   | Capital                in Excess |   |
|--------|--------|--------------------------|---------|--------|--------|----------------------------------|--------|
| Year   |   | of                Shares |    | Stock  |   | of                Par Value      |   |
| 1955   |   |                     | 73,000  |   | $      | 7,300                            |   | $ | 175,200 |   |
| 1978   |   |                     | 7,000   |   |   | 840                              |   |   | 6,160 |   |
| 1979   |   |                     | 213,570 |   |   | 25,628                           |   |   | 265,619 |   |
| 1980   |   |                     | 76,830  |   |   | 9,219                            |   |   | 125,233 |   |
| 1981   |   |                     | 139,600 |   |   | 16,752                           |   |   | 227,548 |   |
| 1996   |   |                     | 10,000  |   |   | 1,200                            |   |   | 12,300 |   |
| 1997   |   |                     | 10,000  |   |   | 1,200                            |   |   | 10,050 |   |
|   |   |                     | 530,000 |   | $      | 62,139                           |   | $ | 822,110 |   |

**6.      **
**Stock      Option Plans**

*Accounting      for Stock Issued to Employees,*

----

| **Employee                Options outstanding**                          |   | **Number                of Shares** |      | **Range                of Per Share Option Price ($)** |   | **Weighted                Average Exercise Price ($)** |   | **Aggregate                Option Price ($)** |   |
|--------------------------------------------------------------------------|--------|-------------------------------------|-----------|--------------------------------------------------------|--------|--------------------------------------------------------|--------|-----------------------------------------------|--------|
| Outstanding                and exercisable at December 31, 2003 and 2004 |   |                                | 700,000   |                                                   |   | .91                                                    |   |                                          | .91    |   |   | 637,000 |   |
| Nullified,                cancelled or released during 2005              |   |                                | (700,000  | )                                                      |   | .91                                                    |   |                                          | .91    |   |   | 637,000 |   |
| Issued                during 2005                                        |   |                                | 500,000   |                                                   |   | .15                                                    |   |                                          | .15    |   |   | 75,000 |   |
| Outstanding                and exercisable at December 31, 2005          |   |                                | 500,000   |                                                   |   | .15                                                    |   |                                          | .15    |   |   | 75,000 |   |
|                                                                     |   |                                |      |                                                   |   |                                                   |   |                                          |   |   |   |   |   |
| **Available                for grant at December 31, 2005**              |   |                                | 2,775,000 |                                                   |   |                                                   |   |                                          |   |   |   |   |   |

| **Summary                of Employee Options Outstanding at December 31,                2005** |   |
|------------------------------------------------------------------------------------------------|--------|
|                                                                                           |   |   |   |   |   |
| **Year                Granted**                                                                |   | **Number                of Shares** |   | **Expiration                Date** |   | **Exercise                Prices ($)** |   |
| Granted                2005                                                                    |   |   | 50,000 |   |   | July                25, 2015 |   |   | .15 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |
| Granted                2005                                                                    |   |   | 250,000 |   |   | Dec.                20, 2015 |   |   | .15 |   |
| Granted                2005                                                                    |   |   | 200,000 |   |   | Dec.                20, 2015 |   |   | .15 |   |

**Nonqualified      Stock Options**

| **Non-Employee                Options outstanding**                       |   | **Number                of Shares** |   | **Range                of Per Share Option Price ($)** |   | **Weighted                Average Exercise Price ($)** |   | **Aggregate                Option Price ($)** |   |
|---------------------------------------------------------------------------|--------|-------------------------------------|--------|--------------------------------------------------------|--------|--------------------------------------------------------|--------|-----------------------------------------------|--------|
| Outstanding                and exercisable at December 31, 2003 and 2004. |   |                                | -      |                                                   |   | -                                                      |   |                                          | -      |   |   | - |   |
| Nullified,                cancelled or released during 2005.              |   |                                | -      |                                                   |   | -                                                      |   |                                          | -      |   |   | - |   |
| Issued                during 2005.                                        |   |                                | 25,000 |                                                   |   | .15                                                    |   |                                          | .15    |   |   | 3,750 |   |
| Outstanding                and exercisable at December 31, 2005.          |   |                                | 25,000 |                                                   |   | .15                                                    |   |                                          | .15    |   |   | 3,750 |   |

----

| **Summary                of Non Employee Options Outstanding at December 31,                2005** |
|----------------------------------------------------------------------------------------------------|

| **Year                Granted** |   | **Number                of Shares** |   | **Expiration                Date** |   | **Exercise                Prices ($)** |   |
|---------------------------------|--------|-------------------------------------|--------|------------------------------------|--------|----------------------------------------|--------|
| Granted                2005     |   |                                | 25,000 |                               |   | July                25, 2015           |   |   | .15 |   |

**7.**
**Income taxes**

|                                            |   | 2005   |       | 2004   |   |
|-------------------------------------------------|--------|--------|------------|--------|--------|
| Net                operating losses             |   | $      | 3,300,000  |   | $      | 4,024,000 |   |
| Accruals                to related parties      |   |   | -          |   |   | 268,000 |   |
| Write                off of unproved properties |   |   | -          |   |   | 1,831,000 |   |
| Total                deferred tax assets        |   |   | 3,300,000  |   |   | 6,123,000 |   |
| Valuation                allowance              |   |   | (3,300,000 | )      |   | (6,123,000 | ) |
| Net                deferred tax assets          |   | $      | -          |   | $      | - |   |
|                                            |   |   |       |   |   |   |   |

|                                                          |   | **2005** |      | **2004** |   |
|---------------------------------------------------------------|--------|----------|-----------|----------|--------|
| **Provision                for income taxes**                 |   |     |      |     |   |
| Current                provision for income taxes             |   | $        | 1,345,000 |     | $      | - |   |
| Provision                for deferred tax liability           |   |     | -         |     |   | - |   |
| Benefit                of other deductible carryforward items |   |     | (617,000  | )        |   | - |   |
| Benefit                of net operating loss                  |   |     | (693,000  | )        |   | (253,000 | ) |
| Deferred                asset valuation allowance (reversal)  |   |     | -         |     |   | 253,000 |   |
|                                                          |   |     |      |     |   |   |   |
| Net                income tax provision                       |   | $        | 35,000    |     | $      | - |   |

----

**8.**
**Related      party transactions**

----

**9.  **
**Selected      quarterly financial data (unaudited)**
** **

| **2005**                                                     |   | **QTR                1** |   | **QTR                2** |   | **QTR                3** |   | **QTR                4** |   |
|--------------------------------------------------------------|--------|--------------------------|--------|--------------------------|--------|--------------------------|--------|--------------------------|--------|
|                                                         |   | ($)                      |   | ($)                      |   | ($)                      |   | ($)                      |   |
|                                                         |   |                     |   |                     |   |                     |   |                     |   |
| Total                revenues                                |   |                     | -      |                     |   | -                        |   |                     | -      |   |   | - |   |
| Expenses                                                     |   |                     | (88    | )                        |   | (66                      | )      |                     | (185   | ) |   | (233 | ) |
| Gains                and other income                        |   |                     | -      |                     |   | -                        |   |                     | 8,147  |   |   | 28 |   |
| Income                Taxes                                  |   |                     | -      |                     |   | -                        |   |                     | (35    | ) |   | - |   |
| Impairment                of goodwill                        |   |                     | -      |                     |   | -                        |   |                     | (802   | )  |   | - |   |
| Net                income (loss)                             |   |                     | (88    | )                        |   | (66                      | )      |                     | 7,125  |   |   | (205 | ) |
| Per                share (basic & diluted)               |   |                     | (.002  | )                        |   | (.001                    | )      |                     | .154   |   |   | (.004 | ) |
|                                                         |   |                     |   |                     |   |                     |   |                     |   |   |   |   |   |
| Weighted                average number of shares outstanding |   |                     | 46,212 |                     |   | 46,212                   |   |                     | 46,212 |   |   | 46                212 |   |

| **2004**                                                     |   | **QTR                1** |   | **QTR                2** |   | **QTR                3** |   | **QTR                4** |   |
|--------------------------------------------------------------|--------|--------------------------|--------|--------------------------|--------|--------------------------|--------|--------------------------|--------|
|                                                         |   | ($)                      |   | ($)                      |   | ($)                      |   | ($)                      |   |
|                                                         |   |                     |   |                     |   |                     |   |                     |   |
| Total                revenues                                |   |                     | -      |                     |   | -                        |   |                     | -      |   |   | - |   |
| Expenses                                                     |   |                     | (192   | )                        |   | (171                     | )      |                     | (152   | ) |   | (158 | ) |
| Gains                and other income                        |   |                     | -      |                     |   | -                        |   |                     | -      |   |   | - |   |
| Income                Taxes                                  |   |                     | -      |                     |   | -                        |   |                     | -      |   |   | - |   |
| Net                income (loss)                             |   |                     | (192   | )                        |   | (171                     | )      |                     | (152   | ) |   | (158 | ) |
| Per                share (basic & diluted)               |   |                     | (.004  | )                        |   | (.004                    | )      |                     | (.003  | ) |   | (.003 | ) |
|                                                         |   |                     |   |                     |   |                     |   |                     |   |   |   |   |   |
| Weighted                average number of shares outstanding |   |                     | 46,212 |                     |   | 46,212                   |   |                     | 46,212 |   |   | 46,212 |   |

----

**Item      9A**
**Controls      and Procedures**

|  | a. | Evaluation                of disclosure controls and procedures.                The Company maintains controls and procedures designed to ensure                that                information required to be disclosed in the reports that the Company                files                or submitsunder the Securities Exchange Act of 1934 is recorded,                processed, summarized and reported within the time periods specified                in                the rules and forms of the Securities and Exchange Commission. As                required by Rule 13a-15(b) under the Exchange Act, our Chief Executive                Officer who is also our Chief Financial Officer carried out an evaluation                of the effectiveness of the design and operation of our disclosure                controls and procedures as of the end of the period covered by this                report. The Company’s Chief Executive Officer has concluded that the                Company’s disclosure controls and procedures, as of December 31, 2005 were                effective. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b. | Changes                in internal controls.                The Company made no changes in its internal control over financial                reporting that occurred during the Company’s fourth fiscal quarter that                has materially affected, or which is reasonably likely to materially                affect the Company’s internal control over financial                reporting. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Exhibits**

|   | 31.1 | Certification                of Chief Executive Officer and Principal Financial Officer Required                by                Rule 13a-14(a)-15d-14(a) under the Exchange                Act |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|
|   | 32.1 | Certification pursuant to 18 U.S.C. Section 1350,              as              adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 executed              by Phillip W. Ware. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

|                                              |                                                                                               |                             |
|---------------------------------------------------|----------------------------------------------------------------------------------------------------|----------------------------------|
|                                              | **COASTAL                CARIBBEAN OILS & MINERALS, LTD.**(Registrant)                         |
|                                         |                                                                                          |                        |
| Dated:              January              31, 2007 | By:                                                                                      | /s/              Phillip W. Ware |
|                                              | **Phillip              W. Ware**,              President andChief                Executive Officer |
|                                              |                                                                                                    |

----

**INDEX      TO EXHIBITS**

|  | 31.1 | Certification                pursuant to Rule 13a-14 by Phillip W.                Ware |
|--|------|----------------------------------------------------------------------------------------|

|  | 32.1 | Certification                pursuant to Section 906 by Phillip W.                Ware |
|--|------|----------------------------------------------------------------------------------------|

----