**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

| x | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|---|--------------------------------------------------------------------------------------------------------------------------------------|

**September      30, 2005      **

|  o | 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)          |

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

**FORM      10-Q **

**SEPTEMBER      30, 2005**

**Table      of Contents**

**PART      I - FINANCIAL INFORMATION**

| ITEM                1 | Financial                Statements                                                                                                                                                                                                                      | Page    |
|-----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                  |                                                                                                                                                                                                                                                     |    |
|                  | Consolidated                balance sheets at September 30, 2005 and December 31, 2004                                                                                                                                                                   | 3       |
|                  |                                                                                                                                                                                                                                                     |    |
|                  | Consolidated                statements of operations for the three and nine month periods ended                September 30, 2005 and 2004 and for the period from January 31, 1953                (inception) to September 30, 2005                     |  4 |
|                  |                                                                                                                                                                                                                                                     |    |
|                  | Consolidated                statements of cash flows for the nine month periods ended September                30,                2005 and 2004 and for the period from January 31, 1953 (inception)                to                September 30, 2005 |  5 |
|                  |                                                                                                                                                                                                                                                     |    |
|                  | Notes                to consolidated financial statements                                                                                                                                                                                                | 6       |
|                  |                                                                                                                                                                                                                                                     |    |
| ITEM                2 | Management's                Discussion and Analysis of Financial Condition and Results of                Operations                                                                                                                                      | 9       |
|                  |                                                                                                                                                                                                                                                     |    |
| ITEM                3 | Quantitative                and Qualitative Disclosure About Market Risk                                                                                                                                                                                 | 11      |
|                  |                                                                                                                                                                                                                                                     |    |
| ITEM                4 | Controls                and Procedures                                                                                                                                                                                                                   | 11      |
|                  |                                                                                                                                                                                                                                                     |    |
|                  |                                                                                                                                                                                                                                                     |    |
|                  | **PART                II - OTHER INFORMATION**                                                                                                                                                                                                           |    |
|                  |                                                                                                                                                                                                                                                     |    |
| ITEM                5 | Other                Information                                                                                                                                                                                                                         | 12      |
|                  |                                                                                                                                                                                                                                                     |    |
| ITEM                6 | Exhibits                                                                                                                                                                                                                                                 | 13      |
|                  |                                                                                                                                                                                                                                                     |    |
|                  | Signatures                                                                                                                                                                                                                                               | 14      |

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

**FORM      10-Q**

**PART      I - FINANCIAL INFORMATION**

**ITEM      1**
**      - **
**Financial      Statements**

**CONSOLIDATED      BALANCE SHEETS**

|                                                                      |   |                               |        |                              |   |
|---------------------------------------------------------------------------|--------|------------------------------------|-------------|-----------------------------------|--------|
|                                                                      |   | September                  30,2005 |        | December                  31,2004 |   |
| **Assets**                                                                |   | (Unaudited)                        |        |                              |   |
| Current                assets:                                            |   |                               |        |                              |   |
| Cash                and cash equivalents                                  |   | $                                  | 4,448,354   |                              | $      | 179 |   |
| Prepaid                expenses and other                                 |   |                               | 1,884       |                              |   | 16,322 |   |
| Total                current assets                                       |   |                               | 4,450,238   |                              |   | 16,501 |   |
|                                                                      |   |                               |        |                              |   |   |   |
| Capitalized                exploration costs                              |   |                               | 143,023     |                              |   | - |   |
| Equipment                                                                 |   |                               | 1,891       |                              |   | - |   |
| Certificate                of deposit                                     |   |                               | 10,000      |                              |   | - |   |
| Total                assets                                               |   | $                                  | 4,605,152   |                              | $      | 16,501 |   |
|                                                                      |   |                               |        |                              |   |   |   |
| **Liabilities                and Shareholders’ Equity (Deficit)**   |   |                               |        |                              |   |   |   |
|                                                                      |   |                               |        |                              |   |   |   |
| Current                liabilities:                                       |   |                               |        |                              |   |   |   |
| Accounts                payable and accrued liabilities                   |   | $                                  | 39,786      |                              | $      | 863,127 |   |
| Amounts                due to related parties                             |   |                               | -           |                              |   | 1,594,369 |   |
| Total                current liabilities                                  |   |                               | 39,786      |                              |   | 2,457,496 |   |
|                                                                      |   |                               |        |                              |   |   |   |
| Minority                interests (Note 3)                                |   |                               | -           |                              |   | - |   |
|                                                                      |   |                               |        |                              |   |   |   |
| Shareholders'                equity (deficit)                             |   |                               |        |                              |   |   |   |
| Common                stock, par value $.12 per share:                    |   |                               |        |                              |   |   |   |
| Authorized                - 250,000,000 shares                            |   |                               |        |                              |   |   |   |
| Outstanding                - 46,211,604, 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           |   |                               | (33,117,837 | )                                 |   | (40,124,198 | ) |
| Total                shareholders’ equity (deficit)                 |   |                               | 4,565,366   |                              |   | (2,440,995 | ) |
| Total                liabilities and shareholders’ (deficit) equity |   | $                                  | 4,605,152   |                              | $      | 16,501 |   |
|                                                                      |   |                               |        |                              |   |   |   |

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

**FORM      10-Q**

**PART      I - FINANCIAL INFORMATION**

**ITEM      1**
**      - **
**Financial      Statements**

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

|                                                    |   |                                                           |          |                                                          |   |                                        |   |   |          | For                the       |   |
|---------------------------------------------------------|--------|----------------------------------------------------------------|---------------|---------------------------------------------------------------|--------|---------------------------------------------|--------|--------|---------------|------------------------------|--------|
|                                                    |   |                                                           |          |                                                          |   |                                        |   |   |          | period                from   |   |
|                                                    |   |                                                           |          |                                                          |   |                                        |   |   |          | Jan.                31, 1953 |   |
|                                                    |   | Three                months ended September                30, |          | Nine                months ended September                30, |   | (inception)                to September 30, |   |
|                                                    |   | 2005                                                           |          | 2004                                                          |   | 2005                                        |   | 2004   |          | 2005                         |   |
|                                                    |   |                                                           |          |                                                          |   |                                        |   |   |          |                         |   |
| **Revenues**                                            |   | $                                                              | -             |                                                          | $      | -                                           |   | $      | -             |                         | $      | - |   | $ | - |   |
|                                                    |   |                                                           |          |                                                          |   |                                        |   |   |          |                         |   |   |   |   |   |   |
| **Expenses:**                                           |   |                                                           |          |                                                          |   |                                        |   |   |          |                         |   |   |   |   |   |   |
| Legal                fees and costs                     |   |                                                           | 76,011        |                                                          |   | 86,888                                      |   |   | 90,068        |                         |   | 249,167 |   |   | 16,989,747 |   |
| Administrative                expenses                  |   |                                                           | 52,320        |                                                          |   | 34,526                                      |   |   | 130,811       |                         |   | 172,626 |   |   | 9,866,504 |   |
| Personnel                                               |   |                                                           | 44,291        |                                                          |   | 24,761                                      |   |   | 93,810        |                         |   | 74,279 |   |   | 3,849,621 |   |
| Shareholder                communications               |   |                                                           | 12,524        |                                                          |   | 6,000                                       |   |   | 24,584        |                         |   | 18,565 |   |   | 3,997,676 |   |
| Write                off of unproved properties         |   |                                                           | -             |                                                          |   | -                                           |   |   | -             |                         |   | - |   |   | 5,560,494 |   |
| Exploration                costs                        |   |                                                           | -             |                                                          |   | -                                           |   |   | -             |                         |   | - |   |   | 247,465 |   |
| Lawsuit                judgments                        |   |                                                           | -             |                                                          |   | -                                           |   |   | -             |                         |   | - |   |   | 1,941,916 |   |
| Minority                interests                       |   |                                                           | -             |                                                          |   | -                                           |   |   | -             |                         |   | - |   |   | (632,974 | ) |
| Other                                                   |   |                                                           | -             |                                                          |   | -                                           |   |   | -             |                         |   | - |   |   | 364,865 |   |
| Contractual                services                     |   |                                                           | -             |                                                          |   | -                                           |   |   | -             |                         |   | - |   |   | 2,155,728 |   |
|                                                    |   |                                                           | 185,146       |                                                          |   | 152,175                                     |   |   | 339,273       |                         |   | 514,637 |   |   | 44,341,042 |   |
|                                                    |   |                                                           |          |                                                          |   |                                        |   |   |          |                         |   |   |   |   |   |   |
| **Other                income (expense):**              |   |                                                           |          |                                                          |   |                                        |   |   |          |                         |   |   |   |   |   |   |
| Gain                on settlement (Note 4)              |   |                                                           | 9,515,900     |                                                          |   | -                                           |   |   | 9,515,900     |                         |   | - |   |   | 9,515,900 |   |
| Goodwill                impairment                      |   |                                                           | (2,191,923    | )                                                             |   | -                                           |   |   | (2,191,923    | )                            |   | - |   |   | (2,191,923 | ) |
| Interest                and other income                |   |                                                           | 21,657        |                                                          |   | 1                                           |   |   | 21,657        |                         |   | 1 |   |   | 3,899,228 |   |
|                                                    |   |                                                           | 7,345,634     |                                                          |   | -                                           |   |   | 7,345,634     |                         |   | - |   |   | 11,223,205 |   |
|                                                    |   |                                                           |          |                                                          |   |                                        |   |   |          |                         |   |   |   |   |   |   |
| **Income                taxes**                         |   |                                                           | -             |                                                          |   | -                                           |   |   | -             |                         |   | - |   |   | - |   |
|                                                    |   |                                                           |          |                                                          |   |                                        |   |   |          |                         |   |   |   |   |   |   |
| **Net                income (loss)**                    |   | **$**                                                          | **7,160,488** |                                                          | **$**  | **(152,174**                                | **)**  | **$**  | **7,006,361** |                         | **$**  | **(514,636** | **)** |   |   |   |
|                                                    |   |                                                           |          |                                                          |   |                                        |   |   |          |                         |   |   |   |   |   |   |
| Deficit                accumulated during               |   |                                                           |          |                                                          |   |                                        |   |   |          |                         |   |   |   |   |    |   |
| the                development stage                    |   |                                                           |          |                                                          |   |                                        |   |   |          |                         |   |   |   | $ | (33,117,837 | ) |
|                                                    |   |                                                           |          |                                                          |   |                                        |   |   |          |                         |   |   |   |   |   |   |
| Weighted                average number of shares        |   |                                                           |          |                                                          |   |                                        |   |   |          |                         |   |   |   |   |   |   |
| outstanding                (basic &diluted)         |   |                                                           | 46,221,604    |                                                          |   | 46,221,604                                  |   |   | 46,221,604    |                         |   | 46,221,604 |   |   |   |   |
|                                                    |   |                                                           |          |                                                          |   |                                        |   |   |          |                         |   |   |   |   |   |   |
| Net                loss per share (basic & diluted) |   | $                                                              | .15           |                                                          | $      | (-                                          | )      | $      | .15           |                         | $      | (.01 | ) |   |   |   |

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

**FORM      10-Q**

**PART      I - FINANCIAL INFORMATION**

**ITEM      1**
**      - **
**Financial      Statements**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

|                                                                      |   | Nine                  months endedSeptember 30, |       | For                    the period from Jan. 31, 1953(inception)                to |   |
|---------------------------------------------------------------------------|--------|-------------------------------------------------|------------|-----------------------------------------------------------------------------------|--------|
|                                                                      |   | 2005                                            |       | 2004                                                                              |   | September                30, 2005 |   |
|                                                                      |   |                                            |       |                                                                              |   |   |   |
| **Operating                activities:**                                  |   |                                            |       |                                                                              |   |   |   |
| Net                income (loss)                                          |   | $                                               | 7,006,361  |                                                                              | $      | (514,636 | ) | $ | (33,117,838 | ) |
| Adjustments                to reconcile net loss to net cash              |   |                                            |       |                                                                              |   |   |   |   |   |   |
| used                in operating activities:                              |   |                                            |       |                                                                              |   |   |   |   |   |   |
| Goodwill                impairment                                        |   |                                            | 2,191,923  |                                                                              |   | - |   |   | 2,191,923 |   |
| Gain                on settlement                                         |   |                                            | (9,515,900 | )                                                                                 |   | - |   |   | (9,515,900 | ) |
| Write                off of unproved properties                           |   |                                            | -          |                                                                              |   | - |   |   | 5,619,741 |   |
| Minority                interest                                          |   |                                            | -          |                                                                              |   | - |   |   | (632,974 | ) |
| 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                                 |   |                                            | 14,438     |                                                                              |   | 71,625 |   |   | (1,885 | ) |
| Accounts                payable and accrued liabilities                   |   |                                            | (2,337,420 | )                                                                                 |   | 376,525 |   |   | 39,788 |   |
| Net                cash provided by (used in) operating activities        |   |                                            | (2,640,598 | )                                                                                 |   | (66,486 | ) |   | (34,970,472 | ) |
|                                                                      |   |                                            |       |                                                                              |   |   |   |   |   |   |
| **Investing                activities:**                                  |   |                                            |       |                                                                              |   |   |   |   |   |   |
| Additions                to oil, gas, and mineral properties              |   |                                            |       |                                                                              |   |   |   |   |   |   |
| net                of assets acquired for common stock and reimbursements |   |                                            | (143,023   | )                                                                                 |   | - |   |   | (3,883,205 | ) |
| Net                proceeds from settlement                               |   |                                            | 9,515,900  |                                                                              |   | - |   |   | 9,515,900 |   |
| Proceeds                from relinquishment of surface rights             |   |                                            | -          |                                                                              |   | - |   |   | 246,733 |   |
| Purchase                of certificate of deposit                         |   |                                            | (10,000    | )                                                                                 |   | - |   |   | (10,000 | ) |
| Purchase                of minority interest in CPC                       |   |                                            | (2,191,923 | )                                                                                 |   | - |   |   | (2,191,923 | ) |
| Equipment                purchases                                        |   |                                            | (1,891     | )                                                                                 |   | - |   |   | (63,540 | ) |
| Net                cash provided by (used in) investing activities        |   |                                            | 7,169,063  |                                                                              |   | - |   |   | 3,613,965 |   |
|                                                                      |   |                                            |       |                                                                              |   |   |   |   |   |   |
| **Financing                activities:**                                  |   |                                            |       |                                                                              |   |   |   |   |   |   |
| Loans                from officers                                        |   |                                            | 31,500     |                                                                              |   | 63,851 |   |   | 111,790 |   |
| Repayment                of loans to officers                             |   |                                            | (111,790   | )                                                                                 |   | - |   |   | (111,790 | ) |
| Sale                of common stock net of expenses                       |   |                                            | -          |                                                                              |   | - |   |   | 30,380,612 |   |
| Proceeds                from exercise of options                          |   |                                            | -          |                                                                              |   | - |   |   | 884,249 |   |
| Sale                of shares by subsidiary                               |   |                                            | -          |                                                                              |   | - |   |   | 820,000 |   |
| Sale                of subsidiary shares                                  |   |                                            | -          |                                                                              |   | - |   |   | 3,720,000 |   |
| Net                cash provided by (used in) financing activities        |   |                                            | (80,290    | )                                                                                 |   | 63,851 |   |   | 35,804,861 |   |
|                                                                      |   |                                            |       |                                                                              |   |   |   |   |   |   |
| Net                increase (decrease) in cash and cash equivalents       |   |                                            | 4,448,175  |                                                                              |   | (2,635 | ) |   | 4,448,354 |   |
| Cash                and cash equivalents at beginning of period           |   |                                            | 179        |                                                                              |   | 2,875 |   |   | - |   |
| Cash                and cash equivalents at end of period                 |   | $                                               | 4,448,354  |                                                                              | $      | 240 |   | $ | 4,448,354 |   |
|                                                                      |   |                                            |       |                                                                              |   |   |   |   |   |   |

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

**FORM        10-Q**

**PART        I - FINANCIAL INFORMATION**

**ITEM      1**
**Financial      Statements**

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

**FORM        10-Q**

**PART        I - FINANCIAL INFORMATION**

**ITEM      1**
**Financial      Statements (Cont’d)**

| Gross                proceeds                                      |   | $      | 12,500,000 |   |
|--------------------------------------------------------------------|--------|--------|------------|--------|
|                                                               |   |   |       |   |
| To Lykes                Mineral                Corporation         |   |   | 1,390,000  |   |
| To Outside                Royalty                Holders           |   |   | 2,540,000  |   |
| Purchase                of other                CPC shares         |   |   | 802,000    |   |
| To Settlement                Consultant                            |   |   | 465,000    |   |
| To Company                Creditors                                |   |   | 2,431,000  |   |
|                                                               |   |   |       |   |
| Net amount                to                Company and Subsidiary |   | $      | 4,872,000  |   |

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

**FORM        10-Q**

**PART        I - FINANCIAL INFORMATION**

**ITEM      1**
** **
**Financial      Statements (Cont’d) **

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

**FORM        10-Q**

**PART        I - FINANCIAL INFORMATION**

**ITEM      2**
**Management's      Discussion and Analysis of Financial Condition and **
**Results      of Operations**

**Forward      Looking Statements**

**Critical      Accounting Policies**

**Liquidity and Capital Resources**

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

**FORM        10-Q**

**PART        I - FINANCIAL INFORMATION**

**ITEM      2**
**Management's      Discussion and Analysis of Financial Condition and **
**Results      of Operations **
**(Cont’d)**

**Results of Operations**

**Three      months ended September 30, 2005 vs. September 30, 2004**

**Legal      fees and costs decreased 13%**

**Administrative      expenses increased 51% **

**Personnel      expenses increased 79% **

**Shareholder      communications increased 109%**

**Goodwill      impairment**

**Nine      months ended September 30, 2005 vs. September 30, 2004**

**Legal      fees and costs decreased 64%**

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

**FORM        10-Q**

**PART        I - FINANCIAL INFORMATION**

**ITEM      2**
**Management's      Discussion and Analysis of Financial Condition and **
**Results      of Operations **
**(Cont’d)**

**Administrative      expenses decreased 24% **

**Personnel      expenses increased 26% **

**Shareholder      communications increased 32%**

**Goodwill      impairment**

**ITEM      3**
**Quantitative      and Qualitative Disclosure About Market Risk**

**ITEM      4**
**Controls      and Procedures**

| 1.                  | That the Company’s disclosure controls and procedures are                effective and adequately designed to ensure that material information                relating to the Company, including its consolidated subsidiary, is                timely                made known to such officers by others within the Company and its                subsidiary, particularly during the period in which this quarterly                report                is being prepared; and |
|--------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

| 2.   | That                  there were no significant changes in the Company’s internal controls or in                  other factors that could materially affect or are reasonably likely                  to                  materially affect these controls subsequent to the date of their                  evaluation, including any corrective actions with regard to significant                  deficiencies and material                  weaknesses. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

**FORM        10-Q**

**PART        I - FINANCIAL INFORMATION**

**ITEM      5**
**-**
**Other      Information**

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

**FORM      10-Q**

**PART      II - OTHER INFORMATION**

**September      30, 2005**

**ITEM      6**
**-**
**Exhibits      **

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

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

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

**FORM      10-Q**

**September      30, 2005**

**SIGNATURES**

|                                       |                                                                                                            |                                    |
|--------------------------------------------|-----------------------------------------------------------------------------------------------------------------|-----------------------------------------|
|                                       | **COASTAL                CARIBBEAN OILS & MINERALS, LTD.**                                                  |
|                                       | Registrant                                                                                                      |
|                                  |                                                                                                       |                               |
| Date: October                26, 2005 | By:                                                                                                   | /s/ Phillip                W. Ware |
|                                       | Phillip                W. Ware                                                                                  |
|                                       | Chief                Executive Officer, President                and Principal Financial                Officer |

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