UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

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

For the quarterly period ended            September 30, 2004
                               -------------------------------------------------

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

For the transition period from ________________ to _________________

Commission file number     1-4668
                           ------

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

             (Exact name of registrant as specified in its charter)

           BERMUDA                                                  NONE
-------------------------------                              -------------------
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

Clarendon House, Church Street, Hamilton, Bermuda                         HM 11
--------------------------------------------------------------------------------
(Address of principal executive offices)                              (Zip Code)

                                 (850) 653-9165
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)


--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                          if changed since last report)

     Indicate  by check mark  whether the  registrant  (l) has filed all reports
required to be filed by Section 13 or 15 (d) of the  Securities  Exchange Act of
l934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. |X| Yes |_| No

     Indicate by check mark whether the registrant is an  accelerated  filer (as
defined in Rule 12b-2 of the Exchange Act). |_| Yes |X| No

     The number of shares  outstanding  of the  issuer's  single class of common
stock as of November 5, 2004 was 46,211,604.



<PAGE>


                     COASTAL CARIBBEAN OILS & MINERALS, LTD.

                                    FORM 10-Q

                               SEPTEMBER 30, 2004

                                Table of Contents


                         PART I - FINANCIAL INFORMATION

<TABLE>
<S>                                                                                               <C>
ITEM 1  Financial Statements                                                                      Page
                                                                                                  ----

        Consolidated balance sheets at September 30, 2004 and December 31, 2003
                                                                                                     3

        Consolidated  statements of  operations  for the  three  and  nine month
        periods  ended  September 30, 2004  and  2003  and  for  the period from
        January 31, 1953  (inception) to September 30, 2004                                          4

        Consolidated  statements of cash flows for the nine month  periods ended
        September 30, 2004 and 2003 and for the period  from  January  31,  1953
        (inception)  to September 30, 2004                                                           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                                    13

ITEM 4  Controls and Procedures                                                                      13


                           PART II - OTHER INFORMATION

ITEM 5  Other Information                                                                            14

ITEM 6  Exhibits and Reports on Form 8-K                                                             15

        Signatures                                                                                   16
</TABLE>

                                       2
<PAGE>

                     COASTAL CARIBBEAN OILS & MINERALS, LTD.

                                    FORM 10-Q

                         PART I - FINANCIAL INFORMATION

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

                           CONSOLIDATED BALANCE SHEETS
                           (Expressed in U.S. dollars)

                             (A Bermuda Corporation)
                           A Development Stage Company

<TABLE>
                                                                                                 September 30,         December 31,
                                                                                                     2004                  2003
             Assets                                                                               (unaudited)             (Note)
Current assets:
<S>                                                                                              <C>                   <C>
  Cash and cash equivalents                                                                      $        240          $      2,875

  Prepaid expenses and other                                                                           16,322                87,947
                                                                                                 ------------          ------------
          Total current assets                                                                         16,562                90,822
                                                                                                 ------------          ------------

Contingent litigation claim (Note 4)                                                                        -                     -

                                                                                                 ------------          ------------
Total assets                                                                                     $     16,562          $     90,822
                                                                                                 ============          ============

             Liabilities and Shareholders' (Deficit) Equity

Current liabilities:
  Accounts payable and accrued liabilities                                                       $    827,667          $    805,110
  Amounts due to related parties                                                                    1,471,619             1,053,800
                                                                                                 ------------          ------------
          Total current liabilities                                                                 2,299,286             1,858,910
                                                                                                 ------------          ------------

Minority interests                                                                                          -                     -

Shareholders' (deficit) equity 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                                                (39,965,927)          (39,451,291)
                                                                                                 ------------          ------------
Total shareholders' (deficit) equity                                                               (2,282,724)           (1,768,088)
                                                                                                 ------------          ------------
Total liabilities and shareholders' (deficit) equity                                             $     16,562          $     90,822
                                                                                                 ============          ============
</TABLE>




       Note: The balance sheet at December 31, 2003 has been derived from
           the audited consolidated financial statements at that date.

                             See accompanying notes.

                                       3
<PAGE>

                     COASTAL CARIBBEAN OILS & MINERALS, LTD.

                                    FORM 10-Q

                         PART I - FINANCIAL INFORMATION

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

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                           (Expressed in U.S. dollars)

                             (A Bermuda Corporation)
                           A Development Stage Company

                                   (unaudited)
<TABLE>


                                                                                                                         For the
                                                                                                                       period from
                                                                                                                      Jan. 31, 1953
                                                     Three months ended                     Nine months ended         (inception) to
                                                     ------------------                     -----------------         September 30,
                                                        September 30,                         September 30,               2004
                                                                                              -------------               ----
                                                   2004              2003               2004                 2003
                                                   ----              ----               ----                 ----

Interest and other income                              $  1             $ 103               $ 1            $  640     $  3,877,571
                                                       ----             -----               ---            ------     ------------

Expenses:
<S>                                                  <C>               <C>              <C>               <C>           <C>
  Legal fees and costs                               86,888            82,383           249,167           263,375       16,821,755
  Administrative expenses                            34,526           116,950           172,626           408,467        9,699,905
  Salaries                                           24,761            17,024            74,279            79,186        3,717,252
  Shareholder communications                          6,000             8,996            18,565            21,341        3,967,092
  Write off of unproved properties                        -                 -                 -                 -        5,560,494
  Exploration costs                                       -            39,617                 -            39,617          247,465
  Lawsuit judgments                                       -                 -                 -                 -        1,941,916
  Minority interests                                      -                 -                 -                 -         (632,974)
  Other                                                   -                 -                 -                 -          364,865
  Contractual services                                    -                 -                 -                 -        2,155,728
                                               ------------      ------------      ------------      ------------     ------------
                                                    152,175           264,970           514,637           811,986       43,843,498
                                               ------------      ------------      ------------      ------------     ------------

Net loss                                       $   (152,174)     $   (264,867)     $   (514,636)     $   (811,346)
                                               ============      ============      ============      ============

Deficit accumulated during
  the development stage                                                                                               $(39,965,927)
                                                                                                                      ============

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 &                        $(.01)             $(.01)               $(.01)             $(.02)
diluted)                                           ======             ======               ======             ======
</TABLE>




                             See accompanying notes.

                                       4
<PAGE>




                     COASTAL CARIBBEAN OILS & MINERALS, LTD.
                                    FORM 10-Q
                         PART I - FINANCIAL INFORMATION

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

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (Expressed in U.S. Dollars)

                             (A Bermuda Corporation)
                           A Development Stage Company
                                   (unaudited)

<TABLE>
                                                                                                               For the period from
                                                                                                                 Jan. 31, 1953
                                                                                Nine months ended                 (inception)
                                                                                  September 30,                        To
                                                                            2004                 2003          September 30, 2004
                                                                        ------------         ------------      ------------------

Operating activities:
<S>                                                                     <C>                  <C>                  <C>
Net loss                                                                $   (514,636)        $   (811,346)        $(39,965,928)
Adjustments to reconcile net loss to net cash
  used in operating activities:
    Minority interest                                                              -                    -             (632,974)
    Write off of unproved properties                                               -                    -            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                                               71,625              298,380              (16,323)
     Accounts payable and accrued liabilities                                376,525              197,777            2,235,437
                                                                        ------------         ------------         ------------
Net cash used in operating activities                                        (66,486)            (315,189)         (32,313,374)
                                                                        ------------         ------------         ------------

Investing activities:
  Additions to oil, gas, and mineral properties
     net of assets acquired for common stock and
    reimbursements                                                                 -                    -           (3,740,182)
  Proceeds from relinquishment of surface rights                                   -                    -              246,733
  Purchase of fixed assets                                                         -                    -              (61,649)
                                                                        ------------         ------------         ------------
Net cash used in investing activities                                              -                    -           (3,555,098)
                                                                        ------------         ------------         ------------

Financing activities:
  Loans from officers                                                         63,851                    -               63,851
  Sale of common stock net of expenses                                             -                    -           30,380,612
  Shares issued upon exercise of options                                           -                    -              884,249
  Sale of shares by subsidiary                                                     -               50,000              820,000
  Sale of subsidiary shares                                                        -                    -            3,720,000
                                                                        ------------         ------------         ------------
Net cash provided by financing activities                                     63,851               50,000           35,868,712
                                                                        ------------         ------------         ------------
Net (decrease) increase in cash and cash equivalents                          (2,635)            (265,189)                 240
Cash and cash equivalents at beginning of period                               2,875              292,095                    -
                                                                        ------------         ------------         ------------
Cash and cash equivalents at end of period                              $        240         $     26,906         $        240
                                                                        ============         ============         ============
</TABLE>




                             See accompanying notes.


                                       5
<PAGE>



                     COASTAL CARIBBEAN OILS & MINERALS, LTD.

                                    FORM 10-Q

                         PART I - FINANCIAL INFORMATION

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

Note 1.       Basis of Presentation
              ---------------------

     The accompanying  unaudited  consolidated  financial statements include the
Company's 58.45% owned subsidiary, Coastal Petroleum Company (Coastal Petroleum)
and  have  been  prepared  in  accordance  with  generally  accepted  accounting
principles for interim  financial  information and with the instructions to Form
10-Q and Rule 10-01 of Regulation S-X.  Accordingly,  they do not include all of
the  information  and  footnotes  required  by  generally  accepted   accounting
principles for complete financial statements. In the opinion of management,  all
adjustments considered necessary for a fair presentation have been included. All
such adjustments are of a normal  recurring  nature.  Operating  results for the
three and nine  month  periods  ended  September  30,  2004 are not  necessarily
indicative of the results that may be expected for the year ending  December 31,
2004. For further  information,  refer to the consolidated  financial statements
and footnotes  thereto  included in the Company's Annual Report on Form 10-K for
the year ended December 31, 2003.

Note 2.       Going Concern
              -------------

     The Company has a working capital deficiency, has a limited amount of cash,
has  incurred  recurring  losses  and  has  a  deficit  accumulated  during  the
development  stage.  We have been and  continue to be involved in several  legal
proceedings  against  the State of  Florida  which has  limited  our  ability to
commence development activities on our unproven oil and gas properties or obtain
compensation for certain property rights we believe have been taken. The cost of
that litigation has been substantial,  which requires the Company to continually
obtain additional capital.

     The Company has received a commitment from some of its Officers to loan the
Company funds during 2004 which management believes should be sufficient to fund
the Company's  operations  through December 2004,  provided that payments to the
Company's litigation counsel and to the Company's salaried employee are deferred
and provided  further that payments to other Company  counsel are also deferred.
These loans totaled  approximately  $67,000 through November 10, 2004. There can
be no assurances  that  management will continue to make loans to the Company or
that  these  loans  will  allow  the  Company  to  continue  operations  for any
significant  length of time. The Company may have to suspend or cease operations
and may have to wind up the  Company  or be forced  into  insolvent  liquidation
under the laws of Bermuda  unless and until the  Company  can secure  additional
financing.

     These situations  raise  substantial  doubt about the Company's  ability to
continue  as a going  concern.  The  consolidated  financial  statements  do not
include  any   adjustments  to  reflect  the  possible  future  effects  on  the
recoverability  and  classification  of assets or amounts and  classification of
liabilities, which may result from the outcome of this uncertainty.




                                       6
<PAGE>

                     COASTAL CARIBBEAN OILS & MINERALS, LTD.

                                    FORM 10-Q

                         PART I - FINANCIAL INFORMATION

Note 3.       Litigation
              ----------

Florida Litigation
------------------

     Coastal  Petroleum  has been  involved in various  lawsuits for many years.
Coastal Petroleum's current litigation now involves one basic claim: whether the
State's offshore  drilling policy and its denial of a permit constitute a taking
of Coastal Petroleum's  property.  In addition,  Coastal Caribbean is a party to
another  action in which  Coastal  Caribbean  claims that certain of its royalty
interests have been confiscated by the State.

Lease Taking Case (Lease 224-A)
-------------------------------

     There has been no material change in these proceedings during this quarter.

Royalty Taking Case
-------------------

     There has been no material change in these proceedings during this quarter.


Lease Taking Case (Lease 224-B)
-------------------------------

     Defendants  filed a Motion for  Summary  Judgment  in this  proceeding  and
argument on that motion was heard on November  10, 2004,  in the Circuit  Court,
Second Judicial Circuit, in and for Leon County. There was no decision announced
as the Judge has taken the matter under advisement.

Note 4.       Loss per share
              --------------

         Loss per share is based upon the weighted average number of common and
common equivalent shares outstanding during the period. The Company's basic and
diluted calculations of EPS are the same because the exercise of options is not
assumed in calculating diluted EPS, as the result would be anti-dilutive (the
Company has continuing losses).

Note 5.       Stock Options
              -------------

     The Company has elected to follow  Accounting  Principles Board Opinion No.
25,  "Accounting  for  Stock  Issued  to  Employees"  (APB No.  25) and  related
interpretations in accounting for its stock options because the alternative fair
value  accounting  provided under FASB Statement No. 123,  "Accounting for Stock
Based  Compensation,"  requires  use of option  valuation  models  that were not
developed  for use in  valuing  stock  options.  Under APB No. 25,  because  the
exercise  price of the Company's  stock  options  equals the market price of the
underlying stock on the date of grant, no compensation expense is recognized.

     Pro forma  information  regarding  net  income  and  earnings  per share is
required  by  Statement  123,  and has been  determined  as if the  Company  had
accounted for its stock  options under the fair value method of that  Statement.
The fair value for these  options  was  estimated  at the date of grant  using a
Black-Scholes option pricing model.


                                       7
<PAGE>

                    COASTAL CARIBBEAN OILS & MINERALS, LTD.

                                    FORM 10-Q

                         PART I - FINANCIAL INFORMATION


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

Summary of Options Outstanding at September 30, 2004
----------------------------------------------------

Granted         Expiration          Total        Vested      Exercise Prices ($)
-------         ----------          -----        ------      -------------------

2000         March  22, 2010      700,000        700,000            .91
                                  -------        -------            ---
                                  700,000        700,000            .91
                                  =======        =======
                                                             (Weighted Average)
Options reserved for               75,000
--------------------
future grants
-------------


The assumptions used in the 2000 valuation model were: risk free interest rate -
6.66%,  expected  life - 10 years,  expected  volatility  - .741,  and  expected
dividend  -  0.  Because  the  Company's  stock  options  have   characteristics
significantly different from those of traded options, and because changes in the
subjective input assumptions can materially  affect the fair value estimate,  in
management's  opinion, the existing models do not necessarily provide a reliable
single measure of the fair value of its stock options.

Had the Company determined  stock-based  compensation based on the fair value of
the options  granted at the grant date,  consistent  with the method  prescribed
under SFAS No. 123,  there would have been no change to the  Company's  net loss
for the nine months ended September 30, 2004 and 2003.



                                       8
<PAGE>


                     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

     Statements  included in  Management's  Discussion and Analysis of Financial
Condition  and  Results of  Operations  which are not  historical  in nature are
intended to be forward looking  statements.  The Company  cautions  readers that
forward looking  statements are subject to certain risks and uncertainties  that
could cause  actual  results to differ  materially  from those  indicated in the
forward  looking  statements.   Among  the  risks  and  uncertainties  are:  the
uncertainty  of  securing  additional  loans  from  management  or  others;  the
uncertainty  of  securing  additional  financing  through  the sale of shares of
Coastal  Petroleum  and/or Coastal  Caribbean;  the  uncertainty of any decision
favorable to Coastal  Petroleum in its litigation  against the State of Florida;
and the substantial cost of continuing the litigation.

Critical Accounting Policies

     The Company  follows the full cost method of accounting for its oil and gas
properties.  All costs  associated  with property  acquisition,  exploration and
development activities whether successful or unsuccessful are capitalized. Since
the Company's  properties were  undeveloped and  nonproducing and the subject of
litigation, capitalized costs were not being amortized.

     The capitalized  costs are subject to a ceiling test which basically limits
such costs to the aggregate of the estimated  present value  discounted at a 10%
rate of future net revenues from proved reserves,  based on current economic and
operating  conditions,  plus the lower of cost or fair market  value of unproved
properties.

     The Company  assesses  whether its  unproved  properties  are impaired on a
periodic  basis.  This assessment is based upon work completed on the properties
to  date,  the  expiration  date of its  leases  and  technical  data  from  the
properties  and  adjacent  areas.  These  properties  are  subject to  extensive
litigation  with the State of Florida  and all costs to date have been  expensed
for impairment.


                                       9
<PAGE>

                    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 Operation (Cont'd)
              -----------------------------

Liquidity and Capital Resources
                                    Liquidity

     The Company has a working capital deficiency, has a limited amount of cash,
has  incurred  recurring  losses  and  has  a  deficit  accumulated  during  the
development  stage.  We have been and  continue to be involved in several  legal
proceedings  against  the State of  Florida  which has  limited  our  ability to
commence development activities on our unproven oil and gas properties or obtain
compensation for certain property rights we believe have been taken. The cost of
that litigation has been substantial,  which requires the Company to continually
obtain additional capital.

     At September 30, 2004, Coastal Caribbean had approximately $240 of cash and
cash equivalents  available.  In addition, the Company has received a commitment
from some of its Officers to loan the Company funds during 2004 which management
believes should be sufficient to fund the Company's  operations through December
2004,  provided  that payments to the  Company's  litigation  counsel and to the
Company's  salaried  employee are deferred and provided further that payments to
other  Company  counsel are also  deferred.  These loans  totaled  approximately
$67,000  through  November 10, 2004.  There can be no assurances that management
will  continue  to make loans to the  Company or that these loans will allow the
Company to continue operations for any significant length of time.

     Certain directors,  officers, legal counsel and administrative  consultants
have agreed to defer the payment of their  salaries and fees.  At September  30,
2004,  the amount of  salaries  and fees being  deferred  totaled  approximately
$1,471,619.  The  Company's  annual  rental  payments on its  Florida  leases of
approximately  $59,000 are not due until November 30, 2004. No amounts have been
accrued  related to these  leases in the current  year.  The Company may have to
suspend  or cease  operations  and may have to wind up the  company or be forced
into  insolvent  liquidation  under  the laws of  Bermuda  unless  and until the
Company can secure additional funds for operations.

     Coastal  Caribbean and Coastal Petroleum have attempted to raise funds from
the other  shareholders of Coastal Petroleum and from others.  Since March 2003,
Management has been unsuccessful at raising additional funds.

     These situations  raise  substantial  doubt about the Company's  ability to
continue  as a going  concern.  The  consolidated  financial  statements  do not
include  any   adjustments  to  reflect  the  possible  future  effects  on  the
recoverability  and  classification  of assets or amounts and  classification of
liabilities, which may result from the outcome of this uncertainty.




                                       10
<PAGE>

                     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 Operation (Cont'd)
              -----------------------------

Results of Operations
---------------------

Three months ended September 30, 2004 vs. September 30, 2003
------------------------------------------------------------

     The Company incurred a loss of $152,000 for the 2004 quarter, compared to a
loss of $265,000 for the comparable 2003 quarter.

     Interest  income  and  other  income  decreased  100% from $103 in the 2003
quarter to $1 in the 2004 quarter because of the decrease in the amount of funds
available to invest.

     Legal fees and costs increased 5% to $87,000 for the 2004 quarter, compared
to $82,000 in the prior period.  Legal fees and costs increased in 2004 compared
with 2003 due to the hiring of a special  consultant  to help advise the Company
related to its lawsuit against the State of Florida seeking compensation for the
State's  taking of its  property  rights to  explore  for oil and gas within its
state Lease 224-A.

     Administrative  expenses  decreased  70% during the 2004  period to $35,000
compared to $117,000 in the 2003 period.  Accounting and administrative expenses
decreased  from  $16,000  in the 2003  period to $8,000 in the 2004  period.  In
addition, Directors' and Officers' liability insurance decreased from $28,000 in
2003 to $8,000 in the 2004 quarter.

     Salaries  increased 45% in the 2004 quarter to $25,000  compared to $17,000
in the 2003.

     Shareholder  communications  decreased 33% to $6,000 during the 2004 period
compared to $9,000 in the 2003 period.

     Exploration costs decreased 100% to $-0- during the 2004 period compared to
$40,000 in the 2003 period as the Company has not made any lease payments in the
current year and these lease payments are not due until November 30, 2004.



                                       11
<PAGE>

                    COASTAL CARIBBEAN OILS & MINERALS, LTD.

                                    FORM 10-Q

                         PART I - FINANCIAL INFORMATION


Nine months ended September 30, 2004 vs. September 30, 2003
-----------------------------------------------------------

     The Company incurred a loss of $515,000 for the nine months ended September
30, 2004, compared to a loss of $811,000 for the comparable 2003 period.

     Interest  income  and  other  income  decreased  100% from $640 in the 2003
period to $1 in the 2004 period  because of the  decrease in the amount of funds
available to invest.

     Legal fees and costs decreased 5% to $249,000 for the 2004 period, compared
to $263,000 in the 2003 period.  Legal fees and costs decreased in 2004 compared
with 2003 due to the  minimal  activity  during the first and third  quarters of
2004 related to Coastal Petroleum Company's lawsuit against the State of Florida
seeking  compensation  for the State's taking of its property  rights to explore
for oil and gas within its state Lease 224-A.  This was  partially  offset by an
increase in activity  during the second quarter of 2004 related to the filing of
Petition for Writ of Certiorari  with the United  States  Supreme Court for this
case.

     Administrative  expenses  decreased  58% during the 2004 period to $173,000
compared to $408,000 in the 2003 period.  Accounting and administrative expenses
decreased  from  $53,000 in the 2003  period to $26,000 in the 2004  period.  In
addition, Directors' and Officers' liability insurance decreased from $80,500 in
2003 to $62,000 in the 2004 period.

     Salaries  decreased 6% in the 2004 period to $74,000 compared to $79,000 in
the 2003 period.

     Shareholder  communications decreased 13% to $19,000 during the 2004 period
compared to $21,000 in the 2003 period.

     Exploration costs decreased 100% to $-0- during the 2004 period compared to
$40,000 in the 2003 period as the Company has not made any lease payments in the
current year and these lease payments are not due until November 30, 2004.

                                       12
<PAGE>

                    COASTAL CARIBBEAN OILS & MINERALS, LTD.

                                    FORM 10-Q

                         PART I - FINANCIAL INFORMATION


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

     The Company does not have any significant  exposure to market risk as there
were no investments in marketable securities at September 30, 2004.


ITEM 4        Controls and Procedures
------        -----------------------

     We,  Phillip  W. Ware,  the  principal  executive  officer  and  Kenneth M.
Cornell,   the  principal  financial  officer,   have  evaluated  the  Company's
disclosure  controls and procedures (as defined in Rules 13a-14(c) and 15d-14(c)
adopted  under the  Securities  Act of 1934)  within the ninety  (90) day period
prior to the date of this report and have concluded:

         1.   That  the  Company's   disclosure   controls  and  procedures  are
         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.











                                       13
<PAGE>


                     COASTAL CARIBBEAN OILS & MINERALS, LTD.
                                    FORM 10-Q
                           PART II - OTHER INFORMATION

                               September 30, 2004

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

     On April 7, 2004,  Coastal filed a Petition for Writ of Certiorari with the
United States Supreme Court asking the Court to accept  jurisdiction to consider
the final  judgment  of the trial  court as  affirmed  by the  appellate  court,
finding no taking of  Coastal's  property.  On June 15, 2004,  Coastal  issued a
press release  announcing  the United States  Supreme Court denied the Company's
Petition for Writ of Certiorari. The Company continues to evaluate its options.

     Director  Graham B. Collis and Director John D. Monroe  resigned  effective
July 28, 2004.  Neither  director  resigned  because of a disagreement  with the
Company  on  any  matter  relating  to the  Company's  operations,  policies  or
practices.  Former Director Graham B. Collis has agreed to serve as the resident
representative  of the Company in Bermuda in order to meet the  requirements  of
registration under Bermuda law.

     Coastal  Caribbean is currently a passive foreign  investment  company,  or
PFIC,  for United  States  federal  income tax  purposes,  which could result in
negative  tax  consequences  to a  shareholder.  If, for any taxable  year,  the
Company's  passive  income or assets that produce  passive  income exceed levels
provided  by U.S.  law,  the  Company  would be a  "passive  foreign  investment
company," or PFIC,  for U.S.  federal  income tax  purposes.  For the years 1987
through 2001, Coastal Caribbean's passive income and assets that produce passive
income exceeded those levels and for those years Coastal Caribbean constituted a
PFIC. If Coastal  Caribbean is a PFIC for any taxable  year,  then the Company's
U.S. shareholders  potentially would be subject to adverse U.S. tax consequences
of holding  and  disposing  of shares of our common  stock for that year and for
future tax  years.  Any gain from the sale of, and  certain  distributions  with
respect to, shares of the Company's  common stock,  would cause a U.S. holder to
become  liable for U.S.  federal  income tax under  section 1291 of the Internal
Revenue Code (the interest charge regime). The tax is computed by allocating the
amount of the gain on the sale or the  amount of the  distribution,  as the case
may be, to each day in the U.S. shareholder's holding period. To the extent that
the amount is allocated  to a year,  other than the year of the  disposition  or
distribution, in which the corporation was treated as a PFIC with respect to the
U.S. holder,  the income will be taxed as ordinary income at the highest rate in
effect for that year, plus an interest charge.

     For further information, refer to the consolidated financial statements and
footnotes  thereto  included in the Company's Annual Report on Form 10-K for the
year ended December 31, 2003.


                                       14
<PAGE>



                     COASTAL CARIBBEAN OILS & MINERALS, LTD.
                                    FORM 10-Q
                           PART II - OTHER INFORMATION

                               September 30, 2004




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

         (a)      Exhibits
                  --------

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

         31.2     Certification pursuant to Rule 13a-14 by Kenneth M. Cornell

         32.1     Certification pursuant to Section 906 by Phillip W. Ware

         32.2     Certification pursuant to Section 906 by Kenneth M. Cornell

         (b)      Reports on Form 8-K
                  -------------------

                         None






                                       15
<PAGE>


                     COASTAL CARIBBEAN OILS & MINERALS, LTD.

                                    FORM 10-Q

                               September 30, 2004



                                   SIGNATURES
                                   ----------


     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.




                                       COASTAL CARIBBEAN OILS & MINERALS, LTD.
                                       ---------------------------------------
                                                     Registrant




Date:  November 17, 2004               By  /s/ Phillip W. Ware
                                           -------------------------------------
                                                Phillip W. Ware
                                                Chief Executive Officer,
                                                President and Treasurer




                                       By  /s/ Kenneth M. Cornell
                                           -------------------------------------
                                               Kenneth M. Cornell
                                               Chief Financial Officer
                                               and Principal Financial Officer





                                       16