FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

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

For the quarterly period ended         March 31, 1997
                               -----------------------------

[  ]     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                     NONE
 ................................................................................
    (Address of principal executive offices)                       (Zip Code)

                                  809-295-1422
 ................................................................................
              (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

         The number of shares outstanding of the issuer's single class of common
stock as of April 9, 1997 was 40,056,358.



<PAGE>


                                                         
                         PART 1 - FINANCIAL INFORMATION

                         ITEM 1. - FINANCIAL STATEMENTS

                     COASTAL CARIBBEAN OILS & MINERALS, LTD.
                             (A Bermuda Corporation)
                           A Development Stage Company

                           CONSOLIDATED BALANCE SHEET
                           (Expressed in U.S. dollars)
                                   (unaudited)

                                                      March 31,     December 31,
                                                        1997            1996
                                                        ----            ----

                     ASSETS

Current assets:
  Cash and cash equivalents                         $   272,727     $   424,330
  Accounts and interest receivable                      125,039         105,115
  U.S. Government securities                          3,051,981       3,341,820
  Prepaid insurance                                     155,853         178,868
                                                    ------------    ------------
          Total current assets                        3,605,600       4,050,133
                                                     -----------     -----------

U.S. Government securities                            1,803,377       2,001,441

Unproved oil, gas and mineral properties
 (full cost method)                                   4,136,556       3,943,520

Other                                                    26,374          25,644
                                                    ------------    ------------
                                                    $ 9,571,907     $10,020,738
                                                    ============    ============



      LIABILITIES, MINORITY INTERESTS AND
             SHAREHOLDERS' EQUITY

Current liabilities:
  Accounts payable and accrued liabilities          $    82,836     $   262,422
                                                    ------------    ------------

Minority interests                                            -               -
                                                    ------------    ------------
Shareholders' equity:
  Common stock, par value 12(cent) per share:
  Authorized  - 100,000,000 shares
  Outstanding - 40,056, 358 and 40,046,358 shares     4,806,763       4,805,563
  Capital in excess of par value                     28,453,033      28,442,983
                                                    ------------    ------------
                                                     33,259,796      33,248,546
  Deficit accumulated during development stage      (23,770,725)    (23,490,230)
                                                    ------------    ------------
  Total shareholders' equity                          9,489,071       9,758,316
                                                    ------------    ------------
                                                    $ 9,571,907     $10,020,738
                                                    ============    ============


<PAGE>


                         PART 1 - FINANCIAL INFORMATION

                          ITEM 1 - FINANCIAL STATEMENTS

                     COASTAL CARIBBEAN OILS & MINERALS, LTD.
                             (A Bermuda Corporation)
                           A Development Stage Company

                      CONSOLIDATED STATEMENT OF OPERATIONS
                           (Expressed in U.S. dollars)
                                   (unaudited)



                                                                 From inception
                                        Three months ended       (Jan. 31, 1953)
                                              March 31,            to March 31,
                                         1997         1996             1997
                                         ----         ----             ----

Interest and other income             $  82,458    $     848         $3,309,115
                                      ---------    ---------         -----------

Expenses:
  Legal fees and costs                  158,212       99,768         10,581,336
  Administrative expenses               123,390       84,591          6,044,917
  Salaries                               39,000       39,500          2,633,278
  Shareholder communications             34,799       13,571          3,283,186
  Exploration costs                       7,552           23            707,588
  Lawsuit judgments                           -            -          1,941,916
  Minority interests                          -            -           (632,974)
  Other                                       -            -            364,865
  Contractual services                        -            -          2,155,728
                                      ---------    ---------         -----------
                                        362,953      237,453         27,079,840
                                      ---------    ---------         -----------

Net loss                              $(280,495)   $(236,605)
                                      ==========   ==========

Deficit accumulated during
  development stage                                                 $23,770,725
                                                                    ============
Average number of shares
  outstanding                        40,053,858   33,363,632
                                     ==========   ==========

Net loss per share                     $(.01)       $(.01)
                                       ======       ======





<PAGE>



                         PART 1 - FINANCIAL INFORMATION

                         ITEM 1. - FINANCIAL STATEMENTS

                     COASTAL CARIBBEAN OILS & MINERALS, LTD.
                             (A Bermuda Corporation)
                           A Development Stage Company
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                           (Expressed in U.S. Dollars)
                                   (unaudited)



<TABLE>
<CAPTION>
                                                                  Three months ended                (Jan. 31, 1953)
                                                                       March 31,                      to March 31,
                                                                1997               1996                   1997
                                                                ----               ----                   ----
<S>                                                          <C>                <C>                 <C>          
Operating activities:
Net loss                                                     $(280,495)         $(236,605)          $(23,770,725)
Adjustments to reconcile net loss
  to net cash used for operating activities:
    Minority interest                                                -                  -               (632,974)
    Exploration and other                                            -                  -                755,974
    Net change in:
       Accounts receivable                                     (19,924)             6,356               (125,039)
       U.S. Government securities                              289,839                  -             (3,051,981)
       Prepaid insurance                                        23,015               (908)              (155,853)
       Current liabilities                                    (179,586)            20,980                 82,836
       Other                                                      (730)           (49,102)               472,531
                                                             ----------        -----------           ------------
Net cash used for operating activities                        (167,881)          (259,279)           (26,425,231)
                                                             ----------        -----------           ------------

Investing activities:
  Additions to oil, gas, and mineral
    properties net of assets acquired
    for common stock                                          (193,036)                 -             (4,136,556)
  Reimbursement of lease rentals and
    other expenses                                                                      -              1,243,086
  Sale (purchase) U.S. Government securities                   198,064                  -             (1,803,377)
  Purchase of fixed assets                                           -                  -                (61,649)
                                                             ----------        -----------           ------------
Net cash provided by (used for) investing activities
                                                                 5,028                  -             (4,758,496)
                                                             ----------        -----------           ------------

Financing activities:
  Cash proceeds from sale of
    common stock less expenses                                       -                  -             26,342,205
  Shares issued upon exercise of
    options                                                     11,250                  -                884,249
  Sale of shares by subsidiary                                       -                  -                750,000
  Sale of subsidiary shares                                          -            240,000              3,480,000
                                                             ----------        -----------           ------------
Net cash provided by
  financing activities                                          11,250            240,000             31,456,454
                                                             ----------        -----------           ------------
Net increase (decrease) in cash
  and cash equivalents                                        (151,603)           (19,279)               272,727
Cash and cash equivalents at
  beginning of period                                          424,330            247,452                      -
                                                             ----------        -----------           ------------
Cash and cash equivalents at
  end of period                                              $ 272,727           $228,173             $  272,727
                                                             =========           ========             ==========
</TABLE>


<PAGE>



                         PART I - FINANCIAL INFORMATION

                          ITEM 1. FINANCIAL STATEMENTS

                     COASTAL CARIBBEAN OILS & MINERALS LTD.

                                 March 31, 1997

ITEM 1   -    Financial Statements

         The  information  for the three month  periods ended March 31, 1997 and
1996 is unaudited,  but includes all adjustments  which Coastal Caribbean Oils &
Minerals,  Ltd. (the "Company")  considers necessary for a fair statement of the
results of operations for those periods.  The consolidated  financial statements
include  the  Company's  61.3%  owned  subsidiary,   Coastal  Petroleum  Company
("Coastal Petroleum").

         The Company's  principal  assets are oil, gas, and mineral leases which
total $4.1 million at March 31, 1997.  The Company has been and  continues to be
involved in several  proceedings  which have  limited the  Company's  ability to
commence development activities on its unproved oil and gas properties or obtain
compensation  for certain  property  rights it believes  have been  confiscated.
These  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  that may result from the
outcome of this uncertainty.

ITEM 2   -    Management's Discussion and Analysis of Financial Condition and
              ---------------------------------------------------------------
              Results of Operation
              --------------------

Liquidity and Capital Resources

                              Short Term Liquidity

         At  March  31,  1997,   Coastal   Caribbean  had  working   capital  of
approximately  $5.3  million.  These  funds are  expected to be used for general
corporate  purposes,  including  exploration and development and to continue the
litigation against the State of Florida.


<PAGE>


                         PART I - FINANCIAL INFORMATION

                          ITEM 1. FINANCIAL STATEMENTS

                     COASTAL CARIBBEAN OILS & MINERALS LTD.

                                 March 31, 1997

ITEM 2   -    Management's Discussion and Analysis of Financial Condition and
              ---------------------------------------------------------------
              Results of Operation (Cont'd)
              -----------------------------

                               Long Term Liquidity

         The Company estimates that as much as $500,000 per year may be required
in connection with the Florida litigation.  The Company expects that the Florida
litigation  could  continue at least through  1998,  although the State may take
actions that could shorten or lengthen that period. The Company has a program to
evaluate the Company's leases which is estimated to cost approximately  $500,000
for 1997 and $1 million for the 1998-1999 period,  and is subject to the outcome
of the Florida  litigation.  During  1997,  the Company has spent  approximately
$200,000 under its continuing program to identify potential drilling prospects.

         The  Company's  oil and  gas  properties  are  currently  unproved  and
undeveloped.  The Company  has  applied for a drilling  permit from the State of
Florida to drill an exploratory  well in the water near  Apalachicola,  Florida.
The State of Florida has  resisted  the  issuance of a drilling  permit.  If the
Company is successful  in obtaining a state  drilling  permit,  then the Company
must also do the following:

        1.  Obtain a federal drilling permit.

        2.  Finance drilling of the well, which is estimated to cost between
            $10-15 million.

        3.  Begin drilling the well within one year of the date the state permit
            is issued.

         The Company does not  currently  have assets  sufficient  to fund these
expenditures  to drill the  exploration  well, if a permit were granted.  If oil
and/or gas is discovered in commercial  quantities,  a production  program would
require  additional  permitting  and  construction  of  production,  storage and
delivery systems.  The Company would be required to seek additional financing or
partners to fund these expenditures.



<PAGE>


                         PART I - FINANCIAL INFORMATION

                          ITEM 1. FINANCIAL STATEMENTS

                     COASTAL CARIBBEAN OILS & MINERALS LTD.

                                 March 31, 1997

ITEM 2   -    Management's Discussion and Analysis of Financial Condition and
              ---------------------------------------------------------------
              Results of Operation (Cont'd)
              -----------------------------

Results of Operations

Three month period ended March 31, 1997 vs. March 31, 1996

         The Company  incurred a loss of $280,496 for the 1997 quarter, compared
to a loss of $236,605 for the comparable 1996 quarter.

         Interest income and other income increased from $800 in 1996 to $82,000
in 1997 due to the funds available for  investment  from  the  May  1996  rights
offering to shareholders.

         Legal fees and costs  increased  59% to $158,000 for the 1997  quarter,
compared to $100,000 in the prior period.  These costs  increased due to (1) the
various  appeals filed in connection  with the State of Florida's  opposition to
the  issuance of a drilling  permit and (2) the appeal of the  adverse  decision
that there has not been a taking of the Company's royalty interests.

         Administrative  expenses increased 46% to $123,000 in 1997 from $85,000
in the prior  quarter.  The  primary  reason for the  increase is the first time
purchase of directors' and officers'  liability  insurance in 1996. In addition,
auditing fees also increased during the period.

         Shareholder  communications  increased  156%  from  $14,000  in 1996 to
$35,000 in 1997.  In 1996,  the Company saved the cost of printing and mailing a
separate annual report by utilizing the May 1996 rights  offering  prospectus in
lieu of an annual report.

         Exploration  costs  increased  from  nil in  1996 to $8,000  in 1997 in
connection with the Company's continuing program to  identify potential drilling
prospects.



<PAGE>


                         PART II - FINANCIAL INFORMATION

                     COASTAL CARIBBEAN OILS & MINERALS LTD.

                                 March 31, 1997

ITEM 5   -    Other Information

         On April 21, 1997,  Lykes  Minerals  Corp.  is expected to exercise its
final  option to acquire  six shares of Coastal  Petroleum  Company  ("CPC") for
$240,000.  At the date of  purchase,  Lykes  will have  acquired  a total  26.7%
interest in CPC at a cost of $3,120,000.  The purchase will reduce the Company's
interest in CPC from 61.3% to 59.3%.

         On April 7, 1997, Mr.  Nicholas B. Dill  was  elected a director of the
Company to  fill  the  vacancy  created  by  Mr. C. Dean Reasoner's resignation.
Mr. Dill, age 64, has been a partner of the law firm of Conyers, Dill & Pearman,
Hamilton,  Bermuda,  since 1963.  Mr. Dill is  a director of a number of private
Bermuda companies and specializes in international corporate law.

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

         (a) On March 17, 1997,  the Company filed a Current  Report on Form 8-K
to report that Florida's First District Court of Appeal denied Coastal Petroleum
Company's motion for clarification of an earlier decision.

         (e) On March 21,  1997,  the  Company  filed a  Current  Report on
Form 8-K to report that on March 20, 1997, Mr. C. Dean Reasoner, 79, resigned as
a director of the Company for health related reasons.



<PAGE>



                                   SIGNATURES


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




                                       COASTAL CARIBBEAN OILS & MINERALS, LTD.
                                                     Registrant




Date:  April 15, 1997                  By /s/ James R. Joyce
                                              James R. Joyce
                                              Treasurer and Chief Accounting and
                                              Financial Officer