**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q/A**

**(Amendment      No. 1)**

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

**September      30,      2006                    **

| 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 ofincorporation                    or organization) | (I.R.S.                  EmployerIdentification                    No.) |

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

----

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

**FORM      10-Q/A **

**(Amendment      No. 1)**

**SEPTEMBER      30, 2006**

**Table      of Contents**

**PART      I - FINANCIAL INFORMATION**

|                       |                                                                                                                                                                                                                                                          |   | Page   |
|-----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| ITEM                1 | Financial                Statements                                                                                                                                                                                                                      |   |   |
|                  |                                                                                                                                                                                                                                                          |   |   |
|                  | Consolidated                balance sheets at September 30, 2006 and December 31, 2005                                                                                                                                                                   |   | 3      |
|                  |                                                                                                                                                                                                                                                     |   |   |
|                  | Consolidated                statements of operations for the three and nine month periods ended                September 30, 2006 and 2005 and for the period from January 31, 1953                (inception) to September 30, 2006                     |   | 4      |
|                  |                                                                                                                                                                                                                                                     |   |   |
|                  | Consolidated                statements of cash flows for the nine month periods ended September                30,                2006 and 2005 and for the period from January 31, 1953 (inception)                to                September 30, 2006 |   | 5      |
|                  |                                                                                                                                                                                                                                                     |   |   |
|                  | Notes                to consolidated financial statements                                                                                                                                                                                                |   | 6      |
|                  |                                                                                                                                                                                                                                                     |   |   |
| ITEM                2 | Management's                Discussion and Analysis of Financial Condition and Results of                Operations                                                                                                                                      |   |        |
|                  |                                                                                                                                                                                                                                                     |   |   |
| ITEM                3 | Quantitative                and Qualitative Disclosure About Market Risk                                                                                                                                                                                 |   |        |
|                  |                                                                                                                                                                                                                                                     |   |   |
| ITEM                4 | Controls                and Procedures                                                                                                                                                                                                                   |   | 10     |
|                  |                                                                                                                                                                                                                                                     |   |   |
|                  | **PART                II - OTHER INFORMATION**                                                                                                                                                                                                           |   |   |
|                  |                                                                                                                                                                                                                                                     |   |   |
| ITEM                5 | Other                Information                                                                                                                                                                                                                         |   |        |
|                  |                                                                                                                                                                                                                                                     |   |   |
| ITEM                6 | Exhibits                                                                                                                                                                                                                                                 |   | 11     |
|                  |                                                                                                                                                                                                                                                     |   |   |
|                  | Signatures                                                                                                                                                                                                                                               |   | 12     |

----

**Part      I - Financial Information**

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

**CONSOLIDATED      BALANCE SHEETS**

|                                                            |   | September                  30,2006 |         | December                  31,2005 |   |
|-----------------------------------------------------------------|--------|------------------------------------|--------------|-----------------------------------|--------|
|                                                            |   | (Unaudited)                        |         | (Note)                            |   |
| **Assets**                                                      |   |                               |         |                              |   |
| Current                assets:                                  |   |                               |         |                              |   |
| Cash                and cash equivalents                        |   | $                                  | 641,545      |                              | $      | 2,250,236 |   |
| Income                taxes receivable                          |   |                               | 35,000       |                              |   | - |   |
| Prepaid                expenses and other                       |   |                               | -            |                              |   | 199,754 |   |
| Total                current assets                             |   |                               | 676,545      |                              |   | 2,449,990 |   |
|                                                            |   |                               |         |                              |   |   |   |
| Certificate                of deposit                           |   |                               | 125,830      |                              |   | 75,000 |   |
| Well                drilling costs                              |   |                               | 961,698      |                              |   | - |   |
| Petroleum                leases                                 |   |                               | 2,122,384    |                              |   | 1,860,614 |   |
| Equipment,                net                                   |   |                               | 10,234       |                              |   | 1,771 |   |
|                                                            |   |                               |         |                              |   |   |   |
|                                                            |   |                               |    |                              |   |       |   |
| Total                assets                                     |   | $                                  | 3,896,691    |                              | $      | 4,387,375 |   |
|                                                            |   |                               |         |                              |   |   |   |
| **Liabilities                and Shareholders’ Equity**   |   |                               |         |                              |   |   |   |
|                                                            |   |                               |         |                              |   |   |   |
| Current                liabilities:                             |   |                               |         |                              |   |   |   |
| Accounts                payable and accrued liabilities         |   | $                                  | 56,408       |                              | $      | 27,526 |   |
| Income                taxes payable                             |   |                               | -            |                              |   | 35,000 |   |
| Total                current liabilities                        |   |                               | 56,408       |                              |   | 62,526 |   |
|                                                            |   |                               |         |                              |   |   |   |
| Shareholders'                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 |   |                               | (33,842,920  | )                                 |   | (33,358,354 | ) |
| Total                shareholders’ equity                 |   |                               | 3,840,283    |                              |   | 4,324,849 |   |
| Total                liabilities and shareholders’ equity |   | $                                  | 3,896,691    |                              | $      | 4,387,375 |   |

----

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

**FORM      10-Q**

**PART      I - FINANCIAL INFORMATION**

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

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

|                                                    |   | Three                months endedSeptember                30, |         | Nine                months ended September                30, |   | For                  theperiod                  fromJan.                  31, 1953(inception)                  to September                  30, |   |
|---------------------------------------------------------|--------|---------------------------------------------------------------|--------------|---------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                    |   | 2006                                                          |         | 2005                                                          |   | 2006                                                                                                                                                  |   | 2005 |   | 2006 |   |
|                                                    |   |                                                          |         |                                                          |   |                                                                                                                                                  |   |   |   |   |   |
| **Revenues**                                            |   | $                                                             | -            |                                                          | $      | -                                                                                                                                                     |   | $ | - |   | $ | - |   | $ | - |   |
|                                                    |   |                                                          |         |                                                          |   |                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| **Expenses:**                                           |   |                                                          |         |                                                          |   |                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| Legal                fees and costs                     |   |                                                          | 49,951       |                                                          |   | 76,011                                                                                                                                                |   |   | 161,610 |   |   | 90,068 |   |   | 17,216,677 |   |
| Administrative                expenses                  |   |                                                          | 75,739       |                                                          |   | 52,320                                                                                                                                                |   |   | 272,406 |   |   | 130,811 |   |   | 10,209,946 |   |
| Personnel                                               |   |                                                          | 39,050       |                                                          |   | 44,291                                                                                                                                                |   |   | 104,150 |   |   | 93,810 |   |   | 3,971,981 |   |
| Shareholder                communications               |   |                                                          | 11,924       |                                                          |   | 12,524                                                                                                                                                |   |   | 16,776 |   |   | 24,584 |   |   | 4,092,685 |   |
| 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 |   |
|                                                    |   |                                                          | 176,664      |                                                          |   | 185,146                                                                                                                                               |   |   | 554,942 |   |   | 339,273 |   |   | 45,128,783 |   |
|                                                    |   |                                                          |         |                                                          |   |                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| **Other                income (expense):**              |   |                                                          |         |                                                          |   |                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| Gain                on settlement (Note 4)              |   |                                                          | -            |                                                          |   | 8,125,900                                                                                                                                             |   |   | - |   |   | 8,125,900 |   |   | 8,124,016 |   |
| Goodwill                impairment                      |   |                                                          | -            |                                                          |   | (801,923                                                                                                                                              | )      |   | - |   |   | (801,923 | ) |   | (801,923 | ) |
| Interest                and other income                |   |                                                          | 8,913        |                                                          |   | 21,657                                                                                                                                                |   |   | 35,376 |   |   | 21,657 |   |   | 3,963,670 |   |
|                                                    |   |                                                          | 8,913        |                                                          |   | 7,345,634                                                                                                                                             |   |   | 35,376 |   |   | 7,345,634 |   |   | 11,285,863 |   |
|                                                    |   |                                                          |         |                                                          |   |                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| Income                tax benefit (expense)             |   |                                                          | 35,000       |                                                          |   | (35,000                                                                                                                                               | )      |   | 35,000 |   |   | (35,000 | ) |   | - |   |
|                                                    |   |                                                          |         |                                                          |   |                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| **Net                income (loss)**                    |   | **$**                                                         | **(132,751** | **)**                                                         | **$**  | **7,125,488**                                                                                                                                         |   | **$** | **(484,566** | **)** | **$** | **6,971,361** |   |   |   |   |
|                                                    |   |                                                          |         |                                                          |   |                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| Deficit                accumulated during               |   |                                                          |         |                                                          |   |                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| the                development stage                    |   |                                                          |         |                                                          |   |                                                                                                                                                  |   |   |   |   |   |   |   | $ | (33,842,920 | ) |
|                                                    |   |                                                          |         |                                                          |   |                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| 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) |   | $                                                             | (.00         | )                                                             | $      | .15                                                                                                                                                   |   | $ | (.01 | ) | $ | .15 |   |   |   |   |

----

**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 September 30, |   |
|---------------------------------------------------------------------------|--------|------------------------------------------------------------------|------------|------------------------------------------------------------------------------------------------------------------|--------|
|                                                                      |   |                        2006   |       |                     2005                                                                     |   |  2006 |   |
|                                                                      |   |                                                             |       |                                                                                                             |   |   |   |
| **Operating                activities:**                                  |   |                                                             |       |                                                                                                             |   |   |   |
| Net                income (loss)                                          |   | $                                                                | (484,566   | )                                                                                                                | $      | 6,971,361 |   | $ | (33,842,920 | ) |
| Adjustments                to reconcile net loss to net cash              |   |                                                             |       |                                                                                                             |   |   |   |   |   |   |
| used                in operating activities:                              |   |                                                             |       |                                                                                                             |   |   |   |   |   |   |
| Goodwill                impairment                                        |   |                                                             | -          |                                                                                                             |   | 801,923 |   |   | 801,823 |   |
| Gain                on settlement                                         |   |                                                             | -          |                                                                                                             |   | (8,125,900 | ) |   | (8,124,016 | ) |
| Write                off of unproved properties                           |   |                                                             | -          |                                                                                                             |   | - |   |   | 5,619,741 |   |
| Depreciation                                                              |   |                                                             | 2,100      |                                                                                                             |   | - |   |   | 2,220 |   |
| 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:                                             |   |                                                             |       |                                                                                                             |   |   |   |   |   |   |
| Income                taxes receivable                                    |   |                                                             | (35,000    | )                                                                                                                |   | - |   |   | (35,000 | ) |
| Prepaid                expenses and other                                 |   |                                                             | 199,754    |                                                                                                             |   | 14,438 |   |   | - |   |
| Accounts                payable and accrued liabilities                   |   |                                                             | 28,882     |                                                                                                             |   | (2,337,420 | ) |   | 56,408 |   |
| Income                taxes payable                                       |   |                                                             | (35,000    | )                                                                                                                |   | 35,000 |   |   | - |   |
|                                                                      |   |                                                             |       |                                                                                                             |   |   |   |   |   |   |
| Net                cash provided by (used in) operating activities        |   |                                                             | (323,830   | )                                                                                                                |   | (2,640,598 | ) |   | 35,708,045 | ) |
|                                                                      |   |                                                             |       |                                                                                                             |   |   |   |   |   |   |
| **Investing                activities:**                                  |   |                                                             |       |                                                                                                             |   |   |   |   |   |   |
| Additions                to oil, gas, and mineral properties              |   |                                                             |       |                                                                                                             |   |   |   |   |   |   |
| net                of assets acquired for common stock and reimbursements |   |                                                             | (333,907   | )                                                                                                                |   | (143,023 | ) |   | (5,934,703 | ) |
| Well                drilling costs                                        |   |                                                             | (889,561   | )                                                                                                                |   | - |   |   | (889,561 | ) |
| Drilling                advances from joint interest owners               |   |                                                             | 632,432    |                                                                                                             |   | - |   |   | - |   |
| Net                proceeds from settlement                               |   |                                                             | -          |                                                                                                             |   | 8,125,900 |   |   | 8,124,016 |   |
| Proceeds                from relinquishment of surface rights             |   |                                                             | -          |                                                                                                             |   | - |   |   | 246,733 |   |
| Purchase                of certificate of deposit                         |   |                                                             | (50,830    | )                                                                                                                |   | (10,000 | ) |   | (125,830 | ) |
| Purchase                of minority interest in CPC                       |   |                                                             | -          |                                                                                                             |   | (801,923 | ) |   | (801,823 | ) |
| Equipment                purchases                                        |   |                                                             | (10,563    | )                                                                                                                |   | (1,891 | ) |   | (74,103 | ) |
| Net                cash provided by (used in) investing activities        |   |                                                             | (1,284,861 | )                                                                                                                |   | 7,169,063 |   |   | 544,729 |   |
|                                                                      |   |                                                             |       |                                                                                                             |   |   |   |   |   |   |
| **Financing                activities:**                                  |   |                                                             |       |                                                                                                             |   |   |   |   |   |   |
| Loans                from officers                                        |   |                                                             | -          |                                                                                                             |   | 31,500 |   |   | 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 | ) |   | 35,804,861 |   |
|                                                                      |   |                                                             |       |                                                                                                             |   |   |   |   |   |   |
| Net                increase (decrease) in cash and cash equivalents       |   |                                                             | (1,608,691 | )                                                                                                                |   | 4,448,175 |   |   | 641,545 |   |
| Cash                and cash equivalents at beginning of period           |   |                                                             | 2,250,236  |                                                                                                             |   | 179 |   |   | - |   |
| Cash                and cash equivalents at end of period                 |   | $                                                                | 641,545    |                                                                                                             | $      | 4,448,354 |   | $ | 641,545 |   |

----

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

**FORM        10-Q/A**

**(Amendment        No. 1)**

**PART        I - FINANCIAL INFORMATION**

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

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

----

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

**FORM        10-Q/A**

**(Amendment        No. 1)**

**PART        I - FINANCIAL INFORMATION**

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

**Drilling      Activity**

----

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

**FORM        10-Q/A**

**(Amendment        No. 1)**

**PART        I - FINANCIAL INFORMATION**

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

**Montana      Leases**

----

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

**FORM        10-Q/A**

**(Amendment        No. 1)**

**PART        I - FINANCIAL INFORMATION**

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

**North      Dakota Leases**

**Florida      Leases**

*Share-Based      Payments,*

----

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

**FORM        10-Q/A**

**(Amendment        No. 1)**

**PART        I - FINANCIAL INFORMATION**

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

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

|   | a. | Evaluation                of disclosure controls and procedures.                The Company maintains controls and procedures designed to ensure                that                information required to be disclosed in the reports that the Company                files                or submits under the Securities Exchange Act of 1934 is recorded,                processed, summarized and reported within the time periods specified                in                the rules and forms of the Securities and Exchange Commission. As                required by Rule 13a-15(b) under the Exchange Act, our Chief Executive                Officer who is also our Chief Financial Officer carried out an evaluation                of the effectiveness of the design and operation of our disclosure                controls and procedures as of the end of the period covered by this                report. The Company’s Chief Executive Officer has concluded that the                Company’s disclosure controls and procedures, as of September 30, 2006                were effective. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

**FORM      10-Q/A**

**(Amendment      No. 1)**

**PART      II - OTHER INFORMATION**

**September      30, 2006**

**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 |
|--------|------|----------------------------------------------------------------------------------------|

----

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

**FORM      10-Q/A**

**(Amendment      No. 1)**

**September      30, 2006**

**SIGNATURES**

|                                     |                                                                                                           |                                        |
|------------------------------------------|----------------------------------------------------------------------------------------------------------------|---------------------------------------------|
|                                     | **COASTAL CARIBBEAN OILS & MINERALS,                LTD.**Registrant                                       |
|                                |                                                                                                      |                                   |
| Date: January              31, 2007 | By                                                                                                   | /s/ Phillip              W. Ware  |
|                                     | Phillip W. WareChief                Executive Officer,President                and Principal Financial Officer |

----