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            March 31, 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 April 30, 2004 was 46,211,604.



<PAGE>


                     COASTAL CARIBBEAN OILS & MINERALS, LTD.

                                    FORM 10-Q

                                 MARCH 31, 2004

                                Table of Contents


                         PART I - FINANCIAL INFORMATION

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

<S>                                                                                                 <C>
         Consolidated balance sheets at March 31, 2004 and December 31, 2003                        3


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

         Consolidated statements of cash flows for the three month periods ended
         March  31,  2004 and 2003 and for the  period  from  January  31,  1953
         (inception) to March 31, 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                                 12

ITEM 4   Controls and Procedures                                                                   12


                           PART II - OTHER INFORMATION

ITEM 5   Other Information                                                                         13

ITEM 6   Exhibits and Reports on Form 8-K                                                          14

         Signatures                                                                                15
</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>
                                                                                                  March 31,             December 31,
                                                                                                  ---------             ------------
                                                                                                    2004                    2003
                                                                                                  ---------             ------------
                                 Assets                                                          (unaudited)               (Note)
Current assets:
<S>                                                                                              <C>                   <C>
  Cash and cash equivalents                                                                      $      1,270          $      2,875

  Prepaid expenses and other                                                                           56,537                87,947
                                                                                                 ------------          ------------
          Total current assets                                                                         57,807                90,822
                                                                                                 ------------          ------------

Contingent litigation claim (Note 4)                                                                        -                     -
                                                                                                 ------------          ------------
Total assets                                                                                     $     57,807          $     90,822
                                                                                                 ============          ============

             Liabilities and Shareholders' (Deficit) Equity

Current liabilities:
  Accounts payable and accrued liabilities                                                       $    824,965          $    805,110
  Amounts due to related parties                                                                    1,192,561             1,053,800
                                                                                                 ------------          ------------
          Total current liabilities                                                                 2,017,526             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                                                (39,642,922)          (39,451,291)
                                                                                                 ------------          ------------
Total shareholders' (deficit) equity                                                               (1,959,719)           (1,768,088)
                                                                                                 ------------          ------------
Total liabilities and shareholders' (deficit) equity                                             $     57,807          $     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           (inception)
                                                       ------------------           to March 31,
                                                            March 31,                  2004
                                                            ---------                  ----
                                                     2004                2003
                                                     ----                ----

<S>                                             <C>                <C>              <C>
Interest and other income                       $         0        $       453      $  3,877,570
                                                -----------        -----------      ------------
Expenses:
  Legal fees and costs                               84,389            119,932        16,656,977
  Administrative expenses                            75,917            169,103         9,603,196
  Salaries                                           24,760             34,117         3,667,733
  Shareholder communications                          6,565              6,345         3,955,092
  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
                                                -----------        -----------      ------------
                                                    191,631            329,497        43,520,492
                                                -----------         ----------       -----------

Net loss                                        $  (191,631)       $  (329,044)
                                                ===========        ===========

Deficit accumulated during
  the development stage                                                             $(39,642,922)
                                                                                    ============

Average number of shares
  outstanding (basic &  diluted)                 46,211,604         46,211,604
                                                ===========        ===========

Net loss per share (basic &                       $ (.01)            $ (.01)
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
                                                                                   Three months ended               Jan. 31, 1953
                                                                                        March 31,                     (inception)
                                                                            ---------------------------------             To
                                                                               2004                 2003            March 31, 2004
                                                                            ------------         ------------       --------------



Operating activities:
<S>                                                                        <C>                  <C>                <C>
Net loss                                                                   $   (191,631)        $   (329,044)      $(39,642,923)
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                                                  31,410               91,322            (56,538)
     Accrued liabilities                                                        141,616              (10,444)         2,000,528
                                                                           ------------         ------------       ------------
Net cash used in operating activities                                           (18,605)            (248,166)       (32,265,493)
                                                                           ------------         ------------       ------------

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                                                            17,000                    -             17,000
  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                                        17,000               50,000         35,821,861
                                                                           ------------         ------------       ------------
Net (decrease) increase in cash and cash equivalents                             (1,605)            (198,166)             1,270
Cash and cash equivalents at beginning of period                                  2,875              292,095                  -
                                                                           ------------         ------------       ------------
Cash and cash equivalents at end of period                                 $      1,270         $     93,929       $      1,270
                                                                           ============         ============       ============
</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 month period ended March 31, 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.  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)
-------------------------------

     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.  After  jurisdictional  briefs  are
submitted the Court will decide whether to exercise its  jurisdiction  and if so
briefs on the merits will be required.

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

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

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

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



                                       6
<PAGE>

                     COASTAL CARIBBEAN OILS & MINERALS, LTD.

                                    FORM 10-Q

                         PART I - FINANCIAL INFORMATION


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

Note 3.  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 4.  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.

Summary of Options Outstanding at March 31, 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 three months ended March 31, 2004 and 2003.


                                       7
<PAGE>

                     COASTAL CARIBBEAN OILS & MINERALS, LTD.

                                    FORM 10-Q

                         PART I - FINANCIAL INFORMATION



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

Note 5.  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  which  management  believes  should  be  sufficient  to fund the
Company's  operations through June 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  $30,000  through  April 26, 2004.  There can be no
assurances  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.




                                       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  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 March 31, 2004,  Coastal Caribbean had approximately  $1,000 of cash and
cash equivalents  available.  In addition, the Company has received a commitment
from some of its Officers to loan the Company  funds which  management  believes
should  be  sufficient  to fund the  Company's  operations  through  June  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  $30,000
through April 26, 2004.  There can be no  assurances  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 March 31, 2004,
the amount of salaries and fees being deferred totaled approximately $1,193,000.
After  the  filing  of the  10-Q,  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.

     The Company's annual rental payments on its Florida leases of approximately
$59,000 are due beginning in July 2004.

     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 March 31, 2004 vs. March 31, 2003
----------------------------------------------------

     The Company incurred a loss of $192,000 for the 2004 quarter, compared to a
loss of $329,000 for the comparable 2003 quarter.

     Interest  income  and  other  income  decreased  100% from $500 in the 2003
quarter to $-0- in the 2004  quarter  because of the  decrease  in the amount of
funds available to invest.

     Legal  fees and  costs  decreased  30% to  $84,000  for the  2004  quarter,
compared to $120,000 in the prior period. Legal fees and costs decreased in 2004
compared with 2003 due to reduction in  expenditures  for legal fees and experts
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.

     Administrative  expenses  decreased  55% during the 2004  period to $76,000
compared to $169,000 in the 2003 period.  Accounting and administrative expenses
decreased  from  $25,000 in the 2003  period to $21,000 in the 2004  period.  In
addition, Directors' and Officers' liability insurance decreased from $84,000 in
2003 to $27,000 in the 2004 quarter.

     Salaries  decreased 27% in the 2004 quarter to $25,000  compared to $34,000
in the 2003  quarter  as a result of the  resignation  of the  President  of the
Company  effective  February 28, 2003. The Company's other salaried employee was
elected President on March 1, 2003 without any increase in compensation.

     Shareholder  communications  increased  3% during the 2004 period to $7,000
from $6,000 in the 2003 period.






                                       11
<PAGE>




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 March 31, 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.









                                       12
<PAGE>


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

                                 March 31, 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.  After  jurisdictional  briefs  are
submitted the Court will decide whether to exercise its  jurisdiction  and if so
briefs on the merits will be required.

     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.




                                       13
<PAGE>



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

                                 March 31, 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
                  -------------------

                  On January 13,  2004,  the Company  filed a Current  Report on
         Form 8-K to report that:

                           Coastal Caribbean Oils & Minerals,  Ltd.  ("Company")
                  issued a press release  announcing  the Florida First District
                  Court of Appeal denied the Company's Motion for Clarification,
                  Rehearing,  Certification and Request for a Written Opinion as
                  to the Court's per curiam decision issued on December 3, 2003.
                  As a result of the denial of the Motion,  the Court's decision
                  affirming the trial court's final  judgment  finding no taking
                  of Coastal's State Drilling Lease 224-A, has become final. The
                  Company continues to evaluate its options.






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<PAGE>

                     COASTAL CARIBBEAN OILS & MINERALS, LTD.

                                    FORM 10-Q

                                 March 31, 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:  April 30, 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





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