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                  June 30, 2002
                               -------------------------------------------------

[   ]    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)

                                  441-295-1422
.................................................................................
              (Registrant's telephone number, including area code)


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

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

         The number of shares outstanding of the issuer's single class of common
stock as of August 12, 2002 was 46,211,604.



<PAGE>


                     COASTAL CARIBBEAN OILS & MINERALS, LTD.

                                    FORM 10-Q

                                  JUNE 30, 2002

                                Table of Contents


                         PART I - FINANCIAL INFORMATION

ITEM 1   Financial Statements                                             Page
                                                                          ----

         Consolidated balance sheets at June 30, 2002 and
         December 31, 2001
                                                                             3

         Consolidated  statements  of  operations  for the three
         and six month periods ended June 30, 2002 and 2001 and
         for the period from  January  31,  1953  (inception)  to
         June 30, 2002                                                       4

         Consolidated statements of cash flows for the six month periods
         ended June 30, 2002 and 2001 and for the period from January
         31, 1953 (inception) to June 30, 2002
                                                                             5

         Notes to consolidated financial statements                          6

ITEM 2   Management's  Discussion  and  Analysis  of  Financial
         Condition  and  Results  of Operations                              7

ITEM 3   Quantitative and Qualitative Disclosure About Market Risk          13


                   PART II - OTHER INFORMATION

ITEM 5   Other Information                                                  14

ITEM 6   Exhibits and Reports on Form 8-K                                   15

         Signatures                                                         16



<PAGE>


                                       12
                     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>
<CAPTION>

                                                                          June 30,            December 31,
                                                                          --------            ------------
                                                                           2002                  2001
                                                                           ----                  ----
                             ASSETS                                     (unaudited)             (Note)
Current assets:
<S>                                                                      <C>                   <C>
  Cash and cash equivalents                                              $      99,282         $     609,024
  Interest and accounts receivable                                               1,373                 8,604
  Notes receivable                                                              15,000                15,000
  Prepaid expenses                                                             229,695               353,596
                                                                              --------              --------
          Total current assets                                                 345,350               986,224
                                                                              --------              --------

Contingent litigation claim (Note 4)                                                 -                     -

Deferred financing costs                                                       370,610                90,391
                                                                            ----------         -------------
Total assets                                                               $   715,960           $ 1,076,615
                                                                           ===========           ===========

              LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
  Accounts payable and accrued liabilities                                 $ 1,157,630           $   358,621
                                                                           -----------           -----------

Minority interests                                                                  -                      -

Shareholders' equity:
  Common stock, par value $.12 per share:
    Authorized - 250,000,000 shares
    Outstanding - 43,468,329 shares                                          5,216,199             5,216,199
  Capital in excess of par value                                            31,497,362            31,497,362
                                                                            ----------            ----------
                                                                            36,713,561            36,713,561
  Deficit accumulated during the development stage                         (37,155,231)          (35,995,567)
                                                                           ------------          ------------
Total shareholders' equity                                                    (441,670)              717,994
                                                                          ------------           -----------
Total liabilities and shareholders' equity                                $    715,960           $ 1,076,615
                                                                          ============           ===========

</TABLE>

       Note: The balance sheet at December 31, 2001 has been derived from
           the audited consolidated financial statements at that date.

                             See accompanying notes.

                                     <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>
<CAPTION>
                                                                                                                     For the
                                                                                                                   period from
                                                                                                                  Jan. 31, 1953
                                                                                                                   (inception)
                                                                                                                   to June 30,
                                      Three months ended June 30,            Six months ended June 30,                 2002
                                      ---------------------------          -------------------------------        --------------
                                         2002              2001                  2002                 2001
                                         ----              ----                  ----                 ----

<S>                                       <C>            <C>                    <C>                 <C>            <C>
Interest and other income                 $  477         $  23,466              $  4,139            $  60,746      $  3,873,694
                                          ------         ---------              --------            ---------      ------------

Expenses:
  Legal fees and costs                   363,324           384,262               679,756              908,961        15,360,715
  Administrative expenses                138,704           130,872               332,459              281,276         8,739,699
  Salaries                                37,950            37,950                75,900               75,900         3,448,328
  Shareholder communications               7,413            70,582                16,441               85,830         3,901,936
  Write off of unproved properties             -                 -                     -                    -         5,501,247
  Exploration costs                       59,247                 -                59,247                  480           247,465
  Lawsuit judgments                            -                 -                     -                    -         1,941,916
  Minority interests                           -                 -                     -                    -          (632,974)
  Other                                        -                 -                     -                    -           364,865
  Contractual services                         -                 -                      -                             2,155,728
                                       ---------        ----------           -----------          -----------       -----------
                                                                                                            -
                                         606,638           623,666             1,163,803            1,352,447        41,028,925
                                       ---------         ---------             ---------            ---------       -----------

Net loss                               $(606,161)        $(600,200)          $(1,159,664)         $(1,291,701)
                                       ==========        ==========          ============         ============

Deficit accumulated during
  the development stage                                                                                              $(37,155,231)
                                                                                                                    =============

Average number of shares
  outstanding (basic &
  diluted)                               43,468,329        43,468,329            43,468,329           43,468,329
                                         ==========        ==========            ==========           ==========

Net loss per share (basic & diluted)      $(.01)              $(.01)                $(.03)             $(.03)
                                          ======              ======                ======             ======
</TABLE>



                             See accompanying notes.


<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>
<CAPTION>

                                                                                                      For the period from
                                                                                                         Jan. 31, 1953
                                                                          Six months ended                (inception)
                                                                              June 30,                        To
                                                                              --------
                                                                         2002              2001          June 30, 2002
                                                                  ----------------- -----------------    -------------


Operating activities:
<S>                                                                   <C>               <C>               <C>
Net loss                                                              $(1,159,664)      $(1,291,701)      $(37,155,231)
Adjustments to reconcile net loss to net cash
  used in operating activities:
    Minority interest                                                           -                 -           (632,974)
    Write off of unproved properties                                            -                 -          5,501,247
    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:
     Interest and accounts receivable                                       7,231            22,486             (1,373)
     Prepaid expenses                                                     123,901            87,366           (229,695)
     Accounts payable and accrued liabilities                             799,009           (15,174)         1,157,630
     Deferred financing costs                                            (280,219)           27,866           (370,610)
                                                                     -------------     ------------      --------------
Net cash used in operating activities                                    (509,742)       (1,169,157)       (31,284,333)
                                                                     -------------       -----------       ------------

Investing activities:
  Additions to oil, gas, and mineral properties
     net of assets acquired for common stock and
    reimbursements                                                              -             2,195         (3,621,688)
  Proceeds from relinquishment of surface rights                                -                 -            246,733
  Notes receivable                                                              -                 -            (15,000)
  Purchase of fixed assets                                                      -                             (61,649)
                                                                       -----------     ------------        ------------
                                                                                                  -
Net cash provided by (used in) investing activities                              -            2,195         (3,451,604)
                                                                      ------------     ------------         -----------

Financing activities:
  Sale of common stock net of expenses                                          -                 -         29,480,970
  Shares issued upon exercise of options                                        -                 -            884,249
  Sale of shares by subsidiary                                                  -                 -            750,000
  Sale of subsidiary shares                                                                                  3,720,000
                                                                     ------------      ------------          ---------
                                                                                -                 -
Net cash provided by financing activities                                                                   34,835,219
                                                                     ------------      ------------         ----------
                                                                                -                 -
Net increase (decrease) in cash and cash equivalents                     (509,742)       (1,166,962)            99,282
Cash and cash equivalents at beginning of period                          609,024         2,958,674                  -
                                                                      -----------      ------------          ---------
Cash and cash equivalents at end of period                            $    99,282      $  1,791,712          $  99,282
                                                                      ===========      ============          =========

                             See accompanying notes.
</TABLE>

<PAGE>


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

                                  June 30, 2002

ITEM 1        Financial Statements

Note 1.       Basis of Presentation

         The accompanying unaudited consolidated financial statements include
the Company's 59.25% owned subsidiary, Coastal Petroleum Company (Coastal
Petroleum) and have been prepared in accordance with generally accepted
accounting principles for interim financial information and with the
instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do
not include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments considered necessary for a fair presentation have
been included. All such adjustments are of a normal recurring nature. Operating
results for the three and six month periods ended June 30, 2002 are not
necessarily indicative of the results that may be expected for the year ending
December 31, 2002. For further information, refer to the consolidated financial
statements and footnotes thereto included in the Company's Annual Report on Form
10-K/A for the year ended December 31, 2001.

Note 2.  Litigation

Florida Litigation

     Coastal  Petroleum  has been  involved in various  lawsuits for many years.
Coastal  Petroleum's  current litigation  (Florida  Litigation) now involves one
basic  claim:  whether the State's  denial of a permit  constitutes  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.

     In 1990, the State of Florida enacted  legislation that prohibits  drilling
or exploration for oil or gas on Florida's  offshore  acreage.  Although the law
does not  apply  to  areas  where  Coastal  Petroleum  is  entitled  to  conduct
exploration,  the State of Florida has  effectively  prevented  any  exploratory
drilling by denying the Company's application for drilling permits. In addition,
in those areas where Coastal Petroleum has only a royalty interest, the law also
effectively  prohibits  production of oil and gas,  rendering it impossible  for
Coastal  Petroleum to collect royalties from those areas.  During 1998,  Coastal
Petroleum exhausted its legal remedies in its efforts to obtain compensation for
the drilling prohibition on its royalty interest acreage.

Lease Taking Case (Lease 224-A)

     On June 26, 2000, the First  District  Court of Appeal  affirmed an earlier
ruling that the Florida Department of Environmental  Protection (DEP) could deny
Coastal  Petroleum a permit to drill an exploratory  well about nine miles south
of St. George Island in the Florida Panhandle. While the appeals court held that
the DEP could take such action on the basis of a  compelling  public  purpose in
not allowing offshore oil and gas drilling in Florida, the court also found that
the DEP's action would be unconstitutional "if just compensation is not paid for
what is taken." The appeals  court  stated that whether the denial of the permit
constituted a taking of Coastal Petroleum's property should be determined by the
Circuit Court.

     On January 16, 2001,  Coastal  Petroleum  Company  filed a complaint in the
Leon  County  Circuit  Court in Florida  against  the State of  Florida  seeking
compensation  for the State's  taking of its property  rights to explore for oil
and gas within its Lease 224-A.

<PAGE>

     On February 13, 2001,  certain  holders of  royalties  pertaining  to Lease
224-A filed a Motion to Intervene as Additional  Plaintiffs.  On April 24, 2001,
the Leon County  Circuit  trial  judge  granted  certain  royalty  holders  with
overriding royalties, which aggregate approximately 4% on State Lease 224-A, the
right to intervene on a limited basis in the takings  lawsuit.  On May 22, 2001,
the royalty  holders  appealed the Circuit  Court's order  granting them limited
intervention  to the First District  Court of Appeal,  claiming the order denied
them the right to fully  participate  in the case until after final judgment and
that the court  erroneously  found that the royalty  holders  lack an  ownership
interest in Coastal  Petroleum's  lease.  On June 12, 2001,  the Court of Appeal
ordered the royalty holders to show cause why the appeal should not be dismissed
for lack of  jurisdiction.  The royalty holders filed a response to the Court of
Appeal on June 21, 2001,  Coastal  Petroleum filed its reply on July 2, 2001 and
the State of  Florida  filed its reply on July 5,  2001.  The Court of Appeal is
currently considering the matter.

     Counsel for the appealing  royalty  holders has advised  Coastal  Petroleum
that the royalty holders' position is that their interest is worth substantially
more than 4% of whatever  judgment  may be awarded to Coastal  Petroleum  in the
litigation  and that they intend to make a claim  against any  recovery  Coastal
Petroleum  may obtain in the  litigation.  Coastal  Petroleum  has  informed the
Circuit Court and counsel for the royalty holders that Coastal  Petroleum is not
making any claim in the litigation on behalf of any interest the royalty holders
may have.
     On March 5, 2001, the State filed a Motion to Dismiss  Coastal  Petroleum's
complaint.  After the Motion was  denied,  discovery,  which had been  suspended
pending the outcome of the Motion to Dismiss, resumed. Some depositions have now
been taken,  documents have been exchanged and discovery is expected to continue
until the court ordered cutoff date of August 25, 2002.

     On November 27,  2001,  the Leon County  Circuit  Court set a trial date of
September 30, 2002. The Court has set aside two weeks for the trial on the issue
of whether the State has taken Coastal  Petroleum's lease. If the Court rules in
Coastal  Petroleum's  favor,  there will then be a second trial before a jury to
determine  the amount of  compensation  to be awarded.  Both the decision of the
Court and any decision of a jury are subject to appeals by any of the parties to
the litigation.

     A motion for summary judgment by the State of Florida in the taking lawsuit
(State  Lease 224-A) was denied by the Leon County  Circuit  trial judge on June
13, 2002.

Royalty Taking Case

     The offshore areas covered by Coastal Petroleum's original leases (prior to
the 1976  Settlement  Agreement) are subject to certain other royalty  interests
held by third parties,  including Coastal  Caribbean.  In 1994, several of those
third  parties,  including  Coastal  Caribbean  which  has  approximately  a 12%
interest in any recovery,  have instituted a separate lawsuit against the State.
That lawsuit claims that the royalty holders' interests have been confiscated as
a result of the State's  actions  discussed  above and that they are entitled to
compensation for that taking.

     The royalty holders were not parties to the 1976 Settlement Agreement,  and
the royalty  holders  contend that the terms of the Settlement  Agreement do not
protect  the State from  taking  claims by those  royalty  holders.  The case is
currently pending before the Circuit Court in Tallahassee.  On December 2, 1999,
the Circuit Court denied the State's motion to dismiss the plaintiffs'  claim of
inverse condemnation but dismissed several other claims.

     On May 10,  2000,  the State  filed a motion for  summary  judgment  but no
hearing date has been set for the motion. Discovery is proceeding.

     Any recovery made in the royalty holders' lawsuit would be shared among the
various plaintiffs in that lawsuit, including Coastal Caribbean, but not Coastal
Petroleum.

Lease Taking Case (Lease 224-B)

     On May 21,  2002,  Coastal  Petroleum  filed a complaint in the Leon County
Circuit Court, Florida 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-B.  The lease  encompasses  more than 400,000 acres off the West
Coast of Florida in the Gulf of Mexico.  On July 22, 2002, a motion by the State
of Florida to dismiss the case was heard. A decision on the motion is pending.

<PAGE>

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.       Going Concern

         The Company has a limited amount of working capital, has incurred
recurring losses and has a deficit accumulated during the development stage.
Furthermore, on January 16, 2001, Coastal Petroleum Company filed a complaint in
the Leon County ITEM 1 Financial Statements

Circuit Court in Florida against the State of Florida seeking compensation for
the State's taking of its property rights to explore for oil and gas within its
Lease 224-A. On November 27, 2001, the Leon County Circuit Court set a trial
date for two weeks beginning September 30, 2002 for Coastal Petroleum's lawsuit
against the State of Florida. The cost of that litigation has been substantial
and required the Company to obtain additional capital. On June 17, 2002, the
Company commenced a rights offering for the sale of its common stock to its
shareholders. The offering was concluded on July 31, 2002 and the Company
realized gross proceeds of approximately $1,370,000 on the sale of approximately
2,740,000 shares at $.50 per share.

         With the proceeds of rights offering, the Company should be able to
fund its operations through June 30, 2003, provided that the Company's
directors, officers, legal counsel and administrative consultants agree to
continue to defer the payment of all of their salaries and fees. As of June 30,
2002, the amount of salaries and fees being deferred totaled approximately
$922,000. Because the proceeds of the offering of the Company's common stock are
inadequate to fund the Company's long term capital needs, the Company intends to
explore other possible funding sources, particularly the other shareholders of
Coastal Petroleum. 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 that may result from the outcome of these uncertainties.

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

Liquidity and Capital Resources

         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 any decision favorable to Coastal Petroleum in its litigation
against the State of Florida; and the substantial cost of continuing the
litigation.



<PAGE>


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

                              Short Term Liquidity

         At June 30, 2002, Coastal Caribbean had approximately $99,000 of cash
and cash equivalents available. On June 17, 2002, the Company commenced a rights
offering for the sale of its common stock to its shareholders. The offering was
concluded on July 31, 2002 and the Company realized gross proceeds of
approximately $1,370,000 on the sale of 2,740,000 shares at $.50 per share.

         With the proceeds of rights offering, the Company should be able to
fund its operations through June 30, 2003, provided that the Company's
directors, officers, legal counsel and administrative consultants agree to
continue to defer the payment of all of their salaries and fees. As of June 30,
2002, the amount of salaries and fees being deferred totaled approximately
$922,000. Because the proceeds of the offering of the Company's common stock are
inadequate to fund the Company's long term capital needs, the Company intends to
explore other possible funding sources, particularly the other shareholders of
Coastal Petroleum. 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 that may result from the outcome of these uncertainties.

                               Long Term Liquidity

         On January 16, 2001, Coastal Petroleum Company filed a complaint in the
Leon County Circuit Court, Florida 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.

         On May 21, 2002, Coastal Petroleum filed a complaint in the Leon County
Circuit Court, Florida 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-B. The lease encompasses more than 400,000 acres off the West
Coast of Florida in the Gulf of Mexico.

         The Company expects that the cost of the litigation will continue to be
substantial. Because the proceeds of the offering of the Company's common stock
are inadequate to fund the Company's long term capital needs, the Company
intends to explore other possible funding sources, particularly the other
shareholders of Coastal Petroleum.



<PAGE>


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

Results of Operations

Three months ended June 30, 2002 vs. June 30, 2001

         The Company incurred a loss of $606,000 for the 2002 quarter, compared
to a loss of $600,000 for the comparable 2001 quarter.

         Interest income and other income decreased 98% from $23,000 in the 2001
quarter to $500 in the 2002 quarter because of the lack of funds to invest.

         Legal fees and costs decreased 5% to $363,000 for the 2002 quarter,
compared to $384,000 in the prior period. Legal fees and costs were higher in
the 2001 period as a result of 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. In addition,
Coastal Petroleum responded to the State's motions to dismiss the lawsuit. The
Company expects that the cost of the litigation will continue to be substantial
in the year 2002.

         Administrative expenses increased 6% during the 2002 period to $139,000
compared to $131,000 in the 2001 period. Accounting and administrative expenses
increased during the 2002 period to $47,000 compared to $38,300 in the 2001
period because of the costs associated with various filings with the Securities
and Exchange Commission.

         Salaries did not change during the periods and remained at $38,000 in
the 2002 quarter.

         Shareholder communications decreased 90% during the 2002 period to
$7,000 compared to $71,000 in the 2001 period because the Company has not yet
held its 2002 Annual Meeting of Shareholders.

         Exploration costs in the 2002 period represent the $59,000 in lease
rentals paid to the State of Florida to maintain Coastal Petroleum's leases.
During the year 2001, the Company concluded that its property interests were
impaired by the actions taken by the State of Florida and recorded an impairment
charge to reflect the write off of these costs. Although these costs have been
written off, the Company still has legal title to the leases and will continue
to pay annual lease rentals on the leases. All future costs incurred in
connection with the Company's Florida leases are being expensed as incurred.

<PAGE>

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

Six months ended June 30, 2002 vs. June 30, 2001

         The Company incurred a loss of $1,160,000 for the 2002 period, compared
to a loss of $1,292,000 for the comparable 2001 period.

         Interest income and other income decreased 93% from $61,000 in 2001 to
$4,000 in 2002 because of the lack of funds to invest.

         Legal fees and costs decreased 25% to $680,000 for 2002, compared to
$909,000 in the prior period. Legal fees and costs were higher in the 2001
period as a result of 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. In addition, Coastal
Petroleum responded to the State's motions to dismiss the lawsuit. The Company
expects that the cost of the litigation will continue to be substantial in the
year 2002.

         Administrative expenses increased 18% in 2002 to $332,000 from $281,000
in the 2001 period. Accounting and administrative expenses increased during the
2002 period to $107,000 compared to $79,000 in the 2001 period because of the
costs associated with various filings with the Securities and Exchange
Commission.

         Salaries did not change during the periods and remained at $76,000 in
2002.

         Shareholder communications decreased 81% during the 2002 period to
$16,000 compared to $86,000 in the 2001 period because the Company has not yet
held its 2002 Annual Meeting of Shareholders.

         Exploration costs increased from $500 in the 2001 period to $59,000 in
2002. The $59,000 in exploration costs in 2002 represent the lease rentals paid
to the State of Florida to maintain Coastal Petroleum Company's offshore leases.

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

         The Company does not have any significant exposure to market risk.

<PAGE>






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

                                  June 30, 2002

ITEM 5   -    Other Information

         A motion for summary judgment by the State of Florida in the taking
lawsuit (State Lease 224-A) was denied by the Leon County Circuit trial judge on
June 13, 2002.

         On May 21, 2002, Coastal Petroleum filed a complaint in the Leon County
Circuit Court, Florida 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-B. The lease encompasses more than 400,000 acres off the West
Coast of Florida in the Gulf of Mexico. On July 22, 2002, a motion by the State
of Florida to dismiss the case was heard. A decision on the motion is pending.

         On June 17, 2002, the Company commenced a rights offering for the sale
of its common stock to its shareholders. The offering was concluded on July 31,
2002 and the Company realized gross proceeds of approximately $1,370,000 on the
sale of 2,740,000 shares at $.50 per share.

         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 US
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 Code section 1291 (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.


<PAGE>

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

                                  June 30, 2002


         For further information, refer to the consolidated financial statements
and footnotes thereto included in the Company's Annual Report on Form 10-K/A for
the year ended December 31, 2001.


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

         (a)      Exhibits

                  99 (1)            Certification  pursuant  to 18 U.S.C.
                                    Section  1350,  as adopted  pursuant  to
                                    Section  906 of the Sarbanes-Oxley act of
                                    2002 by Benjamin W. Heath

                  99 (2)            Certification  pursuant  to 18 U.S.C.
                                    Section  1350,  as adopted  pursuant  to
                                    Section  906 of the
                                    Sarbanes-Oxley act of 2002 by James R. Joyce


         (b)      Reports on Form 8-K

         On May 22, 2002, the Company filed a Current Report on Form 8-K to
report that Coastal Petroleum filed a complaint in the Leon County Circuit
Court, Florida 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-B. The lease encompasses more than 400,000 acres off the West Coast of
Florida in the Gulf of Mexico. On May 28, 2002, the Company filed an amendment
to the report to correct a typographical error.

         On June 18, 2002, the Company filed a Current Report on Form 8-K to
report that:

                  (1) a motion for summary judgment by the State of Florida in
                  the takings lawsuit (Lease 224-A) was denied by the Leon
                  County Circuit Court trial judge on June 13, 2002.

                  (2) on June 17, 2002, the Company announced an offering of
                  approximately 11 million shares of common stock exclusively to
                  the company's shareholders.




<PAGE>



                     COASTAL CARIBBEAN OILS & MINERALS, LTD.

                                    FORM 10-Q

                                  June 30, 2002



                                   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:  August 12, 2002                   By  /s/ James R. Joyce
                                         --------------------------------------
                                         James R. Joyce
                                         Treasurer and Chief Accounting and
                                         Financial Officer


<PAGE>