**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,      2005                    **

| o  | TRANSACTION                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                of incorporation or organization)   |   |                   (I.R.S. Employer Identification 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, 2005**

**Table      of Contents**

**PART      I - FINANCIAL INFORMATION**

| ITEM              1   | Financial              Statements                                                                                                                                                                                                                        | Page  |
|-----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
|                  |                                                                                                                                                                                                                                                     |       |
|                  | Consolidated                balance sheets at September 30, 2005 and December 31, 2004                                                                                                                                                                   | 3          |
|                  |                                                                                                                                                                                                                                                     |       |
|                  | Consolidated                statements of operations for the three and nine month periods ended                September 30, 2005 and 2004 and for the period from January 31, 1953                (inception) to September 30, 2005                     |  4    |
|                  |                                                                                                                                                                                                                                                     |       |
|                  | Consolidated                statements of cash flows for the nine month periods ended September                30,                2005 and 2004 and for the period from January 31, 1953 (inception)                to                September 30, 2005 |  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                                                                                                                                                                                 | 11         |
|                  |                                                                                                                                                                                                                                                     |       |
| ITEM                4 | Controls                and Procedures                                                                                                                                                                                                                   | 11         |
|                  |                                                                                                                                                                                                                                                     |       |
|                  | **PART                II - OTHER INFORMATION**                                                                                                                                                                                                           |       |
|                  |                                                                                                                                                                                                                                                     |       |
| ITEM                5 | Other                Information                                                                                                                                                                                                                         | 12         |
|                  |                                                                                                                                                                                                                                                     |       |
| ITEM                6 | Exhibits                                                                                                                                                                                                                                                 | 13         |
|                  |                                                                                                                                                                                                                                                     |       |
|                  | Signatures                                                                                                                                                                                                                                               | 14         |

----

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

**FORM      10-Q/A**

**(Amendment      No. 1)**

**PART      I - FINANCIAL INFORMATION**

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

**CONSOLIDATED      BALANCE SHEETS**

|                                                                               |   | September                      30, 2005 |        | December                      31, 2004  |   |
|-------------------------------------------------------------------------------|--------|-----------------------------------------|-------------|----------------------------------------------|--------|
| **Assets**                                                                    |   |  (Unaudited)                       |        |                                    |   |
| Current                    assets:                                            |   |                               |        |                                         |   |
| Cash                    and cash equivalents                                  |   | $                                       | 4,448,354   |                                         | $      | 179 |   |
| Prepaid                    expenses and other                                 |   |                                    | 1,884       |                                         |   | 16,322 |   |
| Total                    current assets                                       |   |                                    | 4,450,238   |                                         |   | 16,501 |   |
|                                                                          |   |                                    |        |                                         |   |   |   |
|                                                                          |   |                                    |        |                                         |   |   |   |
| Capitalized                    exploration costs                              |   |                                    | 143,023     |                                         |   | — |   |
| Equipment                                                                     |   |                                    | 1,891       |                                         |   | — |   |
| Certificate                    of deposit                                     |   |                                    | 10,000      |                                         |   | — |   |
|                                                                               |   |                                    |        |                                         |   |   |   |
| Total                    assets                                               |   | $                                       | 4,605,152   |                                         | $      | 16,501 |   |
|                                                                          |   |                                    |        |                                         |   |   |   |
| **Liabilities                    and Shareholders’ Equity (Deficit)**   |   |                                    |        |                                         |   |   |   |
|                                                                          |   |                                    |        |                                         |   |   |   |
| Current                    liabilities:                                       |   |                                    |        |                                         |   |   |   |
| Accounts                    payable and accrued liabilities                   |   | $                                       | 39,786      |                                         | $      | 863,127 |   |
| Income                    tax expense                                         |   |                                    | 35,000      |                                         |   | — |   |
| Amounts                    due to related parties                             |   |                                    | —     |                                         |   | 1,594,369 |   |
| Total                    current liabilities                                  |   |                                    | 74,786      |                                         |   | 2,457,496 |   |
|                                                                          |   |                                    |        |                                         |   |   |   |
| Minority                    interests (Note 3)                                |   |                                    | —     |                                         |   | — |   |
|                                                                          |   |                                    |        |                                         |   |   |   |
| Shareholders'                    equity (deficit)                             |   |                                    |        |                                         |   |   |   |
| 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           |   |                                    | (33,152,837 | )                                            |   | (40,124,198 | ) |
| Total                    shareholders’ equity (deficit)                 |   |                                    | 4,530,366   |                                         |   | (2,440,995 | ) |
| Total                    liabilities and shareholders’ (deficit) equity |   | $                                       | 4,605,152   |                                         | $      | 16,501 |   |
|                                                                          |   |                                    |        |                                         |   |   |   |
|                                                                          |   |                                    |        |                                         |   |   |   |

----

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

**FORM      10-Q/A**

**(Amendment      No. 1)**

**PART      I - FINANCIAL INFORMATION**

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

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

|                                                                        |   | Three                months endedSeptember 30, |          |     Nine                months endedSeptember 30, |   | For                  theperiod from Jan. 31, 1953(inception) toSeptember 30, |   |
|-----------------------------------------------------------------------------|--------|------------------------------------------------|---------------|-----------------------------------------------------------------------|--------|------------------------------------------------------------------------------|--------|
|                                                                        |   | 2005                                           |          | 2004                                                                  |   | 2005                                                                         |   | 2004 |   | 2005 |   |
|                                                                        |   |                                           |          |                                                                  |   |                                                                         |   |   |   |   |   |
| **Revenues**                                                                |   | $                                              | —       |                                                                  | $      | —                                                                      |   | $ | — |   | $ | — |   | $ | — |   |
|                                                                        |   |                                           |          |                                                                  |   |                                                                         |   |   |   |   |   |   |   |   |   |   |
| **Expenses:**                                                               |   |                                           |          |                                                                  |   |                                                                         |   |   |   |   |   |   |   |   |   |   |
|                  Legal fees and costs                                  |   |                                           | 76,011        |                                                                  |   | 86,888                                                                       |   |   | 90,068 |   |   | 249,167 |   |   | 16,989,747 |   |
|                  Administrative expenses                               |   |                                           | 52,320        |                                                                  |   | 34,526                                                                       |   |   | 130,811 |   |   | 172,626 |   |   | 9,866,504 |   |
|                  Personnel                                             |   |                                           | 44,291        |                                                                  |   | 24,761                                                                       |   |   | 93,810 |   |   | 74,279 |   |   | 3,849,621 |   |
|                  Shareholder communications                            |   |                                           | 12,524        |                                                                  |   | 6,000                                                                        |   |   | 24,584 |   |   | 18,565 |   |   | 3,997,676 |   |
|                  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 |   |
|                                                                        |   |                                           | 185,146       |                                                                  |   | 152,175                                                                      |   |   | 339,273 |   |   | 514,637 |   |   | 44,341,042 |   |
|                                                                        |   |                                           |          |                                                                  |   |                                                                         |   |   |   |   |   |   |   |   |   |   |
| **Other                income (expense):**                                  |   |                                           |          |                                                                  |   |                                                                         |   |   |   |   |   |   |   |   |   |   |
|                  Gain on settlement (Note 4)                           |   |                                           | 8,125,900     |                                                                  |   | —                                                                      |   |   | 8,125,900 |   |   | — |   |   | 8,125,900 |   |
|                  Goodwill impairment                                   |   |                                           | (801,923      | )                                                                     |   | —                                                                      |   |   | (801,923 | ) |   | — |   |   | (801,923 | ) |
|                  Interest and other income                             |   |                                           | 21,657        |                                                                  |   | 1                                                                            |   |   | 21,657 |   |   | 1 |   |   | 3,899,228 |   |
|                                                                        |   |                                           | 7,345,634     |                                                                  |   | —                                                                      |   |   | 7,345,634 |   |   | — |   |   | 11,223,205 |   |
|                                                                        |   |                                           |          |                                                                  |   |                                                                         |   |   |   |   |   |   |   |   |   |   |
| **Income                expense**                                           |   |                                           | 35,000        |                                                                  |   | —                                                                      |   |   | 35,000 |   |   | — |   |   | 35,000 |   |
|                                                                        |   |                                           |     |                                                                  |   |                                                                    |   |   |    |   |   |    |   |   |   |   |
| **Net                income (loss)**                                        |   | **$**                                          | **7,125,488** |                                                                  | **$**  | (152,174                                                                     | )      | **$** | **6,971,361** |   | **$** | (514,636 | ) |   |   |   |
|                                                                        |   |                                           |          |                                                                  |   |                                                                         |   |   |   |   |   |   |   |   |   |   |
| Deficit                accumulated during                                   |   |                                           |          |                                                                  |   |                                                                         |   |   |   |   |   |   |   |   |    |   |
|                  the development stage                                 |   |                                           |          |                                                                  |   |                                                                         |   |   |   |   |   |   |   | $ | (33,152,837 | ) |
|                                                                        |   |                                           |          |                                                                  |   |                                                                         |   |   |   |   |   |   |   |   |   |   |
| 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)                     |   | $                                              | .15           |                                                                  | $      | (—                                                                     | )      | $ | .15 |   | $ | (.01 | ) |   |   |   |

----

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

**FORM      10-Q/A**

**(Amendment      No. 1)**

**PART      I - FINANCIAL INFORMATION**

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

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

|                                                                                |   |   | Nine                months endedSeptember 30,  |   |   | For                  the period fromJan. 31, 1953 (inception)                  toSeptember 30, |   |
|-------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------|--------|
|                                                                                |   |   | 2005                                 |   |   |  2004                                                                      |   |   | 2005  |   |
| **Operating              activities:**                                              |   |   |                                                |   |   |                                                                                           |   |   |   |   |
| Net                income (loss)                                                    |   | $      | 6,971,361                                           |   | $      | (514,636                                                                                       | )      | $ | (33,152,837 | ) |
| Adjustments                to reconcile net loss to net cash                        |   |   |                                                |   |   |                                                                                           |   |   |   |   |
|                  used in operating activities:                                 |   |   |                                                |   |   |                                                                                           |   |   |   |   |
|                    Goodwill impairment                               |   |   | 801,923                                             |   |   | —                                                                                        |   |   | 801,923 |   |
|                    Gain on settlement                                |   |   | (8,125,900                                          | )      |   | —                                                                                        |   |   | (8,125,900 | ) |
|                    Write off of unproved properties                  |   |   | —                                             |   |   | —                                                                                        |   |   | 5,619,741 |   |
|                    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:                                                       |   |   |                                                |   |   |                                                                                           |   |   |   |   |
|                  Prepaid expenses and other                                    |   |   | 14,438                                              |   |   | 71,625                                                                                         |   |   | (1,885 | ) |
|                    Accounts payable and accrued liabilities          |   |   | (2,337,420                                          | )      |   | 376,525                                                                                        |   |   | 39,788 |   |
|                    Income taxes payable                              |   |   | 35,000                                              |   |   | —                                                                                        |   |   | 35,000 |   |
|                                                                                |   |   |                                                |   |   |                                                                                           |   |   |   |   |
| Net                cash provided by (used in) operating activities                  |   |   | (2,640,598                                          | )      |   | (66,486                                                                                        | )      |   | (34,970,472 | ) |
|                                                                                |   |   |                                                |   |   |                                                                                           |   |   |   |   |
| **Investing                activities:**                                            |   |   |                                                |   |   |                                                                                           |   |   |   |   |
|                  Additions to oil, gas, and mineral properties                 |   |   |                                                |   |   |                                                                                           |   |   |   |   |
| net                of assets acquired for common stock and reimbursements           |   |   | (143,023                                            | )      |   | —                                                                                        |   |   | (3,883,205 | ) |
|                  Net proceeds from settlement                                  |   |   | 8,125,900                                           |   |   | —                                                                                        |   |   | 8,125,900 |   |
|                  Proceeds from relinquishment of surface rights                |   |   | —                                             |   |   | —                                                                                        |   |   | 246,733 |   |
|                  Purchase of certificate of deposit                            |   |   | (10,000                                             | )      |   | —                                                                                        |   |   | (10,000 | ) |
|                  Purchase of minority interest in CPC                          |   |   | (801,923                                            | )      |   | —                                                                                        |   |   | (801,923 | ) |
|                  Equipment purchases                                           |   |   | (1,891                                              | )      |   | —                                                                                        |   |   | (63,540 | ) |
| Net                cash provided by (used in) investing activities                  |   |   | 7,169,063                                           |   |   | —                                                                                        |   |   | 3,613,965 |   |
|                                                                                |   |   |                                                |   |   |                                                                                           |   |   |   |   |
| **Financing                activities:**                                            |   |   |                                                |   |   |                                                                                           |   |   |   |   |
|                  Loans from officers                                           |   |   | 31,500                                              |   |   | 63,851                                                                                         |   |   | 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                                             | )      |   | 63,851                                                                                         |   |   | 35,804,861 |   |
|                                                                                |   |   |                                                |   |   |                                                                                           |   |   |   |   |
| Net                increase (decrease) in cash and cash equivalents                 |   |   | 4,448,175                                           |   |   | (2,635                                                                                         | )      |   | 4,448,354 |   |
| Cash                and cash equivalents at beginning of period                     |   |   | 179                                                 |   |   | 2,875                                                                                          |   |   | — |   |
| Cash                and cash equivalents at end of period                           |   | $      | 4,448,354                                           |   | $      | 240                                                                                            |   | $ | 4,448,354 |   |
|                                                                                |   |   |                                                |   |   |                                                                                           |   |   |   |   |

----

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

**FORM        10-Q/A**

**(Amendment        No. 1)**

**PART        I - FINANCIAL INFORMATION**

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

----

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

**FORM        10-Q/A**

**(Amendment        No. 1)**

**PART        I - FINANCIAL INFORMATION**

**ITEM      1   **
**Financial      Statements (Cont’d)**

|  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 (Cont’d) **

----

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

**FORM          10-Q/A**

**(Amendment          No. 1)**

**PART          I - FINANCIAL INFORMATION**

**ITEM      2  **
**Management's      Discussion and Analysis of Financial Condition and **

**Results      of Operations**

**Forward      Looking Statements**

**Critical      Accounting Policies**

**Liquidity and Capital Resources**

----

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

**FORM          10-Q/A**

**(Amendment          No. 1)**

**PART          I - FINANCIAL INFORMATION**

**ITEM      2  **
**Management's      Discussion and Analysis of Financial Condition and **

**Results      of Operations **

**(Cont’d)**

**Results of Operations**

**Three      months ended September 30, 2005 vs. September 30, 2004**

**Legal      fees and costs decreased 13%**

**Administrative      expenses increased 51% **

**Personnel      expenses increased 79% **

**Shareholder      communications increased 109%**

**Goodwill      impairment**

**Nine      months ended September 30, 2005 vs. September 30, 2004**

**Legal      fees and costs decreased 64%**

----

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

**FORM          10-Q/A**

**(Amendment          No. 1)**

**PART          I - FINANCIAL INFORMATION**

**ITEM      2  **
**Management's      Discussion and Analysis of Financial Condition and **

**Results      of Operations **

**(Cont’d)**

**Administrative      expenses decreased 24% **

**Personnel      expenses increased 26% **

**Shareholder      communications increased 32%**

**Goodwill      impairment**

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

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

----

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

**FORM          10-Q/A**

**(Amendment          No. 1)**

**PART          I - FINANCIAL INFORMATION**

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

----

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

**FORM      10-Q/A**

**(Amendment      No. 1)**

**PART      II - OTHER INFORMATION**

**September      30, 2005**

**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, 2005**

**SIGNATURES**

|                                        |                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------------------------------------------|-----------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                        |                                                                                                            |  **COASTAL                  CARIBBEAN OILS &                  MINERALS, LTD.**                                                                  Registrant |
|                                        |                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                        |                                                                                                            |
|                                        |                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                           |
| Date: February                22, 2006 | By:                                                                                                   | /s/ Phillip                W. Ware                                                                                                                                                                                                                                                                                                                                                                             |
|                                        | Phillip                W. Ware                                                                                  |
|                                        | Chief                Executive Officer, President                and Principal Financial                Officer |

----