UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWASHINGTON, 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, 2003

[ ] 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 
      incorporation or organization) |  | (I.R.S. Employer
      Identification No.)



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



|850-576-5982                                        
|----------------------------------------------------
|                                                    
|(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.    Yes
     No

The number of shares outstanding of the issuer's
  single class of common stock as of August 5, 2003 was 46,211,604.



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COASTAL CARIBBEAN OILS & MINERALS, LTD.

FORM 10-Q

JUNE 30, 2003

Table of Contents

|PART I - FINANCIAL INFORMATION
|------------------------------
|                              
|ITEM 1                        
|                              
|                              
|                              
|                              
|                              
|                              
|                              
|                              
|                              
|                              
|ITEM 2                        
|                              
|ITEM 3                        
|                              
|ITEM 4                        
|                              
|PART II - OTHER INFORMATION   
|                              
|ITEM 5                        
|                              
|ITEM 6                        
|                              
|                              

2



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COASTAL CARIBBEAN OILS & MINERALS, LTD.

FORM 10-Q

PART I - FINANCIAL INFORMATION

ITEM1 -Financial Statements

CONSOLIDATED BALANCE SHEETS(Expressed in U.S. dollars)

(A Bermuda Corporation)
  A Development Stage Company

|                                                 | June 30,    |         | December 31, |         
|------------------------------------------------ | ----------- | ------- | ------------ | --------
|                                                 |             |         |              |         
|                                                 | 2003        |         | 2002         |         
|                                                 |             |         |              |         
|ASSETS                                           | (unaudited) |         | (Note)       |         
|Current assets:                                  |             |         |              |         
|Cash and cash equivalents                        | $           | 14,572  |              | $       
|Interest and accounts receivable                 |             | 719     |              |         
|Prepaid expenses                                 |             | 261,831 |              |         
|                                                 |             |         |              |         
|Total
      current assets                       |             | 277,122 |              |         
|                                                 |             |         |              |         
|                                                 |             |         |              |         
|Contingent litigation claim (Note 5)             |             | -       |              |         
|Total assets                                     | $           | 277,122 |              | $       
|                                                 |             |         |              |         
|                                                 |             |         |              |         
|LIABILITIES AND SHAREHOLDERS' DEFICIT            |             |         |              |         
|                                                 |             |         |              |         
|Current liabilities:                             |             |         |              |         
|Accounts payable and
      accrued liabilities   | $           | 814,610 |              | $       
|Due to related parties                           |             | 788,899 |              |         
|                                                 |             |         |              |         
|Total
      current liabilities                  | 1,603,509   |         | 1,536,703    |         
|                                                 |             |         |              |         
|                                                 |             |         |              |         
|Minority interests                               |             | -       |              |         
|                                                 |             |         |              |         
|Shareholders' deficit:                           |             |         |              |         
|Common stock, par value $.12 per share:          |             |         |              |         
|Authorized - 250,000,000 shares                  |             |         |              |         
|Outstanding  46,211,604 shares and 46,211,604   |             |         |              |         
|shares,
      respectively                       | 5,545,392   |         | 5,545,392    |         
|Capital in excess of par value                   | 32,117,811  |         | 32,067,811   |         
|                                                 |             |         |              |         
|                                                 | 37,663,203  |         | 37,613,203   |         
|Deficit accumulated during the development stage | (38,989,590 | )       | (38,443,111  | )       
|                                                 |             |         |              |         
|Total shareholders deficit                      | (1,326,387  | )       |              | (829,908
|                                                 |             |         |              |         
|Total liabilities and shareholders deficit      | $           | 277,122 |              | $       
|                                                 |             |         |              |         

Note: The balance sheet at December 31, 2002 has
  been derived from the audited
  consolidated financial statements at that date.

See accompanying notes.

3



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COASTAL CARIBBEAN OILS & MINERALS, LTD.

FORM 10-Q

PART I - FINANCIAL INFORMATION

ITEM1 -Financial Statements

CONSOLIDATED STATEMENTS OF OPERATIONS 
  (Expressed in U.S. dollars)

(A Bermuda Corporation) 
  A Development Stage Company (unaudited)

|                                       | Three months ended
      June 30, 2003 |            | Six months ended
      June 30, 2003 |  | For the
      period from
      Jan. 31, 1953
      (inception)
      to 
      June 30, 2003
|-------------------------------------- | -------------------------------------- | ---------- | ------------------------------------ |  | ---------------------------------------------------------------------------------------------
|                                       |                                        |            |                                      |  |                                                                                              
|                                       |                                        | 2003       |                                      |  |                                                                                              
|                                       |                                        |            |                                      |  |                                                                                              
|                                       |                                        |            |                                      |  |                                                                                              
|Interest and other income              | $                                      | 84         |                                      |  | $                                                                                            
|                                       |                                        |            |                                      |  |                                                                                              
|                                       |                                        |            |                                      |  |                                                                                              
|Expenses:                              |                                        |            |                                      |  |                                                                                              
|Legal fees and costs                   |                                        | 61,060     |                                      |  |                                                                                              
|Administrative expenses                |                                        | 122,414    |                                      |  |                                                                                              
|Salaries                               |                                        | 28,045     |                                      |  |                                                                                              
|Shareholder communications             |                                        | 6,000      |                                      |  |                                                                                              
|Write off of unproved
      properties |                                        | -          |                                      |  |                                                                                              
|Exploration costs                      |                                        | -          |                                      |  |                                                                                              
|Lawsuit judgments                      |                                        | -          |                                      |  |                                                                                              
|Minority interests                     |                                        | -          |                                      |  |                                                                                              
|Other                                  |                                        | -          |                                      |  |                                                                                              
|Contractual services                   |                                        | -          |                                      |  |                                                                                              
|                                       |                                        |            |                                      |  |                                                                                              
|                                       |                                        | 217,519    |                                      |  |                                                                                              
|                                       |                                        |            |                                      |  |                                                                                              
|                                       |                                        |            |                                      |  |                                                                                              
|Net loss                               | $                                      | (217,435   | )                                    |  | $                                                                                            
|                                       |                                        |            |                                      |  |                                                                                              
|                                       |                                        |            |                                      |  |                                                                                              
|Deficit accumulated during             |                                        |            |                                      |  |                                                                                              
|the development stage                  |                                        |            |                                      |  |                                                                                              
|                                       |                                        |            |                                      |  |                                                                                              
|                                       |                                        |            |                                      |  |                                                                                              
|Weighted average number of             |                                        |            |                                      |  |                                                                                              
|shares outstanding                     |                                        |            |                                      |  |                                                                                              
|(basic & diluted)                      |                                        | 46,221,604 |                                      |  |                                                                                              
|                                       |                                        |            |                                      |  |                                                                                              
|                                       |                                        |            |                                      |  |                                                                                              
|Net loss per share (basic &            | $                                      | (.01       | )                                    |  | $                                                                                            
|                                       |                                        |            |                                      |  |                                                                                              
|diluted)                               |                                        |            |                                      |  |                                                                                              

See accompanying notes.

4



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COASTAL CARIBBEAN OILS & MINERALS, LTD.

FORM 10-Q

PART I - FINANCIAL INFORMATION

ITEM1 -Financial Statements

CONSOLIDATED STATEMENTS OF CASH FLOWS 
  (Expressed in U.S. Dollars)

(A Bermuda Corporation) 
  A Development Stage Company (unaudited)



|                                                        |                  |          | For the period from
|------------------------------------------------------- | ---------------- | -------- | -------------------
|                                                        | Six months ended |          | Jan. 31, 1953      
|                                                        | June 30,         |          | (inception)        
|                                                        |                  |          | To                 
|                                                        | 2003             |          | 2002               
|                                                        |                  |          |                    
|Operating activities:                                   |                  |          |                    
|Net loss                                                | $                | (546,479 | )                  
|Adjustments to reconcile net loss to net cash           |                  |          |                    
|used in operating activities:                           |                  |          |                    
|Minority interest                                       |                  | -        |                    
|Write off of unproved
      properties                  |                  | -        |                    
|Common stock issued for
      services                  |                  | -        |                    
|Compensation recognized
      for stock option grant    |                  | -        |                    
|Recoveries from previously
      written off properties |                  | -        |                    
|Net change in:                                          |                  |          |                    
|Interest
      and accounts receivable                  |                  | 3,349    |                    
|Prepaid
      expenses                                  |                  | 148,801  |                    
|Accounts
      payable and accrued liabilities          |                  | 66,806   |                    
|Deferred
      financing costs                          |                  | -        |                    
|                                                        |                  |          |                    
|Net cash used in operating activities                   |                  | (327,523 | )                  
|                                                        |                  |          |                    
|                                                        |                  |          |                    
|Investing activities:                                   |                  |          |                    
|Additions to oil, gas, and mineral properties           |                  |          |                    
|net
      of assets acquired for common stock and       |                  |          |                    
|reimbursements                                          |                  | -        |                    
|Proceeds from relinquishment of surface
      rights    |                  | -        |                    
|Purchase of fixed assets                                |                  | -        |                    
|                                                        |                  |          |                    
|Net cash provided by (used in) investing activities     |                  | -        |                    
|                                                        |                  |          |                    
|                                                        |                  |          |                    
|Financing activities:                                   |                  |          |                    
|Sale of common stock net of expenses                    |                  | -        |                    
|Shares issued upon exercise of options                  |                  | -        |                    
|Sale of shares by subsidiary                            |                  | 50,000   |                    
|Sale of subsidiary shares                               |                  | -        |                    
|                                                        |                  |          |                    
|Net cash provided by financing activities               |                  | 50,000   |                    
|                                                        |                  |          |                    
|Net increase (decrease) in cash and cash equivalents    |                  | (277,523 | )                  
|Cash and cash equivalents at beginning of period        |                  | 292,095  |                    
|                                                        |                  |          |                    
|Cash and cash equivalents at end of period              | $                | 14,572   |                    
|                                                        |                  |          |                    

See accompanying notes.

5



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ITEM 1          Financial Statements

Note 1. 	Basis of Presentation

The accompanying unaudited consolidated financial
  statements include the Companys 58.84% 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, 2003 are not necessarily indicative
  of the results that may be expected for the year ending December 31, 2003. For
  further information, refer to the consolidated financial statements and footnotes
  thereto included in the Companys Annual Report on Form 10-K for the year
  ended December 31, 2002.

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.

6



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ITEM 1          Financial Statements

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.

Certain holders of royalties pertaining to Lease
  224-A, which aggregate approximately 4%, intervened in the proceeding. Counsel
  for the 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 October 8, 2002, after a two week trial the
  trial court in the takings litigation orally ruled from the bench that the States
  denial of a permit to drill on Coastal Petroleums Lease 224-A did not
  constitute an unlawful taking of Coastal Petroleums property. On November
  15, 2002, the trial court issued its Final Judgment that the States denial
  of a permit to drill on Coastal Petroleums Lease 224-A did not constitute
  an unlawful taking of Coastal Petroleums property.

Coastal Petroleum Company filed a notice of
  appeal of the Final Judgment to the Florida First District Court of Appeal on
  November 18, 2002 and filed its initial brief on January 27, 2003. The intervenors
  (described above) joined the appeal of the Final Judgment and appealed the ruling
  on their motion to intervene. The intervenors filed their brief on February
  10, 2003. The DEP filed their Answer Brief on March 21, 2003, the State Trustees
  filed its Answer Brief on March 7, 2003, and Coastal filed an Answer Brief to
  the intervenors on March 7, 2003. In response to the States Motion to
  Strike Coastals Answer Brief, the Court struck all briefs except Coastals
  Initial Brief, treated the intervenors appeal as separate, consolidated
  the appeals and reset the briefing schedule. The intervenors filed their
  Initial Briefs on April 28, 2003. The Answer Briefs of Coastal and the State
  were filed on May 23, 2003 and the Reply Briefs of Coastal and the intervenors
  were filed on June 17, 2003. All briefs have now been submitted and the Company
  is waiting for oral argument to be scheduled.

On December 13, 2002, the State filed a motion for an order by the trial court by which the State seeks to recover $178,315 from Coastal Petroleum, including expert witness fees, deposition costs and copying costs.  On December 20, 2002, Coastal Petroleum filed objections and responses to the States motion, objecting to the costs and requesting an evidentiary hearing.  In the opinion of Companys litigation counsel, the States motion for fees and costs is without merit. On April 9, 2003, the State agreed not to pursue its motion until after conclusion of the appeal in this case. An award of costs by the trial court against Coastal Petroleum could be appealed by either party. Coastal Petroleum also would have the right to seek an automatic stay of any cost award rendered against it pending appeal of the award, by the posting of a bond deemed sufficient by the trial court.

7



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ITEM 1          Financial Statements

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. The case is still pending and 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 alleged 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.  The court denied the States motion to dismiss the case on August 30, 2002. The case is currently pending and is in the discovery stage.

On March 28, 2003, the State filed a motion to stay the proceeding until the appeal of Lease 224-A is completed. A hearing before the trial judge was held on May 1, 2003, at which Coastal objected to the stay unless the stay was conditioned upon the suspension of Coastals lease obligation. On May 30, 2003, the judge denied the motion to stay and discovery is proceeding.

8



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ITEM 1          Financial Statements

Note 3. 	     Loss per share

Loss per share is based upon the weighted average
  number of common and common equivalent shares outstanding during the period.
  The Companys basic and diluted calculations of EPS are the same because
  the exercise of options is not assumed in calculating diluted EPS, as the result
  would be anti-dilutive (the Company has continuing losses).

Note 4.     	Stock Options

The Company has elected to follow Accounting
  Principles Board Opinion No. 25, Accounting for Stock Issued to Employees
  (APB No. 25) and related interpretations in accounting for its stock options
  because the alternative fair value accounting provided under FASB Statement
  No. 123, Accounting for Stock Based Compensation, (SFAS No. 123)
  requires use of option valuation models that were not developed for use in valuing
  stock options. Under APB No. 25, because the exercise price of the Companys
  stock options equals the market price of the underlying stock on the date of
  grant, no compensation expense is recognized.

Pro forma information regarding net income and earnings per share is required by SFAS No. 123, and has been determined as if the Company had accounted for its stock options under the fair value method of that Statement. The fair value for these options was estimated at the date of grant using a Black-Scholes option pricing model.

Summary of Options Outstanding at June 30, 2003

|Granted                     | Expiration     | Total   | Vested  | Exercise Prices ($)
|--------------------------- | -------------- | ------- | ------- | -------------------
|                            |                |         |         |                    
|2000                        | March 22, 2010 | 700,000 | 700,000 | .91                
|                            |                |         |         |                    
|                            |                | 700,000 | 700,000 | .91                
|                            |                |         |         |                    
|                            |                |         |         | (Weighted Average) 
|Options reserved for future |                | 75,000  |         |                    
|grants                      |                |         |         |                    

The assumptions used in the 2000 valuation model were:
  risk free interest rate  6.66%, expected life - 10 years, expected volatility
  - .741, and expected dividend  0. Because the Companys stock options
  have characteristics significantly different from those of traded options, and
  because changes in the subjective input assumptions can materially affect the
  fair value estimate, in managements opinion, the existing models do not
  necessarily provide a reliable single measure of the fair value of its stock
  options.

9





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ITEM 1     	Financial Statements

Had the Company determined stock-based compensation based on the fair value of the options granted at the grant date, consistent with the method prescribed under SFAS No. 123, there would have been no change to the Companys net loss for the three and six months ended June 30, 2003 and 2002.

Note 5.      	Going Concern

The Company has a working capital deficiency,
  has a limited amount of cash, has incurred recurring losses and has a deficit
  accumulated during the development stage. Furthermore, 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.
  On November 15, 2002, the trial court issued its Final Judgment that the State's
  denial of a permit to drill on Coastal Petroleum's Lease 224-A did not constitute
  an unlawful taking of Coastal Petroleum's property. The Company is currently
  in the process of appealing the courts ruling. The cost of that litigation
  has been substantial and has required the Company to obtain additional capital.
  On March 10, 2003, Coastal Petroleum sold 2 shares of its common stock to a
  non-shareholder of Coastal Petroleum for $50,000. This amount has been included
  as an increase to additional paid-in capital. The sale of additional shares
  of Coastal Petroleum common stock to this and other parties is being pursued
  although to date, no binding agreements have been entered into.

With the amount of cash on hand at June 30,
  2003, the Company should be able to fund its operations through December 31,
  2003, provided that the Companys directors, certain of its officers, legal
  counsel and administrative consultants agree to continue to defer the payment
  of all of their past and current salaries and fees. As of June 30, 2003, the
  amount of salaries and fees deferred totaled approximately $1,604,000. Because
  the proceeds from offerings of the Company's common stock have been inadequate
  to fund the Company's capital needs, the Company is exploring 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.

10



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

Forward Looking Statements

Statements included in Managements Discussion
  and Analysis of Financial Condition and Results of Operations which are not
  historical in nature are intended to be forward looking statements. The Company
  cautions readers that forward looking statements are subject to certain risks
  and uncertainties that could cause actual results to differ materially from
  those indicated in the forward looking statements. Among the risks and uncertainties
  are: the uncertainty of securing additional financing through the sale of shares
  of Coastal Petroleum and/or Coastal Caribbean; the uncertainty of any decision
  favorable to Coastal Petroleum in its litigation against the State of Florida;
  and the substantial cost of continuing the litigation.

Critical Accounting Policies

The Company follows the full cost method of
  accounting for its oil and gas properties. All costs associated with property
  acquisition, exploration and development activities whether successful or unsuccessful
  are capitalized. Since the Companys properties were undeveloped and nonproducing
  and the subject of litigation, capitalized costs were not being amortized.

The capitalized costs are subject to a ceiling
  test which basically limits such costs to the aggregate of the estimated present
  value discounted at a 10% rate of future net revenues from proved reserves,
  based on current economic and operating conditions, plus the lower of cost or
  fair market value of unproved properties.

The Company assesses whether its unproved properties
  are impaired on a periodic basis. This assessment is based upon work completed
  on the properties to date, the expiration date of its leases and technical data
  from the properties and adjacent areas. These properties are subject to extensive
  litigation with the State of Florida.

Liquidity and Capital Resources

In July 2002 Coastal Caribbean concluded a rights
  offering and sold 2,743,275 shares of common stock for $.50 per share and received
  net proceeds of approximately $900,000.

At June 30, 2003, Coastal Caribbean had approximately
  $15,000 of cash available. In addition, during July 2003, the Company received
  approximately $201,000 from prepayments related to its D&O policy. Management
  believes that this amount should be sufficient to fund the Companys operations
  through December 31, 2003, provided that payments to the Companys litigation
  counsel and to the Companys salaried employee are deferred and provided
  further that payments to other Company counsel are also deferred. However, if
  such deferrals do not continue, Management

11



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

believes approximately $650,000 would be needed to fund the operations through December 31, 2003. After December 31, 2003, the Company may have to suspend or cease operations and may have to file for bankruptcy under the laws of Bermuda unless and until the Company can secure additional financing. The Companys current cash is expected to be used for general corporate purposes, and to continue the litigation against the State of Florida.

Certain directors, officers, legal counsel and administrative consultants have agreed to defer the payment of their salaries and fees. At June 30, 2003, the amount of salaries and fees being deferred totaled approximately $1,597,000.

Coastal Caribbean has a working capital deficiency,
  has a limited amount of cash, has incurred recurring losses and has a deficit
  accumulated during the development stage. On January 16, 2001, Coastal Petroleum
  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. On November 15, 2002, the
  Trial Court issued its Final Judgment that the States denial of a permit
  to drill on Coastal Petroleums Lease 224-A did not constitute an unlawful
  taking of Coastal Petroleums property. The cost of that litigation has
  been substantial and will require the Company to obtain additional capital.

Since October 2002, Coastal Caribbean and Coastal Petroleum have attempted to raise funds from the other shareholders of Coastal Petroleum and from others. With the exception of the sale in the first quarter by Coastal Petroleum of two shares of its common stock for $25,000 per share to a non-shareholder of Coastal Petroleum and non-binding indications of interest in purchasing shares from Coastal Petroleum by other potential purchasers, those efforts have been unsuccessful.

During the six months ended June 30, 2003 the Company made the following cash expenditures.

|Angerer and Angerer (Litigation Counsel) | $       | 80,443  | 
|---------------------------------------- | ------- | ------- | 
|Philip Ware (President)                  |         | 23,001  | 
|Transfer Agent                           |         | 12,000  | 
|Ernst & Young  Accountants              |         | 20,000  | 
|Directors & Officers Insurance           | 140,093 |        
|Daniel Sharp (Chief Financial Officer)   |         | 38,385  | 
|Payroll Taxes                            |         | 1,761   | 
|Office Expenses                          |         | 10,604  | 
|Miscellaneous                            |         | 1,236   | 
|                                         |         |         | 
|                                         |         |         | 
|Total                                    | $       | 327,523 | 
|                                         |         |         | 

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

If the Company does not raise additional capital prior to December 31, 2003 the Company will continue to defer payments during the third and fourth quarter ending December 31, 2003 to Angerer & Angerer and Mr. Philip Ware.  The Company has made a cash payment of approximately $106,000 for directors and officers insurance during July 2003. In addition, the Company has made a cash payment of approximately $40,000 for annual rentals on Leases 248 and 224-A in July and August 2003.

Results of Operations

Three months ended June 30, 2003 vs. June 30, 2002

The Company incurred a loss of $217,000 for
  the 2003 quarter, compared to a loss of $606,000 for the comparable 2002 quarter.

Interest income and other income remained
  negligible from $500 in the 2002 quarter to $84 in the 2003 quarter because
  of the lack of funds to invest.

Legal fees and costs decreased 83% to
  $61,000 for the 2003 quarter, compared to $363,000 in the 2002 quarter. Legal
  fees and costs were higher in the 2002 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.

Administrative expenses decreased 12%during
  the 2003 quarter to $122,000 compared to $139,000 in the 2002 quarter.

Salaries decreased 26%during the 2003
  quarter to $28,000 compared to $38,000 in the 2002 quarter.

Shareholder communications decreased 14%during
  the 2003 quarter to $6,000 compared to $7,000 in the 2002 quarter.

Exploration costs in the 2002 quarterrepresent
  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. The Company made annual lease
  payments of approximately $40,000 during July 2003 and will expense these in
  the third quarter 2003.

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

Six months ended June 30, 2003 vs. June 30, 2002

The Company incurred a loss of $546,000 for
  the 2003 period, compared to a loss of $1,160,000 for the comparable 2002 period.

Interest income and other income decreased
  87% from $4,139 in 2002 to $537 in 2003 because of the lack of funds to
  invest.

Legal fees and costs decreased 73% to
  $181,000 for 2003, compared to $680,000 for 2002. Legal fees and costs were
  higher in the 2002 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.

Administrative expenses decreased 12% in2003 to $292,000 from $332,000 in the 2002 period. This decrease was primarily
  due to the decrease in Accounting and administrative expenses during the 2003
  period to $41,000 compared to $107,000 in the 2002 period due to the higher
  costs associated with various filings with the Securities and Exchange Commission
  during 2002.

Salaries decreased 18%in 2003 to $62,000
  compared to $76,000 in 2002.

Shareholder communications decreased 25%during the 2003 period to $12,000 compared to $16,000 in the 2002 period.

Exploration costs in the 2002 quarterrepresent
  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. The Company made annual lease
  payments of approximately $40,000 during July 2003 and will expense these in
  the third quarter 2003.

ITEM 3     Quantitative and Qualitative Disclosure About Market Risk

The Company does not have any significant exposure
  to market risk as there were no investments in marketable securities at June
  30, 2003.

14



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ITEM 4     Controls and Procedures

I, Phillip W. Ware, the principal executive
  officer and treasurer, have evaluated the Companys disclosure controls
  and procedures (as defined in Rules 13a-14(c) and 15d-14(c) adopted under the
  Securities Act of 1934) within the ninety (90) day period prior to the date
  of this report and have concluded:

|1. | That the Companys disclosure controls and procedures
      are adequately designed to ensure that material information relating to
      the Company, including its consolidated subsidiary, is timely made known
      to such officers by others within the Company and its subsidiary, particularly
      during the period in which this quarterly report is being prepared; and
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                      
|2. | That there were no significant changes in the Companys
      internal controls or in other factors that could significantly affect these
      controls subsequent to the date of their evaluation, including any corrective
      actions with regard to significant deficiencies and material weaknesses.                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                      

ITEM 5  -   Other Information

In Coastals current appeal of the November
  15, 2002 Final Judgment entered by the trial court finding no taking of Coastals
  Lease 224-A, Coastal filed its Initial Brief on January 27, 2003 and the intervenors
  filed their Initial Brief on February 10, 2003. The DEP filed their Answer Brief
  on March 21, 2003, the State Trustees filed its Answer Brief on March 7, 2003,
  and Coastal filed an Answer Brief to the intervenors on March 7, 2003. In response
  to the States Motion to Strike Coastals Answer Brief, the Court
  struck all briefs except for Coastals Initial Brief, treated the intervenors
  appeal as a separate appeal, consolidated the appeals and reset the briefing
  schedule. The intervenors filed their Initial Briefs on April 28, 2003.
  The Answer Briefs of Coastal and the State were filed on May 23, 2003 and the
  Reply Briefs of Coastal and the intervenors were filed on June 17, 2003. All
  briefs have now been submitted and the Company is waiting for oral argument
  to be scheduled.

The only matter from the inverse condemnation trial on Lease 224-A remaining in the trial court is the States motion for costs. On April 9, 2003, the State agreed not to pursue its motion for costs until after conclusion of the appeal in this case.

In Coastals inverse condemnation suit
  covering Lease 224-B, the State filed a motion to stay the proceeding until
  the appeal of Lease 224-A is completed. A hearing before the trial judge was
  held on May 1, 2003, at which Coastal objected to the stay unless the stay was
  conditioned upon the suspension of Coastals lease obligations. On May
  30, 2003, the judge denied the motion to stay and discovery is proceeding.

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On June 24, 2003 James Moore & Co. became the Companys independent auditors, Mr. Daniel W. Sharp resigned as Treasurer, Chief Financial Officer, Chief Accounting Officer and Assistant Secretary of the Company and Mr. Kenneth M. Cornell of Cornell & Associates has become the acting Chief Financial Officer.  In addition, Igler & Dougherty, P.A. of Tallahassee, Florida has replaced Murtha Cullina of Hartford, Connecticut as Counsel for Corporate, Securities and related matters. The Company has moved its Connecticut office to Florida and the remaining Directors: Phillip W. Ware (President and Treasurer); Robert J. Angerer, Sr. (Vice-President); John D. Monroe; and Graham Collis, are endeavoring to assure survival of the Company.

Coastal Caribbean is currently a passive foreign
  investment company, or PFIC, for United States federal income tax purposes,
  which could result in negative tax consequences to a shareholder. If, for any
  taxable year, the Companys passive income or assets that produce passive
  income exceed levels provided by U.S. law, the Company would be a "passive foreign
  investment company," or PFIC, for U.S. federal income tax purposes. For the
  years 1987 through 2001, Coastal Caribbean's passive income and assets that
  produce passive income exceeded those levels and for those years Coastal Caribbean
  constituted a PFIC. If Coastal Caribbean is a PFIC for any taxable year, then
  the Companys U.S. shareholders potentially would be subject to adverse
  U.S. tax consequences of holding and disposing of shares of our common stock
  for that year and for future tax years. Any gain from the sale of, and certain
  distributions with respect to, shares of the Companys common stock, would
  cause a U.S. holder to become liable for U.S. federal income tax under section
  1291 of the Internal Revenue Code (the interest charge regime). The tax is computed
  by allocating the amount of the gain on the sale or the amount of the distribution,
  as the case may be, to each day in the U.S. shareholders holding period.
  To the extent that the amount is allocated to a year, other than the year of
  the disposition or distribution, in which the corporation was treated as a PFIC
  with respect to the U.S. holder, the income will be taxed as ordinary income
  at the highest rate in effect for that year, plus an interest charge.

For further information, refer to the consolidated
  financial statements and footnotes thereto included in the Companys Annual
  Report on Form 10-K and 10-K/A for the year ended December 31, 2002.

ITEM 6 - Exhibits and Reports on Form 8-K

|(a) |  | Exhibits |                                                                                                                           
|--- |  | -------- | --------------------------------------------------------------------------------------------------------------------------
|    |  | 31.1     | Certification of the President and Chief Executive
      Officer pursuant toSection 302 of the Sarbanes-Oxley Act of 2002.
|    |  |         
|    |  | 31.2     | Certification of the Acting Chief Financial Officer
      pursuant to Section302 of the Sarbanes-Oxley Act of 2002.       
|    |  |         
|    |  | 32.1     | Certification of the President and Chief Executive Officer pursuant
      toSection 906 of the Sarbanes-Oxley Act of 2002.



16



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| |  | 32.2 | Certification of the Acting Chief Financial Officer pursuant
      to Section 906 of the Sarbanes-Oxley Act of 2002.
| |  | ---- | --------------------------------------------------------------------------------------------------------------------





(b)      Reports on Form 8-K

On June 9, 2003, the Company filed a Current
  Report on Form 8-K to report that On May 28, 2003, Ernst & Young LLP (Ernst
  & Young) resigned as Coastal Caribbean Oils & Minerals, Ltd.s
  independent auditors.

| | On June 27, 2003, the Company filed a Current Report on Form
      8-K to report that:
| | --------------------------------------------------------------------------------------
| |                                                                                       
| | (1)                                                                                   
| |                                                                                       
| | (2)                                                                                   
| |                                                                                       
| | (3)                                                                                   



17



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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.
|---------------------- |  | ---------------------------------------------
|                       |  |                                              
|                       |  |                                              
|                       |  |                                              
|Date: August 13 , 2003 |  | By /s/ Phillip W. Ware                       
|                       |  | Phillip W. Ware                              
|                       |  | Chief Executive
      Officer,               
|                       |  | President and Treasurer                      
|                       |  |                                              
|                       |  |                                              
|                       |  | By /s/ Kenneth M. Cornell                    
|                       |  | Kenneth M. Cornell                           
|                       |  | Acting Chief Financial
      Officer         
|                       |  | and Principal Financial
      Officer        



18

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