**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

**June      30, 2007**

| **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)                653-2732                                                      |
|------------------------------------------------------------------------------------|
| (Registrant's                telephone number, including area                code) |

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

| Large                accelerated filer  ̈  | Accelerated                filer  ̈ | Non-accelerated                filer T |
|-----------------------------------------------------|-----------------------------------------|----------------------------------------|

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

**FORM      10-Q **

**June 30,      2007**

**Table      of Contents**

**PART      I - FINANCIAL INFORMATION**

| ITEM                1 | Financial                Statements                                                                                                                                                                                                 | Page   |
|-----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                  |                                                                                                                                                                                                                                |   |
|                  | Consolidated                balance sheets at June 30, 2007 and December 31,                2006                                                                                                                          | 3      |
|                  |                                                                                                                                                                                                                                |   |
|                  | Consolidated                statements of operations for the three and six month periods ended                June 30, 2007 and 2006 and for the period from January 31, 1953                (inception) to June 30, 2007 | 4      |
|                  |                                                                                                                                                                                                                                |   |
|                  | Consolidated                statements of cash flows for the six month periods ended June 30,                2007 and 2006 and for the period from January 31, 1953 (inception) to                June 30, 2007      | 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                                                                                                                                                                                              | 12     |
|                  |                                                                                                                                                                                                                                |   |
|                  | **PART                II - OTHER INFORMATION**                                                                                                                                                                                      |   |
|                  |                                                                                                                                                                                                                                |   |
| ITEM                5 | Other                Information                                                                                                                                                                                                    | 13     |
|                  |                                                                                                                                                                                                                                |   |
| ITEM                6 | Exhibits                                                                                                                                                                                                                            | 14     |
|                  |                                                                                                                                                                                                                                |   |
|                  | Signatures                                                                                                                                                                                                                          | 15     |

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

**FORM      10-Q**

**PART      I - FINANCIAL INFORMATION**

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

**CONSOLIDATED      BALANCE SHEETS**

|                                                            |   | June                  30, 2007 |        | December                  31, 2006 |   |
|-----------------------------------------------------------------|--------|--------------------------------|-------------|------------------------------------|--------|
| **Assets**                                                      |   | (Unaudited)                    |        | (Note)                             |   |
| Current                assets:                                  |   |                           |        |                               |   |
| Cash                and cash equivalents                        |   | $                              | 49,613      |                               | $      | 342,541 |   |
| Prepaid                expenses and other                       |   |                           | 9,752       |                               |   | 29,255 |   |
| Total                current assets                             |   |                           | 59,365      |                               |   | 371,796 |   |
|                                                            |   |                           |        |                               |   |   |   |
| Certificates                of deposit                          |   |                           | 129,909     |                               |   | 126,313 |   |
| Petroleum                leases                                 |   |                           | 2,395,069   |                               |   | 2,199,809 |   |
| Equipment,                net                                   |   |                           | 10,195      |                               |   | 11,455 |   |
|                                                            |   |                           |        |                               |   |   |   |
| Total                assets                                     |   | $                              | 2,594,538   |                               | $      | 2,709,373 |   |
|                                                            |   |                           |        |                               |   |   |   |
| **Liabilities                and Shareholders’ Equity**   |   |                           |        |                               |   |   |   |
|                                                            |   |                           |        |                               |   |   |   |
| Current                liabilities:                             |   |                           |        |                               |   |   |   |
| Accounts                payable and accrued liabilities         |   | $                              | 172,704     |                               | $      | 5,322 |   |
| Note                payable                                     |   |                           | 126,000     |                               |   | - |   |
| Total                current liabilities                        |   |                           | 298,704     |                               |   | 5,322 |   |
|                                                            |   |                           |        |                               |   |   |   |
| Shareholders'                equity                             |   |                           |        |                               |   |   |   |
| Common                stock, par value $.12 per share:          |   |                           |        |                               |   |   |   |
| Authorized                - 250,000,000 shares                  |   |                           |        |                               |   |   |   |
| Outstanding                - 46,211,604 shares                  |   |                           | 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 |   |                           | (35,387,369 | )                                  |   | (34,979,152 | ) |
| Total                shareholders’ equity                 |   |                           | 2,295,834   |                               |   | 2,704,051 |   |
| Total                liabilities and shareholders’ equity |   | $                              | 2,594,538   |                               | $      | 2,709,373 |   |

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

**FORM      10-Q**

**PART      I - FINANCIAL INFORMATION**

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

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

|                                                                                                  |   | Three                months ended June 30, |       | Six                months ended June 30, |   | For                the period                from Jan.                31, 1953 (inception)                to                June 30, |   |
|-------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|------------|------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                  |   | 2007                                       |       | 2006                                     |   | 2007                                                                                                                                 |   | 2006 |   | 2007 |   |
|                                                                                                  |   |                                       |       |                                     |   |                                                                                                                                 |   |   |   |   |   |
| **Interest                and other income**                                                          |   | $                                          | 3,613      |                                     | $      | 11,220                                                                                                                               |   | $ | 4,807 |   | $ | 26,463 |   | $ | 3,974,451 |   |
| **Gain                on settlement**                                                                 |   |                                       | -          |                                     |   | -                                                                                                                                    |   |   | - |   |   | - |   |   | 8,124,016 |   |
|                                                                                                  |   |                                       | 3,613      |                                     |   | 11,220                                                                                                                               |   |   | 4,807 |   |   | 26,463 |   |   | 12,098,467 |   |
| **Expenses:**                                                                                         |   |                                       |       |                                     |   |                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |
| Legal                fees and costs                                                                   |   |                                       | 31,785     |                                     |   | 65,576                                                                                                                               |   |   | 84,476 |   |   | 111,659 |   |   | 17,343,712 |   |
| Administrative                expenses                                                                |   |                                       | 92,715     |                                     |   | 80,293                                                                                                                               |   |   | 159,628 |   |   | 196,667 |   |   | 10,410,911 |   |
| Salaries                                                                                              |   |                                       | 33,850     |                                     |   | 33,850                                                                                                                               |   |   | 72,900 |   |   | 65,100 |   |   | 4,083,931 |   |
| Shareholder                communications                                                             |   |                                       | 648        |                                     |   | 1,601                                                                                                                                |   |   | 10,228 |   |   | 4,852 |   |   | 4,103,738 |   |
| Goodwill                impairment                                                                    |   |                                       | -          |                                     |   | -                                                                                                                                    |   |   | - |   |   | - |   |   | 801,823 |   |
| Write                off of unproved properties                                                       |   |                                       | 85,792     |                                     |   | -                                                                                                                                    |   |   | 85,792 |   |   | - |   |   | 6,664,721 |   |
| Exploration                costs                                                                      |   |                                       | -          |                                     |   | -                                                                                                                                    |   |   | - |   |   | - |   |   | 247,465 |   |
| Lawsuit                judgments                                                                      |   |                                       | -          |                                     |   | -                                                                                                                                    |   |   | - |   |   | - |   |   | 1,941,916 |   |
| Minority                interests                                                                     |   |                                       | -          |                                     |   | -                                                                                                                                    |   |   | - |   |   | - |   |   | (632,974 | ) |
| Other                                                                                                 |   |                                       | -          |                                     |   | -                                                                                                                                    |   |   | - |   |   | - |   |   | 364,865 |   |
| Contractual                services                                                                   |   |                                       | -          |                                     |   | -                                                                                                                                    |   |   | - |   |   | - |   |   | 2,155,728 |   |
|                                                                                                  |   |                                       | 244,790    |                                     |   | 181,320                                                                                                                              |   |   | 413,024 |   |   | 378,278 |   |   | 47,485,836 |   |
|                                                                                                  |   |                                       |       |                                     |   |                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |
| **Net                loss**                                                                           |   | $                                          | (241,177   | )                                        | $      | (170,100                                                                                                                             | )      | $ | (408,217 | ) | $ | (351,815 | ) |   |   |   |
|                                                                                                  |   |                                       |       |                                     |   |                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |
| Deficit                  accumulated during the development stage                                |   |                                       |       |                                     |   |                                                                                                                                 |   |   |   |   |   |   |   | $ | (35,387,369 | ) |
|                                                                                                  |   |                                       |       |                                     |   |                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |
| Weighted                  average number of Shares                  outstanding (basic & diluted) |   |                                       | 46,221,604 |                                     |   | 46,221,604                                                                                                                           |   |   | 46,211,604 |   |   | 46,221,604 |   |   |   |   |
|                                                                                                  |   |                                       |       |                                     |   |                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |
| Net                loss per share (basic & diluted)                                               |   | $                                          | (.005      | )                                        | $      | (.004                                                                                                                                | )      | $ | (.009 | ) | $ | (.008 | ) |   |   |   |

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

**FORM      10-Q**

**PART      I - FINANCIAL INFORMATION**

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

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

|                                                                                                                                                              |   | Six                months ended June 30, |     | For                the period                from Jan.                31, 1953 (inception)                to |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|----------|--------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                              |   | 2007                                     |     | 2006                                                                                                         |   | June                30, 2007 |   |
|                                                                                                                                                              |   |                                     |     |                                                                                                         |   |   |   |
| **Operating                activities:**                                                                                                                          |   |                                     |     |                                                                                                         |   |   |   |
| Net                loss                                                                                                                                           |   | $                                        | (408,217 | )                                                                                                            | $      | (351,815 | ) | $ | (35,387,369 | ) |
| Adjustments                  to reconcile net loss to net cash used in operating                  activites:                                                      |   |                                     |     |                                                                                                         |   |   |   |   |   |   |
| Gain                on settlement                                                                                                                                 |   |                                     | -        |                                                                                                         |   | - |   |   | (8,124,016 | ) |
| Goodwill                impairment                                                                                                                                |   |                                     | -        |                                                                                                         |   | - |   |   | 801,823 |   |
| Minority                interest                                                                                                                                  |   |                                     | -        |                                                                                                         |   | - |   |   | (632,974 | ) |
| Depreciation                                                                                                                                                      |   |                                     | 1,260    |                                                                                                         |   | - |   |   | 2,778 |   |
| Write                off of unproved properties                                                                                                                   |   |                                     | 85,792   |                                                                                                         |   | - |   |   | 6,723,968 |   |
| 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                                                                                                                         |   |                                     | 19,503   |                                                                                                         |   | 188,105 |   |   | (9,753 | ) |
| Accounts                payable and accrued liabilities                                                                                                           |   |                                     | 167,382  |                                                                                                         |   | 67,285 |   |   | 172,706 |   |
| Income                taxes payable                                                                                                                               |   |                                     | -        |                                                                                                         |   | (35,000 | ) |   | - |   |
| Net                cash used in operating activities                                                                                                              |   |                                     | (134,280 | )                                                                                                            |   | (131,425 | ) |   | (36,006,164 | ) |
|                                                                                                                                                              |   |                                     |     |                                                                                                         |   |   |   |   |   |   |
| **Investing                activities:**                                                                                                                          |   |                                     |     |                                                                                                         |   |   |   |   |   |   |
| Additions                  to oil, gas, and mineral properties net of assets acquired for                  common                  stock and reimbursements  |   |                                     | (195,260 | )                                                                                                            |   | (240,385 | ) |   | (6,135,251 | ) |
| Well                drilling costs                                                                                                                                |   |                                     | (85,792  | )                                                                                                            |   | (657,883 | ) |   | (1,104,227 | ) |
| Net                proceeds from settlement                                                                                                                       |   |                                     | -        |                                                                                                         |   | - |   |   | 8,124,016 |   |
| Proceeds                from relinquishment of surface rights                                                                                                     |   |                                     | -        |                                                                                                         |   | - |   |   | 246,733 |   |
| Purchase                of certificate of deposit                                                                                                                 |   |                                     | (3,596   | )                                                                                                            |   | - |   |   | (129,909 | ) |
| Purchase                of minority interest in CPC                                                                                                               |   |                                     | -        |                                                                                                         |   | - |   |   | (801,823 | ) |
| Purchase                of fixed assets                                                                                                                           |   |                                     | -        |                                                                                                         |   | - |   |   | (74,623 | ) |
| Net                cash provided by (used in) investing activities                                                                                                |   |                                     | (284,648 | )                                                                                                            |   | (898,268 | ) |   | 124,916 |   |
|                                                                                                                                                              |   |                                     |     |                                                                                                         |   |   |   |   |   |   |
| **Financing                activities:**                                                                                                                          |   |                                     |     |                                                                                                         |   | - |   |   |   |   |
| Loan                proceeds                                                                                                                                      |   |                                     | 126,000  |                                                                                                         |   | - |   |   | 126,000 |   |
| Loans                from officers                                                                                                                                |   |                                     | -        |                                                                                                         |   | - |   |   | 111,790 |   |
| Repayments                of loans from officers                                                                                                                  |   |                                     | -        |                                                                                                         |   | - |   |   | (111,790 | ) |
| Sale                of common stock net of expenses                                                                                                               |   |                                     | -        |                                                                                                         |   | - |   |   | 30,380,612 |   |
| Shares                issued upon exercise of options                                                                                                             |   |                                     | -        |                                                                                                         |   | - |   |   | 884,249 |   |
| Sale                of shares by subsidiary                                                                                                                       |   |                                     | -        |                                                                                                         |   | - |   |   | 820,000 |   |
| Sale                of subsidiary shares                                                                                                                          |   |                                     | -        |                                                                                                         |   | - |   |   | 3,720,000 |   |
| Net                cash provided by financing activities                                                                                                          |   |                                     | 126,000  |                                                                                                         |   | - |   |   | 35,930,861 |   |
| Net                (decrease) increase in cash and cash equivalents                                                                                               |   |                                     | (292,928 | )                                                                                                            |   | (1,029,693 | ) |   | 49,613 |   |
| Cash                and cash equivalents at beginning of period                                                                                                   |   |                                     | 342,541  |                                                                                                         |   | 2,250,236 |   |   | - |   |
| Cash                and cash equivalents at end of period                                                                                                         |   | $                                        | 49,613   |                                                                                                         | $      | 1,220,543 |   | $ | 49,613 |   |

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

**FORM        10-Q**

**PART        I - FINANCIAL INFORMATION**

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

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

**FORM          10-Q**

**PART          I - FINANCIAL INFORMATION**

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

**Montana      Leases**

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

**FORM          10-Q**

**PART          I - FINANCIAL INFORMATION**

** **

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

**North      Dakota Leases**

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

**FORM          10-Q**

**PART          I - FINANCIAL INFORMATION**

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

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

**Results      of Operations**

**Forward      Looking Statements**

**Critical      Accounting Policies**

**Liquidity and Capital Resources      **

**Liquidity**

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

**FORM          10-Q**

**PART          I - FINANCIAL INFORMATION**

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

**Results      of Operations**

** **

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

**FORM          10-Q**

**PART          I - FINANCIAL INFORMATION**

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

**Results      of Operations**

** **

**Results of Operations**

**Six      months ended June 30, 2007 vs. June 30, 2006**

**Three      months ended June 30, 2007 vs. June 30, 2006**

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

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

**FORM          10-Q**

**PART          I - FINANCIAL INFORMATION**

**ITEM      4  C**
**ontrols      and Procedures**

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

**FORM      10-Q**

**PART      II - OTHER INFORMATION**

**June      30, 2007**

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

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

**FORM      10-Q**

**PART      II - OTHER INFORMATION**

**June      30, 2007**

**ITEM      6**
**Exhibits      **

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

**FORM      10-Q**

**June      30, 2007**

**SIGNATURES**

|                              |                                                                                                       |                                  |
|-----------------------------------|------------------------------------------------------------------------------------------------------------|---------------------------------------|
|                              | **COASTAL                CARIBBEAN OILS & MINERALS, LTD.**Registrant                                   |
|                         |                                                                                                  |                             |
| Date:              August 9, 2007 | By:                                                                                              | /s/ Phillip              W. Ware |
|                              | Phillip              W. WareChief                Executive Officer, President                and Treasurer |
|                              |                                                                                                       |

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