SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report: (Date of earliest event reported) July 22, 2005


                                THE BEARD COMPANY
             (Exact name of registrant as specified in its charter)


          Oklahoma                     001-12396                73-0970298
(State or other jurisdiction          (Commission             (IRS Employer
     of incorporation)                File Number)          Identification No.)


                                Enterprise Plaza
                               5600 N. May Avenue
                                    Suite 320
                          Oklahoma City, Oklahoma 73112
               (Address of principal executive offices) (Zip Code)

                                 (405) 842-2333
              (Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act
    (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17
    CFR 240.14a-12(b))

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
    Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
    Act (17 CFR 240.13e-4(c))

<PAGE>

Information to be Included in the Report

Item 3.02  Unregistered Sales of Equity Securities

     On May 13, 2004, The Beard  Company,  (the  "Company")  commenced a private
debt  placement of its 10%  Participating  Notes due November 30, 2006 (the "10%
Notes") and Warrants to purchase  240,000 shares of the Company's  common stock,
targeted to raise a total of  $1,200,000.  The Company  offered the 10% Notes to
provide the working  capital to retire the Company's  remaining  short-term debt
and to fund operations.

     On June 8, 2004, the Company  announced that it had completed the placement
of all of the 10%  Notes.  The  Placement  Agent  received  a 6%  commission  on
$500,000 of the 10% Notes sold by it. No commission  was paid on the $700,000 of
10% Notes sold by the Company.

     On February 10, 2005,  the Company  prepaid 40% of the principal  amount of
the  $700,000  of  10%  Notes  sold  by  it,  leaving  $420,000  of  such  notes
outstanding.  A $500,000  10% Note was not prepaid at the request of the holder.
However, such note has been paid down to a current principal balance of $384,102
in the ordinary course of business.

     On June 29, 2005,  the Company  commenced a private debt placement of up to
$2,004,102 of its 12%  Convertible  Subordinated  Notes due August 31, 2009 (the
"2009 Notes"). As part of the offering,  holders of the remaining 10% Notes were
given the right to exchange such notes for the 2009 Notes.  The Company  offered
the  2009  Notes to  provide  the  working  capital  to  sustain  the  Company's
activities until the operations under development in the Coal and China Segments
are generating positive cash flow.

     On July 22,  2005,  the  Company  accepted  the  subscription  for and sold
$50,000  aggregate  principal  amount of the 2009  Notes to a private  investor.
$30,000 of 10% Notes were also exchanged as of such date by a private  investor,
and on July 25, 2005 two private investors  exchanged an additional $15,000 each
of 10% Notes.  As a result of these  transactions,  a total of  $110,000 of 2009
Notes were issued.  The sale and the exchange of the 2009 Notes were all made by
the Company.  The Placement Agent will receive a 1% commission on the $50,000 of
2009 Notes sold by the Company.  No commission  will be paid in connection  with
the exchanges.

     Transaction with  Affiliates.  On May 21, 2004, the William M. Beard and Lu
Beard 1988 Charitable  Unitrust (the "Unitrust")  purchased  $500,000 of the 10%
Notes in a transaction  fully described in "Related Party  Transactions"  in the
Company's  Proxy Statement in connection with its Annual Meeting of Stockholders
held on June 9, 2005.  The funds for the purchase  were borrowed by the Unitrust
from an unrelated third party which, as a result of the transaction, became a 5%
shareholder  (and thus an affiliate) of the Company by virtue of the warrants to
purchase  200,000 shares of the Company's common stock it received in connection
with the transaction. As part of the transaction,  the third party also received
a deed of trust lien  covering  the  Company's  working and  overriding  royalty
interests  in the McElmo  Dome Field (the  "McElmo  Dome  Collateral")  that was
superior to the Unitrust's $2,785,000 deed of trust lien.

     On July 22, 2005, the Company assumed the $388,818 remaining balance of the
note owed by the  Unitrust to the third  party  affiliate  in  exchange  for the
Unitrust's release of the Company's  obligations under our 10% Note that it held
(having a remaining  balance of $384,102)  plus $4,716 in cash.  The third party
then  subscribed  for  $390,000  aggregate  principal  amount  of the Notes as a
renewal and  extension of the $388,818  note  assumed  from the  Unitrust,  plus
$1,182  cash.  The 2009 Note in the amount of  $390,000  is  attached as Exhibit
99.1.  All other 2009 Notes  have been,  or will be,  issued on the Form of 2009
Note attached as Exhibit 99.2.  The third party  retained its deed of trust lien
in the McElmo Dome  Collateral  with  respect to  $388,818 of the Notes,  all in
accordance with the Note Assumption Agreement and Release, the Subordination and
Nominee Agreement and two Restated and Amended Deeds of Trust attached hereto as
Exhibits 99.3,  99.4 and 99.5,  respectively.  This  transaction was effectuated
through the  Placement  Agent,  which will receive a 2% commission in connection
therewith.

     As a result of the above  described  transactions,  a total of  $500,000 of
2009 Notes were issued.  Based upon their current  conversion price of $2.25 per
share (the  "Conversion  Price"),  the 2009 Notes are  convertible  into 222,222
shares of the Company's common stock.

     The 2009 Notes were issued  relying upon the  exemption  from  registration
provided by Section 4(2) of the Securities Act for  "transactions  by the issuer
not  involving a public  offering,"  in  transactions  that fell within the safe
harbor  provided by Rule 506 of Regulation D of the  Securities  Act of 1933, as
amended  (the  "4(2)  Exemption").  When the 2009  Notes  are  converted  to the
Company's  common stock the  issuance of the common stock will be exempted  from
registration  by  Section  3(a)(9)  of the  Securities  Act  which  provides  an
exemption  for  "securities  exchanged by the issuer with its existing  security
holders  exclusively where no commission or other  remuneration is paid or given
directly or indirectly for soliciting such exchange."

Item 9.01 Financial Statements and Exhibits.

     (c) Exhibits.

Exhibit No.             Description
-----------             -----------

99.1          Beard Boatright 12% Convertible Subordinated Note
99.2          Form of Convertible Subordinated Promissory Note
99.3          Note Assumption Agreement and Release
99.4          Subordination and Nominee Agreement
99.5          Form of Restated and Amended Deed of Trust


                                   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 hereunto duly authorized.

                                           THE BEARD COMPANY

                                            /s/ Herb Mee, Jr.
                                           -------------------------------
                                           Herb Mee, Jr., President
July 26, 2005
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                               INDEX TO EXHIBITS

Exhibit
  No.       Description                         Method of Filing
  ---       -----------                         ----------------

99.1   Beard Boatright 12% Convertible         Filed herewith electronically
       Subordinated Note

99.2   Form of Convertible Subordinated        Filed herewith electronically
       Promissory Note

99.3   Note Assumption Agreement and Release   Filed herewith electronically

99.4   Subordination and Nominee Agreement     Filed herewith electronically

99.5   Form of Restated and Amended Deed of    Filed herewith electronically
       Trust