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 15, 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))

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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 15,  2005,  the Company  accepted  the  subscriptions  for and sold
$195,000  aggregate  principal  amount  of  the  2009  Notes  to  three  private
investors.  All of such amount was sold by the Company. In addition,  $90,000 of
10% Notes were  exchanged  as of such date,  resulting in a total of $285,000 of
2009 Notes being issued.  Based upon the current  conversion  price of $2.25 per
share (the  "Conversion  Price"),  the 2009 Notes are  convertible  into 126,667
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 7.01  Regulation FD Disclosure.

     The Company has received and accepted a proposal from a lending institution
indicating  that it will provide the Company with  $9,000,000 of lease financing
for the Pinnacle  Project  assuming that the USDA guarantees at least 70% of the
borrowed amount. The proposal is only a quotation and not a commitment to extend
credit.  Credit  will not be  extended  until  credit has been  approved  by the
lending  institution and the Company can provide no assurance that any financing
will be provided from this lending institution.

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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 hereunto duly authorized.

                                        THE BEARD COMPANY

                                         /s/ Herb Mee, Jr.
                                        -------------------------------
                                        Herb Mee, Jr., President

July 19, 2005