UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

  (Mark One)
[x]   QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
                                  ACT OF 1934.
                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2007

                                       OR

[ ]    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 000-32747

                           GULF COAST OIL & GAS, INC.
                 (NAME OF SMALL BUSINESS ISSUER IN ITS CHARTER)

           DELAWARE                                              98-0128688
(STATE OR OTHER JURISDICTION OF                               (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION)                               IDENTIFICATION NO.)

                           5847 SAN FELIPE, SUITE 1700
                              HOUSTON, TEXAS 77057
               (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)

                                 (713) 821-1731
                (ISSUER'S TELEPHONE NUMBER, INCLUDING AREA CODE)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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 [x]   No [ ]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).      Yes [ ]      No [x]

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                     PROCEEDINGS DURING THE PAST FIVE YEARS

Check whether the issuer has filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court. Yes [ ]    No [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: As of May 15, 2007, 182,046,888
shares of common stock.

Transitional Small Business Disclosure Format (check one):  Yes [ ]   No [x]

SEC2334(9-05)     PERSONS WHO ARE TO RESPOND TO THE COLLECTION OF INFORMATION
                  CONTAINED IN THIS FORM ARE NOT REQUIRED TO RESPOND UNLESS THE
                  FORM DISPLAYS A CURRENT VALID OMB CONTROL NUMBER.

<PAGE>


                    GULF COAST OIL & GAS, INC. AND SUBSIDIARY
                                   FORM 10-QSB
                      FOR THE QUARTER ENDED MARCH 31, 2007

                                      INDEX


                                                                            PAGE
     PART 1--FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS

           BALANCE SHEETS--MARCH 31, 2007 AND DECEMBER 31, 2006                3

           STATEMENTS OF OPERATIONS - QUARTERS ENDING MARCH 31, 2007
           AND MARCH 31, 2006, AND PERIOD FROM AUGUST 4, 2003 (INCEPTION) TO
           MARCH 31, 2007                                                      4

           STATEMENT OF CASH FLOWS--QUARTERS ENDING MARCH 31, 2007
           AND MARCH 31, 2006 AND PERIOD FROM AUGUST 4, 2003 (INCEPTION) TO
           MARCH 31, 2007                                                      5

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--MARCH 31, 2007          6

ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
           CONDITION AND RESULTS OF OPERATIONS                                14

ITEM 3.    CONTROLS AND PROCEDURES                                            15

                           PART II--OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS                                                  16

ITEM 2.    UNREGISTERED SALES OF SECURITIES AND USE OF PROCEEDS               16

ITEM 3.    DEFAULTS UPON SENIOR SECURITIES                                    16

ITEM 4.    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                16

ITEM 5.    OTHER INFORMATION                                                  16

ITEM 6.    EXHIBITS AND REPORTS ON FORM 8-K                                   16




                                      -2-
<PAGE>


                          PART I--FINANCIAL INFORMATION
                          ITEM 1. FINANCIAL STATEMENTS

<TABLE>
<CAPTION>

                    GULF COAST OIL & GAS, INC. AND SUBSIDIARY
            (FORMERLY OTISH MOUNTAIN DIAMOND COMPANY AND SUBSIDIARY)
                         (An Exploration Stage Company)

                                 BALANCE SHEETS
                      MARCH 31, 2007 AND DECEMBER 31, 2006

                                                             March 31,    December 31,
ASSETS                                                         2007          2006
                                                           -----------    -----------
Current Assets
<S>                                                        <C>            <C>
      Cash in banks                                        $   599,117    $   573,438
      Accounts receivable -other                                  --             --
      Deferred financing                                       176,460        176,460
                                                           -----------    -----------
           Total Current Assets                                775,577        749,898
Fixed Assets
      Office equipment                                           7,537          7,537
      Oil equipment                                             49,897           --
                                                           -----------    -----------
                                                                57,434          7,537
      Less accumulated depreciation                             (6,276)        (4,254)
                                                           -----------    -----------
                                                                51,158          3,283
Other Assets
      Oil reserves less accumulated
           depletion of $18,323 and $0                         714,603           --
      Website costs less accumulated
           amortization of $1,184 and $1,150                       416            450
      Deferred financing - Non-current                         155,166        199,281
      Deposit on interest in unproved oil and gas leases       130,000        912,822
                                                           -----------    -----------
                                                             1,000,185      1,112,553
                                                           -----------    -----------
           Total Assets                                    $ 1,826,920    $ 1,865,734
                                                           ===========    ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
      Accounts payable                                     $    72,613    $    76,812
      Due to shareholder                                        56,119         47,119
      Accrued interest                                         216,052        166,912
      Accrued expenses                                          35,631         35,631
                                                           -----------    -----------
           Total Current Liabilities                           380,415        326,474
Long-Term Debt
      Notes payable                                          1,795,551      1,965,551
Derivative Liability Arising From Warrants                       8,333          8,333
Stockholders' Equity
      Series A Preferred stock, 1,000,000 shares
           authorized, 0 shares outstanding,
           par value $.001 per share                              --             --
      Common stock, 600,000,000 shares authorized,
           157,880,221 and 134,878,634 shares
           outstanding at respective period ends,
           par value $.001 per share                           157,880        134,879
      Additional contributed capital                         6,308,000      6,157,601
      Deficit accumulated during exploration stage          (7,146,580)    (7,050,425)
      Accumulated other comprehensive income                   273,419        273,419
      Stock subscription advances                               49,902         49,902
                                                           -----------    -----------
                                                              (357,379)      (434,624)
                                                           -----------    -----------
           Total Liabilities and Stockholders' Equity      $ 1,826,920    $ 1,865,734
                                                           ===========    ===========

                 See accompanying notes to financial statements.
</TABLE>



                                      -3-
<PAGE>


<TABLE>
<CAPTION>


                    GULF COAST OIL & GAS, INC. AND SUBSIDIARY
            (Formerly OTISH MOUNTAIN DIAMOND COMPANY AND SUBSIDIARY)
                         (An Exploration Stage Company)

                             STATEMENT OF OPERATIONS
          FOR THE QUARTER ENDING MARCH 31, 2007 AND THE QUARTER ENDING
           MARCH 31, 2006, AND FOR THE PERIOD BEGINNING AUGUST 4, 2003
                       (INCEPTION) THROUGH MARCH 31, 2007

                                                 MARCH 31,       MARCH 31,          SINCE
                                                   2007            2006           INCEPTION
                                              -------------    -------------    -------------

Revenues
<S>                                           <C>              <C>              <C>
      Sales                                   $      94,197    $        --      $      94,197
      Interest income                                 4,199            3,987           33,264
                                              -------------    -------------    -------------
                                                     98,396            3,987          127,461

Cost of sales
      Exploration costs                              20,105             --            179,730
                                              -------------    -------------    -------------
           Gross Profit                              78,291            3,987          (52,269)

Expenses
      Administrative                                174,446          120,632        6,951,405
                                              -------------    -------------    -------------
                                                    (96,155)        (116,645)      (7,003,674)

Other income and expenses
      Loss on sale of fixed assets                     --               --               (684)
      Gain on settlement of debt                       --               --             67,693
      Foreign exchange (loss) gain                     --               --            (16,689)
                                              -------------    -------------    -------------
                                                       --               --             50,320
                                              -------------    -------------    -------------
Loss from continuing operations                     (96,155)        (116,645)      (6,953,354)
                                              -------------    -------------    -------------

Discontinued operations
      Mineral rights abandoned                         --               --           (193,226)
                                              -------------    -------------    -------------

Net Loss                                            (96,155)        (116,645)      (7,146,580)
Other Comprehensive Income
      Decrease in fair value of derivatives            --           (732,609)         273,419
                                              -------------    -------------    -------------
Net Comprehensive Income  / (Loss)            $     (96,155)   $    (849,254)   $  (6,873,161)
                                              =============    =============    =============

Net loss per share                            $       (0.00)   $       (0.00)
Other comprehensive income per share          $        --               --
Average shares outstanding                      143,100,857      119,536,793

                 See accompanying notes to financial statements.
</TABLE>


                                      -4-
<PAGE>

<TABLE>
<CAPTION>

                    GULF COAST OIL & GAS, INC. AND SUBSIDIARY
            (Formerly OTISH MOUNTAIN DIAMOND COMPANY AND SUBSIDIARY)
                         (An Exploration Stage Company)

                             STATEMENT OF CASH FLOWS
                  FOR THE QUARTER ENDING MARCH 31, 2007 AND THE
                   QUARTER ENDING MARCH 31, 2006, AND FOR THE
       PERIOD BEGINNING AUGUST 4, 2003 (INCEPTION) THROUGH MARCH 31, 2007

                                                                MARCH 31,       MARCH 31,       SINCE
                                                                  2007            2006        INCEPTION
                                                               -----------    -----------    -----------
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                            <C>            <C>            <C>
      Net loss for the period                                  $   (96,155)   $  (116,645)   $(7,146,580)
      Adjustments to reconcile net earnings to net
        cash provided (used) by operating activities:
          Depreciation                                               2,022           --           17,333
          Amortization                                              62,472         39,561        106,877
          Services paid by stock                                     1,700         13,346      5,447,795
          Mineral rights abandoned                                    --             --          195,226
        Changes in Current assets and liabilities:
          (Increase) Decrease in Accounts receivable - other          --              731           --
          (Increase) in Deferred financing                            --         (135,000)      (135,000)
          (Decrease) Increase in Accounts payable                   (2,500)        (3,859)        74,312
          Increase in Due to shareholder                             9,000           --           32,983
          Increase in Accrued interest                              49,140        166,912        216,052
          (Decrease) Increase in Accrued expenses                     --             --           58,767
                                                               -----------    -----------    -----------
          NET CASH (USED) BY
                OPERATING ACTIVITIES                                25,679       (241,427)    (1,132,235)
CASH FLOWS FROM INVESTING ACTIVITIES
      Purchase of Mineral rights                                      --             --          (91,534)
      Purchase of Interest in unproved oil and gas
         leases                                                       --             --         (912,822)
      Purchase of Website costs                                       --             --          (27,519)
      Purchase of Fixed assets                                        --             --          (24,267)
                                                               -----------    -----------    -----------
          NET CASH (USED) BY
                INVESTING ACTIVITIES                                  --             --       (1,056,142)
CASH FLOWS FROM FINANCING ACTIVITIES
      Redemption of Preferred stock                                   --             --             --
      Proceeds from Notes payable                                     --             --        2,000,000
      Sale of Common stock                                            --        1,000,000        737,400
      Stock subscription advances                                     --             --           49,902
                                                               -----------    -----------    -----------
          NET CASH PROVIDED BY
                FINANCING ACTIVITIES                                  --        1,000,000      2,787,302
                                                               -----------    -----------    -----------

NET INCREASE IN CASH                                                25,679        758,573        598,925
CASH FROM OTISH DIAMOND MERGER                                        --             --              192
CASH AT BEGINNING OF PERIOD                                        573,438         34,424           --
                                                               -----------    -----------    -----------
CASH AT END OF PERIOD                                          $   599,117    $   792,997    $   599,117
                                                               ===========    ===========    ===========

                 See accompanying notes to financial statements.
</TABLE>


                                      -5-
<PAGE>



                    GULF COAST OIL & GAS, INC. AND SUBSIDIARY
                         (An Exploration Stage Company)


                          NOTES TO FINANCIAL STATEMENTS

                                 March 31, 2007


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

HISTORY

Otish Mountain Diamond Company (formerly First Cypress, Inc.), a Nevada
corporation, was organized on September 14, 1999. From inception to September
30, 2003, the Company had not generated any revenues and was considered a
development stage enterprise, as defined in Financial Accounting Standards Board
No. 7. The Company was in the process of developing an internet computer
software program known as EngineMax. Essentially, software development was
suspended in November 2002 due to cash flow constraints. In October 2002, the
Company acquired certain items constituting the "Money Club Financial" business
concept and business plan. Due to the Company's inability to raise the necessary
equity capital to further the Money Club Financial business concept, no monies
were spent furthering the business concept from the date of acquisition to
September 30, 2003. The Company discontinued its involvement in these operations
in the third quarter of 2003.

On November 30, 2003, the Company successfully acquired 100% of Otish Mountain
Diamond Corp. ("Otish Corp."). The business activities of Otish Corp. became the
business activities of the Company. In connection with the merger the
capitalization of the Company was amended to reflect a 220:1 reverse stock split
and to increase the authorized capital to 600,000,000 shares, consisting of
500,000,000 common shares with a par value of $0.001, and 100,000,000 preferred
shares with a par value of $0.001. Also, 1,000,000 shares of a Serial A
Preferred were issued for services rendered. Finally, the then president of the
Company entered into two agreements with the Company; one, assumed all the known
liabilities of the company, and the second, agreed to convert debt owed the
president of $236,000 into 236,000 shares of Company common stock.

The Company's income statement at the date of merger was as follows:

                  Revenues                  $   -0-
                  Expenses:
                  Exploration costs         $  36,293
                  Administrative            $ 136,284
                  Net Loss                  $ 172,577

Otish Mountain Diamond Corp. was incorporated in the state of Nevada on August
4, 2003. The Company was formerly engaged in the mining and exploration business
and had mineral rights in the Otish Mountain and Superior Craton regions of
Canada.

On November 30, 2003, the Company declared a 1 for 220 reverse stock split. On
July 13, 2005, the Company declared a 3 for 1 forward stock split. All shares
amount referenced in these footnotes represent the share equivalents after
taking into account, to the extent applicable, the effect of the reverse

                                      -6-
<PAGE>


                    GULF COAST OIL & GAS, INC. AND SUBSIDIARY
                         (An Exploration Stage Company)


                          NOTES TO FINANCIAL STATEMENTS

                                 March 31, 2007

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED



stock split and the forward stock split. All share amounts in the financial
statements have also been adjusted retroactively for the reverse and forward
stock split.

In August and November 2003, the Company issued 40,909 shares of its common
stock and paid $77,745 for mineral rights in the Otish Mountain and Superior
Craton regions of Quebec, Canada.

In the first quarter of 2004 the Company issued 60,900,150 shares of common
stock for services valued at $5,180,053. Valuation was based on the approximate
trading value of the Company's shares on the date issued.

During the third quarter of 2004 the Company issued 7,902,000 shares of common
stock to liquidate $263,400 of advances.

On January 13, 2005, the Company changed its name to Gulf Coast Oil & Gas, Inc.

On April 15, 2005, the Company settled an accounts payable debt of $232,120 for
696,360 shares of common stock.

On May 2, 2005, the Company received $100,000 for 1,665,000 shares of common
stock.

On May 26, 2005, the Company settled a current period debt of $5,000 for 300,000
of common stock.

On June 17, 2005, the Company received $100,000 for 1,200,000 shares of common
stock.

On July 17, 2005, the Company received $50,000 for 625,000 shares of common
stock.

On August 15, 2005, the Company issued 300,000 shares of common stock for
consulting services valued at $24,000.

On September 26, 2005, the Company received $50,000 for 625,000 shares of common
stock.

On November 14, 2006, the Company issued 1,500,000 shares of common stock for
consulting services valued at $24,000.

On December 31, 2006, the Company issued 500,000 shares of common stock for
consulting services valued at $11,000.

On January 1, 2007, the Company issued 1,700,000 shares of common stock for
consulting services valued at $1,700.

                                      -7-
<PAGE>



                    GULF COAST OIL & GAS, INC. AND SUBSIDIARY
                         (An Exploration Stage Company)


                          NOTES TO FINANCIAL STATEMENTS

                                 March 31, 2007

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED



FINANCIAL STATEMENT PRESENTATION

The Company was a shell at the time of the acquisition having only $192 in
assets; the acquisition was treated as a reverse merger whereby the acquired
company is treated as the acquiring company for accounting purposes.


AN EXPLORATION STAGE COMPANY
The Company is an Exploration Stage Company since it is engaged in the search
for mineral deposits, which are not in the development or productions stage. As
an exploration stage company the Company will present, Since Inception, results
on its statements of operations, stockholders' equity and cash flows.


CASH AND CASH EQUIVALENTS
For purposes of the statement of cash flows, the Company considers all
short-term debt securities purchased with a maturity of three months or less to
be cash equivalents. There was no cash paid during the periods for interest or
taxes.


PROPERTY AND EQUIPMENT
Property and equipment are carried at cost. Maintenance, repairs and renewals
are expensed as incurred. Depreciation of property and equipment is provided for
over their estimated useful lives, which range from three to five years, using
the straight-lined method.


WEBSITE DEVELOPMENT COSTS
The Company has expended $1,500 in Website Development Costs, for internal use
software. These costs are being amortized over a three year estimated life.


MINERAL RIGHTS
The Company uses the "full costs method" of accounting for its mineral reserves.
Under this method of accounting, properties are divided into cost centers. The
Company presently has two cost centers. All acquisition, exploration, and
development costs for properties within each cost center are capitalized when
incurred. The Company intends to deplete these costs equally over the estimated
units to be recovered from the properties. These costs were written off at
December 31, 2004 as part of the cost of mineral rights abandoned.

DEPOSIT ON INTEREST IN UNPROVED OIL AND GAS LEASES

On June 8, 2005, the Company paid $100,000 to acquire, subject to lease
availability, a 75% working interest in oil and gas leases in Louisiana. Under
the terms of the agreement the Company will pay 100% of the costs of
acquisition, exploration and development of the leases, the lease are subject to
overriding royalties, and has one year to submit the remaining portion of the
total costs. In the event the leases are unavailable, the funds advanced, less
expense incurred will be returned to the Company.


                                      -8-
<PAGE>


                    GULF COAST OIL & GAS, INC. AND SUBSIDIARY
                         (An Exploration Stage Company)


                          NOTES TO FINANCIAL STATEMENTS

                                 March 31, 2007

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED



On August, 2006, the Company paid $30,000 to renew the lease in Louisiana for
two additional years.



On May 9, 2006, the Company paid a deposit of $262,500 on oil and gas property
(the Weil 8-C) in Corpus Christi Texas. Under the agreement, the Company
acquired an undivided 28% working interest and a 21% net revenue interest in the
Weil 8-C well for a 46.66% billing interest.



On August 1, 2006, the Company paid $104,533 to hookup the 8-C to bring the well
production ready. The facility had not been placed into service at December 31,
2006. When placed into service the asset will be moved from investments to fixed
assets and depreciated on a straight-line basis over a seven year life.



On August 15, 2006, the Company paid a deposit of $108,251 on oil & gas
property, namely, the Weil 3-C, in Corpus Christi Texas. Under the agreement,
the Company acquired an undivided 28% working interest and a 21% net revenue
interest in the Weil 3-C well for a 46.66% billing interest.



On August 31, 2006, The Company paid a deposit of $134,520.78 on oil & gas
property, namely, the Weil 7-C, in Corpus Christi Texas. Under the agreement,
the Company acquired an undivided 28% working interest and a 21% net revenue
interest in the Well 7-C well for a 46.66% billing interest.



On September 19, 2006, the Company paid $135,948.57 to bring the 3-C and 7-C
wells into production as well as convert both the 2-C and 6-C wells on property
to Salt Water disposal wells. It is the intent of the Company to offer Salt
Water disposal services to neighboring companies as a side revenue generating
service. In the first quarter of 2007, all the wells, except the Louisiana
wells, generated revenues. Accordingly $49,897 was transferred to depreciable
assets and $732,926 to Oil reserves.


USE OF ESTIMATES
The preparation of the consolidated financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.



                                      -9-
<PAGE>

                    GULF COAST OIL & GAS, INC. AND SUBSIDIARY
                         (An Exploration Stage Company)


                          NOTES TO FINANCIAL STATEMENTS

                                 March 31, 2007



NOTE 2 - MINERAL RIGHTS



Otish Mountain Diamond Corporation

On August 19, 2003 the Company purchased the mineral rights for 60,933 acres in
the Otish Mountain and Superior Craton regions of Quebec, Canada. The claims
were purchased for $42,506 and 17,045 shares of common stock. The Company is
required to spend a minimum of $135 CDN per mining claim on exploration before
the expiration date of each claim. The Company is required to spend $105 CDN per
claim maintenance/renewal fee to the appropriate governmental authority before
the expiration date of the mining claim. If the Company fails to meet its
obligations under this agreement the seller has the option to make the
expenditures and to reassume title to the mining claims.

On November 4, 2003 the Company purchased the mineral rights for 775 acres in
the Otish Mountain region of Quebec, Canada. The Claims were purchased for
$1,855 and 3409 shares of common stock. The Company is required to pay a 2%
royalty of the net smelter returns and a 2% royalty on the gross overriding
royalty as defined in the agreement. The Company shall also pay to the seller
$5,000 CDN minimum annual advance royalty beginning on November 1, 2004 and each
year thereafter. The Company is also required to keep the property in good
standing for 1 year or the seller shall be entitled to reacquire the claims.

On November 4, 2003 the Company entered into a joint venture agreement for the
mineral rights for 15,361 acres in the Otish Mountain region of Quebec, Canada.
The investment was $33,383 and 20454 shares of common stock. The Company paid
the required claim tax/renewal fees of $12,495 CDN by the due date of November
27, 2003. The Company was required to make a minimum advanced royalty payment of
$15,000 CDN once mining stage began. Royalties were subject to underlying
royalties of 2% of the net smelter returns and 2% of the gross overriding
royalty as defined in the agreement. The Company's total outlay for the joint
venture was not to exceed $375,000 CDN. The Company owned 45% of the joint
venture.

At December 31, 2004 the Company decided to abandon the above mineral rights.
The balance of the rights and the net book value of the website development
costs were expensed. The total amount written off was $195,226.




                                      -10-
<PAGE>



                    GULF COAST OIL & GAS, INC. AND SUBSIDIARY
                         (An Exploration Stage Company)


                          NOTES TO FINANCIAL STATEMENTS

                                 March 31, 2007

NOTE 3 - DEPOSIT ON INTEREST IN UNPROVED OIL AND GAS LEASES



On June 8, 2005, the Company paid $100,000 to acquire, subject to lease
availability, a 75% working interest in oil and gas leases in Louisiana. Under
the terms of the agreement the Company will pay 100% of the costs of
acquisition, exploration and development of the leases, the leases are subject
to overriding royalties, and has one year to submit the remaining portion of the
total costs. In the event the leases are unavailable, the funds advanced, less
expenses incurred will be returned to the Company.



On August, 2006, the Company paid $30,000 to renew the lease in Louisiana for
two additional years.



On May 9, 2006, the Company paid a deposit of $262,500 on oil and gas property
(the Weil 8-C) in Corpus Christi Texas. Under the agreement, the Company
acquired an undivided 28% working interest and a 21% net revenue interest in the
Weil 8-C well for a 46.66% billing interest.



On August 1, 2006, The Company paid $104,533 to hookup the 3-C to bring the well
production ready. The facility had not been placed into service at December 31,
2006. When placed into service the asset will be moved from investments to fixed
assets and depreciated on a straight-line basis over a seven year life.



On August 15, 2006, the Company paid a deposit of $108,251 on oil & gas
property, namely, the Weil 3-C, in Corpus Christi Texas. Under the agreement,
the Company acquired an undivided 28% working interest and a 21% net revenue
interest in the Weil 3-C well for a 46.66% billing interest.



On August 31, 2006, The Company paid a deposit of $134,520.78 on oil & gas
property, namely, the 7-C in Corpus Christi Texas. Under the agreement, the
Company acquired an undivided 28% working interest and a 21% net revenue
interest in the Well 7-C well for a 46.66% billing interest.



On September 19, 2006, the Company paid $135,948.57 to bring the 3-C and 7-C
wells into production as well as convert both the 2-C and 6-C wells on property
to Salt Water disposal wells. It is the intent of the Company to offer Salt
Water disposal services to neighboring companies as a side revenue generating
service. In the first quarter of 2007, all the wells, except the Louisiana
wells, generated revenues. Accordingly $49,897 was transferred to depreciable
assets and $732,926 to Oil reserves.



                                      -11-
<PAGE>



                    GULF COAST OIL & GAS, INC. AND SUBSIDIARY
                         (An Exploration Stage Company)


                          NOTES TO FINANCIAL STATEMENTS

                                 March 31, 2007


NOTE 4 - NOTES PAYABLE



On February 1, 2006, the Company entered into a Securities Purchase Agreement
with Cornell Capital Partners, L.P., Certain Wealth, Ltd., and TAIB Bank, B.S.C.
pursuant to which the Buyers agreed to purchase secured convertible debentures
in the principal amount of $2,000,000. On February 2, 2006 the Company sold and
issued $1,000,000 in principal amount of Debentures to the Buyers. In connection
with the Securities Purchase Agreement, the Company issued Cornell Capital
five-year warrants to purchase 30,000,000 shares of our common stock at the
following exercise prices: 7,500,000 at $0.02 per share, 7,500,000 at $0.03 per
share, 5,000,000 at $0.04 per share, 5,000,000 at $0.05 per share, and 5,000,000
at $0.06 per share.

The debentures are convertible at the option of the Buyers any time up to
maturity into shares of the Company's common stock. The debentures have a
three-year term and accrue interest at 10% per year. All unpaid interest and
principal are due on or before February 1, 2009.

On April 5, 2006, the Company sold the balance, $1,000,000, of the secured
convertible debentures. The terms and conditions are the same. The debentures
have a three-year term and accrue interest at 10% per year. All unpaid interest
and principal are due on or before April 5, 2009.

On September 14, 2006, the Company exchanged 892,857 shares of common stock for
the retirement of $20,000 of convertible notes payable.

In the fourth quarter of 2006, the Company exchanged 12,448,984 shares of common
stock for the retirement of $12,449 of convertible notes payable.

In the first quarter of 2007, the Company exchanged 21,301,587 shares of common
stock for the retirement of $170,000 of convertible notes payable.

Maturities of long term debt at December 31, 2006 were as follows:

                  2006              $    -0-
                  2007              $    -0-
                  2008              $    -0-
                  2009              $  1,965,551




                                      -12-
<PAGE>




                    GULF COAST OIL & GAS, INC. AND SUBSIDIARY
                         (An Exploration Stage Company)


                          NOTES TO FINANCIAL STATEMENTS

                                 March 31, 2007


NOTE 5 - DERIVATIVE LIABILITY ARISING FROM WARRANTS



The Company accounts for debt with embedded conversion features and warrant
issues in accordance with EITF 98-5: ACCOUNTING FOR CONVERTIBLE SECURITIES WITH
BENEFICIAL CONVERSION FEATURES OR CONTINGENCY ADJUSTABLE CONVERSION and EITF No.
00-27: APPLICATION OF ISSUE NO 98-5 TO CERTAIN CONVERTIBLE INSTRUMENTS.
Conversion features determined to be beneficial to the holder are valued at fair
value and recorded to additional paid in capital. The Company determines the
fair value to be ascribed to the detachable warrants issued with the convertible
debentures utilizing the BLACK-SCHOLES method. Any discount derived from
determining the fair value to the debenture conversion features and warrants is
amortized to financing cost over the life of the debenture. The unamortized
discount, if any, upon the conversion of the debentures is expensed to financing
cost on a pro rata basis.



Debt issue with the variable conversion features are considered to be embedded
derivatives and are accountable in accordance with FASB 133; ACCOUNTING FOR
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES. The fair value of the embedded
derivative is recorded to derivative liability. This liability is required to be
marked each reporting period. The resulting discount on the debt is amortized to
interest expense over the life of the related debt.



NOTE 6 - SERIES A PREFERRED STOCK



Each share of preferred has 15 votes compared to each share of common, which has
only one vote. In the second quarter 2004 all outstanding shares of Preferred
Stock were redeemed for $1,000.



NOTE 7 - RELATED PARTIES



The Company owes it present President $56,119 and $47,119 for compensation and
expense reimbursement at March 31, 2007 and December 31, 2006, respectively.



                                      -13-
<PAGE>







ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATION

                        LIQUIDITY AND FINANCIAL CONDITION

At March 31, 2007, cash and cash equivalents were $599,117, an increase of
$25,679 over December 31, 2006. Total liabilities at March 31, 2007 were
$1,469,541 of which $380,415 were current liabilities. The remainder of the
liabilities relate to the February and April, 2006 issuance of $2,000,000 of
convertible debentures (the "Convertible Debentures") to three investors and
recognition of a derivative liability arising from the warrants issued in that
transaction.

As of March 31, 2007 we had a working capital surplus of $395,162 as compared to
a working capital surplus of $423,424 at December 31, 2006. The decrease in
working capital is attributable to an increase in accrued interest on the
Convertible Debentures.

In the second and third quarters of 2006, the Company acquired interests in
three exploratory oil and gas wells located within one mile of each other in
Corpus Christi, Texas. Each of the three wells has recently been placed into
production. As of March 31, 2007, the Company had recognized revenues of $94,197
relating to this production.

The Company achieved positive cash flow of $25,679 in the first quarter of 2007.
The Company believes that revenues from oil and gas production will be
sufficient to meet its overhead expenses for at least the next twelve to
eighteen months.

                              RESULTS OF OPERATIONS


                        THREE MONTHS ENDED MARCH 31, 2007
                  COMPARED TO THREE MONTHS ENDED MARCH 31, 2006

REVENUES

The Company did not generate any revenues in the quarter ended March 31, 2006
(other than interest income). The revenues for the three months ending March 31,
2007 were $98,396, consisting of $94,197 from distributions from the Company's
interest in three producing oil and gas wells in Corpus Christi, Texas and
interest income of $4,199.

GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses during the quarter ended March 31, 2007
increased to $174,446 from $120,632 in the same period in 2006. This increase
was primarily due an increase in salaries and consulting fees as the Company
prepares to implement its business plan and an increase in interest costs from
the convertible debenture financing.

NET GAIN/LOSS TO COMMON SHAREHOLDERS

Net operating loss to common shareholders was ($96,155) or ($0.00) per share for
the quarter ended March 31, 2007 as compared to a net operating loss of
($116,645) or $0.00 for the quarter ended March 31, 2006. The decrease in net
loss primarily results from the Company's receipt of production related revenues
in the quarter ended March 31, 2007 which, after deducting exploration costs
attributable to the production, more than offset the increase in general and
administrative costs set forth above.


                                      -14-
<PAGE>

ACCUMULATED DEFICIT

Since inception, we have incurred substantial operating losses and may incur
substantial additional operating losses over the next several years. As of March
31, 2007, our accumulated deficit was $7,146,580.


ITEM 3. CONTROLS AND PROCEDURES

As of March 31, 2007, an evaluation was carried out under the supervision and
with the participation of management, including the Chief Executive Officer and
Chief Financial Officer, of the effectiveness of disclosure controls and
procedures. Based on that evaluation, the Chief Executive Officer and Chief
Financial Officer have concluded that disclosure controls and procedures are
effective to ensure that information required to be disclosed by the Company in
reports that the Company file or submit under the Securities Exchange Act of
1934 is recorded, processed, summarized and reported within the time periods
specified in SEC rules and forms. No changes in the Company's internal control
over financial reporting that have materially affected, or are reasonably likely
to materially affect, its internal control over financial reporting, including
any corrective actions with regard to significant deficiencies and material
weaknesses, occurred during the fist quarter of fiscal 2007 or subsequent to the
date of the evaluation by its management thereof.



                                      -15-
<PAGE>


                                    PART II.
                                OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 2. UNREGISTERED SALES OF SECURITIES AND USE OF PROCEEDS

In January of 2007, the Company issued 1,700,000 shares to a consultant in
exchange for consulting services valued at $1,700. These shares were issued
pursuant to a Section 4(2) exemption under the Securities Act of 1933, as
amended.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) The following Exhibits are filed as part of this Report or incorporated
herein by reference:

31.1 Certification of Chief Executive Officer and Chief Financial Officer
pursuant to Section 302 of the Sarbanes Oxley Act of 2002.

32.1 Certification of Chief Executive Officer and Chief Financial Officer
pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 302 of the Sarbanes
Oxley Act of 2002.

(b) Reports on Form 8-K. During the quarter ending March 31, 2007, the Company
filed the following reports on Form 8-K:

None








                                      -16-
<PAGE>


                                   SIGNATURES

In accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934,
the registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.


Date: May 21, 2007               GULF COAST OIL & GAS, INC.



                                 BY:    /S/ RAHIM RAYANI
                                        Rahim Rayani
                                        Chief Executive Officer and President
                                        (Principal Executive Officer)

                                 BY:    /S/ RAHIM RAYANI
                                        Rahim Rayani
                                        Chief Financial Officer
                                        (Principal Financial and
                                         Accounting Officer)





                                      -17-