SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

|X|   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2006

                                       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: 0-21609

                           CHASE PACKAGING CORPORATION
             (Exact name of registrant as specified in its charter)

             Texas                                       93-1216127
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)

                   636 River Road, Fairhaven, New Jersey 07704
               (Address of principal executive offices) (Zip Code)

                                 (732) 741-1500
                (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 Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days. YES |X| NO |_|

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

                 Class                              Outstanding at June 30, 2006
Common Stock, par value $.10 per share                    8,627,275 shares

<PAGE>

                                    - INDEX -

                                                                         Page(s)
                                                                         -------
PART I.    Financial Information:

ITEM 1.    Financial Statements

           Condensed Balance Sheets - June 30, 2006 (Unaudited)
             and December 31, 2005                                            3

           Condensed Statements of Operations (Unaudited) -
             Cumulative Period During the Development Stage
             (January 1, 1999 to June 30, 2006) and the Six and
             Three Months Ended June 30, 2006 and 2005                        4

           Condensed Statements of Cash Flows (Unaudited) -
             Cumulative Period During the Development Stage
             (January 1, 1999 to June 30, 2006) and the
             Six Months Ended June 30, 2006 and 2005                          5

           Notes to Interim Condensed Financial Statements (Unaudited)        6

ITEM 2.    Management's Discussion and Analysis or Plan of Operation          8

ITEM 3.    Controls and Procedures                                            8

PART II.   Other Information                                                  9

SIGNATURES                                                                   10

EXHIBITS                                                                     11


                                     Page 2

<PAGE>

PART I. FINANCIAL INFORMATION:

ITEM I. FINANCIAL STATEMENTS:

                           CHASE PACKAGING CORPORATION
                          (A Development Stage Company)
                            CONDENSED BALANCE SHEETS

                                                        June 30,   December 31,
                                                         2006          2006
                                                      -----------  ------------
                                                      (unaudited)

                     - ASSETS -

CURRENT ASSETS:
  Cash and cash equivalents                           $     7,634  $     1,186
                                                      -----------  -----------
TOTAL ASSETS                                          $     7,634  $     1,186
                                                      ===========  ===========

      - LIABILITIES AND SHAREHOLDERS' DEFICIT -

CURRENT LIABILITIES:
  Accrued expenses                                    $     7,680  $     9,484
                                                      -----------  -----------
TOTAL CURRENT LIABILITIES                                   7,680        9,484
                                                      -----------  -----------
CONVERTIBLE NOTES PAYABLE                                  47,000       32,000
                                                      -----------  -----------

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' DEFICIT:
  Preferred stock $1.00 par value; 4,000,000
     shares authorized, none issued                            --           --
  Common stock, $.10 par value 25,000,000 authorized
     8,627,275 issued in 2006 and 2005                    862,728      862,728
  Additional paid-in capital                            2,757,275    2,757,275
  Common stock subscribed                                   8,000        8,000
  Accumulated deficit                                  (3,626,121)  (3,626,121)
  Deficit accumulated during the development stage        (48,928)     (42,180)
                                                      -----------  -----------
                                                          (47,046)     (40,298)
                                                      -----------  -----------
                                                      $     7,634  $     1,186
                                                      ===========  ===========

                       See notes to financial statements.


                                     Page 3

<PAGE>

                           CHASE PACKAGING CORPORATION
                          (A Development Stage Company)
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                         Cumulative
                                         During the
                                        Development      Six Months Ended       Three Months Ended
                                           Stage      ----------------------  ----------------------
                                        (January 1,          June 30,                June 30,
                                          1999 to     ----------------------  ----------------------
                                       June 30, 2006     2006        2005        2006        2005
                                       -------------  ----------  ----------  ----------  ----------
<S>                                     <C>           <C>         <C>         <C>         <C>
NET SALES                               $       --    $       --  $       --  $       --  $       --
                                        ----------    ----------  ----------  ----------  ----------

COSTS AND EXPENSES:
  General and administrative expenses       54,053         5,550       7,400       1,850       3,700
  Reversal of overaccrued expenses          (7,077)           --          --          --          --
  Interest expense                           3,131         1,255         676         630         486
  Interest income                           (1,179)          (57)        (16)        (37)        (12)
                                        ----------    ----------  ----------  ----------  ----------
TOTAL COSTS AND EXPENSES                    48,928         6,748       8,060       2,443       4,174
                                        ----------    ----------  ----------  ----------  ----------
(LOSS) BEFORE INCOME TAXES                 (48,928)       (6,748)     (8,060)     (2,443)     (4,174)
  Income tax expense                            --            --          --          --          --
                                        ----------    ----------  ----------  ----------  ----------
NET (LOSS)                              $  (48,928)   $   (6,748) $   (8,060) $   (2,443) $   (4,174)
                                        ==========    ==========  ==========  ==========  ==========
WEIGHTED AVERAGE COMMON SHARES
  OUTSTANDING                            8,627,275     8,627,275   8,627,275   8,627,275   8,627,275
                                        ==========    ==========  ==========  ==========  ==========
(LOSS) PER COMMON SHARE
  - BASIC AND DILUTED                                 $       --  $       --  $       --  $       --
                                                      ==========  ==========  ==========  ==========
</TABLE>

                       See notes to financial statements.


                                     Page 4

<PAGE>

                                            CHASE PACKAGING CORPORATION
                                           (A Development Stage Company)
                                             STATEMENTS OF CASH FLOWS
                                                    (Unaudited)

<TABLE>
<CAPTION>
                                                              Cumulative During the  Six Months Ended
                                                                Development Stage         June 30,
                                                               (January 1, 1999 to   ----------------
                                                                 June 30, 2006)        2006     2005
                                                              ---------------------  -------  -------
<S>                                                                  <C>             <C>      <C>
INCREASE (DECREASE) IN CASH AND CASH
  EQUIVALENTS
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net (loss)                                                         $(48,928)       $(6,748) $(8,060)
  Change in assets and liabilities:
    Accounts payable and accrued expenses                             (15,599)        (1,804)    (383)
                                                                     --------        -------  -------
      Net cash (utilized) by operating activities                     (64,527)        (8,552)  (8,443)
                                                                     --------        -------  -------
CASH FLOWS FROM INVESTING ACTIVITIES                                       --             --       --
                                                                     --------        -------  -------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from convertible debt                                       47,000         15,000   12,000
  Proceeds from private placement/exercise of stock warrants            5,500             --       --
  Proceeds from stock subscriptions                                     8,000             --       --
                                                                     --------        -------  -------
      Net cash provided by financing activities                        60,500         15,000   12,000
                                                                     --------        -------  -------
NET (DECREASE) INCREASE IN CASH                                        (4,027)         6,448    3,557

CASH AND CASH EQUIVALENTS, AT BEGINNING OF
  PERIOD                                                               11,661          1,186      734
                                                                     --------        -------  -------
CASH AND CASH EQUIVALENTS, AT END OF PERIOD                          $  7,634        $ 7,634  $ 4,291
                                                                     ========        =======  =======
SUPPLEMENTAL CASH FLOW INFORMATION
  Cash paid during the period for:
    Interest                                                         $     --        $    --  $    --
</TABLE>

                       See notes to financial statements.


                                     Page 5

<PAGE>

                           CHASE PACKAGING CORPORATION
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                                  JUNE 30, 2006
                                   (Unaudited)

NOTE 1 - BASIS OF PRESENTATION:

      Chase Packaging Corporation ("the Company"), a Texas Corporation,
      manufactured woven paper mesh for industrial applications, polypropylene
      mesh fabric bags for agricultural use and distributed agricultural
      packaging manufactured by other companies. The Company was a wholly-owned
      subsidiary of TGC Industries, Inc. (TGC) through July 31, 1996.

      The Company had experienced losses for past years, and the Company's
      secured lender decided not to renew the Company's operating line of
      credit. As a result, the Company's Board of Directors determined that it
      was in the best interest of the Company and all of its creditors to
      liquidate in an orderly fashion.

      On June 25, 1997, the Company announced to employees and creditors that it
      would begin an orderly liquidation of all its assets beginning at the
      close of business on June 30, 1997. On July 25, 1997, the Company notified
      its creditors by mail that it would commence with an orderly liquidation
      of all its remaining assets outside of a formal bankruptcy or receivership
      proceeding in a manner intended to maximize asset values. Liquidation of
      the Company's assets was completed as of December 31, 1997.

      The Board of Directors has been devoting its efforts to establishing a new
      business and, accordingly, the Company is being treated as a development
      stage company, in accordance with Statement of Financial Accounting
      Standards No. 7, effective January 1, 1999.

      In the opinion of management, the accompanying unaudited interim condensed
      financial statements of the Company, contain all adjustments necessary
      (consisting of normal recurring accruals or adjustments only) to present
      fairly the Company's financial position as of June 30, 2006 and the
      results of its operations and cash flows for the six and three month
      periods ended June 30, 2006 and 2005.

      The accounting policies followed by the Company are set forth in Note 2 to
      the Company's financial statements included in its Annual Report on Form
      10-KSB for the year ended December 31, 2005 which is incorporated herein
      by reference. Specific reference is made to this report for a description
      of the Company's securities and the notes to consolidated financial
      statements.

NOTE 2 - LOSS PER COMMON SHARE:

      Basic loss per common share was calculated by dividing net loss by the
      weighted average number of shares outstanding for each reporting period.
      Diluted loss per common share is the same as basic loss per common share
      for all periods presented

NOTE 3 - SHAREHOLDERS' EQUITY:

      In July 2002, the Company received $8,000 as payment for 800,000 shares of
      common stock. Such shares have not been issued as of the filing date of
      this report.


                                     Page 6

<PAGE>

                           CHASE PACKAGING CORPORATION
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                                  JUNE 30, 2006
                                   (Unaudited)

NOTE 4 - CONVERTIBLE DEBT:

      During the 2004 third quarter, the Company issued $12,500 of 5%
      Convertible Notes due 2006 and received proceeds of $12,500; during the
      first quarter of 2005, the Company issued $4,000 of 5% Convertible Notes
      and received proceeds of $4,000; during the second quarter of 2005, the
      Company issued $8,000 of 5% Convertible Notes and received proceeds of
      $8,000; during the third quarter of 2005, the Company issued $5,000 of 5%
      Convertible Notes and received proceeds of $5,000; during the fourth
      quarter of 2005, the Company issued $2,500 of 5% Convertible Notes and
      received proceeds of $2,500; during the first quarter of 2006, the Company
      issued $7,500 of 5% Convertible Notes and received proceeds of $7,500; and
      during the second quarter of 2006, the Company issued $7,500 of 5%
      Convertible Notes and received proceeds of $7,500. The investors were
      directors and an officer of the Company. The Notes are convertible into
      common stock at $0.01 or par value (currently $0.10 per share) whichever
      is greater. The Company and the Note Holder(s) have the option to mutually
      extend the term of the Note(s) if the par value has not been reduced to
      $0.01. If the Notes are converted at par greater than $0.01, then the Note
      Holder(s) will, upon conversion, receive a Unit consisting of one share of
      common stock and a 10-year warrant exercisable at the then par value of
      the common stock. Interest will accrue and be paid at maturity and, if
      unpaid, added to principal at the time of conversion. The notes, which
      were originally due in 2006, have been extended until 2007.


                                     Page 7

<PAGE>

ITEM 2. MANAGEMENT'S PLAN OF OPERATIONS:

      Chase Packaging Corporation (the Company) experienced cash losses for past
      years in spite of numerous infusions of working capital and an aggressive
      program of inventory and expense reductions. During 1997, the Board of
      Directors determined that an orderly liquidation was in the best interest
      of the Company and all of its creditors and retained the firm of Edward
      Hostmann, Inc. to assist the Company in such liquidation.

      As part of the liquidation process, effective July 21, 1997, the Company
      sold most of its assets in Idaho Falls, Idaho (excluding real estate) to
      Lockwood Packaging Corporation for $330,000. The Company also sold the
      Idaho Falls real estate (land and building). During July and August of
      1997 Chase sold most of its inventory in Portland, Oregon to other
      packaging companies. The Company also sold its band label extruder for
      $125,000 and its remaining inventory and machinery and equipment were sold
      at an August 14, 1997 auction, for gross proceeds of approximately
      $340,000. As of December 31, 1997, the Company had completed the
      liquidation of all of its assets.

      Effective January 1, 1999, the Board of Directors has been devoting its
      efforts to establishing a new business and accordingly, the Company is
      being treated as a development stage company, in accordance with Statement
      of Financial Accounting Standards No. 7, as of that date. The Company
      continues to pay for minor administrative expenses and has generated
      interest income on its remaining cash balance.

      As a result of the sale of common shares in a private placement, the
      exercise of common stock purchase warrants during the last quarter of
      2001, additional capital contributions during 2002 through the first six
      months of 2006 and the proceeds realized from convertible debt, the
      Company's cash balance as of June 30, 2006 was $7,634. The Company may
      need to raise additional funds in order to satisfy its minimal expenses
      for the ensuing twelve months.

ITEM 3. CONTROLS AND PROCEDURES:

      (a) Evaluation of Disclosure Controls and Procedures.

      As of June 30, 2006, we carried out an evaluation, under the supervision
      of Ann W. Green our sole Principal Financial Officer, of the effectiveness
      of the design and operation of our disclosure controls and procedures
      pursuant to Rule 13a-14 of the Securities Exchange Act of 1934 (the
      "Exchange Act"), which disclosure controls and procedures are designed to
      insure that information required to be disclosed by a company in the
      reports that it files under the Exchange Act is recorded, processed,
      summarized and reported within required time periods specified by the
      SEC's rules and forms. Based upon that evaluation, the Principal Financial
      Officer concluded that our disclosure controls and procedures are
      effective in timely alerting management to material information relating
      to the Company required to be included in the Company's period SEC
      filings.

      (b) Changes in Internal Control.

      Subsequent to the date of such evaluation as described in subparagraph (a)
      above, there were no significant changes in our internal controls or other
      factors that could significantly affect these controls, including any
      corrective action with regard to significant deficiencies and material
      weaknesses.


                                     Page 8

<PAGE>

                           PART II. OTHER INFORMATION

Item 1. Legal Proceedings

      None

Item 2. Changes in Securities

      None

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

      None

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

Exhibit 31.2 Certification of the Principal Financial and Accounting Officer
             pursuant to Section 302 of the Sarbanes-Oxley
             Act of 2002.

Exhibit 32.1 Certification of the Chief Executive Officer pursuant to 18 U.S.C.
             Section 1350, as adopted pursuant to Section 906 of
             the Sarbanes-Oxley Act of 2002.

Exhibit 32.2 Certification of the Principal Financial Officer pursuant to
             18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
             Sarbanes-Oxley Act of 2002.


                                     Page 9

<PAGE>

                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                                     CHASE PACKAGING CORPORATION


                                                     /s/ Ann W. Green
                                                     ---------------------------
Date: August 2, 2006                                 Ann W. Green
                                                     (Assistant Secretary
                                                     and Principal Financial and
                                                     Accounting Officer)


                                     Page 10

<PAGE>

                           CHASE PACKAGING CORPORATION
                         QUARTERLY REPORT ON FORM 10-QSB
                           QUARTER ENDED JUNE 30, 2006

                                  EXHIBIT INDEX

Exhibit
 Number     Description
-------     -----------

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

31.2        Certification of the Principal Financial and Accounting Officer
            pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1        Certification of the Chief Executive Officer pursuant to 18 U.S.C.
            Section 1350, as adopted pursuant to Section 906 of the
            Sarbanes-Oxley Act of 2002.

32.2        Certification of the Principal Financial Officer pursuant to 18
            U.S.C. Section 1350, as adopted pursuant to Section 906 of the
            Sarbanes-Oxley Act of 2002.


                                    Page 11