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 March 31, 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 March 31, 2006
--------------------------------------    --------------------------------------
Common Stock, par value $.10 per share               8,627,275 shares

<PAGE>

                                    - INDEX -
<TABLE>
<CAPTION>

                                                                                      Page(s)
                                                                                      -------
<S>           <C>                                                                      <C>
PART I.        Financial Information:

ITEM 1.        Financial Statements

               Condensed Balance Sheets - March 31, 2006 (Unaudited)
               and December 31, 2005                                                      3.

               Condensed Statements of Operations (Unaudited) - Cumulative Period
               During the Development Stage (January 1, 1999 to March 31, 2006)
               and the Three Months Ended March 31, 2006 and 2005                         4.

               Condensed Statements of Cash Flows (Unaudited) - Cumulative Period
               During the Development Stage (January 1, 1999 to March 31, 2006)
               and the Three Months Ended March 31, 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 INDEX                                                                           11.
</TABLE>


                                    Page 2
<PAGE>


PART I.  FINANCIAL INFORMATION:

ITEM I.  FINANCIAL STATEMENTS:

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

<TABLE>
<CAPTION>
                                   - ASSETS -

                                                                 March 31, 2006     December 31, 2005
                                                                ----------------    ----------------
                                                                  (unaudited)
<S>                                                             <C>                 <C>
CURRENT ASSETS:
    Cash and cash equivalents                                   $          8,706    $          1,186
                                                                ----------------    ----------------

TOTAL ASSETS                                                    $          8,706    $          1,186
                                                                ================    ================

                    - LIABILITIES AND SHAREHOLDERS' DEFICIT -

CURRENT LIABILITIES:
    Accrued expenses                                            $         13,809    $          9,484
                                                                ----------------    ----------------

TOTAL CURRENT LIABILITIES                                                 13,809               9,484
                                                                ----------------    ----------------

CONVERTIBLE NOTES PAYABLE                                                 39,500              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 2005 and 2004                                 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                     (46,485)            (42,180)
                                                                ----------------    ----------------
                                                                         (44,603)            (40,298)
                                                                ----------------    ----------------
                                                                $          8,706    $          1,186
                                                                ================    ================
</TABLE>

                       See notes to financial statements.


                                    Page 3
<PAGE>

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

<TABLE>
<CAPTION>
                                      Cumulative During the     Three Months Ended
                                        Development Stage           March 31,
                                       (January 1, 1999 to -----------------------------
                                         March 31, 2006)      2006              2005
                                         -------------    -------------    -------------
<S>                                      <C>              <C>              <C>
NET SALES                                $          --    $          --    $          --
                                         -------------    -------------    -------------

COSTS AND EXPENSES:
    General and administrative expense          52,203            3,700            1,420
    Reversal of over-accrued expenses           (7,077)              --               --
    Interest expense                             2,501              625              190
    Interest income                             (1,142)             (20)              (4)
                                         -------------    -------------    -------------
TOTAL COSTS AND EXPENSES                        46,485            4,305            1,606
                                         -------------    -------------    -------------

LOSS BEFORE INCOME TAXES                       (46,485)          (4,305)          (1,606)

    Income tax expense                              --               --               --
                                         -------------    -------------    -------------

NET LOSS                                 $     (46,485)   $      (4,305)   $      (1,606)
                                         =============    =============    =============

WEIGHTED AVERAGE COMMON SHARES
  OUTSTANDING                                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     Three Months Ended
                                                               Development Stage           March 31,
                                                               (January 1, 1999 to     -------------------
                                                                 March 31, 2006)       2006            2005
                                                                 -------------    -------------    -------------
<S>                                                              <C>              <C>              <C>
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net loss                                                     $     (46,485)   $      (4,305)   $      (1,606)

    Change in assets and liabilities:
    Accounts payable and accrued expenses                               (9,470)           4,325               --
                                                                 -------------    -------------    -------------
      Net cash (utilized) provided by operating activities             (55,955)              20           (1,606)
                                                                 -------------    -------------    -------------

CASH FLOWS FROM INVESTING ACTIVITIES                                        --               --               --
                                                                 -------------    -------------    -------------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from private placement/exercise of stock warrants           5,500               --               --
    Proceeds from convertible debt                                      39,500            7,500            4,000
    Capital contribution                                                 8,000               --               --
                                                                 -------------    -------------    -------------
      Net cash provided by financing activities                         53,000            7,500            4,000
                                                                 -------------    -------------    -------------

NET (DECREASE) INCREASE IN CASH                                         (2,955)           7,520            2,394

CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD                       11,661            1,186              735
                                                                 -------------    -------------    -------------

CASH AND CASH EQUIVALENTS, AT END OF PERIOD                      $       8,706    $       8,706    $       3,129
                                                                 =============    =============    =============

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
                                 MARCH 31, 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 experienced losses for many 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 state 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 March 31, 2006 and the results of its operations
                and cash flows for the three month periods ended March 31, 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   -    INCOME (LOSS) PER COMMON SHARE:

                Income (loss) per common share was calculated by dividing net
                income (loss) by the weighted average number of shares
                outstanding for each reporting period.

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 of this report.


                                    Page 6
<PAGE>

                           CHASE PACKAGING CORPORATION
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                                 MARCH 31, 2006
                                   (Unaudited)

NOTE   3   -    CONVERTIBLE DEBT:

                The Company has issued 5% Convertible Notes as follows:

                          2004 - third quarter                $  12,500
                          2005 - first quarter                    4,000
                          2005 - second quarter                   8,000
                          2005 - third quarter                    5,000
                          2005 - fourth quarter                   2,500
                          2006 - first quarter                    7,500
                                                              ---------
                                                              $  39,500
                                                              =========

                The investors are 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 have been
                extended until 2008.


                                    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 is generating interest income on
              its remaining cash balance. There can be no assurance that we will
              be successful in either establishing a new business or in finding
              a business for acquisition.

              As a result of the sale of common shares in a private placement
              and the exercise of common stock purchase warrants during the last
              quarter of 2001 as well as additional loans and capital
              contributions made since then, to satisfy the Company's minimal
              cash requirements, the Company's cash balance as of March 31, 2006
              was $8,706.

ITEM 3.       CONTROLS AND PROCEDURES:

              (a) Evaluation of Disclosure Controls and Procedures.

              As of March 31, 2006, we carried out an evaluation, with the
              participation of the Company's principal executive and 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

              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: May 10, 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 MARCH 31, 2005

                                  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