SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

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

Date of Report: (Date of earliest event reported) March 21, 2006


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


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


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

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

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

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

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

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

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



Information to be Included in the Report

Item 3.02 Unregistered Sales of Equity Securities

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

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

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

     On June 29, 2005, we commenced a private debt placement of up to $2,004,102
of our 12%  Convertible  Subordinated  Notes due  August  31,  2009  (the  "2009
Notes"). As part of the offering, holders of the remaining $804,102 of 10% Notes
were given the right to exchange  such notes for the 2009 Notes.  We offered the
2009 Notes to provide the working  capital to sustain our  activities  until the
operations  under  development  in our Coal and China  Segments  are  generating
positive cash flow.

     On February  17, 2006,  we accepted a  subscription  for $26,413  principal
amount of the 2009 Notes from a private  investor.  The sale was  handled by us;
accordingly, a 1% commission will be paid on the $26,413 of 2009 Notes sold.

     On February 21, 2006, we accepted subscriptions for $7,788 principal amount
of the 2009  Notes  from two  private  investors.  The sale was  handled  by us;
accordingly, a 1% commission will be paid on the $15,576 of 2009 Notes sold.

     On February  23, 2006,  we accepted a  subscription  for $14,878  principal
amount of the 2009 Notes from a private  investor.  The sale was  handled by us;
accordingly, a 1% commission will be paid on the $14,878 of 2009 Notes sold.

     On February  24, 2006,  we accepted a  subscription  for $15,622  principal
amount of the 2009 Notes from a private  investor.  The sale was  handled by us;
accordingly, a 1% commission will be paid on the $15,622 of 2009 Notes sold.

     In accordance  with the Private  Placement  Memorandum and the  Supplements
thereto,  the Conversion Price for all Notes issued after November 30, 2005 will
be determined by the weighted  average  closing price (the "WACP") of our common
stock during the 90-day period preceding the date each  subscription is received
by us.  Based on the  February  16,  February  20,  February 22 and  February 23
closing  prices,  the 90-day WACP's on February 17, February 21, February 23 and
February 24 were $1.328, $1.335, $1.339 and $1.339, respectively.

     Based upon their  respective  Conversion  Prices,  the 2009 Notes issued on
February 17,  February 21,  February 23 and February 24, 2006,  are  convertible
into 19,889, 11,667, 11,111 and 11,667 shares, respectively, of our common stock
and bring the total aggregate  amount of 2009 Notes sold or exchanged to date to
$1,327,851.

     On May 31, 2002, we completed the sale of  $1,200,000  aggregate  principal
amount of 10%  Subordinated  Notes due September 30, 2003 (the "10% Notes").  In
connection  with the sale of the 10% Notes we issued  warrants  to  purchase  an
aggregate of 547,625  shares (as adjusted to reflect a subsequent  2-for-1 stock
split  effective  August 6, 2004 (the  "Stock  Split")  of our  common  stock at
exercise prices (adjusted to reflect  subsequent  anti-dilution  adjustments and
the Stock Split)  ranging  from  $0.353949  to  $0.3570475  per share (the "2002
Warrants"). We paid the 10% Notes in full on March 26, 2004.

     On March 21, 2006, one of the Warrant  Holders  exercised his 2002 Warrants
to purchase an aggregate of 10,000  shares of our common stock (the  "Underlying
Common Stock").

     As a result of the issuance of these 10,000 shares,  our outstanding shares
have increased to a total of 5,539,210.

     The total shares  issuable  upon  conversion of the 2009 Notes that had not
been  previously  reported  by us on a Form 8-K did not  exceed  1% of the total
outstanding  equity  securities  of our  triggering  the  necessity to file this
Current  Report under Item 3.02 of Form 8-K. The March 21, 2006  exercise of the
2002 Warrants triggered the necessity to file this Form 8-K.

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

     The 2002 Warrants and the  Underlying  Common Stock were issued in reliance
upon the exemption from registration  provided by Section 4(2) of the Securities
Act for  "transactions  by the  issuer  not  involving  a public  offering,"  in
transactions that fell within the safe harbor provided by Rule 506 of Regulation
D of the Securities Act.



                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

                                            THE BEARD COMPANY

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

March 22, 2006