**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

----

**Form      10-QSB**

**(Mark      One)**

| þ | **QUARTERLY                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934** |
|--------|---------------------------------------------------------------------------------------------------------------------|

**For      the quarterly period ended June 30, 2007**

| o | **TRANSITION                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934** |
|---|----------------------------------------------------------------------------------------------------------------------|

**For      the transition period from ________ to __________**

**Commission      File No. 000-30841**

----

**UNITED      ENERGY CORP.**

| **Nevada***(State                or other jurisdiction of**incorporation                or organization)*                           | **22**-**3342379***(I.R.S.                Employer Identification No.)* |
|-------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|
|  **600                Meadowlands Parkway #20, Secaucus, N.J. 07094***(Address                of principal executive offices)* |
|  **(800)                327-3456***(Issuer's                telephone number, including area                code)*             |

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**INDEX**

| **PART                I. FINANCIAL INFORMATION** |                                                                                                                                             |
|--------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|                                             |                                                                                                                                             |
| Item                1.                           | Financial                Statements                                                                                                              |   |
|                                             |                                                                                                                                             |   |
|                                             | Consolidated                balance sheets June 30, 2007 (Unaudited) and March                31, 2007                                           | 3-4 |
|                                             |                                                                                                                                             |   |
|                                             | Consolidated                statements of operations for the three months ended June 30, 2007                (Unaudited) and 2006 (Unaudited)    | 5 |
|                                             |                                                                                                                                             |   |
|                                             | Consolidated                statement of stockholders' equity for the three months ended June                30, 2007                (Unaudited) | 6 |
|                                             |                                                                                                                                             |   |
|                                             | Consolidated                statements of cash flows for the three months ended June 30, 2007                (Unaudited) and 2006 (Unaudited)    | 7-8 |
|                                             |                                                                                                                                             |   |
|                                             | Notes                to consolidated financial statements                                                                                        | 9-13 |
|                                             |                                                                                                                                             |   |
| Item                2.                           | Management's                Discussion and Analysis or Plan of Operation                                                                         | 14-16 |
|                                             |                                                                                                                                             |   |
| Item                3                            | Controls                and Procedures                                                                                                           | 16 |
|                                             |                                                                                                                                             |   |
| **PART                II. OTHER INFORMATION**    |                                                                                                                                             |
|                                             |                                                                                                                                             |
| Item                1.                           | Legal                Proceedings                                                                                                                 | 17 |
|                                             |                                                                                                                                             |   |
| Item                2.                           | Unregistered                Sales of Equity Securities and Use of Proceeds                                                                       | 17 |
|                                             |                                                                                                                                             |   |
| Item                5.                           | Other                Information                                                                                                                 | 17 |
|                                             |                                                                                                                                             |   |
| Item                6.                           | Exhibits                                                                                                                                         | 17 |
|                                             |                                                                                                                                             |   |
| Signatures                                       |                                                                                                                                             | 18 |

----

| **Item                  1.*****Financial                  Statements***                                                  |   |                           |      |                           |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|-----------|--------------------------------|--------|
|                                                                                                                     |   |                           |      |                           |   |
| **UNITED                  ENERGY CORP. AND SUBSIDIARIES**                                                                |
| **CONSOLIDATED                  BALANCE SHEETS**                                                                         |
|                                                                                                                     |   |                           |      |                           |   |
|                                                                                                                     |   |                           |      |                           |   |
|                                                                                                                     |   |  **June                  30,** |      | **March                  31,** |   |
|                                                                                                                     |   |  **2007**                      |      | **2007**                       |   |
|                                                                                                                     |   |  **(Unaudited)**               |      |                           |   |
|                                                                                                                     |   |                           |      |                           |   |
| **ASSETS**                                                                                                               |   |                           |      |                           |   |
|                                                                                                                     |   |                           |      |                           |   |
| CURRENT                  ASSETS:                                                                                         |   |                           |      |                           |   |
| Cash                  and cash equivalents                                                                               |   | $                                   | 2,301,503 |                           | $      | 2,863,906 |   |
| Accounts                  receivable, net of allowance for doubtful                                                      |   |                                |      |                           |   |   |   |
| accounts                  of $9,518 and $5,879, respectively                                                             |   |                                | 262,586   |                           |   | 64,466 |   |
| Inventory                                                                                                                |   |                                | 144,151   |                           |   | 138,798 |   |
| Prepaid                  expenses and other current assets                                                               |   |                                | 119,651   |                           |   | 128,216 |   |
| Assets                  of discontinued operations                                                                       |   |                                | 4,476     |                           |   | 4,507 |   |
| Total                  current assets                                                                                    |   |                                | 2,832,367 |                           |   | 3,199,893 |   |
|                                                                                                                     |   |                                |      |                           |   |   |   |
| PROPERTY                  AND EQUIPMENT, net of accumulated                                                              |   |                                |      |                           |   |   |   |
| depreciation                  and amortization of $449,859 and                                                           |   |                                |      |                           |   |   |   |
| $435,703                  respectively                                                                                   |   |                                | 78,821    |                           |   | 88,081 |   |
|                                                                                                                     |   |                                |      |                           |   |   |   |
| OTHER                  ASSETS:                                                                                           |   |                                |      |                           |   |   |   |
| Goodwill,                  net                                                                                           |   |                                | 15,499    |                           |   | 15,499 |   |
| Patents,                  net of accumulated amortization of $159,391                                                    |   |                                |      |                           |   |   |   |
| and                  $150,861, respectively                                                                              |   |                                | 353,983   |                           |   | 345,889 |   |
| Loans                  receivable                                                                                        |   |                                | 6,585     |                           |   | 1,864 |   |
| Deposits                                                                                                                 |   |                                | 1,385     |                           |   | 1,385 |   |
| Total                  assets                                                                                            |   | $                                   | 3,288,640 |                           | $      | 3,652,611 |   |
|                                                                                                                     |   |                                |      |                           |   |   |   |
| The                  accompanying notes are an integral part of these consolidated financial                  statements |   |                                |      |                           |   |   |   |

----

| **UNITED                  ENERGY CORP. AND SUBSIDIARIES**                                                                |
|--------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  BALANCE SHEETS**                                                                         |
|                                                                                                                     |   |    |   |   |   |
|                                                                                                                     |   |    |   |   |   |
|                                                                                                                     |   |  **June                  30,** |   | **March                  31,** |   |
|                                                                                                                     |   |  **2007** |   | **2007** |   |
|                                                                                                                     |   |  **(Unaudited)** |   |   |   |
|                                                                                                                     |   |    |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                                |   |    |   |   |   |
|                                                                                                                     |   |    |   |   |   |
| CURRENT                  LIABILITIES:                                                                                    |   |    |   |   |   |
| Accounts                  payable                                                                                        |   | $ | 208,985 |   | $ | 133,135 |   |
| Accrued                  expenses                                                                                        |   |   | 89,549 |   |   | 99,226 |   |
| Due                  to related parties                                                                                  |   |   | 244,141 |   |   | 244,141 |   |
| Total                  current liabilities                                                                               |   |   | 542,675 |   |   | 476,502 |   |
|                                                                                                                     |   |   |   |   |   |   |   |
| STOCKHOLDERS'                  EQUITY:                                                                                   |   |   |   |   |   |   |   |
| Series                  A Convertible Preferred Stock: $8,000                                                            |   |   |   |   |   |   |   |
| stated                  value, 420 shares authorized; 3                                                                  |   |   |   |   |   |   |   |
| shares                  issued and outstanding as of                                                                     |   |   |   |   |   |   |   |
| June                  30 2007 and March 31, 2007                                                                         |   |   | 24,000 |   |   | 24,000 |   |
| Common                  stock: $0.01 par value 100,000,000 shares                                                        |   |   |   |   |   |   |   |
| authorized;                  31,030,115 shares issued and                                                                |   |   |   |   |   |   |   |
| outstanding                  as of June 30, 2007                                                                         |   |   |   |   |   |   |   |
| and                  March 31, 2007                                                                                      |   |   | 310,301 |   |   | 310,301 |   |
| Additional                  paid-in capital                                                                              |   |   | 21,598,150 |   |   | 21,540,041 |   |
| Accumulated                  deficit                                                                                     |   |   | (19,186,486 | ) |   | (18,698,233 | ) |
| Total                  stockholders' equity                                                                              |   |   | 2,745,965 |   |   | 3,176,109 |   |
| Total                  liabilities and stockholders' equity                                                              |   | $ | 3,288,640 |   | $ | 3,652,611 |   |
|                                                                                                                     |   |   |   |   |   |   |   |
| The                  accompanying notes are an integral part of these consolidated financial                  statements |   |   |   |   |   |   |   |

----

| **UNITED                  ENERGY CORP. AND SUBSIDIARIES**                                                                 |
|---------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF OPERATIONS**                                                                |
| **FOR                  THE THREE MONTHS ENDED JUNE 30, 2007 AND 2006**                                                    |
|                                                                                                                      |   |   |   |   |   |
|                                                                                                                      |   | **For                  the Three Months** |   |
|                                                                                                                      |   | **Ended                  June 30,** |   |
|                                                                                                                      |   | **2007** |   | **2006** |   |
|                                                                                                                      |   | **(Unaudited)** |   |   |   |
|                                                                                                                      |   |   |   |   |   |
| REVENUES,                  net                                                                                            |   | $ | 276,240 |   | $ | 224,827 |   |
|                                                                                                                      |   |   |   |   |   |   |   |
| COST                  OF GOODS SOLD                                                                                       |   |   | 117,490 |   |   | 101,860 |   |
|                                                                                                                      |   |   |   |   |   |   |   |
| Gross                  profit                                                                                             |   |   | 158,750 |   |   | 122,967 |   |
|                                                                                                                      |   |   |   |   |   |   |   |
| OPERATING                  EXPENSES:                                                                                      |   |   |   |   |   |   |   |
| Selling,                  general and administrative                                                                      |   |   | 656,035 |   |   | 699,732 |   |
| Depreciation                  and amortization                                                                            |   |   | 18,600 |   |   | 18,638 |   |
| Total                  operating expenses                                                                                 |   |   | 674,635 |   |   | 718,370 |   |
|                                                                                                                      |   |   |   |   |   |   |   |
| Loss                  from operations                                                                                     |   |   | (515,885 | ) |   | (595,403 | ) |
|                                                                                                                      |   |   |   |   |   |   |   |
| OTHER                  INCOME (EXPENSE), net:                                                                             |   |   |   |   |   |   |   |
| Interest                  income                                                                                          |   |   | 28,876 |   |   | 44,548 |   |
| Interest                  expense                                                                                         |   |   | (884 | ) |   | (855 | ) |
| Total                  other expense, net                                                                                 |   |   | 27,992 |   |   | 43,693 |   |
|                                                                                                                      |   |   |   |   |   |   |   |
| Net                  loss from continuing operations                                                                      |   |   | (487,893 | ) |   | (551,710 | ) |
|                                                                                                                      |   |   |   |   |   |   |   |
| DISCONTINUED                  OPERATIONS:                                                                                 |   |   |   |   |   |   |   |
| Loss                  from discontinued operations                                                                        |   |   | - |   |   | (15,944 | ) |
|                                                                                                                      |   |   |   |   |   |   |   |
| Net                  loss                                                                                                 |   |   | (487,893 | ) |   | (567,654 | ) |
|                                                                                                                      |   |   |   |   |   |   |   |
| Preferred                  dividends                                                                                      |   |   | (360 | ) |   | (446 | ) |
|                                                                                                                      |   |   |   |   |   |   |   |
| Net                  loss applicable to common shareholders                                                               |   | $ | (488,253 | ) | $ | (568,100 | ) |
|                                                                                                                      |   |   |   |   |   |   |   |
| BASIC                  AND DILUTED LOSS PER SHARE:                                                                        |   |   |   |   |   |   |   |
| Loss                  from continued operations                                                                           |   |   | (0.02 | ) |   | (0.02 | ) |
| Loss                  from discontinued operations                                                                        |   |   | 0.00 |   |   | 0.00 |   |
| Total                  basic and diluted loss per share                                                                   |   | $ | (0.02 | ) | $ | (0.02 | ) |
|                                                                                                                      |   |   |   |   |   |   |   |
| WEIGHTED                  AVERAGE NUMBER OF SHARES,                                                                       |   |   |   |   |   |   |   |
| OUTSTANDING,                  basic and diluted                                                                           |   |   | 31,030,115 |   |   | 31,026,956 |   |
|                                                                                                                      |   |   |   |   |   |   |   |
|                                                                                                                      |   |   |   |   |   |   |   |
| The                  accompanying notes are an integral part of these consolidated financial                  statements. |   |   |   |   |   |   |   |

----

| **UNITED                  ENERGY CORP. AND SUBSIDIARIES**                                                                 |
|---------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF STOCKHOLDERS' EQUITY**                                                      |
| **FOR                  THE THREE MONTHS ENDED JUNE 30, 2007 (UNAUDITED)**                                                 |
|                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                      |   |   |   |   |   |   |   | **Additional** |   |   |   |   |   |
|                                                                                                                      |   | **Common                  Stock** |   | **Preferred** |   | **Paid-In** |   | **Accumulated** |   |   |   |
|                                                                                                                      |   | **Shares** |   | **Amount** |   | **Stock** |   | **Capital** |   | **Deficit** |   | **Total** |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE,                  April 1, 2007                                                                                   |   |   | 31,030,115 |   | $ | 310,301 |   | $ | 24,000 |   | $ | 21,540,041 |   | $ | (18,698,233 | ) | $ | 3,176,109 |   |
| Compensation                  expense associated                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| with                  options                                                                                             |   |   | — |   |   | — |   |   | — |   |   | 58,109 |   |   | — |   |   | 58,109 |   |
| Dividends                  accrued on                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| preferred                  shares                                                                                         |   |   | — |   |   | — |   |   | — |   |   | — |   |   | (360 | ) |   | (360 | ) |
| Net                  loss                                                                                                 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | (487,893 | ) |   | (487,893 | ) |
| BALANCE,                  June 30, 2007                                                                                   |   |   | 31,030,115 |   | $ | 310,301 |   | $ | 24,000 |   | $ | 21,598,150 |   | $ | (19,186,486 | ) | $ | 2,745,965 |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The                  accompanying notes are an integral part of these consolidated financial                  statements. |

----

| **UNITED                  ENERGY CORP. AND SUBSIDIARIES**                                                                 |
|---------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF CASH FLOWS**                                                                |
| **FOR                  THE THREE MONTHS ENDED JUNE 30, 2007 AND 2006**                                                    |
|                                                                                                                      |   |   |   |   |   |
|                                                                                                                      |   | **2007** |   | **2006** |   |
|                                                                                                                      |   | **(Unaudited)** |   |   |   |
|                                                                                                                      |   |   |   |   |   |
| CASH                  FLOWS FROM OPERATING ACTIVITIES:                                                                    |   |   |   |   |   |
| Net                  loss from continuing operations                                                                      |   | $ | (487,893 | ) | $ | (551,710 | ) |
|                                                                                                                      |   |   |   |   |   |   |   |
| Adjustments                  to reconcile net loss to net cash used in operating activities                               |   |   |   |   |   |   |   |
| Depreciation                  and amortization                                                                            |   |   | 22,686 |   |   | 22,951 |   |
| Compensation                  expense associated with options                                                             |   |   | 58,109 |   |   | 74,089 |   |
|                                                                                                                      |   |   |   |   |   |   |   |
| Changes                  in operating assets and liabilities                                                              |   |   |   |   |   |   |   |
| Increase                  in accounts receivable, net                                                                     |   |   | (198,120 | ) |   | (163,201 | ) |
| Increase                  in inventory, net                                                                               |   |   | (5,353 | ) |   | (49,301 | ) |
| Decrease                  in prepaid expenses and                                                                         |   |   |   |   |   |   |   |
| other                  current assets                                                                                     |   |   | 8,565 |   |   | 17,030 |   |
| Increase                  (decrease) in accounts payable and                                                              |   |   |   |   |   |   |   |
| accrued                  expenses                                                                                         |   |   | 66,173 |   |   | (85,346 | ) |
| Net                  cash used in continuing operations                                                                   |   |   | (535,833 | ) |   | (735,488 | ) |
|                                                                                                                      |   |   |   |   |   |   |   |
| CASH                  FLOWS FROM DISCONTINUED OPERATIONS:                                                                 |   |   |   |   |   |   |   |
| Net                  loss from discontinuing operations                                                                   |   |   | - |   |   | (15,944 | ) |
| Decrease                  in accounts receivable, net                                                                     |   |   | 31 |   |   | - |   |
| Decrease                  in note receivable, net                                                                         |   |   | - |   |   | 5,000 |   |
| Net                  cash provided by (used in) discontinuing operations                                                  |   |   | 31 |   |   | (10,944 | ) |
| Net                  cash used in operating activities                                                                    |   |   | (535,802 | ) |   | (746,432 | ) |
|                                                                                                                      |   |   |   |   |   |   |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES:                                                                    |   |   |   |   |   |   |   |
| Employee                  loans                                                                                           |   |   | (4,721 | ) |   | (2,185 | ) |
| Payments                  for acquisition of property and equipment                                                       |   |   | (4,896 | ) |   | - |   |
| Payments                  for patents                                                                                     |   |   | (16,624 | ) |   | - |   |
|                                                                                                                      |   |   |   |   |   |   |   |
| Cash                  used in investing activities                                                                        |   |   | (26,241 | ) |   | (2,185 | ) |
|                                                                                                                      |   |   |   |   |   |   |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES:                                                                    |   |   |   |   |   |   |   |
| Payments                  of related party payable                                                                        |   |   | - |   |   | (200,000 | ) |
| Proceeds                  from the exercise of stock options                                                              |   |   | - |   |   | 13,875 |   |
| Preferred                  stock dividend                                                                                 |   |   | (360 | ) |   | (446 | ) |
|                                                                                                                      |   |   |   |   |   |   |   |
| Net                  cash used in financing activities                                                                    |   |   | (360 | ) |   | (186,571 | ) |
|                                                                                                                      |   |   |   |   |   |   |   |
| Net                  decrease in cash and cash equivalents                                                                |   |   | (562,403 | ) |   | (935,188 | ) |
| CASH                  AND CASH EQUIVALENTS, beginning of period                                                           |   |   | 2,863,906 |   |   | 5,194,748 |   |
|                                                                                                                      |   |   |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS, end of period                                                                 |   | $ | 2,301,503 |   | $ | 4,259,560 |   |
|                                                                                                                      |   |   |   |   |   |   |   |
|                                                                                                                      |   |   |   |   |   |   |   |
| The                  accompanying notes are an integral part of these consolidated financial                  statements. |

----

| **UNITED                  ENERGY CORP. AND SUBSIDIARIES**                                                                 |
|---------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF CASH FLOWS**                                                                |
| **FOR                  THE THREE MONTHS ENDED JUNE 30, 2007 AND 2006**                                                    |
|                                                                                                                      |   |   |   |   |   |
|                                                                                                                      |   | **2007** |   | **2006** |   |
|                                                                                                                      |   | **(Unaudited)** |   |   |   |
|                                                                                                                      |   |   |   |   |   |
| SUPPLEMENTAL                  DISCLOSURES OF CASH FLOW INFORMATION:                                                       |   |   |   |   |   |
| Cash                  paid during the period                                                                              |   |   |   |   |   |
| Interest                                                                                                                  |   | $ | 844 |   | $ | 855 |   |
| Income                  taxes                                                                                             |   | $ | 2,150 |   | $ | 1,000 |   |
|                                                                                                                      |   |   |   |   |   |   |   |
|                                                                                                                      |   |   |   |   |   |   |   |
| The                  accompanying notes are an integral part of these consolidated financial                  statements. |

----

**UNITED      ENERGY CORP.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**JUNE      30, 2007 (Unaudited)**

**1**
**.**
**BASIS      OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING      POLICIES**

*Basis      of presentation*

----

**UNITED      ENERGY CORP.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

**2.**
**USE      OF ESTIMATES**

**3.**
**DISCONTINUED      OPERATIONS**

*.*

|                                                 |   | 2007   |   | 2006   |   |
|------------------------------------------------------|--------|--------|--------|--------|--------|
|                                                 |   |   |   |   |   |
| Revenues                                             |   | $      | -      |   | $      | 240 |   |
| Cost                  of goods sold                  |   |   | -      |   |   | 216 |   |
| Gross                  profit                        |   |   | -      |   |   | 24 |   |
| Operating                  expenses                  |   |   |   |   |   |   |   |
| Selling,                  general and administrative |   |   | -      |   |   | 15,968 |   |
| Loss                  from discontinued operations   |   | $      | -      |   | $      | (15,944 | ) |

|                                               |   | June                  30, |   | March                  31, |   |
|----------------------------------------------------|--------|---------------------------|--------|----------------------------|--------|
|                                               |   | 2007                      |   | 2007                       |   |
|                                               |   |                      |   |                       |   |
| Accounts                  receivable               |   | $                         | -      |                       | $      | 31 |   |
| Note                  receivable                   |   |                      | 4,476  |                       |   | 4,476 |   |
| Assets                  of discontinued operations |   | $                         | 4,476  |                       | $      | 4,507 |   |

**4.**
**INVENTORY**

|                               |   | June                  30, |    | March                  31, |   |
|------------------------------------|--------|---------------------------|---------|----------------------------|--------|
|                               |   | 2007                      |    | 2007                       |   |
|                               |   |                      |    |                       |   |
| Blended                  chemicals |   | $                         | 95,695  |                       | $      | 93,814 |   |
| Raw                  materials     |   |                      | 48,456  |                       |   | 44,984 |   |
| Total                  inventory   |   | $                         | 144,151 |                       | $      | 138,798 |   |

----

**UNITED      ENERGY CORP.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

**5.      RELATED-PARTY TRANSACTIONS**

**6.**
**EMPLOYEE      BENEFITS PLAN**

*Stock      Option Plans*

----

**UNITED      ENERGY CORP.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

***Fair      Value of Stock Options***

|                                      |   | 2007   |   | 2006   |   |
|-------------------------------------------|--------|--------|--------|--------|--------|
| Expected                  life (in years) |   |   | 10     |   |   | 10 |   |
| Risk-free                  interest rate  |   |   | 4.54   | %      |   | 4.54 | % |
| Volatility                                |   |   | 88.5   |   |   | 125.8 |   |
| Dividend                  yield           |   |   | 0      | %      |   | 0 | % |

*Summary      Stock Option Activity*
* *

|                                                      |   | **Number                of****Shares** |      | **Weighted****Average****Exercise****Price** |   | **Weighted****Average****Remaining****Contractual****Life                (Years)** |   |   **Aggregate****Intrinsic****Value** |   |
|-----------------------------------------------------------|--------|----------------------------------------|-----------|----------------------------------------------|--------|------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|
| Options                outstanding April 1, 2007          |   |                                   | 3,502,500 |                                         | $      | 1.17                                                                               |   |                                            | 7.16   |   |   |   |   |
| Granted                                                   |   |                                   | 250,000   |                                         | $      | 1.00                                                                               |   |                                            |   |   |   |   |   |
| Exercised                                                 |   |                                   | —   |                                         |   |                                                                               |   |                                            |   |   |   |   |   |
| Options                outstanding June 30, 2007          |   |                                   | 3,752,500 |                                         | $      | 1.16                                                                               |   |                                            | 6.75   |   |   |   |   |
| Vested                and expected to vest-end of quarter |   |                                   | 3,752,500 |                                         | $      | 1.16                                                                               |   |                                            | 6.75   |   | $ | $— |   |
| Exercisable-end                of quarter                 |   |                                   | 3,319,439 |                                         | $      | 1.17                                                                               |   |                                            | 6.81   |   | $ | $— |   |

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**UNITED        ENERGY CORP.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

**7.**
**COMMITMENTS      AND CONTINGENCIES**

**Litigation**

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**Item      2**
***Management's      Discussion and Analysis or Plan of Operation***

**CAUTIONARY      STATEMENT RELATING TO FORWARD-LOOKING STATEMENTS**

**Overview**

** **

----

**RESULTS      OF OPERATIONS**

**Three      Months Ended June 30, 2007 Compared to the Three Months Ended June 30,      2006**

*Revenues*

*Cost      of Goods Sold*

*Gross      Profit*

***Operating      Costs and Expenses***

*General      and Administrative Expenses*

*Depreciation      and Amortization*

*Interest      Income*

*Interest      Expense*

*Net      Loss*

----

***Liquidity      and Capital Resources***

***Concentration      of Risk***

*** ***

***Off-Balance      Sheet Arrangements***

***Quantitative      and Qualitative Disclosures about Market Risk***

**Item      3.**
**Controls      and Procedures.**

**Evaluation      of the Company's Disclosure Controls**

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**PART      II**

**OTHER      INFORMATION**

**Item      1.**
**Legal      Proceedings**

**Item      2.**
**Unregistered      Sales of Equity Securities and Use of Proceeds **

**Item      5.**
**Other      Information**

**Item      6.**
**Exhibits      **

|  | 10.34 | Employment                Agreement with Ronald Wilen dated April 17,                2007. |
|--|-------|--------------------------------------------------------------------------------------------|

|   | 31.1 | Chief                Executive Officer’s Certificate, pursuant to Rule 13a-14(a)/ 15d-14(a) of                the Exchange Act. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Chief                Financial Officer’s Certificate, pursuant to Rule 13a-14(a)/ 15d-14(a) of                the Exchange Act |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Chief                Executive Officer’s Certificate, pursuant to Section 1350 of Chapter 63 of                Title 18 of the United States Code (18 U.S.C. 1350). |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Chief                Financial Officer’s Certificate, pursuant to Section 1350 of Chapter 63 of                Title 18 of the United States Code (18 U.S.C. 1350). |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**SIGNATURES**

|                                             |                                                  |                        |
|--------------------------------------------------|-------------------------------------------------------|-----------------------------|
| Dated: August                14, 2007  | UNITED              ENERGY              CORP.         |
|                                        |                                             |                   |
|                                                  | By:                                         | /s/              Brian King |
|                                             | Brian                King,                            |
|                                             | Chief                Executive Officer                |
|                                             | (as                principal executive officer)  |

|   |                                                                          |                            |
|--------|-------------------------------------------------------------------------------|---------------------------------|
|   |                                                                          |                            |
|        | By:                                                                 | /s/              James McKeever |
|   | James                McKeever,                                                |
|   | Interim                Chief Financial Officer                                |
|   | (as                principal financial and accounting                officer) |

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