**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

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**Form      10-QSB/A**

**(Mark      One)**

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

**For      the quarterly period ended June 30, 2006**

| 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**

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**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, 2006 (Unaudited) and March                  31, 2006                                             | 3-4 |
|                                               |                                                                                                                                                   |   |
|                                               | Consolidated                  statements of operations for the three months ended June 30, 2006                  (Unaudited) and 2005 (Unaudited)      | 5 |
|                                               |                                                                                                                                                   |   |
|                                               | Consolidated                  statement of stockholders' equity for the three months ended June                  30, 2006                  (Unaudited) | 6 |
|                                               |                                                                                                                                                   |   |
|                                               | Consolidated                  statements of cash flows for the three months ended June 30, 2006                  (Unaudited) and 2005 (Unaudited)      | 7-8 |
|                                               |                                                                                                                                                   |   |
|                                               | Notes                  to consolidated financial statements                                                                                            | 9-15 |
|                                               |                                                                                                                                                   |   |
| Item                  2.                           | Management's                  Discussion and Analysis or Plan of Operation                                                                             | 16-18 |
|                                               |                                                                                                                                                   |   |
| Item                  3                            | Controls                  and Procedures                                                                                                               | 19 |
|                                               |                                                                                                                                                   |   |
| **PART                  II. OTHER INFORMATION**    |                                                                                                                                                   |
|                                               |                                                                                                                                                   |
| Item                  2.                           | Unregistered                  Sales of Equity Securities and Use of Proceeds                                                                           | 20 |
|                                               |                                                                                                                                                   |   |
| Item                  6.                           | Exhibits                                                                                                                                               | 20 |
|                                               |                                                                                                                                                   |   |
| Signatures                                         |                                                                                                                                                   | 21 |

----

| **Item                1.*****Financial                Statements*** |   |   |   |   |   |
|---------------------------------------------------------------------|--------|--------|--------|--------|--------|

| **UNITED                ENERGY CORP. AND SUBSIDIARIES**            |
|--------------------------------------------------------------------|
| **CONSOLIDATED                BALANCE SHEETS**                     |
| **JUNE                30, 2006 AND MARCH 31,                2006** |

|                                                                                                                                                              |   | **June                  30,** |      | **March                  31,** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|-----------|--------------------------------|--------|
|                                                                                                                                                              |   | **2006**                      |      | **2006**                       |   |
|                                                                                                                                                              |   | **(Unaudited)**               |      |                           |   |
|                                                                                                                                                              |   |                          |      |                           |   |
| **ASSETS**                                                                                                                                                        |   |
|                                                                                                                                                              |   |                          |      |                           |   |
| CURRENT                  ASSETS:                                                                                                                                  |   |                          |      |                           |   |
| Cash                  and cash equivalents                                                                                                                        |   | $                             | 4,259,560 |                           | $      | 5,194,748 |   |
| Accounts                  receivable, net of allowance for doubtful accounts of $12,824 and                  $5,018,                  respectively                |   |                          | 254,758   |                           |   | 91,557 |   |
| Inventory,                  net of allowance of $16,290 and $16,290, respectively                                                                                 |   |                          | 156,258   |                           |   | 106,957 |   |
| Note                  receivable, net of reserve of $10,525 and $10,525,                  respectively                                                            |   |                          | 14,476    |                           |   | 19,476 |   |
| Prepaid                  expenses and other current assets                                                                                                        |   |                          | 67,626    |                           |   | 84,657 |   |
| Total                  current assets                                                                                                                             |   |                          | 4,752,678 |                           |   | 5,497,395 |   |
|                                                                                                                                                              |   |                          |      |                           |   |   |   |
| PROPERTY                  AND EQUIPMENT, net of accumulated depreciation and amortization                  of                  $388,571 and $373,080 respectively |   |                          | 131,503   |                           |   | 146,994 |   |
|                                                                                                                                                              |   |                          |      |                           |   |   |   |
| OTHER                  ASSETS:                                                                                                                                    |   |                          |      |                           |   |   |   |
| Goodwill,                  net                                                                                                                                    |   |                          | 15,499    |                           |   | 15,499 |   |
| Patents,                  net of accumulated amortization of $127,254 and $119,794,                  respectively                                                 |   |                          | 320,112   |                           |   | 327,572 |   |
| Loans                  receivable                                                                                                                                 |   |                          | 2,549     |                           |   | 364 |   |
| Deposits                                                                                                                                                          |   |                          | 1,385     |                           |   | 1,385 |   |
| Total                  assets                                                                                                                                     |   | $                             | 5,223,726 |                           | $      | 5,989,209 |   |

| The                  accompanying notes are an integral part of these consolidated balance                  sheets |
|--------------------------------------------------------------------------------------------------------------------|

----

| **UNITED                ENERGY CORP. AND SUBSIDIARIES**            |
|--------------------------------------------------------------------|
| **CONSOLIDATED                BALANCE SHEETS**                     |
| **JUNE                30, 2006 AND MARCH 31,                2006** |

|                                                                                                                                                                                                                                             |   | **June                  30,** |        | **March                  31,** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|-------------|--------------------------------|--------|
|                                                                                                                                                                                                                                             |   | **2006**                      |        | **2006**                       |   |
|                                                                                                                                                                                                                                             |   | **(Unaudited)**               |        |                           |   |
|                                                                                                                                                                                                                                             |   |                          |        |                           |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                                                                                                                                                        |   |
|                                                                                                                                                                                                                                             |   |                          |        |                           |   |
| CURRENT                  LIABILITIES:                                                                                                                                                                                                            |   |                          |        |                           |   |
| Accounts                  payable                                                                                                                                                                                                                |   | $                             | 188,273     |                           | $      | 279,303 |   |
| Accrued                  expenses                                                                                                                                                                                                                |   |                          | 139,969     |                           |   | 134,286 |   |
| Due                  to related parties                                                                                                                                                                                                          |   |                          | 244,141     |                           |   | 444,141 |   |
| Total                  current liabilities                                                                                                                                                                                                       |   |                          | 572,383     |                           |   | 857,730 |   |
|                                                                                                                                                                                                                                             |   |                          |        |                           |   |   |   |
| STOCKHOLDERS'                  EQUITY:                                                                                                                                                                                                           |   |                          |        |                           |   |   |   |
| Series                  A Convertible Preferred Stock: $8,000 stated value, 420 shares                  authorized;                  3 shares issued and outstanding as of June 30 2006 and March 31,                  2006                      |   |                          | 24,000      |                           |   | 24,000 |   |
| Common                  stock: $0.01 par value 100,000,000 shares authorized; 31,030,115                  and                  31,017,615 shares issued and outstanding as of June 30, 2006 and                  March 31,                  2006 |   |                          | 310,301     |                           |   | 310,176 |   |
| Additional                  paid-in capital                                                                                                                                                                                                      |   |                          | 21,309,310  |                           |   | 21,221,471 |   |
| Accumulated                  deficit                                                                                                                                                                                                             |   |                          | (16,992,268 | )                              |   | (16,424,168 | ) |
| Total                  stockholders' equity                                                                                                                                                                                                      |   |                          | 4,651,343   |                           |   | 5,131,479 |   |
| Total                  liabilities and stockholders' equity                                                                                                                                                                                      |   | $                             | 5,223,726   |                           | $      | 5,989,209 |   |

| The                  accompanying notes are an integral part of these consolidated balance                  sheets |
|--------------------------------------------------------------------------------------------------------------------|

----

**UNITED        ENERGY CORP. AND SUBSIDIARIES**

**CONSOLIDATED        STATEMENTS OF OPERATIONS**

**FOR        THE THREE MONTHS ENDED JUNE 30, 2006 AND 2005**

|                                                                                 |   | **For                    the Three Months** |       |
|--------------------------------------------------------------------------------------|--------|---------------------------------------------|------------|
|                                                                                 |   | **Ended                    June 30,**       |       |
|                                                                                 |   | **2006**                                    |       | **2005** |   |
|                                                                                 |   | **(Unaudited)**                             |       |
|                                                                                 |   |                                        |       |   |   |
| REVENUES,                    net                                                     |   | $                                           | 225,067    |   | $ | 76,610 |   |
|                                                                                 |   |                                        |       |   |   |   |   |
| COST                    OF GOODS SOLD                                                |   |                                        | 102,076    |   |   | 61,717 |   |
|                                                                                 |   |                                        |       |   |   |   |   |
| Gross                    profit                                                      |   |                                        | 122,991    |   |   | 14,893 |   |
|                                                                                 |   |                                        |       |   |   |   |   |
| OPERATING                    EXPENSES:                                               |   |                                        |       |   |   |   |   |
| Selling,                    general and administrative                               |   |                                        | 715,700    |   |   | 721,422 |   |
| Depreciation                    and amortization                                     |   |                                        | 18,638     |   |   | 17,245 |   |
| Total                    operating expenses                                          |   |                                        | 734,338    |   |   | 738,667 |   |
|                                                                                 |   |                                        |       |   |   |   |   |
| Loss                    from operations                                              |   |                                        | (611,347   | ) |   | (723,774 | ) |
|                                                                                 |   |                                        |       |   |   |   |   |
| OTHER                    INCOME (EXPENSE), net:                                      |   |                                        |       |   |   |   |   |
| Interest                    income                                                   |   |                                        | 44,548     |   |   | 10 |   |
| Interest                    expense                                                  |   |                                        | (855       | ) |   | (90,574 | ) |
| Total                    other                    expense, net                       |   |                                        | 43,693     |   |   | (90,564 | ) |
|                                                                                 |   |                                        |       |   |   |   |   |
| Net                    loss                                                          |   |                                        | (567,654   | ) |   | (814,338 | ) |
|                                                                                 |   |                                        |       |   |   |   |   |
| Preferred                    dividends                                               |   |                                        | (446       | ) |   | - |   |
|                                                                                 |   |                                        |       |   |   |   |   |
| Net                    loss applicable to common shareholders                        |   | $                                           | (568,100   | ) | $ | (814,338 | ) |
|                                                                                 |   |                                        |       |   |   |   |   |
| BASIC                    AND DILUTED LOSS PER SHARE:                                 |   |                                        |       |   |   |   |   |
| Total                    basic and diluted loss per share                            |   | $                                           | (0.02      | ) | $ | (0.03 | ) |
|                                                                                 |   |                                        |       |   |   |   |   |
| WEIGHTED                    AVERAGE NUMBER OF SHARES, OUTSTANDING, basic and diluted |   |                                        | 31,026,956 |   |   | 23,529,472 |   |

| The                  accompanying notes are an integral part of these consolidated                  statements. |
|-----------------------------------------------------------------------------------------------------------------|

----

| **UNITED                ENERGY CORP. AND SUBSIDIARIES**                                |
|----------------------------------------------------------------------------------------|
| **CONSOLIDATED                STATEMENTS OF STOCKHOLDERS' EQUITY**                     |
| **FOR                THE THREE MONTHS ENDED JUNE 30, 2006                (UNAUDITED)** |

|                                                          |   |                              |       |          |   |        |   | **Additional**  |    |        |   |       |   |
|---------------------------------------------------------------|--------|-----------------------------------|------------|---------------|--------|-------------|--------|-----------------|---------|-------------|--------|------------|--------|
|                                                          |   | **Common                  Stock** |       | **Preferred** |   | **Paid-In** |   | **Accumulated** |    |        |   |
|                                                          |   | **Shares**                        |       | **Amount**    |   | **Stock**   |   | **Capital**     |    | **Deficit** |   | **Total**  |   |
|                                                          |   |                              |       |          |   |        |   |            |    |        |   |       |   |
| BALANCE,                  April 1, 2006                       |   |                              | 31,017,615 |          |   | 310,176     |   | $               | 24,000  |        | $      | 21,221,471 |   | $ | (16,424,168 | ) | $ | 5,131,479 |   |
| Exercise                  of stock options                    |   |                              | 12,500     |          |   | 125         |   |            | -       |        |   | 13,750     |   |   | — |   |   | 13,875 |   |
| Compensation                  expense associated with options |   |                              | —    |          |   | —     |   |            | -       |        |   | 74,089     |   |   | — |   |   | 74,089 |   |
| Dividends                  accrued on preferred shares        |   |                              | —    |          |   | —     |   |            | — |        |   | —    |   |   | (446 | ) |   | (446 | ) |
| Net                  loss                                     |   |                              | —    |          |   | —     |   |            | — |        |   | —    |   |   | (567,654 | ) |   | (567,654 | ) |
| BALANCE,                  June 30, 2006                       |   |                              | 31,030,115 |          |   | 310,301     |   | $               | 24,000  |        | $      | 21,309,310 |   | $ | (16,992,268 | ) | $ | 4,651,343 |   |

| The                  accompanying notes are an integral part of these consolidated                  statements. |
|-----------------------------------------------------------------------------------------------------------------|

----

**UNITED      ENERGY CORP. AND SUBSIDIARIES**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS**

**FOR        THE THREE MONTHS ENDED JUNE 30, 2006 AND 2005**

|                                                                                                         |   | **2006**                    |      | **2005** |   |
|--------------------------------------------------------------------------------------------------------------|--------|-----------------------------|-----------|----------|--------|
|                                                                                                         |   | **(Unaudited)**   |      |
|                                                                                                         |   |                        |      |     |   |
| CASH                  FLOWS FROM OPERATING ACTIVITIES:                                                       |   |                        |      |     |   |
| Net                  loss                                                                                    |   | $                           | (568,100  | )        | $      | (814,338 | ) |
|                                                                                                         |   |                        |      |     |   |   |   |
| Adjustments                  to reconcile net loss to net cash used in operating                  activities |   |                        |      |     |   |   |   |
| Depreciation                  and amortization                                                               |   |                        | 22,951    |     |   | 92,460 |   |
| Warrants                  granted in consideration for services                                              |   |                        | -         |     |   | 129,720 |   |
| Compensation                  expense associated with options                                                |   |                        | 74,089    |     |   | - |   |
|                                                                                                         |   |                        |      |     |   |   |   |
| Changes                  in operating assets and liabilities                                                 |   |                        |      |     |   |   |   |
| (Increase)                  decrease in accounts receivable, net                                             |   |                        | (163,201  | )        |   | 637,071 |   |
| Increase                  in inventory, net                                                                  |   |                        | (49,301   | )        |   | (3,410 | ) |
| Decrease                  in note receivable, net                                                            |   |                        | 5,000     |     |   | 10,000 |   |
| Decrease                  in prepaid expenses and other current assets                                       |   |                        | 17,030    |     |   | 56,532 |   |
| Decrease                  in accounts payable and accrued expenses                                           |   |                        | (85,346   | )        |   | (117,044 | ) |
|                                                                                                         |   |                        |      |     |   |   |   |
| Net                  cash used in operating activities                                                       |   |                        | (746,878  | )        |   | (9,009 | ) |
|                                                                                                         |   |                        |      |     |   |   |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES:                                                       |   |                        |      |     |   |   |   |
| Employee                  loans                                                                              |   |                        | (2,185    | )        |   | 137 |   |
| Payments                  for acquisition of property and equipment                                          |   |                        | -         |     |   | (9,116 | ) |
| Payments                  for patents                                                                        |   |                        | -         |     |   | (12,147 | ) |
|                                                                                                         |   |                        |      |     |   |   |   |
| Net                  cash used in investing activities                                                       |   |                        | (2,185    | )        |   | (21,126 | ) |
|                                                                                                         |   |                        |      |     |   |   |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES:                                                       |   |                        |      |     |   |   |   |
| Payments                  of related party payable                                                           |   |                        | (200,000  | )        |   | (133,600 | ) |
| Proceeds                  from the exercise of stock options                                                 |   |                        | 13,875    |     |   | - |   |
| Proceeds                  from stock subscription receivable                                                 |   |                        | -         |     |   | 13,333 |   |
|                                                                                                         |   |                        |      |     |   |   |   |
| Net                  cash used in financing activities                                                       |   |                        | (186,125  | )        |   | (120,267 | ) |
|                                                                                                         |   |                        |      |     |   |   |   |
| Net                  decrease in cash and cash equivalents                                                   |   |                        | (935,188  | )        |   | (150,402 | ) |
| CASH                  AND CASH EQUIVALENTS, beginning of period                                              |   |                        | 5,194,748 |     |   | 365,610 |   |
|                                                                                                         |   |                        |      |     |   |   |   |
| CASH                  AND CASH EQUIVALENTS, end of period                                                    |   | $                           | 4,259,560 |     | $      | 215,208 |   |

| The                      accompanying notes are an integral part of these consolidated                      statements. |
|-------------------------------------------------------------------------------------------------------------------------|

----

**UNITED          ENERGY CORP. AND SUBSIDIARIES**

**CONSOLIDATED          STATEMENTS OF CASH FLOWS**

**FOR          THE THREE MONTHS ENDED JUNE 30, 2006 AND 2005**

|                                                                                                           |   | **2006**        |   | **2005** |   |
|----------------------------------------------------------------------------------------------------------------|--------|-----------------|--------|----------|--------|
|                                                                                                           |   | **(Unaudited)** |   |
|                                                                                                           |   |            |   |     |   |
| SUPPLEMENTAL                    DISCLOSURES OF CASH FLOW INFORMATION:                                          |   |            |   |     |   |
| Cash                    paid during the period                                                                 |   |            |   |     |   |
| Interest                                                                                                       |   | $               | 855    |     | $      | 705 |   |
| Income                    taxes                                                                                |   | $               | 1,000  |     | $      | 1,006 |   |
|                                                                                                           |   |            |   |     |   |   |   |
| SUPPLEMENTAL                    DISCLOSURES OF NON-CASH INVESTING AND FINANCING                    ACTIVITIES: |   |            |   |     |   |   |   |
| Conversion                    of note payable into common stock                                                |   | $               | -      |     | $      | 745,800 |   |

| The                        accompanying notes are an integral part of these consolidated                        statements. |
|-----------------------------------------------------------------------------------------------------------------------------|

----

**UNITED        ENERGY CORP.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**JUNE      30, 2006 (Unaudited)**

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

*Basis      of presentation*

*Stock-Based      Compensation*

*Shared-based      Payments,*
*Accounting      for Stock-Based Compensation*

----

**UNITED      ENERGY CORP.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

| **2.** | **USE                OF ESTIMATES** |
|--------|-------------------------------------|

----

**UNITED      ENERGY CORP.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

| **3.** | **SEGMENT                INFORMATION** |
|--------|----------------------------------------|

|                                                      |   | Graphic                  Arts |    | SpecialtyChemicals |   | Corporate |   | Total  |      |
|-----------------------------------------------------------|--------|-------------------------------|---------|--------------------|--------|-----------|--------|--------|-----------|
| Revenues                                                  |   | $                             | 240     |               | $      | 224,827   |   | $      | —   |   | $ | 225,067 |   |
| Gross                  profit                             |   | $                             | 24      |               | $      | 122,967   |   | $      | —   |   | $ | 122,991 |   |
| General                  and administrative               |   |                          | 15,968  |               |   | 328,275   |   |   | 371,457   |   |   | 715,700 |   |
| Depreciation,                  amortization and depletion |   |                          | — |               |   | 16,989    |   |   | 1,649     |   |   | 18,638 |   |
| Interest                  income                          |   |                          | — |               |   | —   |   |   | 44,548    |   |   | 44,548 |   |
| Interest                  expense                         |   |                          | — |               |   | —   |   |   | 855       |   |   | 855 |   |
| Net                  loss                                 |   | $                             | (15,944 | )                  | $      | (222,297  | )      | $      | (329,413  | ) | $ | (567,654 | ) |
| Cash                  and cash equivalents                |   | $                             | — |               | $      | —   |   | $      | 4,259,560 |   | $ | 4,259,560 |   |
| Accounts                  receivable, net                 |   |                          | — |               |   | 254,758   |   |   | —   |   |   | 254,758 |   |
| Inventory,                  net                           |   |                          | 7,620   |               |   | 148,638   |   |   | —   |   |   | 156,258 |   |
| Note                  receivable, net                     |   |                          | 14,476  |               |   | —   |   |   | —   |   |   | 14,476 |   |
| Prepaid                  expenses                         |   |                          | — |               |   | —   |   |   | 67,626    |   |   | 67,626 |   |
| Property                  and equipment, net              |   |                          | — |               |   | 95,704    |   |   | 35,799    |   |   | 131,503 |   |
| Goodwill,                  net                            |   |                          | — |               |   | 15,499    |   |   | —   |   |   | 15,499 |   |
| Patents,                  net                             |   |                          | — |               |   | 320,112   |   |   | —   |   |   | 320,112 |   |
| Loans                  receivable                         |   |                          | — |               |   | —   |   |   | 2,549     |   |   | 2,549 |   |
| Deposits                                                  |   |                          | — |               |   | —   |   |   | 1,385     |   |   | 1,385 |   |
| Total                  assets                             |   | $                             | 22,096  |               | $      | 834,711   |   | $      | 4,366,919 |   | $ | 5,223,726 |   |
| Capital                  Expenditures                     |   | $                             | — |               | $      | —   |   | $      | —   |   | $ | — |   |

----

**UNITED      ENERGY CORP.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

|                                                      |   | Graphic                  Arts |    | SpecialtyChemicals |   | Corporate |   | Total  |     |
|-----------------------------------------------------------|--------|-------------------------------|---------|--------------------|--------|-----------|--------|--------|----------|
| Revenues                                                  |   | $                             | 271     |               | $      | 76,339    |   | $      | —  |   | $ | 76,610 |   |
| Gross                  profit                             |   | $                             | 271     |               | $      | 14,622    |   | $      | —  |   | $ | 14,893 |   |
| General                  and administrative               |   |                          | 34,332  |               |   | 466,444   |   |   | 220,646  |   |   | 721,422 |   |
| Depreciation,                  amortization and depletion |   |                          | — |               |   | 14,917    |   |   | 2,328    |   |   | 17,245 |   |
| Interest                  income                          |   |                          | — |               |   | —   |   |   | 10       |   |   | 10 |   |
| Interest                  expense                         |   |                          | — |               |   | —   |   |   | 90,574   |   |   | 90,574 |   |
| Net                  loss                                 |   | $                             | (34,061 | )                  | $      | (466,739  | )      | $      | (313,538 | ) | $ | (814,338 | ) |
| Cash                  and cash equivalents                |   | $                             | — |               | $      | —   |   | $      | 215,208  |   | $ | 215,208 |   |
| Accounts                  receivable, net                 |   |                          | 74,295  |               |   | 71,639    |   |   | —  |   |   | 145,934 |   |
| Inventory,                  net                           |   |                          | 20,025  |               |   | 119,345   |   |   | —  |   |   | 139,370 |   |
| Note                  receivable, net                     |   |                          | 18,650  |               |   | —   |   |   | —  |   |   | 18,650 |   |
| Prepaid                  expenses                         |   |                          | — |               |   | —   |   |   | 64,043   |   |   | 64,043 |   |
| Property                  and equipment, net              |   |                          | — |               |   | 132,176   |   |   | 26,077   |   |   | 158,253 |   |
| Goodwill,                  net                            |   |                          | — |               |   | 15,499    |   |   | —  |   |   | 15,499 |   |
| Patents,                  net                             |   |                          | — |               |   | 301,110   |   |   | —  |   |   | 301,110 |   |
| Deferred                  note costs                      |   |                          | — |               |   | —   |   |   | 180,514  |   |   | 180,514 |   |
| Deposits                                                  |   |                          | — |               |   | —   |   |   | 1,385    |   |   | 1,385 |   |
| Total                  assets                             |   | $                             | 112,970 |               | $      | 639,769   |   | $      | 487,227  |   | $ | 1,239,966 |   |
| Capital                  Expenditures                     |   | $                             | — |               | $      | 9,116     |   | $      | —  |   | $ | 9,116 |   |

| GEOGRAPHICAL                  INFORMATION |   | REVENUE |    |
|-------------------------------------------|--------|---------|---------|
|                                      |   | 2006    |    | 2005 |   |
| U.S.                                      |   | $       | 225,067 |   | $ | 76,610 |   |
| Non                  U.S.                 |   |    | — |   |   | — |   |
| Total                  revenue            |   | $       | 225,067 |   | $ | 76,610 |   |

----

**UNITED      ENERGY CORP.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

| **4.** | **INVENTORY** |
|--------|---------------|

|                               |   |   | **June                  30,** |   |   | **March                  31,** |   |
|------------------------------------|--------|--------|-------------------------------|--------|--------|--------------------------------|--------|
|                               |   |   | **2006**                      |   |   | **2006**                       |   |
| Blended                  chemicals |   | $      | 116,765                       |   | $      | 68,255                         |   |
| Raw                  materials     |   |   | 39,493                        |   |   | 38,702                         |   |
| Total                  inventory   |   | $      | 156,258                       |   | $      | 106,957                        |   |

| **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***

|                                                       |   |   | **2006** |   |   | **2005** |   |
|------------------------------------------------------------|--------|--------|----------|--------|--------|----------|--------|
| Expected                  life                  (in years) |   |   | 10       |   |   | 10       |   |
| Risk-free                  interest rate                   |   |   | 4.54     | %      |   | 4.54     | %      |
| Volatility                                                 |   |   | 125.8    |   |   | 135.0    |   |
| 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, 2006                    |   |                                   | 3,185,000 |                                         | $      | 1.11                                                                               |   |                                            | 8.48   |   |   |   |   |
| Granted                                                             |   |                                   | 250,000   |                                         | $      | 2.05                                                                               |   |                                            |   |   |   |   |   |
|                        Exercised |   |                                   | (12,500   | )                                            |   |                                                                               |   |                                            |   |   |   |   |   |
| Options                outstanding June 30, 2006                    |   |                                   | 3,422,500 |                                         | $      | 1.17                                                                               |   |                                            | 8.36   |   |   |   |   |
| Vested                and expected to vest-end of quarter           |   |                                   | 3,185,000 |                                         | $      | 1.17                                                                               |   |                                            | 8.36   |   | $ | 1,046,500 |   |
| Exercisable-end                of quarter                           |   |                                   | 2,879,340 |                                         | $      | 1.19                                                                               |   |                                            | 7.93   |   | $ | 837,903 |   |
|                                                                |   |                                   |      |                                         |   |                                                                               |   |                                            |   |   |   |   |   |

----

**UNITED      ENERGY CORP.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

|                                                                                                                                                 |   | For                the ThreeMonths EndedJune 30, 2005 |     |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|----------|
|                                                                                                                                                 |   |                                                  |     |
| Net                loss as reported                                                                                                                  |   | $                                                     | (814,338 | ) |
|                                                                                                                                                 |   |                                                  |     |   |
| Deduct:                                                                                                                                              |   |                                                  |     |   |
| Total                stock based employee compensation expense                determined under fair value based method                for all awards |   |                                                  | (163,756 | ) |
|                                                                                                                                                 |   |                                                  |     |   |
| Pro                forma loss                                                                                                                        |   | $                                                     | (978,094 | ) |
| Basic                and diluted loss per common share                                                                                               |   |                                                  |     |   |
|                                                                                                                                                 |   |                                                  |     |   |
| As                reported                                                                                                                           |   | $                                                     | (0.03    | ) |
|                                                                                                                                                 |   |                                                  |     |   |
| Pro                forma                                                                                                                             |   | $                                                     | (0.04    | ) |

| **7.** | **COMMITMENTS                AND CONTINGENCIES** |
|--------|--------------------------------------------------|

----

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

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

**Overview**

** **

|   |                                                                                                                                                   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| o      | KH-30                paraffin dispersant for the oil industry and related products;                                                                    |
|   |                                                                                                                                                   |
| o      | Uniproof                specialty-coated proofing paper for the printing industry; and                                                                 |
|   |                                                                                                                                                   |
| o      | following                additional testing, “Slick Barrier” underwater protective coatings for use                in marine applications. |

----

**RESULTS      OF OPERATIONS**

**Three      Months Ended June 30, 2006 Compared to the Three Months Ended June 30,      2005**

*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.**

----

**PART      II**

**OTHER      INFORMATION**

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

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

|  | 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              10, 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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