**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 December 31, 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)*

----

**INDEX**

| **PART                I. FINANCIAL INFORMATION** |                                                                                                                                                                            |
|--------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                             |                                                                                                                                                                            |
| Item                1.                           | Financial                Statements                                                                                                                                             |   |
|                                             |                                                                                                                                                                            |   |
|                                             | Consolidated                balance sheets December 31, 2007 (Unaudited) andMarch                31, 2007                                                                       | 3-4 |
|                                             |                                                                                                                                                                            |   |
|                                             | Consolidated                statements of operations for the three months and nine months                endedDecember                31, 2007 (Unaudited) and 2006 (Unaudited) | 5 |
|                                             |                                                                                                                                                                            |   |
|                                             | Consolidated                statement of stockholders' equity for the nine months endedDecember                31, 2007 (Unaudited)                                             | 6 |
|                                             |                                                                                                                                                                            |   |
|                                             | Consolidated                statements of cash flows for the nine months ended December 31,                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                                                                                                        | 14-17 |
|                                             |                                                                                                                                                                            |   |
| Item                3                            | Controls                and Procedures                                                                                                                                          | 17 |
|                                             |                                                                                                                                                                            |   |
| **PART                II. OTHER INFORMATION**    |                                                                                                                                                                            |
|                                             |                                                                                                                                                                            |
| Item                1.                           | Legal                Proceedings                                                                                                                                                | 18 |
|                                             |                                                                                                                                                                            |   |
| Item                2.                           | Unregistered                Sales of Equity Securities and Use of Proceeds                                                                                                      | 18 |
|                                             |                                                                                                                                                                            |   |
| Item                5.                           | Other                Information                                                                                                                                                | 18 |
|                                             |                                                                                                                                                                            |   |
| Item                6.                           | Exhibits                                                                                                                                                                        | 18 |
|                                             |                                                                                                                                                                            |   |
| Signatures                                       |                                                                                                                                                                            | 19 |

----

**Item      1. **
***Financial      Statements***

**UNITED      ENERGY CORP. AND SUBSIDIARIES**

**CONSOLIDATED      BALANCE SHEETS**

|                                                                                                                                        |   | **December                31,****2007** |      | **March                31,****2007** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|-----------|--------------------------------------|--------|
|                                                                                                                                        |   | **(Unaudited)**                         |      |                                 |   |
|                                                                                                                                        |   |                                    |      |                                 |   |
| **ASSETS**                                                                                                                                  |        |                                         |           |                                      |
|                                                                                                                                        |   |                                    |      |                                 |   |
| CURRENT                ASSETS:                                                                                                              |   |                                    |      |                                 |   |
| Cash                and cash equivalents                                                                                                    |   | $                                       | 1,254,216 |                                 | $      | 2,863,906 |   |
| Accounts                receivable, net of allowance for doubtfulaccounts of $5,718 and                $5,879, respectively                 |   |                                    | 64,254    |                                 |   | 64,466 |   |
| Inventory                                                                                                                                   |   |                                    | 234,688   |                                 |   | 138,798 |   |
| Prepaid                expenses and other current assets                                                                                    |   |                                    | 135,443   |                                 |   | 128,216 |   |
| Assets                of discontinued operations                                                                                            |   |                                    | -         |                                 |   | 4,507 |   |
| Total                current assets                                                                                                         |   |                                    | 1,688,601 |                                 |   | 3,199,893 |   |
|                                                                                                                                        |   |                                    |      |                                 |   |   |   |
| PROPERTY                AND EQUIPMENT, net of accumulateddepreciation and amortization of                $430,477 and $435,703 respectively |   |                                    | 55,765    |                                 |   | 88,081 |   |
|                                                                                                                                        |   |                                    |      |                                 |   |   |   |
| OTHER                ASSETS:                                                                                                                |   |                                    |      |                                 |   |   |   |
| Goodwill,                net                                                                                                                |   |                                    | 15,499    |                                 |   | 15,499 |   |
| Patents,                net of accumulated amortization of $177,337and $150,861,                respectively                                |   |                                    | 374,779   |                                 |   | 345,889 |   |
| Loans                receivable                                                                                                             |   |                                    | 55,877    |                                 |   | 1,864 |   |
| Deposits                                                                                                                                    |   |                                    | 1,385     |                                 |   | 1,385 |   |
| Total                assets                                                                                                                 |   | $                                       | 2,191,906 |                                 | $      | 3,652,611 |   |

----

**UNITED      ENERGY CORP. AND SUBSIDIARIES**

**CONSOLIDATED      BALANCE SHEETS**

|                                                                                                                                                                                                                      |   | **December                31,** |        | **March                31,** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|-------------|------------------------------|--------|
|                                                                                                                                                                                                                      |   | **2007**                        |        | **2007**                     |   |
|                                                                                                                                                                                                                      |   | **(Unaudited)**                 |        |                         |   |
|                                                                                                                                                                                                                      |   |                            |        |                         |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                                                                                                                                   |   |                            |        |                         |   |
|                                                                                                                                                                                                                      |   |                            |        |                         |   |
| CURRENT                LIABILITIES:                                                                                                                                                                                       |   |                            |        |                         |   |
| Accounts                payable                                                                                                                                                                                           |   | $                               | 153,353     |                         | $      | 133,135 |   |
| Accrued                expenses                                                                                                                                                                                           |   |                            | 105,270     |                         |   | 99,226 |   |
| Due                to related parties                                                                                                                                                                                     |   |                            | 244,141     |                         |   | 244,141 |   |
| Total                current liabilities                                                                                                                                                                                  |   |                            | 502,764     |                         |   | 476,502 |   |
|                                                                                                                                                                                                                      |   |                            |        |                         |   |   |   |
| STOCKHOLDERS'                EQUITY:                                                                                                                                                                                      |   |                            |        |                         |   |   |   |
| Series                A Convertible Preferred Stock: $8,000stated value, 420 shares                authorized; 3 shares issued and outstanding as of                December                  31, 2007 and March 31, 2007 |   |                            | 24,000      |                         |   | 24,000 |   |
| Common                stock: $0.01 par value 100,000,000 sharesauthorized; 31,030,115 shares                issued andoutstanding as of December 31, 2007 and March 31,                2007                               |   |                            | 310,301     |                         |   | 310,301 |   |
| Additional                paid-in capital                                                                                                                                                                                 |   |                            | 21,714,365  |                         |   | 21,540,041 |   |
| Accumulated                deficit                                                                                                                                                                                        |   |                            | (20,359,524 | )                            |   | (18,698,233 | ) |
| Total                stockholders' equity                                                                                                                                                                                 |   |                            | 1,689,142   |                         |   | 3,176,109 |   |
| Total                liabilities and stockholders' equity                                                                                                                                                                 |   | $                               | 2,191,906   |                         | $      | 3,652,611 |   |

----

**UNITED      ENERGY CORP. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

|                                                                                               |   | **For                the Three Months****Ended                December 31,** |       | **For                the Nine Months****Ended                December 31,** |   |
|----------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|------------|-----------------------------------------------------------------------------|--------|
|                                                                                               |   | **2007**                                                                     |       | **2006**                                                                    |   | **2007** |   | **2006** |   |
|                                                                                               |   | **(Unaudited)**                                                              |       | **(Unaudited)**                                                             |   | **(Unaudited)** |   | **(Unaudited)** |   |
|                                                                                               |   |                                                                         |       |                                                                        |   |   |   |   |   |
| REVENUES,                net                                                                       |   | $                                                                            | 103,691    |                                                                        | $      | 112,843 |   | $ | 493,708 |   | $ | 636,684 |   |
|                                                                                               |   |                                                                         |       |                                                                        |   |   |   |   |   |   |   |   |   |
| COST                OF GOODS SOLD                                                                  |   |                                                                         | 67,311     |                                                                        |   | 67,282 |   |   | 256,409 |   |   | 276,061 |   |
|                                                                                               |   |                                                                         |       |                                                                        |   |   |   |   |   |   |   |   |   |
| Gross                profit                                                                        |   |                                                                         | 36,380     |                                                                        |   | 45,561 |   |   | 237,299 |   |   | 360,623 |   |
|                                                                                               |   |                                                                         |       |                                                                        |   |   |   |   |   |   |   |   |   |
| OPERATING                EXPENSES:                                                                 |   |                                                                         |       |                                                                        |   |   |   |   |   |   |   |   |   |
| Selling,                general and administrative                                                 |   |                                                                         | 629,837    |                                                                        |   | 716,979 |   |   | 1,908,864 |   |   | 2,190,624 |   |
| Depreciation                and amortization                                                       |   |                                                                         | 12,372     |                                                                        |   | 19,473 |   |   | 49,894 |   |   | 56,881 |   |
| Total                operating expenses                                                            |   |                                                                         | 642,209    |                                                                        |   | 736,452 |   |   | 1,958,758 |   |   | 2,247,505 |   |
|                                                                                               |   |                                                                         |       |                                                                        |   |   |   |   |   |   |   |   |   |
| Loss                from operations                                                                |   |                                                                         | (605,829   | )                                                                           |   | (690,891 | ) |   | (1,721,459 | ) |   | (1,886,882 | ) |
|                                                                                               |   |                                                                         |       |                                                                        |   |   |   |   |   |   |   |   |   |
| OTHER                INCOME (EXPENSE), net:                                                        |   |                                                                         |       |                                                                        |   |   |   |   |   |   |   |   |   |
| Interest                income                                                                     |   |                                                                         | 11,455     |                                                                        |   | 41,157 |   |   | 63,096 |   |   | 134,655 |   |
| Interest                expense                                                                    |   |                                                                         | (527       | )                                                                           |   | (696 | ) |   | (1,848 | ) |   | (1,925 | ) |
| Total                other expense, net                                                            |   |                                                                         | 10,928     |                                                                        |   | 40,461 |   |   | 61,248 |   |   | 132,730 |   |
|                                                                                               |   |                                                                         |       |                                                                        |   |   |   |   |   |   |   |   |   |
| Net                loss from continuing operations                                                 |   |                                                                         | (594,901   | )                                                                           |   | (650,430 | ) |   | (1,660,211 | ) |   | (1,754,152 | ) |
|                                                                                               |   |                                                                         |       |                                                                        |   |   |   |   |   |   |   |   |   |
| DISCONTINUED                OPERATIONS:                                                            |   |                                                                         |       |                                                                        |   |   |   |   |   |   |   |   |   |
| Income                (loss) from discontinued operations                                          |   |                                                                         | -          |                                                                        |   | 35 |   |   | - |   |   | (15,900 | ) |
|                                                                                               |   |                                                                         |       |                                                                        |   |   |   |   |   |   |   |   |   |
| Net                loss                                                                            |   |                                                                         | (594,901   | )                                                                           |   | (650,395 | ) |   | (1,660,211 | ) |   | (1,770,052 | ) |
|                                                                                               |   |                                                                         |       |                                                                        |   |   |   |   |   |   |   |   |   |
| Preferred                dividends                                                                 |   |                                                                         | (360       | )                                                                           |   | (360 | ) |   | (1,080 | ) |   | (1,166 | ) |
|                                                                                               |   |                                                                         |       |                                                                        |   |   |   |   |   |   |   |   |   |
| Net                loss applicable to common shareholders                                          |   | $                                                                            | (595,261   | )                                                                      | $      | (650,755 | ) | $ | (1,661,291 | ) | $ | (1,771,218 | ) |
|                                                                                               |   |                                                                         |       |                                                                        |   |   |   |   |   |   |   |   |   |
| BASIC                AND DILUTED LOSS PER SHARE:                                                   |   |                                                                         |       |                                                                        |   |   |   |   |   |   |   |   |   |
| Loss                from continuing operations                                                     |   |                                                                         | (0.02      | )                                                                           |   | (0.02 | ) |   | (0.05 | ) |   | (0.06 | ) |
| Income                (loss) from discontinued operations                                          |   |                                                                         | 0.00       |                                                                        |   | 0.00 |   |   | 0.00 |   |   | 0.00 |   |
| Total                basic and diluted loss per share                                              |   | $                                                                            | (0.02      | )                                                                           | $      | (0.02 | ) | $ | (0.05 | ) | $ | (0.06 | ) |
|                                                                                               |   |                                                                         |       |                                                                        |   |   |   |   |   |   |   |   |   |
| WEIGHTED                  AVERAGE NUMBER OF SHARES,OUTSTANDING,                  basic and diluted |   |                                                                         | 31,030,115 |                                                                        |   | 31,030,115 |   |   | 31,030,115 |   |   | 31,029,070 |   |

----

**UNITED      ENERGY CORP. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF STOCKHOLDERS' EQUITY**

**FOR      THE NINE MONTHS ENDED DECEMBER 31, 2007 (UNAUDITED)**

|                                                        |   |                            |       |       |   |  ** Preferred****Stock** |   | **Additional****Paid-****In****Capital** |    | **Accumulated****Deficit** |   |  **Total** |   |
|-------------------------------------------------------------|--------|---------------------------------|------------|------------|--------|------------------------------------|--------|------------------------------------------|---------|----------------------------|--------|-----------------|--------|
|                                                        |   | **Common                Stock** |       |
|                                                        |   | **Shares**                      |       | **Amount** |   |
|                                                        |   |                            |       |       |   |                               |   |                                     |    |                       |   |            |   |
|                                                        |   |                            |       |       |   |                               |   |                                     |    |                       |   |            |   |
| 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 |   |                            | —    |       |   | —                            |   |                                     | — |                       |   | 174,324         |   |   | — |   |   | 174,324 |   |
| Dividends                accrued on preferred shares        |        |                            | —    |       |   | —                            |        |                                          | — |                            |        | —         |        |  | (1,080 | ) |  | (1,080 | ) |
| Net                loss                                     |   |                            | —    |       |   | —                            |   |                                     | — |                       |   | —         |   |   | (1,660,211 | ) |   | (1,660,211 | ) |
| BALANCE,                December 31, 2007                   |   |                            | 31,030,115 |       | $      | 310,301                            |   | $                                        | 24,000  |                       | $      | 21,714,365      |   | $ | (20,359,524 | ) | $ | 1,689,142 |   |

----

**UNITED      ENERGY CORP. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**FOR      THE NINE MONTHS ENDED DECEMBER 31, 2007 AND 2006**

|                                                                                             |   | **2007**        |       | **2006** |   |
|--------------------------------------------------------------------------------------------------|--------|-----------------|------------|----------|--------|
|                                                                                             |   | **(Unaudited)** |       |
|                                                                                             |   |            |       |     |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                                             |   |            |       |     |   |
| Net                loss from continuing operations                                               |   | $               | (1,660,211 | )        | $      | (1,754,152 | ) |
|                                                                                             |   |            |       |     |   |   |   |
| Adjustments                to reconcile net loss to net cash used in operating activities        |   |            |       |     |   |   |   |
| Depreciation                and amortization                                                     |   |            | 59,685     |     |   | 69,821 |   |
| Compensation                expense associated with options                                      |   |            | 174,324    |     |   | 235,970 |   |
| Asset                transferred in legal settlement                                             |   |            | 5,003      |     |   | - |   |
|                                                                                             |   |            |       |     |   |   |   |
| Changes                in operating assets and liabilities                                       |   |            |       |     |   |   |   |
| Decrease                in accounts receivable, net                                              |   |            | 212        |     |   | 3,496 |   |
| Increase                in inventory                                                             |   |            | (95,891    | )        |   | (8,066 | ) |
| Increase                in prepaid expenses and  other                current assets        |   |            | (7,226     | )        |   | (3,816 | ) |
| Increase                (decrease) in accounts payable and  accrued                expenses |   |            | 26,263     |     |   | (90,384 | ) |
| Net                cash used in continuing operations                                            |   |            | (1,497,841 | )        |   | (1,547,131 | ) |
|                                                                                             |   |            |       |     |   |   |   |
| CASH                FLOWS FROM DISCONTINUED OPERATIONS:                                          |   |            |       |     |   |   |   |
| Net                loss from discontinuing operations                                            |   |            | -          |     |   | (15,900 | ) |
| Decrease                in accounts receivable, net                                              |   |            | 31         |     |   | - |   |
| Decrease                in note receivable, net                                                  |   |            | 4,476      |     |   | 15,000 |   |
| Net                cash provided by (used in) discontinuing operations                           |   |            | 4,507      |     |   | (900 | ) |
| Net                cash used in operating activities                                             |   |            | (1,493,334 | )        |   | (1,548,031 | ) |
|                                                                                             |   |            |       |     |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES:                                             |   |            |       |     |   |   |   |
| Loans                receivable                                                                  |   |            | (54,014    | )        |   | (2,340 | ) |
| Payments                for acquisition of property and equipment                                |   |            | (5,896     | )        |   | (3,710 | ) |
| Payments                for patents                                                              |   |            | (55,366    | )        |   | (40,231 | ) |
|                                                                                             |   |            |       |     |   |   |   |
| Cash                used in investing activities                                                 |   |            | (115,276   | )        |   | (46,281 | ) |
|                                                                                             |   |            |       |     |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                                             |   |            |       |     |   |   |   |
| Payments                of related party payable                                                 |   |            | -          |     |   | (200,000 | ) |
| Proceeds                from the exercise of stock options                                       |   |            | -          |     |   | 13,875 |   |
| Preferred                stock dividend                                                          |   |            | (1,080     | )        |   | (1,166 | ) |
|                                                                                             |   |            |       |     |   |   |   |
| Net                cash used in financing activities                                             |   |            | (1,080     | )        |   | (187,291 | ) |
|                                                                                             |   |            |       |     |   |   |   |
| Net                decrease in cash and cash equivalents                                         |   |            | (1,609,690 | )        |   | (1,781,603 | ) |
| CASH                AND CASH EQUIVALENTS, beginning of period                                    |   |            | 2,863,906  |     |   | 5,194,748 |   |
|                                                                                             |   |            |       |     |   |   |   |
| CASH                AND CASH EQUIVALENTS, end of period                                          |   | $               | 1,254,216  |     | $      | 3,413,145 |   |

----

**UNITED      ENERGY CORP. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**FOR      THE NINE MONTHS ENDED DECEMBER 31, 2007 AND 2006**

|                                                              |   | **2007**        |   | **2006** |   |
|-------------------------------------------------------------------|--------|-----------------|--------|----------|--------|
|                                                              |   | **(Unaudited)** |   |
|                                                              |   |            |   |     |   |
| SUPPLEMENTAL                DISCLOSURES OF CASH FLOW INFORMATION: |   |            |   |     |   |
| Cash                paid during the period                        |   |            |   |     |   |
| Interest                                                          |   | $               | 1,848  |     | $      | 1,925 |   |
| Income                taxes                                       |   | $               | 3,320  |     | $      | 1,235 |   |

----

**UNITED      ENERGY CORP.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER      31, 2007 (Unaudited)**

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

*Basis      of presentation*

*Going      Concern*

----

**UNITED      ENERGY CORP.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

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

| **3.** | **DISCONTINUED                OPERATIONS** |
|--------|--------------------------------------------|

*.*

|                                                 |   | **2007** |   | **2006** |   |
|------------------------------------------------------|--------|----------|--------|----------|--------|
| Revenues                                             |   | $        | -      |     | $      | 1,127 |   |
| Cost                  of goods sold                  |   |     | -      |     |   | 1,059 |   |
| Gross                  profit                        |   |     | -      |     |   | 68 |   |
| Operating                  expenses                  |   |     | -      |     |   |   |   |
| Selling,                  general and administrative |   |     | -      |     |   | 15,968 |   |
| Loss                  from discontinued operations   |   | $        | -      |     | $      | (15,900 | ) |

|                                               |   | **December                  31,** |   | **March                  31,** |   |
|----------------------------------------------------|--------|-----------------------------------|--------|--------------------------------|--------|
|                                               |   | **2007**                          |   | **2007**                       |   |
| Accounts                  receivable               |   | $                                 | -      |                           | $      | 31 |   |
| Notes                  receivable                  |   |                              | -      |                           |   | 4,476 |   |
| Assets                  of discontinued operations |   | $                                 | -      |                           | $      | 4,507 |   |

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

|                               |   | **December                  31,** |    | **March                  31,** |   |
|------------------------------------|--------|-----------------------------------|---------|--------------------------------|--------|
|                               |   | **2007**                          |    | **2007**                       |   |
| Blended                  chemicals |   | $                                 | 175,517 |                           | $      | 93,814 |   |
| Raw                  materials     |   |                              | 59,171  |                           |   | 44,984 |   |
| Total                  inventory   |   | $                                 | 234,688 |                           | $      | 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                              |   |     | 81.4   |     |   | 98.5 |   |
|                                    |   |     |   |     |   |   |   |
| 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 December 31, 2007            |   |                                   | 3,752,500 |                                         | $      | 1.16                                                                               |   |                                | 6.24   |   |   |   |   |
| Vested                and expected to vest–end of quarter |   |                                   | 3,752,500 |                                         | $      | 1.16                                                                               |   |                                | 6.24   |   | $ | — |   |
| Exercisable–end                of quarter                 |   |                                   | 3,478,621 |                                         | $      | 1.16                                                                               |   |                                | 6.33   |   | $ | — |   |

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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**

** **

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**RESULTS      OF OPERATIONS**

**Three      Months Ended December 31, 2007 Compared to the Three Months Ended December      31,      2006**

*Revenues*

*Cost      of Goods Sold*

*Gross      Profit*

***Operating      Costs and Expenses***

*Selling,      general and Administrative Expenses*

*Depreciation      and Amortization*

*Interest      Income*

*Interest      Expense*

*Net      Loss*

----

**Nine      Months Ended December 31, 2007 Compared to the Nine Months Ended December 31,      2006**

*Revenues*

*Cost      of Goods Sold*

*Gross      Profit*

***Operating      Costs and Expenses***

*Selling,      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** |
|--------------------------|--------------|

|  | (a) | 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: | February                  14, 2008 |                                                            | UNITED                  ENERGY CORP. |
|--------|------------------------------------|-----------------------------------------------------------------|--------------------------------------|
|   |                               |                                                            |                                 |
|   | By:                                | /s/                  Ronald Wilen                               |
|   |                               | Ronald                  Wilen,                                  |
|   |                               | Chief                  Executive Officer                        |
|   |                               | (as                  principal executive officer)               |
|   |                               |                                                            |
|   | By:                                | /s/                  James McKeever                             |
|   |                               | James                  McKeever,                                |
|   |                               | Interim                  Chief Financial Officer                |
|   |                               | (as                  principal financial and accountingofficer) |

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