**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 September 30, 2007**

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

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

**Commission      File No. 000-30841**

----

**UNITED      ENERGY CORP.**

| **Nevada**                                       | **22**-**3342379**                   |
|--------------------------------------------------|--------------------------------------|
| *(State                or other jurisdiction of* | *(I.R.S.                Employer*    |
| *incorporation                or organization)*  | *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 September 30, 2007 (Unaudited) and March                31, 2007                                                       |   | 3-4 |
|                                             |                                                                                                                                                              |   |   |
|                                             | Consolidated                statements of operations for the three months and six months ended                September 30, 2007 (Unaudited) and 2006 (Unaudited) |   | 5 |
|                                             |                                                                                                                                                              |   |   |
|                                             | Consolidated                statement of stockholders' equity for the six months ended September                30,                2007 (Unaudited)               |   | 6 |
|                                             |                                                                                                                                                              |   |   |
|                                             | Consolidated                statements of cash flows for the six months ended September 30, 2007                (Unaudited) and 2006 (Unaudited)                  |   | 7-8 |
|                                             |                                                                                                                                                              |   |   |
|                                             | Notes                to consolidated financial statements                                                                                                         |   | 9-13 |
|                                             |                                                                                                                                                              |   |   |
| Item                2.                           | Management's                Discussion and Analysis or Plan of Operation                                                                                          |   | 14-17 |
|                                             |                                                                                                                                                              |   |   |
| 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**            |

|                                                                |   |  **September                30,** |      | **March                31,** |   |
|---------------------------------------------------------------------|--------|----------------------------------------|-----------|------------------------------|--------|
|                                                                |   |  **2007**                         |      | **2007**                     |   |
|                                                                |   |  **(Unaudited)**                  |      |                         |   |
|                                                                |   |                              |      |                         |   |
| **ASSETS**                                                |
|                                                                |   |                              |      |                         |   |
| CURRENT                ASSETS:                                      |   |                              |      |                         |   |
| Cash                and cash equivalents                            |   | $                                      | 1,870,006 |                         | $      | 2,863,906 |   |
| Accounts                receivable, net of allowance for doubtful   |   |                                   |      |                         |   |   |   |
| accounts                of $11,636 and $5,879, respectively         |   |                                   | 87,236    |                         |   | 64,466 |   |
| Inventory                                                           |   |                                   | 198,210   |                         |   | 138,798 |   |
| Prepaid                expenses and other current assets            |   |                                   | 113,406   |                         |   | 128,216 |   |
| Assets                of discontinued operations                    |   |                                   | -         |                         |   | 4,507 |   |
| Total                current assets                                 |   |                                   | 2,268,858 |                         |   | 3,199,893 |   |
|                                                                |   |                                   |      |                         |   |   |   |
| PROPERTY                AND EQUIPMENT, net of accumulated           |   |                                   |      |                         |   |   |   |
| depreciation                and amortization of $425,582 and        |   |                                   |      |                         |   |   |   |
| $435,703                respectively                                |   |                                   | 59,661    |                         |   | 88,081 |   |
|                                                                |   |                                   |      |                         |   |   |   |
| OTHER                ASSETS:                                        |   |                                   |      |                         |   |   |   |
| Goodwill,                net                                        |   |                                   | 15,499    |                         |   | 15,499 |   |
| Patents,                net of accumulated amortization of $168,245 |   |                                   |      |                         |   |   |   |
| and                $150,861, respectively                           |   |                                   | 367,431   |                         |   | 345,889 |   |
| Loans                receivable                                     |   |                                   | 6,241     |                         |   | 1,864 |   |
| Deposits                                                            |   |                                   | 1,385     |                         |   | 1,385 |   |
| Total                assets                                         |   | $                                      | 2,719,075 |                         | $      | 3,652,611 |   |
|                                                                |   |                                   |      |                         |   |   |   |

----

| **UNITED                ENERGY CORP. AND SUBSIDIARIES**                                                    |
|----------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                BALANCE SHEETS**                                                             |
|                                                                                                                 |   |    |   |   |   |
|                                                                                                                 |   |  **September                30,** |   | **March                31,** |   |
|                                                                                                                 |   |  **2007** |   | **2007** |   |
|                                                                                                                 |   |  **(Unaudited)** |   |   |   |
|                                                                                                                 |   |    |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                    |
|                                                                                                                 |   |    |   |   |   |
| CURRENT                LIABILITIES:                                                                                  |   |    |   |   |   |
| Accounts                payable                                                                                      |   | $ | 178,820 |   | $ | 133,135 |   |
| Accrued                expenses                                                                                      |   |   | 69,819 |   |   | 99,226 |   |
| Due                to related parties                                                                                |   |   | 244,141 |   |   | 244,141 |   |
| Total                current liabilities                                                                             |   |   | 492,780 |   |   | 476,502 |   |
|                                                                                                                 |   |   |   |   |   |   |   |
| STOCKHOLDERS'                EQUITY:                                                                                 |   |   |   |   |   |   |   |
| Series                A Convertible Preferred Stock: $8,000                                                          |   |   |   |   |   |   |   |
| stated                value, 420 shares authorized; 3                                                                |   |   |   |   |   |   |   |
| shares                issued and outstanding as of                                                                   |   |   |   |   |   |   |   |
| September                30 2007 and March 31, 2007                                                                  |   |   | 24,000 |   |   | 24,000 |   |
| Common                stock: $0.01 par value 100,000,000 shares                                                      |   |   |   |   |   |   |   |
| authorized;                31,030,115 shares issued and                                                              |   |   |   |   |   |   |   |
| outstanding                as of September 30, 2007                                                                  |   |   |   |   |   |   |   |
| and                March 31, 2007                                                                                    |   |   | 310,301 |   |   | 310,301 |   |
| Additional                paid-in capital                                                                            |   |   | 21,656,257 |   |   | 21,540,041 |   |
| Accumulated                deficit                                                                                   |   |   | (19,764,263 | ) |   | (18,698,233 | ) |
| Total                stockholders' equity                                                                            |   |   | 2,226,295 |   |   | 3,176,109 |   |
| Total                liabilities and stockholders' equity                                                            |   | $ | 2,719,075 |   | $ | 3,652,611 |   |
|                                                                                                                 |   |   |   |   |   |   |   |
| The                accompanying notes are an integral part of these consolidated financial                statements |

----

| **UNITED                ENERGY CORP. AND SUBSIDIARIES**                                                               |
|-----------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                STATEMENTS OF OPERATIONS**                                                              |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                                                  |   | **For                the Three Months** |   | **For                the Six Months** |   |
|                                                                                                                  |   | **Ended                September 30,** |   | **Ended                September 30,** |   |
|                                                                                                                  |   | **2007** |   | **2006** |   | **2007** |   | **2006** |   |
|                                                                                                                  |   | **(Unaudited)** |   | **(Unaudited)** |   | **(Unaudited)** |   | **(Unaudited)** |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |
| REVENUES,                net                                                                                          |   | $ | 113,777 |   | $ | 299,014 |   | $ | 390,017 |   | $ | 523,841 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COST                OF GOODS SOLD                                                                                     |   |   | 71,608 |   |   | 106,919 |   |   | 189,098 |   |   | 208,779 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross                profit                                                                                           |   |   | 42,169 |   |   | 192,095 |   |   | 200,919 |   |   | 315,062 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING                EXPENSES:                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling,                general and administrative                                                                    |   |   | 622,992 |   |   | 773,913 |   |   | 1,279,027 |   |   | 1,473,645 |   |
| Depreciation                and amortization                                                                          |   |   | 18,922 |   |   | 18,770 |   |   | 37,522 |   |   | 37,408 |   |
| Total                operating expenses                                                                               |   |   | 641,914 |   |   | 792,683 |   |   | 1,316,549 |   |   | 1,511,053 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                from operations                                                                                   |   |   | (599,745 | ) |   | (600,588 | ) |   | (1,115,630 | ) |   | (1,195,991 | ) |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                INCOME (EXPENSE), net:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                income                                                                                        |   |   | 22,765 |   |   | 48,950 |   |   | 51,641 |   |   | 93,498 |   |
| Interest                expense                                                                                       |   |   | (437 | ) |   | (374 | ) |   | (1,321 | ) |   | (1,229 | ) |
| Total                other expense, net                                                                               |   |   | 22,328 |   |   | 48,576 |   |   | 50,320 |   |   | 92,269 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                loss from continuing operations                                                                    |   |   | (577,417 | ) |   | (552,012 | ) |   | (1,065,310 | ) |   | (1,103,722 | ) |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| DISCONTINUED                OPERATIONS:                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                (loss) from discontinued operations                                                             |   |   | - |   |   | 9 |   |   | - |   |   | (15,935 | ) |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                loss                                                                                               |   |   | (577,417 | ) |   | (552,003 | ) |   | (1,065,310 | ) |   | (1,119,657 | ) |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred                dividends                                                                                    |   |   | (360 | ) |   | (360 | ) |   | (720 | ) |   | (806 | ) |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                loss applicable to common shareholders                                                             |   | $ | (577,777 | ) | $ | (552,363 | ) | $ | (1,066,030 | ) | $ | (1,120,463 | ) |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC                AND DILUTED LOSS PER SHARE:                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                from continuing operations                                                                        |   |   | (0.02 | ) |   | (0.02 | ) |   | (0.03 | ) |   | (0.04 | ) |
| Income                (loss) from discontinued operations                                                             |   |   | 0.00 |   |   | 0.00 |   |   | 0.00 |   |   | 0.00 |   |
| Total                basic and diluted loss per share                                                                 |   | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.04 | ) |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED                AVERAGE NUMBER OF SHARES,                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OUTSTANDING,                basic and diluted                                                                         |   |   | 31,030,115 |   |   | 31,030,115 |   |   | 31,030,115 |   |   | 31,028,544 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The                accompanying notes are an integral part of these consolidated financial                statements. |

----

| **UNITED                ENERGY CORP. AND SUBSIDIARIES**                                                               |
|-----------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                STATEMENTS OF STOCKHOLDERS' EQUITY**                                                    |
| **FOR                THE SIX MONTHS ENDED SEPTEMBER 30, 2007 (UNAUDITED)**                                            |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                  |   |   |   |   |   |   |   | **Additional** |   |   |   |   |   |
|                                                                                                                  |   | **Common                Stock** |   | **Preferred** |   | **Paid-In** |   | **Accumulated** |   |   |   |
|                                                                                                                  |   | **Shares** |   | **Amount** |   | **Stock** |   | **Capital** |   | **Deficit** |   | **Total** |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE,                April 1, 2007                                                                                 |   |   | 31,030,115 |   | $ | 310,301 |   | $ | 24,000 |   | $ | 21,540,041 |   | $ | (18,698,233 | ) | $ | 3,176,109 |   |
| Compensation                expense associated                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| with                options                                                                                           |   |   | — |   |   | — |   |   | - |   |   | 116,216 |   |   | — |   |   | 116,216 |   |
| Dividends                accrued on                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| preferred                shares                                                                                       |   |   | — |   |   | — |   |   | — |   |   | — |   |   | (720 | ) |   | (720 | ) |
| Net                loss                                                                                               |   |   | — |   |   | — |   |   | — |   |   | — |   |   | (1,065,310 | ) |   | (1,065,310 | ) |
| BALANCE,                September 30, 2007                                                                            |   |   | 31,030,115 |   | $ | 310,301 |   | $ | 24,000 |   | $ | 21,656,257 |   | $ | (19,764,263 | ) | $ | 2,226,295 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The                accompanying notes are an integral part of these consolidated financial                statements. |

----

| **UNITED                ENERGY CORP. AND SUBSIDIARIES**                                                               |
|-----------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                STATEMENTS OF CASH FLOWS**                                                              |
| **FOR                THE SIX MONTHS ENDED SEPTEMBER 30, 2007 AND                2006**                                |
|                                                                                                                  |   |   |   |   |   |
|                                                                                                                  |   | **2007** |   | **2006** |   |
|                                                                                                                  |   | **(Unaudited)** |   |   |   |
|                                                                                                                  |   |   |   |   |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                                                                  |   |   |   |   |   |
| Net                loss from continuing operations                                                                    |   | $ | (1,065,310 | ) | $ | (1,103,722 | ) |
|                                                                                                                  |   |   |   |   |   |   |   |
| Adjustments                to reconcile net loss to net cash used in operating activities                             |   |   |   |   |   |   |   |
| Depreciation                and amortization                                                                          |   |   | 45,697 |   |   | 46,035 |   |
| Compensation                expense associated with options                                                           |   |   | 116,216 |   |   | 176,176 |   |
| Asset                transferred in legal settlement                                                                  |   |   | 5,003 |   |   | - |   |
|                                                                                                                  |   |   |   |   |   |   |   |
| Changes                in operating assets and liabilities                                                            |   |   |   |   |   |   |   |
| Increase                in accounts receivable, net                                                                   |   |   | (22,770 | ) |   | (143,113 | ) |
| Increase                in inventory                                                                                  |   |   | (59,412 | ) |   | (29,435 | ) |
| Decrease                in prepaid expenses and                                                                       |   |   |   |   |   |   |   |
| other                current assets                                                                                   |   |   | 14,810 |   |   | 35,289 |   |
| Increase                (decrease) in accounts payable and                                                            |   |   |   |   |   |   |   |
| accrued                expenses                                                                                       |   |   | 16,278 |   |   | (163,907 | ) |
| Net                cash used in continuing operations                                                                 |   |   | (949,488 | ) |   | (1,182,677 | ) |
|                                                                                                                  |   |   |   |   |   |   |   |
| CASH                FLOWS FROM DISCONTINUED OPERATIONS:                                                               |   |   |   |   |   |   |   |
| Net                loss from discontinuing operations                                                                 |   |   | - |   |   | (15,935 | ) |
| Decrease                in accounts receivable, net                                                                   |   |   | 31 |   |   | - |   |
| Decrease                in note receivable, net                                                                       |   |   | 4,476 |   |   | 10,000 |   |
| Net                cash provided by (used in) discontinuing operations                                                |   |   | 4,507 |   |   | (5,935 | ) |
| Net                cash used in operating activities                                                                  |   |   | (944,981 | ) |   | (1,188,612 | ) |
|                                                                                                                  |   |   |   |   |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES:                                                                  |   |   |   |   |   |   |   |
| Employee                loans                                                                                         |   |   | (4,377 | ) |   | (2,386 | ) |
| Payments                for acquisition of property and equipment                                                     |   |   | (4,896 | ) |   | (2,025 | ) |
| Payments                for patents                                                                                   |   |   | (38,926 | ) |   | - |   |
|                                                                                                                  |   |   |   |   |   |   |   |
| Cash                used in investing activities                                                                      |   |   | (48,199 | ) |   | (4,411 | ) |
|                                                                                                                  |   |   |   |   |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                                                                  |   |   |   |   |   |   |   |
| Payments                of related party payable                                                                      |   |   | - |   |   | (200,000 | ) |
| Proceeds                from the exercise of stock options                                                            |   |   | - |   |   | 13,875 |   |
| Preferred                stock dividend                                                                               |   |   | (720 | ) |   | (806 | ) |
|                                                                                                                  |   |   |   |   |   |   |   |
| Net                cash used in financing activities                                                                  |   |   | (720 | ) |   | (186,931 | ) |
|                                                                                                                  |   |   |   |   |   |   |   |
| Net                decrease in cash and cash equivalents                                                              |   |   | (993,900 | ) |   | (1,379,954 | ) |
| CASH                AND CASH EQUIVALENTS, beginning of period                                                         |   |   | 2,863,906 |   |   | 5,194,748 |   |
|                                                                                                                  |   |   |   |   |   |   |   |
| CASH                AND CASH EQUIVALENTS, end of period                                                               |   | $ | 1,870,006 |   | $ | 3,814,794 |   |
|                                                                                                                  |   |   |   |   |   |   |   |
| The                accompanying notes are an integral part of these consolidated financial                statements. |

----

| **UNITED                ENERGY CORP. AND SUBSIDIARIES**                                                               |
|-----------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                STATEMENTS OF CASH FLOWS**                                                              |
| **FOR                THE SIX MONTHS ENDED SEPTEMBER 30, 2007 AND                2006**                                |
|                                                                                                                  |   |   |   |   |   |
|                                                                                                                  |   | **2007** |   | **2006** |   |
|                                                                                                                  |   | **(Unaudited)** |   |   |   |
|                                                                                                                  |   |   |   |   |   |
| SUPPLEMENTAL                DISCLOSURES OF CASH FLOW INFORMATION:                                                     |   |   |   |   |   |
| Cash                paid during the period                                                                            |   |   |   |   |   |   |   |
| Interest                                                                                                              |   | $ | 1,321 |   | $ | 1,229 |   |
| Income                taxes                                                                                           |   | $ | 2,150 |   | $ | 1,000 |   |
|                                                                                                                  |   |   |   |   |   |   |   |
| The                accompanying notes are an integral part of these consolidated financial                statements. |

----

**UNITED      ENERGY CORP.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER      30, 2007 (Unaudited)**

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

*Basis      of presentation*

----

**UNITED      ENERGY CORP.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

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

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

*.*

|                                               |   | **2007** |   | **2006** |   |
|----------------------------------------------------|--------|----------|--------|----------|--------|
| Revenues                                           |   | $        | -      |     | $      | 511 |   |
| Cost                of goods sold                  |   |     | -      |     |   | 478 |   |
| Gross                profit                        |   |     | -      |     |   | 33 |   |
| Operating                expenses                  |   |     | -      |     |   |   |   |
| Selling,                general and administrative |   |     | -      |     |   | 15,968 |   |
| Loss                from discontinued operations   |   | $        | -      |     | $      | (15,935 | ) |

|                                             |   | **September                30,** |   | **March                31,** |   |
|--------------------------------------------------|--------|----------------------------------|--------|------------------------------|--------|
|                                             |   | **2007**                         |   | **2007**                     |   |
| Accounts                receivable               |   | $                                | -      |                         | $      | 31 |   |
| Notes                receivable                  |   |                             | -      |                         |   | 4,476 |   |
| Assets                of discontinued operations |   | $                                | -      |                         | $      | 4,507 |   |

**4.**
**INVENTORY**

|                             |   | **September                30,** |    | **March                31,** |   |
|----------------------------------|--------|----------------------------------|---------|------------------------------|--------|
|                             |   | **2007**                         |    | **2007**                     |   |
| Blended                chemicals |   | $                                | 143,109 |                         | $      | 93,814 |   |
| Raw                materials     |   |                             | 55,101  |                         |   | 44,984 |   |
| Total                inventory   |   | $                                | 198,210 |                         | $      | 138,798 |   |

----

**UNITED      ENERGY CORP.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

**5.      RELATED-PARTY TRANSACTIONS**

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

*Stock      Option Plans*

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**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                                |   |     | 84.4   |     |   | 102.5 |   |
| 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 September 30, 2007     |   |                                   | 3,752,500 |                                         | $      | 1.16                                                                               |   |                                            | 6.49   |   |   |   |   |
| Vested                and expected to vest-end of quarter |   |                                   | 3,752,500 |                                         | $      | 1.16                                                                               |   |                                            | 6.49   |   | $ | — |   |
| Exercisable-end                of quarter                 |   |                                   | 3,399,015 |                                         | $      | 1.17                                                                               |   |                                            | 6.57   |   | $ | — |   |

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**UNITED      ENERGY CORP.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

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

**Litigation**

----

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

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

**Overview**

** **

----

**RESULTS      OF OPERATIONS**

**Three      Months Ended September 30, 2007 Compared to the Three Months Ended September      30,      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*

----

**Six      Months Ended September 30, 2007 Compared to the Six Months Ended September      30,      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      **

|   | 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: November              14, 2007 | 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 accounting officer) |
|   |                                                                                                                                            |

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