UNITED
        STATES
 SECURITIES
        AND EXCHANGE COMMISSION
 Washington,
        DC 20549
 
 FORM
        10-QSB
 
 [X]
              Quarterly
                  Report pursuant to Section 13 or 15(d) of the Securities Exchange
                  Act of
                  1934
 
 For
        the
        quarterly period ended February
        28, 2006
 
 [
                   ]
              Transition
                  Report pursuant to 13 or 15(d) of the Securities Exchange Act of
                  1934
 
 For
        the
        transition period_________________ to ____________________
 
 Commission
        File Number 333-121571
 
 
 GULF
        UNITED ENERGY, INC.
 (Exact
        name of small Business Issuer as specified in its charter)
 
 
 Nevada
              Applied
                  For(State
                  or other jurisdiction of incorporation or organization)
              (IRS
                  Employer Identification No.)203
                  Bannerman Street North, Box 219Porcupine,
                  Ontario, Canada
              P0N
                  1C0(Address
                  of principal executive offices)
              (Postal
                  or Zip Code)
 
 
 Issuer's
        telephone number, including area code: (807)
        826-2610
 
 
 N/A
 (Former
        name, former address and former fiscal year, if changed since last
        report)
 
 
 Check
        whether the issuer (1) filed all reports required to be filed by Section
        13 or
        15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
        (or
        for such shorter period that the issuer was required to file such reports),
        and
        (2) has been subject to such filing requirements for the past 90
        days
 [X]
         Yes   [   ]  No
 
 Indicate
        by check mark whether the registrant is a shell company (as defined in Rule
        12b-2 of the Exchange Act).
 [
 ]
        Yes  [X] No
 
 State
        the
        number of shares outstanding of each of the issuer's classes of common stock,
        as
        of the latest practicable date: 25 ,415,000 shares
        of
        $0.001 par
        value
        common stock outstanding as of April 14, 2006.
 
 
  
   
 
 
 
 
 
 
 
 **Gulf
        United Energy Inc.**
 **(Formerly
        Stonechurch Inc.)**
 
 **(An
        Exploration Stage Company)**
 
 
 **SECOND
        QUARTER**
 **FINANCIAL
        STATEMENTS**
 
 
 
 **February
        28, 2006**
 **(Unaudited)**
 **(Stated
        in U.S. Dollars)**
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
  
 **GULF
        UNITED ENERGY INC.**
 **(An
        Exploration Stage Company)**
 
 **BALANCE
        SHEET**
 **(Unaudited)**
 (Stated
        in U.S. Dollars)
 
 **February
                  28, 2006**
              
              **August
                  31,**
                **2005****ASSETS**CurrentCash
              
              $
              1,769
              
              
              432**LIABILITIES**CurrentAccounts
                  Payable and accrued liabilities
              
              
              5,369
              
              
              6,840Loans
                  Payable (Note 4)
              
              
              24,402
              
              
              -29,771
              
              
              6,840**STOCKHOLDERS'
                  DEFICIENCY**Common
                  Stock (Note 5)Authorized:200,000,000
                  shares with a par value of $0.001Issued
                  and Outstanding:25,415,000
                  shares as at February 28, 2006 and August 31, 2005
              
              
              25,415
              
              
              25,415Additional
                  paid in capital
              
              
              635
              
              
              635**(Deficit)
                  accumulated during the exploration stage**
              
              
              (54,052
              )
              
              (32,458
              )(28,002
              )
              
              (6,408
              )1,769
              
              
              432
 
 
 
 The
        accompanying notes are an integral part of these financial
        statements
 
  
  
 **GULF
          UNITED ENERGY INC.**
 **(An
        Exploration Stage Company)**
 
 **STATEMENTS
        OF OPERATIONS**
 **(Unaudited)**
 (Stated
        in U.S. Dollars)
 
 **Cumulative****Three
                  months**
              
              **Three
                  months**
              
              **Six
                  months**
              
              **Six
                  months**
              
              **Period
                  From****Ended**
              
              **Ended**
              
              **Ended**
              
              **Ended**
              
              **Inception
                  to****February
                  28**
              
              **February
                  28**
              
              **February
                  28**
              
              **February
                  28**
              
              **February
                  28****2006**
              
              **2005**
              
              **2006**
              
              **2005**
              
              **2006****Revenue**
              
              $
              -
              
              $
              -
              
              $
              -
              
              $
              -
              
              $
              -**Expenses**Office
                  and sundry
              
              
              1,593
              
              
              747
              
              
              2,241
              
              
              1,934
              
              
              8,904Professional
                  fees
              
              
              3,341
              
              
              348
              
              
              16,353
              
              
              4,672
              
              
              30,131Mineral
                  property costs
              
              
              -
              
              
              2,143
              
              
              3,000
              
              
              2,505
              
              
              15,0174,934
              
              
              3,238
              
              
              21,594
              
              
              9,111
              
              
              54,052**Net
                  (Loss) For The Period**
              
              
              (4,934
              )
              
              (3,238
              )
              
              (21,594
              )
              
              (9,111
              )
              
              (54,052
              )**Basic
                  and Diluted Loss****Per
                  Share**
              
              
              (0.00
              )
              
              (0.00
              )
              
              (0.00
              )
              
              (0.00
              )**Weighted
                  Average Number****of
                  Shares Outstanding**
              
              
              25,415,000
              
              
              5,083,000
              
              
              25,415,000
              
              
              5,083,000
 
 
 
 The
        accompanying notes are an integral part of these financial
        statements
 
 
  
  
 **GULF
          UNITED ENERGY INC.**
 **(An
        Exploration Stage Company)**
 
 **STATEMENTS
        OF CASH FLOWS**
 **(Unaudited)**
 (Stated
        in U.S. Dollars)
 
 **Cumulative****Six
                  months**
              
              **Six
                  months**
              
              **Period
                  From****Ended**
              
              **Ended**
              
              **Inception
                  to****February
                  28**
              
              **February
                  28**
              
              **February
                  28****2006**
              
              **2005**
              
              **2006****Cash
                  Flows From Operating Activities:**Net
                  Loss for the period
              
              $
              (21,594
              )
              $
              (9,111
              )
              $
              (54,052
              )Change
                  in non-cash working capital items:Accounts
                  payable and accrued liabilities
              
              
              (1,471
              )
              
              (42
              )
              
              5,369**Cash
                  Flows From Financing Activities:**Capital
                  stock issued
              
              
              -
              
              
              -
              
              
              26,050Loan
                  payable
              
              
              24,402
              
              
              (2,000
              )
              
              24,40224,402
              
              
              (2,000
              )
              
              50,452**Incr.
                  (Decr.) in Cash During The Period**
              
              
              1,337
              
              
              (11,153
              )
              
              1,769**Cash
                  - Beginning of Period**
              
              
              432
              
              
              16,381
              
              
              -**Cash
                  - End of Period**
              
              
              1,769
              
              
              5,228
              
              
              1,769**Supplementary
                  Disclosure of****Cash
                  Flow Information:**Cash
                  paid for:Interest
              
              
              -
              
              
              -
              
              
              -Income
                  taxes
              
              
              -
              
              
              -
              
              
              -
 
 
 
 The
        accompanying notes are an integral part of these financial
        statements
 
  
  
 **GULF
        UNITED ENERGY INC.**
 **(An
        Exploration Stage Company)**
 
 **STATEMENT
        OF STOCKHOLDERS’ EQUITY (DEFICIENCY)**
 
 **PERIOD
        FROM SEPTEMBER 19, 2003 (INCEPTION) TO FEBRUARY 28, 2006**
 **(Unaudited)**
 **(Stated
        in U.S. Dollars)**
 
 
 **DEFICIT****ACCUMULATED****ADDITIONAL**
              
              **DURING
                  THE****COMMON
                  SHARES**
              
              **PAID-IN**
              
              **EXPLORATION****NUMBER**
              
              **PAR
                  VALUE**
              
              **CAPITAL**
              
              **STAGE**
              
              **TOTAL****Balance,
                  September 19, 2003**
              
              
              
              
              $
              -
              
              $
              -
              
              $
              -
              
              $
              -(Date
                  of inception)**Capital
                  stock issued for cash:**October
                  2003 at $0.001
              
              
              12,500,000
              
              
              12,500
              
              
              (10,000
              )
              
              -
              
              
              2,500November
                  2003 at $0.005
              
              
              800,000
              
              
              800
              
              
              -
              
              
              -
              
              
              800December
                  2003 at $0.005
              
              
              7,000,000
              
              
              7,000
              
              
              -
              
              
              -
              
              
              7,000June
                  2004 at $0.01
              
              
              5,000,000
              
              
              5,000
              
              
              5,000
              
              
              -
              
              
              10,000July
                  2004 at $0.25
              
              
              115,000
              
              
              115
              
              
              5,635
              
              
              -
              
              
              5,750Net
                  loss for the period
              
              
              -
              
              
              -
              
              
              -
              
              
              (15,880
              )
              
              (15,880
              )**Balance,
                  August 31, 2004**
              
              
              25,415,000
              
              
              25,415
              
              
              635
              
              
              (15,880
              )
              
              10,170Net
                  Loss for the year
              
              
              -
              
              
              -
              
              
              -
              
              
              (16,578
              )
              
              (16,578
              )**Balance
                  August 31, 2005**
              
              
              25,415,000
              
              
              25,415
              
              
              635
              
              
              (32,458
              )
              
              (6,408
              )Net
                  loss for the period
              
              
              -
              
              
              -
              
              
              -
              
              
              (21,594
              )
              
              (21,594
              )**Balance
                  February 28, 2006**
              
              
              25,415,000
              
              
              25,415
              
              
              635
              
              
              (54,052
              )
              
              (28,002
              )
 
 
 
 The
        accompanying notes are an integral part of these financial
        statements
 
  
  
 **GULF
          UNITED ENERGY INC.**
 **(An
        Exploration Stage Company)**
 
 **NOTES
        TO THE FINANCIAL STATEMENTS**
 **FEBRUARY
        28, 2006**
 **(Unaudited)**
 **(Stated
        in U.S. Dollars)**
 
 
 The
        unaudited financial information furnished herein reflects all adjustments,
        which
        in the opinion of management are necessary to fairly state the Company’s
        financial position and the results of its operations for the periods presented.
        This report on Form 10-QSB should be read in conjunction with the Company’s
        financial statements and notes thereto included in the Company’s Form 10-KSB for
        the fiscal year ended August 31, 2005. The Company assumes that the users
        of the
        interim financial information herein have read or have access to the audited
        financial statements for the preceding fiscal year and that the adequacy
        of
        additional disclosures needed for a fair presentation may be determined in
        that
        context. Accordingly, footnote disclosure, which would substantially duplicate
        the disclosure contained in the Company’s Form 10-KSB for the fiscal year ended
        August 31, 2005 has been omitted. The results of operations for the six month
        period ended February 28, 2006 are not necessarily indicative of results
        for the
        entire year ending August 31, 2006.
 
 
 **1.**
              **NATURE
                  AND CONTINUANCE OF
                  OPERATIONS**
 
 The
        Company was incorporated in the State of Nevada on September 19, 2003. The
        Company is an Exploration Stage Company as defined by Statement of Financial
        Accounting Standard (“SFAS”) No. 7. The Company has acquired a mineral property
        located in the Province of British Columbia, Canada and has not yet determined
        whether this property contains reserves that are economically recoverable.
        The
        recoverability of property expenditures will be dependent upon the discovery
        of
        economically recoverable reserves, confirmation of the Company’s interest in the
        underlying property, the ability of the Company to obtain necessary financing
        to
        satisfy the expenditure requirements under the property agreement and upon
        future profitable production or proceeds for the sale thereof.
  
 On
        November 10, 2005, the Board of Directors authorized a 1-for-5 stock split
        of
        the Company’s $0.001 par value common stock. As a result of the split,
        20,332,000 additional shares were issued, and additional paid-in capital
        was
        reduced by $20,332. All references in the accompanying financial statements
        to
        the number of common shares and per-share amounts for 2005 and 2004 have
        been
        restated to reflect the stock split.
 
 On
        March
        2, 2006 The Company amended its’ articles of incorporation to reflect a name
        change from Stonechurch Inc. to Gulf United Energy Inc.
 
 On
        March
        22, 2006 The Company entered into a letter of intent to acquire an initial
        equity participation in a joint venture to design, construct, operate and
        maintain an open access natural gas pipeline in Mexico. An initial payment
        of
        $200,000 was due upon execution of the letter of intent. Funds for this payment
        were obtained in an arm’s length loan from two individuals. The loan is
        unsecured, bears interest at a rate of 10% per annum and is due May 1, 2006.
        The
        Company may satisfy the loan in its’ entirety by transferring its’ interest in
        the letter of intent to the loan holders. In addition to this, The Company
        must
        issue 300,000 shares of restricted stock within 15 days following the execution
        of a formal joint venture agreement and make an additional payment of $1,169,336
        within 60 days of execution.
  
  
 **GULF
          UNITED ENERGY INC.**
 **(An
        Exploration Stage Company)**
 
 **NOTES
        TO THE FINANCIAL STATEMENTS**
 **FEBRUARY
        28, 2006**
 **(Unaudited)**
 **(Stated
        in U.S. Dollars)**
 
 
 **1.**
              **NATURE
                  AND CONTINUANCE OF OPERATIONS**(Continued)
  These
        financial statements have been prepared on a going concern basis. The Company
        has incurred losses since inception resulting in an accumulated deficit of
        $54,052 since inception and further losses are anticipated in the development
        of
        its business raising substantial doubt about the Company’s ability to continue
        as a going concern. Its ability to continue as a going concern is dependent
        upon
        the ability of the Company to generate profitable operations in the future
        and/or to obtain the necessary financing to meet its obligations and repay
        its
        liabilities arising from normal business operations when they come due.
        Management has plans to seek additional capital through a private placement
        and
        public offering of its common stock. The financial statements do not include
        any
        adjustments relating to the recoverability and classification of recorded
        assets, or the amounts of and classification of liabilities that might be
        necessary in the event the Company cannot continue in existence.
  
 **2.**
              **SUMMARY
                  OF SIGNIFICANT ACCOUNTING
                  POLICIES**
  a)
              Basis
                  of Presentation
 
 The
        financial statements of the Company have been prepared in accordance with
        generally accepted accounting principles in the United States of America
        and are
        expressed in U.S. dollars.
 
 b)
              Cash
                  and Cash Equivalents
 
 The
        Company considers all highly liquid instruments with maturity of three months
        or
        less at the time of issuance to be cash equivalents.
 
 As
        at
        February 28, 2006, the Company had no cash equivalents.
 
 c)
              Mineral
                  Property Costs
 
 The
        Company has been in the exploration stage since its formation on September
        19,
        2003 and has not yet realized any revenues from its planned operations. It
        is
        primarily engaged in the acquisition and exploration of mining properties.
        Mineral property acquisition and exploration costs are charged to operations
        as
        incurred. When it has been determined that a mineral property can be
        economically developed as a result of establishing proven and probable reserves,
        the costs incurred to develop such property, are capitalized. Such costs
        will be
        amortized using the units-of-production method over the estimated life of
        the
        probable reserve.
 
  
  
 **GULF
          UNITED ENERGY INC.**
 **(An
        Exploration Stage Company)**
 
 **NOTES
        TO THE FINANCIAL STATEMENTS**
 **FEBRUARY
        28, 2006**
 **(Unaudited)**
 **(Stated
        in U.S. Dollars)**
  
 **2.**
              **SUMMARY
                  OF SIGNIFICANT ACCOUNTING POLICIES**(Continued)
  d)
              Use
                  of Estimates and Assumptions
 
 The
        preparation of financial statements in conformity with U.S. generally
        accepted
 accounting
        principles requires management to make estimates and assumptions that affect
        the
        reported amounts of assets and liabilities and disclosure of contingent assets
        and liabilities at the date of the financial statements and the reported
        amounts
        of revenues and expenses during the reporting period. Actual results could
        differ from those estimates.
 
 e)
              Foreign
                  Currency Translation
 
 The
        Company’s functional currency is the Canadian dollar and its reporting currency
        is the United States dollar. The financial statements of the Company are
        translated to United States dollars in accordance with SFAS No. 52 “Foreign
        Currency Translation”. Monetary assets and liabilities denominated in foreign
        currencies are translated using the exchange rate prevailing at the balance
        sheet date. Gains and losses arising on translation or settlement of foreign
        currency denominated transactions or balances are included in the determination
        of income. The Company has not, to the date of these financials statements,
        entered into derivative instruments to offset the impact of foreign currency
        fluctuations.
  f)
              Financial
                  Instruments
 
 The
        carrying value of cash, accounts payable and accrued liabilities, and loan
        payable approximates their fair value because of the short maturity of these
        instruments. The Company’s operations are in Canada and virtually all of its
        assets and liabilities are giving rise to significant exposure to market
        risks
        from changes in foreign currency rates. The Company’s financial risk is the risk
        that arises from fluctuations in foreign exchange rates and the degree of
        volatility of these rates. Currently, the Company does not use derivative
        instruments to reduce its exposure to foreign currency risk.
 
 g)
              Environmental
                  Costs
 
 Environmental
        expenditures that relate to current operations are charged to operations
        or
        capitalized as appropriate. Expenditures that relate to an existing condition
        caused by past operations, and which do not contribute to current or future
        revenue generation, are charged to operations. Liabilities are recorded when
        environmental assessments and/or remedial efforts are probable, and the cost
        can
        be reasonably estimated. Generally, the timing of these accruals coincides
        with
        the earlier of completion of a feasibility study or the Company’s commitments to
        plan of action based on the then known facts.
 
  
  
 **GULF
          UNITED ENERGY INC.**
 **(An
        Exploration Stage Company)**
 
 **NOTES
        TO THE FINANCIAL STATEMENTS**
 **FEBRUARY
        28, 2006**
 **(Unaudited)**
 **(Stated
        in U.S. Dollars)**
 
 **2.**
              **SUMMARY
                  OF SIGNIFICANT ACCOUNTING POLICIES**(Continued)
 
 
 h)
              Income
                  Taxes
 
 Potential
        benefits of income tax losses are not recognized in the accounts until
        realization is more likely than not. The Company has adopted SFAS No. 109
        as of
        its inception. Pursuant to SFAS No. 109 the Company is required to compute
        tax
        asset benefits for net operating losses carried forward. Potential benefit
        of
        net operating losses have not been recognized in these financial statements
        because the Company cannot be assured it is more likely than not it will
        utilize
        the net operating losses carried forward in future years.
 
 i)
              Basic
                  and Diluted Net Loss Per Share
 
 The
        Company computes net loss per share in accordance with SFAS No. 128, "Earnings
        per Share". SFAS No. 128 requires presentation of both basic and diluted
        earnings per share (EPS) on the face of the income statement. Basic EPS is
        computed by dividing net loss available to common shareholders (numerator)
        by
        the weighted average number of shares outstanding (denominator) during the
        period. Diluted EPS gives effect to all potentially dilutive common shares
        outstanding during the period using the treasury stock method and convertible
        preferred stock using the if-converted method. In computing Diluted EPS,
        the
        average stock price for the period is used in determining the number of shares
        assumed to be purchased from the exercise of stock options or warrants. Diluted
        EPS excludes all potentially dilutive shares if their effect is anti
        dilutive.
  j)
              Stock
                  Based Compensation
 
 The
        Company accounts for stock based employee compensation arrangements in
        accordance with the provisions of Accounting Principles Board Opinion No.
        25 -
“Accounting for Stock Issued to Employees” (APB No. 25) and complies with the
        disclosure provisions of Statement of Financial Accounting Standards No.
        123 -
“Accounting for Stock Based Compensation” (SFAS No. 123). Under APB No. 25,
        compensation expense is recognized based on the difference, if any, on the
        date
        of grant between the estimated fair value of the Company’s stock and the amount
        an employee must pay to acquire the stock. Compensation expense is recognized
        immediately for past services and rateably for future services over the option
        vesting period.
 
 
  
  
 **GULF
          UNITED ENERGY INC.**
 **(An
        Exploration Stage Company)**
 
 **NOTES
        TO THE FINANCIAL STATEMENTS**
 **FEBRUARY
        28, 2006**
 **(Unaudited)**
 **(Stated
        in U.S. Dollars)**
  
 **2.**
              **SUMMARY
                  OF SIGNIFICANT ACCOUNTING POLICIES**(Continued)
  k)
              Comprehensive
                  Loss
 
 SFAS
        No.
        130, “Reporting Comprehensive Income,” establishes standards for the reporting
        and display of comprehensive loss and its components in the financial
        statements. As at February 28, 2006, the Company has no items that represent
        a
        comprehensive loss and, therefore, has not included a schedule of comprehensive
        loss in the financial statements.
 
 l)
              New
                  Accounting Standards
 
 Management
        does not believe that any recently issued, but not yet effective, accounting
        standards, if currently adopted, could have a material effect on the
        accompanying financial statements.
   **3.**
              **MINERAL
                  PROPERTY**
 
 Pursuant
        to a mineral property option agreement (the “Agreement”) dated March 15, 2004,
        the Company was granted an option to acquire a 100% undivided right, title
        and
        interest in a mineral claim unit, known as the West Shiningtree Lake claim
        (the
“Claim”), located in the Larder Lake Mining Division of Ontario, Canada
        for:
 
 a)
              Cash
                  Payments totaling $50,000 as
                  follows:
 
 -
              $1,000
                  upon execution of the Agreement
                  (paid);
 -
              an
                  additional $14,000 by September 15, 2005
 -
              an
                  additional $15,000 by March 15,
                  2007;
 -
              an
                  additional $20,000 by March 15,
                  2008;
 
 b)
              Expenditure
                  Commitments
 
 Incurring
        exploration and development work on the Claim totalling at least $200,000
        by
        March 15, 2008 as follows:
 
 -
              $2,500
                  in expenditures on the Claims by March 1, 2005,
                  (incurred);
 -
              no
                  less than further $2,500 in expenditures on the Claims by September
                  1,
                  2005 (incurred);
 -
              no
                  less than further $20,000 in expenditures on the Claims by March
                  1, 2006;
 -
              no
                  less than further $50,000 in expenditures on the Claims by March
                  1, 2007;
                  and
 -
              no
                  less than further $125,000 in expenditures on the Claims by March
                  1,
                  2008.
  
   **GULF
          UNITED ENERGY INC.**
 **(An
        Exploration Stage Company)**
 
 **NOTES
        TO THE FINANCIAL STATEMENTS**
 **FEBRUARY
        28, 2006**
 **(Unaudited)**
 **(Stated
        in U.S. Dollars)**
 
 
 **3.**
              **MINERAL
                  PROPERTY**(continued)
 
 
 c)
              Advance
                  Royalty Payments
 
 Paying
        to
        the Optionor advance net smelter returns royalty payments on the Claim of
        $10,000 per year. Advance net smelter return royalty payments shall be due
        on
        the March 1 each year commencing March 1, 2009, and continuing to March 1
        of
        each calendar year thereafter until the Agreement is terminated.
 
 d)
              Assessment
                  Work
 
 Paying
        to
        the Optionor, or on the Optionor’s behalf all Claim payments and assessment work
        required to keep the Claim and the Option in good standing during the term
        of
        the Agreement.
 
 As
        at
        September 30, 2005, the agreement was in default as the September 14, 2005
        cash
        payment of $14,000 was not made. The Company has not been provided with notice
        of default by the optionor to terminate the agreement. The Company negotiated
        with the optionor to extend the option until December 31, 2005 for consideration
        of $3,000. The agreement was terminated on December 6, 2005.
 
 **4.**
              **LOAN
                  PAYABLE**
 
 Directors
        of the Company provided loans of $24,402 to the Company during the period
        ended
        February 28, 2006. The loans are non-interest bearing, unsecured and payable
        upon demand.
 
 
 **5.**
              **COMMON
                  STOCK**
 
 The
        total
        number of (post stock split) authorized common stock that may be issued by
        the
        Company is 200,000,000 shares of stock with a par value of one tenth of one
        cent
        ($0.001) per share.
 
 During
        the period from September 19, 2003 (Inception) to February 28, 2006, the
        Company
        issued 25,415,000 common shares (post stock split) for total cash proceeds
        of
        $26,050.
 
 At
        February 28, 2006, there were no outstanding stock options or
        warrants.
 
  
  Item
        2.
        Management’s Discussion and Analysis or Plan of Operation
 
 **Plan
        of Operation**
 
 During
        the period ended February 28, 2006, we retained Robert Reukl, a geological
        consultant, to review the exploration and sample results that we obtained
        from
        work conducted on the Shining Tree property. Based upon his review of the
        data,
        he concluded that “the data does not offer anything in the way of additional
        exploration targets and the samples did not yield any encouraging values
        in
        precious or base metals”. Mr. Reukl recommended that we not continue with our
        option of the Shining Tree property.
 
 In
        order
        to keep the option respecting the Shining Tree property in good standing,
        we
        were required to expend $20,000 in exploration costs on the property by March
        1,
        2006. We did not complete this exploration within the required time period.
        However, the optionor of the property has not notified us that he has terminated
        the option, as is required by the agreement.
 
 On
        March
        22, 2006, we entered into a letter of intent with Cia. Mexicana de Gas Natural,
        S.A. de C.V. (“CMGN”), a private Mexican corporation, whereby we may acquire an
        initial equity participation of 24% in a joint venture to design, construct,
        operate and maintain an open access natural gas pipeline between Valladoloid,
        Cancun and Punta Venado, as well as a liquidfied natural gas storage and
        regasification facility. The pipeline system will cover the gas demands of
        the
        productive and residential sectors in the region, as well as the power
        generation plants in Valladolid, Cancun and Nizuc.
 
 In
        order
        to earn our equity participation in the joint venture agreement, we must
        pay
        CMGN $200,000 upon the execution of the letter of intent (paid) and an
        additional $1,169,336.12 upon the execution of a formal joint venture agreement,
        which shall occur within 60 days of the execution of the letter of intent,
        or
        May 22, 2006. In addition, we must issue 300,000 shares of our restricted
        stock
        to CMGN within 15 days following the execution of a joint venture agreement.
        We
        are in the process of negotiating a finder’s fee payable in connection with our
        introduction to CMGN. Such finder’s fee will only be payable if we execute a
        joint venture agreement with CMGN.
 
 In
        order
        to make the $200,000 that was due upon the execution of the letter of intent
        with CMGN, James Askew and Edward Walker, two individuals who are at arm’s
        length to us, loaned these funds to us. The loan is unsecured, bears interest
        at
        a rate of 10% per annum and is due on June 4, 2006. We may satisfy the loan
        in
        its entirety by transferring our interest in the letter of intent to James
        Askew
        and L. Edward Walker.
 
 Our
        plan
        of operation for the twelve months following the date of this report is to
        raise
        the $1,169,336 in financing necessary for us to earn our equity participation
        in
        the joint venture agreement. As well, we will need to raise an additional
        $205,000 to repay the loan we received plus interest. As well, we anticipate
        spending an additional $75,000 on administrative fees, including fees payable
        in
        connection with our compliance with reporting obligations. Total expenditures
        over the next 12 months are therefore expected to be $1,449,336.
  If
        we do
        not secure additional funding, we will not be able to participate in the
        proposed joint venture and our business plan will fail and operations will
        cease. We anticipate that we will raise additional funds through the sale
        of
        shares of common stock in our capital.
  
  
 **Results
        Of Operations For Period Ending February 28, 2006**
 
 We
        did
        not earn any revenues during the six-month period ending February 28, 2006.
        We
        incurred operating expenses in the amount of $21,594 for the six-month period
        ended February 28, 2006 .
 
 Our
        operating expenses were comprised of professional fees $16,353, mineral property
        costs of $3,000 and office and sundry costs of $2,241.
 
 At
        February 28, 2006, we had total assets of $1,769, consisting entirely of
        cash.
        At the same date, our liabilities consisted of accounts payable and accrued
        liabilities of $5,369 and loans payable from our directors of
        $24,402.
 
 **ITEM
        3: CONTROLS AND PROCEDURES**
 
 **Evaluation
        of Disclosure Controls**
 
 Our
        management evaluated the effectiveness of our disclosure controls and procedures
        as of the end of our fiscal quarter on February 28, 2006. This evaluation
        was
        conducted by our chief executive officer, Bryan McKay, and our principal
        accounting officer, Bruno Fruscalzo.
 
 Disclosure
        controls are controls and other procedures that are designed to ensure that
        information that we are required to disclose in the reports we file pursuant
        to
        the Securities Exchange Act of 1934 is recorded, processed, summarized and
        reported.
 
 **Limitations
        on the Effective of Controls**
 
 Our
        management does not expect that our disclosure controls or our internal controls
        over financial reporting will prevent all error and fraud. A control system,
        no
        matter how well conceived and operated, can provide only reasonable, but
        no
        absolute, assurance that the objectives of a control system are met. Further,
        any control system reflects limitations on resources, and the benefits of
        a
        control system must be considered relative to its costs. These limitations
        also
        include the realities that judgments in decision-making can be faulty and
        that
        breakdowns can occur because of simple error or mistake. Additionally, controls
        can be circumvented by the individual acts of some persons, by collusion
        of two
        or more people or by management override of a control. A design of a control
        system is also based upon certain assumptions about potential future conditions;
        over time, controls may become inadequate because of changes in conditions,
        or
        the degree of compliance with the policies or procedures may deteriorate.
        Because of the inherent limitations in a cost-effective control system,
        misstatements due to error or fraud may occur and may not be
        detected.
 
 **Conclusions**
 
 Based
        upon his evaluat ion
        of
        our controls, our chief executive officer and principal accounting officer
        have
        concluded that, subject to the limitations noted above, the disclosure controls
        are effective providing reasonable assurance that material information relating
        to us is made known to management on a timely basis during the period when
        our
        reports are being prepared. There were no changes in our internal controls
        that
        occurred during the quarter covered by this report that have materially
        affected, or are reasonably likely to materially affect our internal
        controls.
 
 
 
 
  
  
 **PART
        II - OTHER INFORMATION**
 
 Item
        1.  Legal
        Proceedings
 
 We
        are
        not a party to any pending legal proceeding. Management is not aware of any
        threatened litigation, claims or assessments.
 
 Item
        2.  Changes
        in Securities
 
 We
        did
        not issue any securities during the quarter ended February 28, 2006.
 
 Item
        3.
        Defaults Upon Senior Securities
 
 None.
 
 Item
        4.
        Submission of Matters to a Vote of Security Holders
 
 None.
 
 Item
        5.
        Other Information
 
 None.
 
 Item
        6.
        Exhibits and Report on Form 8-K
 
 31.1
              Certification
                  pursuant to Rule 13a-14(a) under the Securities Exchange Act of
                  193431.2
              Certification
                  pursuant to Rule 13a-14(a) under the Securities Exchange Act of
                  193432.1
              Certification
                  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
                  906 of
                  the Sarbanes-Oxley Act of 200232.2
              Certification
                  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
                  906 of
                  the Sarbanes-Oxley Act of 2002
 
 **SIGNATURES**
 
 In
        accordance with the requirements of the Exchange Act, the registrant caused
        this
        report to be signed on its behalf by the undersigned, thereunto duly
        authorized.
 
 DATED:
        April 14, 2006
 
 Gulf
        United Energy, Inc.
 
 /s/
        Bryan
        McKay
 Bryan
        McKay, President