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 May
      31, 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
            Pending(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 July 12, 2006.















































**Gulf
      United Energy Inc.**


**(Formerly
      Stonechurch Inc.)**





**(An
      Exploration Stage Company)**








**THIRD
      QUARTER**


**FINANCIAL
      STATEMENTS**











**MAY
      31, 2006**


**(Unaudited)**


**(Stated
      in U.S. Dollars)**





























































**GULF
      UNITED ENERGY INC.**


**(An
      Exploration Stage Company)**





**BALANCE
      SHEETS**


**(Unaudited)**


(Stated
      in U.S. Dollars)





**May
                31, 2006**
            
            **August
                31, 2005****ASSETS**CurrentCash
            
            $
            6,740
            
            $
            432**LIABILITIES**CurrentAccounts
                Payable and accrued liabilities
            
            
            8,837
            
            
            6,840Loans
                Payable (Note 4)
            
            
            29,402
            
            
            -38,239
            
            
            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 May 31, 2006 and August 31, 2005
            
            
            25,415
            
            
            25,415Additional
                paid in capital
            
            
            635
            
            
            635**(Deficit)
                accumulated during the exploration stage**
            
            
            (57,549
            )
            
            (32,458
            )(31,499
            )
            
            (6,408
            )6,740
            
            
            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)





**Three
                months Ended**
            
            **Three
                months Ended**
            
            **Nine
                months Ended**
            
            **Nine
                months Ended**
            
            **Cumulative
                Period From Inception to****May
                31**
            
            **May
                31**
            
            **May
                31**
            
            **May
                31**
            
            **May
                31****2006**
            
            **2005**
            
            **2006**
            
            **2005**
            
            **2006****Revenue**
            
            $
            -
            
            $
            -
            
            $
            -
            
            $
            -
            
            $
            -**Expenses**Office
                and sundry
            
            
            1,139
            
            
            747
            
            
            3,381
            
            
            3,029
            
            
            10,044Professional
                fees
            
            
            1,867
            
            
            348
            
            
            18,220
            
            
            6,815
            
            
            31,998Mineral
                property costs
            
            
            490
            
            
            2,143
            
            
            3,490
            
            
            2,505
            
            
            15,5073,497
            
            
            3,238
            
            
            25,091
            
            
            12,349
            
            
            57,549**Net
                (Loss) For The Period**
            
            
            (3,497
            )
            
            (3,238
            )
            
            (25,091
            )
            
            (12,349
            )
            
            (57,549
            )**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)





**Three
                months Ended**
            
            **Three
                months Ended**
            
            **Nine
                months Ended**
            
            **Nine
                months**
              **Ended**
            
            **Cumulative
                Period From Inception to****May
                31**
            
            **May
                31**
            
            **May
                31**
            
            **May
                31**
            
            **May
                31****2006**
            
            **2005**
            
            **2006**
            
            **2005**
            
            **2006****Cash
                Flows From Operating Activities:**Net
                Loss for the period
            
            
            (3,497
            )
            
            (3,238
            )
            
            (25,091
            )
            
            (12,349
            )
            
            (57,549
            )Change
                in non-cash working capital items:Accounts
                payable and accrued liabilities
            
            
            3,468
            
            
            329
            
            
            1,997
            
            
            2,914
            
            
            8,837**Cash
                Flows From Financing Activities:**Capital
                stock issued
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            26,050Loan
                payable
            
            
            5,000
            
            
            -
            
            
            29,402
            
            
            (2,000
            )
            
            29,4025,000
            
            
            -
            
            
            29,402
            
            
            (2,000
            )
            
            55,452**Increase
                (Decrease) in Cash**
            
            
            4,971
            
            
            (2,909
            )
            
            6,308
            
            
            (11,435
            )
            
            6,740**Cash
                - Beginning of Period**
            
            
            1,769
            
            
            7,855
            
            
            432
            
            
            16,381
            
            
            -**Cash
                - End of Period**
            
            
            6,740
            
            
            4,946
            
            
            6,740
            
            
            4,946
            
            
            6,740**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 May 31, 2006**


**(Unaudited)**


**(Stated
      in U.S. Dollars)**







**COMMON
                SHARES**
            
            **ADDITIONAL**
            
            **DEFICIT
                ACCUMULATED DURING THE****PAR**
            
            **PAID-IN**
            
            **EXPLORATION****NUMBER**
            
            **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
            
            
            -
            
            
            -
            
            
            -
            
            
            (25,091
            )
            
            (25,091
            )**Balance
                May 31, 2006**
            
            
            25,415,000
            
            
            25,415
            
            
            635
            
            
            (57,549
            )
            
            (31,499
            )























The
      accompanying notes are an integral part of these financial
      statements

















**Gulf
      United Energy Inc.**


**(An
      Exploration Stage Company)**





**NOTES
      TO THE FINANCIAL STATEMENTS**


**MAY
      31, 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 nine month
      period ended May 31, 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. This agreement was subsequently terminated
      effective May 22, 2006.



















**Gulf
      United Energy Inc.**


**(An
      Exploration Stage Company)**





**NOTES
      TO THE FINANCIAL STATEMENTS**


**MAY
      31, 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
      $57,549 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 May
      31, 2006, the Company had no cash equivalents.





c)
            Mineral
                Property Acquisition Payments and Exploration
                Costs





The
      Company expenses all costs incurred on mineral properties to which it has
      secured exploration rights prior to the establishment of proven and probable
      reserves. If and when proven and probably reserves are determined for a property
      and a feasibility study prepared with respect to the property, then subsequent
      exploration and development costs of the property will be
      capitalized.
























**Gulf
      United Energy Inc.**


**(An
      Exploration Stage Company)**





**NOTES
      TO THE FINANCIAL STATEMENTS**


**MAY
      31, 2006**


**(Unaudited)**


**(Stated
      in U.S. Dollars)**











**2.**
            **SUMMARY
                OF SIGNIFICANT ACCOUNTING POLICIES**(Continued)





The
      Company regularly performs evaluations of any investment in mineral properties
      to assess the recoverability and/or the residual value of its investments in
      these assets. All long-lived assets are reviewed for impairment whenever events
      or circumstances change which indicate the carrying amount of an asset may
      not
      be recoverable.








d)
            Exploration
                Expenditures





The
      Company follows a policy of expensing exploration expenditures until a
      production decision in respect of the project and the Company is reasonably
      assured that it will receive regulatory approval to permit mining operations,
      which may include the receipt of a legally binding project approval
      certificate.





Management
      periodically reviews the carrying value of its investments in mineral leases
      and
      claims with internal and external mining related professionals. A decision
      to
      abandon, reduce or expand a specific project is based upon many factors
      including general and specific assessments of mineral deposits, anticipated
      future mineral prices, anticipated future costs of exploring, developing and
      operating a production mine, the expiration term and ongoing expenses of
      maintaining mineral properties and the general likelihood that the Company
      will
      continue exploration on such project. The Company does not set a pre-determined
      holding period for properties with unproven deposits, however, properties which
      have not demonstrated suitable metal concentrations at the conclusion of each
      phase of an exploration program are re-evaluated to determine if future
      exploration is warranted, whether there has been any impairment in value and
      that their carrying values are appropriate.





If
      an
      area of interest is abandoned or it is determined that its carrying value cannot
      be supported by future production or sale, the related costs are charged against
      operations in the year of abandonment or determination of value. The amounts
      recorded as mineral leases and claims represent costs to date and do not
      necessarily reflect present or future values.





The
      Company’s exploration activities and proposed mine development are subject to
      various laws and regulations governing the protection of the environment. These
      laws are continually changing, generally becoming more restrictive. The Company
      has made, and expects to make in the future, expenditures to comply with such
      laws and regulations.





The
      accumulated costs of properties that are developed on the stage of commercial
      production will be amortized to operations through unit-of-production
      depletion.





















**Gulf
      United Energy Inc.**


**(An
      Exploration Stage Company)**





**NOTES
      TO THE FINANCIAL STATEMENTS**


**MAY
      31, 2006**


**(Unaudited)**


**(Stated
      in U.S. Dollars)**







**2.**
            **SUMMARY
                OF SIGNIFICANT ACCOUNTING POLICIES**(Continued)








e)
            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.





f)
            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.




g)
            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.





h)
            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**


**MAY
      31, 2006**


**(Unaudited)**


**(Stated
      in U.S. Dollars)**





**2.**
            **SUMMARY
                OF SIGNIFICANT ACCOUNTING POLICIES**(Continued)








i)
            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.





j)
            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.








k)
            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**


**MAY
      31, 2006**


**(Unaudited)**


**(Stated
      in U.S. Dollars)**







**2.**
            **SUMMARY
                OF SIGNIFICANT ACCOUNTING POLICIES**(Continued)








l)
            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 May 31, 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.





m)
            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**


**MAY
      31, 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 $29,402 to the Company during the period ended
      May 31, 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 May 31, 2006, the Company
      issued 25,415,000 common shares (post stock split) for total cash proceeds
      of
      $26,050.





At
      May
      31, 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 quarter ended May 31, 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 could 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 liquified
      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 has not occurred by the required deadline. Accordingly, the letter
        of
        intent is considered terminated and non-binding unless a formal joint venture
        agreement is executed.




We
      are
      still pursuing the potential joint venture, subject to securing the necessary
      financing, of which there is no guarantee. Any joint venture would include
      our
      obligation to issue 300,000 shares of our restricted stock to CMGN within 15
      days following the execution of a joint venture agreement. A finder’s fee would
      also be payable in connection with a formal joint venture
      agreement.





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. 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
      $200,000 to repay the loan we received, plus all accrued 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 approximately
      $1,460,000.




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 May 31, 2006**





We
      did
      not earn any revenues during the nine-month period ending May 31, 2006. We
      incurred operating expenses in the amount of $25,091 for the nine-month period
      ended May 31, 2006 . Our
      operating expenses were comprised of professional fees $18,220, mineral property
      costs of $3,490 and office and sundry costs of $3,381.





At
      May
      31, 2006, we had total assets of $6,740, consisting entirely of cash. At the
      same date, our liabilities consisted of accounts payable and accrued liabilities
      of $8,837 and loans payable from our directors of $29,402.















**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 May 31, 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 May 31, 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 1934


31.2
            Certification
                pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934


32.1
            Certification
                pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
                906 of
                the Sarbanes-Oxley Act of 2002


32.2
            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:
      July 12, 2006





Gulf
      United Energy, Inc.





/s/
      Bryan
      McKay


Bryan
      McKay, President