FORM 10-QSB

                SECURITIES AND EXCHANGE COMMISSION
                       Washington, D.C. 20549

(Mark One)
(X)   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
      SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 1997.

                                OR

()   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
     SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________________________
to ___________________________________

For Quarter Ended June 30, 1997 Commission file no. 0-20760

                          PETRO UNION, INC.
      (Exact name of registrant as specified in its charter)

        COLORADO                             84-1091986
(State or other jurisdiction            (I. R. S. Employer No.)
of incorporation of organization)

123 Main Street, Suite 300
Evansville, Indiana                             47708
(Address of principal                        (Zip Code)
executive offices)

Registrant's telephone number, including area code: (812) 424-
6745

                            Not Applicable
(Former name, former address and former fiscal year, if changed
since last report)

    Indicate by check mark whether the registrant (1) has 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 registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X   No

    Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
dates.

Title of Each Class                 Outstanding at June 30, 1997
    Common                                  17,537,945
                               PART I

ITEM 1 - FINANCIAL STATEMENTS




                         TABLE OF CONTENTS

                                                            PAGE

Consolidated Balance Sheets as of June 30, 97
(Unaudited) and December 31, 1996 (Audited)                    3

Consolidated Statements of Operations for the Three and Six
Months' Ended June 31, 1997 and 1996 (Unaudited)               4

Consolidated Statements of Stockholders, Equity for
the year ended December 31, 1996 (Audited)
and the Six Months Ended June 30, 1997 (Unaudited)             5

Consolidated Statements of Cash Flows for the Six
Months Ended June 30, 1997 and 1996 (Unaudited)                6

Notes to Consolidated Financial Statements (Unaudited)        7-9

Management's Discussion and Analysis                           10

Other Information                                           11-12

<PAGE>
                   PETRO UNION INC., AND SUBSIDIARIES
                       CONSOLIDATED BALANCE SHEET

                               ASSETS

                                       June 30        December 31
                                         1997             1996
                                     (UNAUDITED)        (AUDITED)

CURRENT ASSETS:
  CASH                                   $8,467           $22,132
  RESTRICTED CASH                        30,747            30,747
  ACCOUNTS RECEIVABLE                   117,053           132,262
TOTAL CURRENT ASSETS                    156,267           185,141
PROPERTIES AND EQUIPMENT              4,205,701         4,237,267

  TOTAL ASSETS                        4,361,968         4,422,408


                LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES NOT SUBJECT TO COMPROMISE

CURRENT LIABILITIES:
  SHORT TERM NOTES PAYABLE                6,700             6,700
  SHORT TERM POST PETITION              150,000           150,000
  ACCOUNTS PAYABLE                       23,488            31,164
  ACCRUED TAXES, PRE-PETITION            14,306            14,306
  OTHER ACCRUED EXPENSES                102,095            96,095
TOTAL CURRENT LIABILITIES               296,589           298,265
LONG TERM NOTE PAYABLE                   16,416            16,416

LIABILITIES SUBJECT TO COMPROMISE

  ACCOUNTS PAYABLE AND ACCRUED EXP.     296,968           296,968
  ADVANCES FROM RELATED PARTIES          52,088            52,088
  ADVANCE ON JOINT VENTURE AGR.         230,000           230,000
  AMOUNTS FROM DISCONTINUED
   OPERATIONS                        24,022,791        24,022,791

TOTAL LIABILITIES SUBJECT TO
 COMPROMISE                          24,601,847        24,601,847

TOTAL LIABILITIES                    24,914,852        24,916,528

STOCKHOLDERS' EQUITY:
  COMMON STOCK, $.125 PAR VALUE, 50,000,000
  SHARES AUTHORIZED, 17,537,945 SHARES
  ISSUED AND OUTSTANDING              2,192,243         2,192,243
  ADDITIONAL PAID IN CAPITAL         14,076,088        14,076,088
  RETAINED EARNINGS (DEFICIT)       (36,821,215)      (36,747,451)
  LESS STOCK SUBSCRIPT. AGREEMENT             0           (15,000)

  TOTAL STOCKHOLDERS' EQUITY         (20,552,884)     (20,494,120)
  TOTAL LIABILITIES AND
  STOCKHOLDERS' EQUITY               $4,361,968        $4,422,408
<PAGE>
                PETRO UNION INC., AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF OPERATIONS
        FOR THE THREE MONTHS ENDED JUNE 30,1997 AND 1996
                         (UNAUDITED)

                         SIX MONTHS           THREE MONTHS
                         ENDED JUNE 30        ENDED JUNE 30
                           1997      1996      1997      1996


REVENUES                 $189,918   $92,849   $66,445   $75,740

COST OF REVENUES           93,140    95,417    42,989    35,442

   GROSS PROFIT (LOSS)     96,778    (2,568)   23,456    40,298

GENERAL AND ADMINISTRATIVE 88,208   132,041    49,188    65,823

PROFIT (LOSS) FROM
 OPERATIONS                 8,570  (134,609)  (25,732)  (25,525)

OTHER INCOME (EXPENSES)
   INTEREST EXPENSE        (3,000)     (466)   (3,000)     (231)
   INTEREST INCOME              0     1,075         0       738
   OTHER                  (37,651)        0   (38,680)        0

   TOTAL OTHER INCOME
    (EXPENSE)             (40,651)      609   (41,680)      507

NET (LOSS) FROM
  OPERATIONS BFIT         (32,081)($134,000)  (67,412) ($25,018)

FEDERAL INCOME TAX            0.0       0.0       0.0       0.0

NET INCOME (LOSS)        ($32,081)($134,000) ($67,412) ($25,018)

PER SHARE                  (0.002)   -0.008    (0.001)   (0.001)

WEIGHTED AVERAGE NUMBER
OF SHARES USED TO COMPUTE
PER SHARE             17,537,945 17,537,945 17,537,945 17,537,945


<PAGE>
                 PETRO UNION INC., AND SUBSIDIARIES
           CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
   FOR THE YEAR ENDED DECEMBER 31,1994, 1995 & 1996 (AUDITED) AND
        FOR THE SIX MONTHS ENDED JUNE 30,1997 (UNAUDITED)

                           ADDITIONAL
                           PAID IN     RETAINED
       SHARES    AMOUNT    CAPITAL     EARNINGS      TOTAL

BALANCE
DEC.31,
1994   13496760 $1,687,095 $13,919,522 ($11,970,914) $3,635,703

BALANCE
DEC.31,
1995   15927445 $1,990,930 $14,019,562 ($12,423,859) $3,586,633

BALANCE
DEC.31,
1996   17537945 $2,192,243 $14,076,088 ($36,747,451)($20,479,120)

NET LOSS                                    ($6,351)

BALANCE
MAR.31,
1997   17537945 $2,192,243 $14,076,088 ($36,753,803)($20,485,472)

NET LOSS                                   ($67,412)

BALANCE
JUN.30,
1997   17537945 $2,192,243 $14,076,088 ($36,821,215)($20,552,884)

<PAGE>
                PETRO UNION INC., AND SUBSIDIARIES
               CONSOLIDATED STATEMENTS OF CASH FLOWS
               FOR THE SIX MONTHS ENDED JUNE 30, 1997
                           (UNAUDITED)


                                    1997            1996

CASH FLOWS FROM OPERATIONS:
  NET LOSS                        ($73,761)      ($134,000)

ADJUSTMENTS TO RECONCILE NET:
  DISCONTINUE OPERATIONS                 0
  DEPRECIATION DEPLETION
    AMORTIZATION                    76,331          61,655
  BOOK VALUE OF ASSETS SOLD              0
  STOCK ISSUED FOR SERVICES              0
  (INCREASE) DECREASE
    IN RECEIVABLE                   15,209         (12,172)
  (INCREASE) DECREASE
    IN ADVANCE ROYALTIES                 0
  DECREASE IN OTHER ASSETS               0
  INCREASE (DECREASE) IN PAYABLES   (7,678)         29,639
  INCREASE IN ACCRUED LIABILITIES    6,000          65,538

NET CASH PROVIDED (USED)
  BY OPERATIONS                     16,101          10,660

CASH FLOW FROM INVESTING ACTIVITIES:
  INCREASE IN PROPERTIES AND
    EQUIPMENT                       51,352             741
NET CASH PROVIDED (USED)            51,352             741

CASH PROVIDED (USED) FROM FINANCING ACTIVITIES
  INCREASE (DECREASE) DUE
    TO RELATED PARTIES                   0               0
  PROCEEDS FROM NOTES PAYABLE            0               0
  REPAYMENTS OF NOTES PAYABLE            0               0
  ADVANCES ON JOINT VENTURES             0               0
  DECREASE (INCREASE)
    STK SUBSCRIPT. RECEIVABLE            0               0
  STOCK ISSUED FOR ACCRUED LIABILITIES   0               0
NET CASH PROVIDED (USED)
  BY FINANCING ACTIVITIES                0               0

NET INCREASE (DECREASE)
  IN CASH & CASH EQUIVAL.          (13,665)         (5,302)

CASH AND CASH EQUIVALENTS:
  BEGINNING PERIOD                  22,132              27
  ENDING PERIOD                      8,467          (5,329)

<PAGE>
NON-CASH FINANCING & INVESTING ACTIVITIES
  STOCK ISSUED FOR SERVICES              0          14,312
  STOCK ISSUED FOR
    ACCRUED LIABILITIES                  0         272,000
  ASSETS ACQUIRED BY
    ISSUANCE OF NOTES PAYABLE            0

SUPPLEMENTARY CASH FLOW DATA:
  INTEREST PAID                          0             466
  INCOME TAXES PAID                      0               0
<PAGE>
                PETRO UNION, INC. AND SUBSIDIARIES
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        June 30, 1997
                         (UNAUDITED)


NOTE 1.  BASIS OF PRESENTATION

The accompanying unaudited financial statements have been
prepared in accordance with the instructions to Form 10-QSB and,
therefore, do not include all information and footnotes necessary
for a fair presentation of financial position, results of
operations and cash flows in conformity with generally accepted
accounting principles.  Except as disclosed herein, there has
been no material change in the information disclosed in the notes
to consolidated financial statements included in the Company's
Annual Report on Form 10-KSB for the year ended December 31,
1996.  In the opinion of Management, all adjustments considered
necessary for a fair presentation have been included.  All
significant intercompany accounts and transactions have been
eliminated.  Operating results for the three-month period ended
June 30, 1997 are not necessarily indicative of the results that
may be expected for the year ending December 31, 1997.

NOTE 2.  OIL AND LIMESTONE OPERATIONS

The Company acquired its limestone reserves in July, 1992 through
the acquisition of Calox Corporation.  The Company has not
commenced production and development activities on these acquired
reserves.  The following summarizes activity related to these
acquired reserves:

                                        LIMESTONE
Capitalized costs:                      RESERVES

Acquisition costs                       3,500,000
Production and Development Costs           -
Amortization/Depletion                     -

Balance at March 31, 1996               3,500,000


                                        LIMESTONE
                                        RESERVES
                                         (TONS)

Initial Proven Reserves at
  Acquisition                          73,458,000
Production                                 -
Change in Estimates                        -

Estimated Reserves at
  March 31, 1996                       73,458,000
<PAGE>
              PETRO UNION, INC.  AND SUBSIDIARIES
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                    June 30, 1997 (CONTINUED)
                          (UNAUDITED)


NOTE 2.  OIL AND LIMESTONE OPERATIONS (CONTINUED)

The accompanying table reflects the standardized measure of
discounted future net cash flows relating to Petro Union, Inc.'s
interest in proved reserves as of September 30, 1996:

                                        LIMESTONE
Future cash inflows                   $367,290,000
Future Costs:
  Development                          (18,000,000)
  Production                          (202,000,000)
Future income tax expense              (44,074,800)

Future net cash flows                  102,841,200
10% discount to reflect
  timing of cash flows                 (77,698,967)

Standardized measure of
discounted future net
cash flows                              25,142,233

Discounted future net cash
  flows before income tax               35,917,475

Future cash inflows are computed by applying year-end prices of
limestone and oil relating to the year-end quantities of those
reserves.  Future development and production cost are computed by
independent consultants by estimating the expenditures to be
incurred in developing and producing limestone and oil reserves
at the end of the year, based on year-end cost and assuming
continuation of existing economic conditions.

Future income tax expenses are computed by applying the
appropriate statutory tax rates to the future pretax net cash
flows relating to proved reserves, exclusive of the tax basis of
the properties involved.  The future income tax expenses give
effect to permanent differences and tax credits, but do not
reflect the impact of continuing operations.  Future income tax
expenses have been reduced by the estimated future
nonconventional fuel source tax credits to be utilized.

The 10% annual discount is applied to reflect the timing of the
future net cash flows.  The standardized measure of discounted
cash flows is the future net cash flows less the computed
discounts.


<PAGE>
              PETRO UNION, INC. AND SUBSIDIARIES
         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 June 30, 1997 (CONTINUED)
                       (UNAUDITED)

NOTE 2.  OIL AND LIMESTONE OPERATIONS (CONTINUED)
Standardized Measure of Discounted Future Net Cash Flows
(Continued)

The Company is obligated under various working interest leases
for oil extraction.  The Company's working interest in these
leases varies from 3 to 100%.  Working interest reserves are
included calculations of reserves and net future revenues.

The Company has elected to use the successful efforts method of
accounting for its oil and gas operations.

NOTE 3.  DISCONTINUED OPERATIONS

On April 10, 1993, the Company entered into an agreement to
purchase 100% of the issued and outstanding common stock of Green
Coal Company, Inc., a Kentucky corporation for $3,052,000 cash
with $100,000 payable on April 10, 1993 and $2,952,000 due August
15, 1993, 1,000,000 restricted common shares and a 1% overriding
royalty on controlled reserves in place upon the signing of the
contract.  A $1,052,000 note due from the former stockholder to
be forgiven by the Company as a non-compete agreement for five
years.

In April, 1995, the Company discontinued the operations of its
coal mining segment.  This decision resulted from the following
events:

1.  Involuntary conversion of the Company's investment in Green
Coal Company by a Bankruptcy Judge on August 8, 1994; and

2.  Loss of the Company's leasehold interest in the Central City
coal reserves in Muhlenberg County, Kentucky, due to the
Company's inability to pay lease royalties due April, 1994, and
April, 1995.

The discontinuance of the Company's coal operations was effective
as of August 8, 1994.  Accordingly, the revenues and expenses
applicable to the discontinued segment have been removed from the
appropriate accounts and presented as a separate line item in the
statement of operations.

<PAGE>
                       PART I (CONTINUED)

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL        
         CONDITION AND RESULTS OF OPERATIONS

                     RESULTS OF OPERATIONS

           COMPARISON OF SIX MONTHS ENDED JUNE 30, 1997
              TO THE SIX MONTHS ENDED JUNE 30, 1996

Revenues for the six months ended June 30, 1997 increased $97,069
over the same period in 1996 due to increased horizontal drilling
service work performed in this period.  Cost of Revenue and
General and Administrative Expenses decreased $46,110 over the
same period in 1996, due to a reduction of legal and consulting
charges as a result of the Registrant's Chapter 11
Reorganization.

                LIQUIDITY AND CAPITAL RESOURCES

Working capital of $16,101.00 at June 30, 1997 increase $5,441.00
as compared to working capital of $10,660.00 for the six months
ended June 30, 1996 primarily due to the increase of horizontal
drilling service activities and reorganization activities.

The Company has submitted a Plan of Reorganization in its
bankruptcy proceedings that is subject to confirmation at a
hearing to be held on August 25, 1997.  If the Plan of
Reorganization is approved, working capital for future operations
will be funded by the Company's newly acquired subsidiary,
Horizontal Ventures, Inc. and from expanded operations (see
"Legal Proceedings").

                  PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         Location:       United States Bankruptcy Court
                         Southern District of Indiana
         Case:           96-70559-BHL-11
         Description:    Chapter 11 Reorganization
         Date:           May 13, 1996

On May 13, 1996 the Company voluntarily filed a petition for
"Reorganization" pursuant to Chapter 11 in the United States
Bankruptcy Court for the Southern District of Indiana.  The
filing was due to the liabilities and contingent liabilities
resulting from the acquisition and subsequent disposition of
Green Coal Company, Inc.

<PAGE>
The Company has been unable to attract the needed financings to
develop its properties and pursue its business opportunities as a
result of these liabilities.  If the Registrant's financing
efforts are not successful in the immediate term, Management
cannot reasonably predict the outlook for continuing operations.

On June 13, 1997 the Company filed with The United States
Bankruptcy Court a Plan of Reorganization and a Disclosure
Statement for the purpose of creating a reorganized Petro Union
which will enure to the benefit of the assets of the Company,
while restructuring the debt.  On July 22, 1997, the Court
approved the Disclosure Statement requiring ballots be received
by August 19, 1997, and set a hearing date of August 25, 1997,
for confirmation of the Plan.

Upon confirmation the Plan provides that the administrative and
priority claims be paid in full.  The existing secured debt is to
be paid according to the terms and conditions previously
contracted.  The unsecured creditors will receive 100,000 shares
of new common stock in the Reorganized Petro Union.  The equity
holders of the stock existing as of the date of confirmation,
will receive new shares of stock in the reorganized Company at a
reverse ratio of 220 shares of the current common stock to one
(1) share of new stock in the reorganized Company.

On June 27, 1997, the Bankruptcy Court approved, subject to
confirmation, the Company's Acquisition Agreement to acquire 100%
of the issued and outstanding stock of its single largest
competitor, Horizontal Ventures, Inc., of Tulsa, Oklahoma, in
exchange for 590,000 shares of the new common stock of the
reorganized Company.  The consideration was determined based upon
HVI's inventory of equipment, its personnel and its available
working capital.  The ultimate effect of the Plan, upon
confirmation and the acquisition of HVI, will be the reorganized
Company having issued common stock in the amount of One Million
(1,000,000) shares at a book value in a minimum amount of Five
Million Dollars ($5,000,000).


Also on June 27, 1997, the Bankruptcy Court approved an agreement
between the Company and Pembrooke Holding Corporation and
approved the Post-Petition Finance Agreement between the Company
and International Publishing Holdings, S.A. ("IPH").  Pembrooke
has agreed to modify and release its administrative claim and its
Post-Petition rights against the Company in exchange for a
repayment of one Hundred Thousand Dollars ($100,000) from the
Company and Forty-Nine Thousand Nine Hundred Ninety-Nine (49,999)
shares of new stock in the reorganized Company, upon
confirmation.  IPH will lend the Company Two Hundred Thousand
($200,000) secured by the remaining fifty percent (50%) interest
in the Company's limestone reserve and a first secured interest
on all unencumbered assets.  The loan will be converted to Forty
Thousand (40,000) shares of common stock in the reorganized
Company.
ITEM 2.  CHANGES IN SECURITIES

         None

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 REPORTS ON FORM 8-K

        (A)  Exhibits
             None

        (B)  Reports of Form 8-K
             None

<PAGE>
                            SIGNATURE


    Pursuant to the requirements of Section 13 or 15(d) of
the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.



                             PETRO UNION, INC.



Date: August 19, 1997       /S/ Richard D. Wedel
                            Richard D. Wedel, President