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      D.C. 20549 </strong></font></div>
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      <div>&#160;</div>
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      8-K </strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT </strong></font></div>
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      to Section 13 or 15(d) of the </strong></font></div>
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      Exchange Act of 1934 </strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Date
      of report (Date of earliest event reported): June 16, 2006</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><strong>UNITED
      HERITAGE CORPORATION</strong></font></div>
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      name of registrant as specified in Charter) </strong></font></div>
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                or other jurisdiction of</strong></font></div>
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                or organization)</strong></font></div>
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                File No.)</strong></font></div>
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                Employee Identification
                No.)</strong></font></div>
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      North Marienfeld, Suite 200</strong></font></div>
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      Texas 79701</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the Registrant under any of the following
      provisions (see General Instruction A.2 below).</font></div>
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              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
                communications pursuant to Rule 425 under the Securities Act (17
                CFR
                230.425)</font></div>
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              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
                material pursuant to Rule 14a-12 under the Exchange Act (17
                CFR240.14a-12)</font></div>
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                communications pursuant to Rule 14d-2(b) under the Exchange Act (17
                CFR
                240.14d-2(b)).</font></div>
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              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
                communications pursuant to Rule 13e-4&#169; under the Exchange Act (17 CFR
                240.13(e)-4(c))</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      1.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Entry
      into a Material Definitive Agreement</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following discussion provides only a brief description of the documents
      described below. The discussion is qualified in its entirety by the full text
      of
      the agreements. On June 16, 2006, United Heritage Corporation (the &#8220;Company&#8221;)
      and its wholly-owned subsidiary, UHC New Mexico Corporation (&#8220;New Mexico&#8221;),
      entered into a series of agreements with Sterling Bank (the &#8220;Bank&#8221;) relating to
      a line of credit advanced by the Bank to Lothian Oil Inc. effective March 31,
      2006. The agreements included the following:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Promissory
      Note</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      Company and New Mexico, along with Lothian Oil Inc., Lothian Oil (USA) Inc.
      and
      Lothian Oil Texas I Inc. (collectively, &#8220;Lothian&#8221;) executed a promissory note in
      the principal amount of $20,000,000 in favor of the Bank. The promissory note
      is
      payable in accordance with the terms of the Amended and Restated Credit
      Agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Amended
      and Restated Credit Agreement</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      credit facility is a line of credit in the amount of $20,000,000 with
      availability established under an oil and gas borrowing base determined by
      the
      Bank in its sole discretion. On June 16, 2006, there was outstanding under
      a
      prior Credit Agreement between the Bank and Lothian $3,449,000 of principal
      and
      $14,948 of accrued and unpaid interest, plus a Letter of Credit in the amount
      of
      $500,000.00. These outstanding amounts constituted outstanding principal and
      interest and a Letter of Credit that make up part of the obligations under
      the
      Amended and Restated Credit Agreement. Proceeds of the credit facility may
      be
      used solely for (i) capital expenditures in relation to the development of
      the
      properties used to secure the credit facility, (ii) payment of fees and expenses
      under the Amended and Restated Credit Agreement and/or (iii)&#160;for general
      corporate purposes. The Letter of Credit may be used solely for general
      corporate purposes,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#160;</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">however,
      no Letter of Credit may be used in lieu or in support of stay or appeal bonds.
      Except as described herein, interest accrues on the credit facility at the
      prime
      rate plus 0.75% at any time the loan balance is less than $10,000,000 and at
      the
      prime rate plus 1.50% at any time the loan balance is equal to or greater than
      $10,000,000. Interest on past due principal and past due interest, to the extent
      permitted by applicable law, accrues at the prime rate plus 4%. Accrued and
      unpaid interest on the portion of the credit facility outstanding is due and
      payable monthly commencing on the last day of June, 2006, and continuing on
      the
      last day of each calendar month thereafter while any amount of the outstanding
      principal balance remains outstanding. The outstanding principal balance on
      the
      promissory note, together with all accrued and unpaid interest, are due and
      payable on April 30, 2008. The borrowing base for the loan was designated by
      the
      Bank as $5,250,000. The borrowing base will be reduced on the last day of each
      month by an amount designated by the Bank. The Bank designated $0.00 as the
      reduction to the borrowing base as of June 16, 2006. The Bank will redetermine
      the borrowing base on a semi-annual basis on December 1</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>st</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      and June
      1</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>st</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      of each
      year, starting on December 1, 2006. If at any time the loan balance exceeds
      the
      borrowing base then in effect, within 30 days of notice from the Bank of such
      occurrence, the Company, New Mexico and Lothian must (i) prepay, or make
      arrangements acceptable to the Bank for the prepayment of, the amount of such
      excess, (ii) provide additional collateral satisfactory to the Bank to secure
      the obligations, or (iii) effect any combination of these two alternatives
      that
      is acceptable to the Bank. There is no penalty for prepaying the loan. The
      Bank
      will be paid a facility fee equal to 1% on any future increase over the initial
      borrowing base on the date of any such borrowing base redetermination. The
      Bank
      is also entitled to be reimbursed for all expenses relating to the review,
      by
      third parties, of the properties securing the loan. Aside from the security
      interests described elsewhere in this Current Report, the Bank received a
      security interest in all funds belonging to Lothian, the Company or New Mexico
      that are on deposit with the Bank. As long as any part of the loan is
      outstanding or any commitment by the Bank must be made, the Company, New Mexico
      and Lothian have agreed to comply with a number of affirmative covenants
      including, but not limited to, providing to the Bank quarterly financial
      statements, annual financial statements, an officer&#8217;s compliance certificate,
      oil and gas reserve reports and other documents, as well as maintaining their
      operations, all in accordance with the Amended and Restated Credit Agreement.
      The Company, New Mexico and Lothian also agreed to indemnify the Bank against
      any and all claims relating to the presence of hazardous materials on the
      properties used as security for the loan. On the closing date of the loan,
      which
      was June 16, 2006, Lothian paid all attorneys&#8217; fees incurred by the Bank in
      conjunction with the preparation of the documents described in this Current
      Report. Upon the occurrence of an event of default, as described in the Amended
      and Restated Credit Agreement, immediately and without notice, (i) all
      obligations will automatically become immediately due and payable; (ii) the
      commitment of the Bank will immediately cease and terminate unless and until
      reinstated by the Bank in writing; and (iii) the Bank may at any time and from
      time to time set-off and apply any and all funds belonging to Lothian, the
      Company or New Mexico that are on deposit with the Bank against any and all
      of
      the obligations of Lothian, the Company and New Mexico, even though the
      obligations may be unmatured.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Deed
      of Trust, Mortgage, Assignment of Production, Security Agreement and Financing
      Statement</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      By
      executing the Deed of Trust, Mortgage, Assignment of Production, Security
      Agreement and Financing Statement, New Mexico provided to the Bank, as security
      for the loan, all of its oil, gas or other mineral leases, all of the benefits
      derived from agreements relating to the leases (such as area of mutual interest
      agreements, operating agreements or equipment leases), all appurtenances and
      properties belonging to or affixed to the leases (such as pipelines, oil wells
      or gas wells) and all of the oil, gas and other products extracted or refined
      from the property.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Security
      Agreement, Pledge and Financing Statement</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      By
      executing the Security Agreement, Pledge and Financing Statement, the Company
      and New Mexico provided to the Bank a security interest in and a lien on all
      of
      their right, title and interest in, to and under all improvements and all
      personal property of any kind or character (as defined in and subject to the
      provisions of the UCC), including the proceeds and products from any and all
      of
      such improvements and personal property, which is defined in this agreement
      as
      the &#8220;Collateral&#8221;. The Collateral secures the payment and performance in full of
      all of the obligations set forth in the Amended and Restated Credit Agreement.
      The Security Agreement, Pledge and Financing Statement will remain in full
      force
      and effect until all of the indebtedness, as defined in the Amended and Restated
      Credit Agreement, is satisfied in full.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Guaranty</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      UHC
      Petroleum Services, UHC Petroleum Corporation and Lothian Oil Texas II Inc.
      each
      agreed to guaranty to the Bank payment and performance of the Amended and
      Restated Credit Agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Stock
      Pledge Agreement</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      Company pledged as additional security for the payment and performance of the
      Amended and Restated Credit Agreement all of its shares in New Mexico (the
      &#8220;Pledged Shares&#8221;) including its right to receive securities convertible or
      exchangeable into, and all warrants, options or other rights to purchase shares
      of stock of any issuer, and the certificates or instruments representing such
      additional shares, convertible or exchangeable securities, warrants, and other
      rights and all dividends, cash, options, warrants, rights, instruments, and
      other property or proceeds from time to time received, receivable, or otherwise
      distributed in respect of or in exchange for any or all of such shares (the
      &#8220;Future Rights&#8221;) and any proceeds of the Pledged Shares and the Future
      Rights.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Subordination
      Agreement</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Pursuant to the Subordination Agreement, Lothian Oil Inc. agreed to subordinate
      repayment of its loan to the Company and New Mexico in the amount of $4,000,000
      to the payment and performance of the Amended and Restated Credit Agreement
      and
      to subordinate the liens and security interests securing repayment of its loan
      to the liens and security interests securing repayment of the obligations set
      forth in the Amended and Restated Credit Agreement. In certain instances, which
      are defined in the Subordination Agreement, payments of interest may be made
      to
      Lothian Oil Inc.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Letter
      in Lieu of Transfer Order</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      By
      signing this document, Lothian, the Company and New Mexico authorized
      disbursements of their share of revenues derived from the sale of oil, gas
      and
      other minerals derived from the properties securing the loan to be remitted
      to
      the Bank.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      2.03</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Creation
      of a Direct Financial Obligation</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See
      the
      discussion under Item 1.01 above.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br><br>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
        9.01</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
        Statements and Exhibits</font></strong></div><br>
      <div align="center">
        <table cellpadding="0" cellspacing="0" width="95%">

            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
                  10.1</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="83%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amended
                  and Restated Credit Agreement</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
                  10.2</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="83%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deed
                  of Trust, Mortgage, Assignment of Production, <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Security
                  Agreement and Financing Statement</font></font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
                  10.3</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="83%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Security
                  Agreement, Pledge and Financing Statement</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
                  10.4</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="83%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Guaranty</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
                  10.5</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="83%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                  Pledge Agreement</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
                  10.6</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="83%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subordination
                  Agreement</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
                  10.7</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="83%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Letter
                  in Lieu of Transfer Order</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="15%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
                  10.8</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="83%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Promissory
                  Note</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="15%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
                  99. </font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="83%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                  Release</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this Current Report to be signed on its behalf by the undersigned
      hereunto duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dated:
      June 30, 2006</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: "><br></font>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">UNITED
                HERITAGE CORPORATION</font></div>
            </td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td>&#160;</td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/
              <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">C.
              Scott Wilson</font></font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="FONT-FAMILY: " size="1">&#160;</font></td>
            <td align="left">
              <hr style="COLOR: black" align="left" noshade size="2" width="80%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">C.
              Scott Wilson, Chief Executive Officer</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td>
              <div align="left">&#160;</div>
            </td>
          </tr>

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{"company-data": {"conformed-name": "UNITED HERITAGE CORP", "cik": "0000354567", "assigned-sic": "1311", "irs-number": "870372826", "state-of-incorporation": "UT", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-10179", "film-number": "06937190"}, "business-address": {"street1": "2 CADDO STREET", "city": "CLEBURNE", "state": "TX", "zip": "76031", "phone": "8176413681"}, "mail-address": {"street1": "2 CADDO STREET", "city": "CLEBURN", "state": "TX", "zip": "76031"}, "former-company": {"former-conformed-name": "DNA MEDICAL INC", "date-changed": "19881025"}}
SECURITIES
      AND EXCHANGE COMMISSION
WASHINGTON,
      D.C. 20549
FORM
      8-K
CURRENT
      REPORT
Pursuant
      to Section 13 or 15(d) of the
Securities
      Exchange Act of 1934
Date
      of report (Date of earliest event reported): June 16, 2006
UNITED
      HERITAGE CORPORATION
(Exact
      name of registrant as specified in Charter)
Utah
0-9997
87-0372864
(State
                or other jurisdiction of
incorporation
                or organization)
(Commission
                File No.)
(IRS
                Employee Identification
                No.)
405
      North Marienfeld, Suite 200
Midland,
      Texas 79701
(Address
      of Principal Executive Offices)
432-686-2618
(Issuer
      Telephone number)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the Registrant under any of the following
      provisions (see General Instruction A.2 below).
o
Written
                communications pursuant to Rule 425 under the Securities Act (17
                CFR
                230.425)
o
Soliciting
                material pursuant to Rule 14a-12 under the Exchange Act (17
                CFR240.14a-12)
o
Pre-commencement
                communications pursuant to Rule 14d-2(b) under the Exchange Act (17
                CFR
                240.14d-2(b)).
o
Pre-commencement
                communications pursuant to Rule 13e-4© under the Exchange Act (17 CFR
                240.13(e)-4(c))
Item
      1.01
Entry
      into a Material Definitive Agreement
The
      following discussion provides only a brief description of the documents
      described below. The discussion is qualified in its entirety by the full text
      of
      the agreements. On June 16, 2006, United Heritage Corporation (the "Company")
      and its wholly-owned subsidiary, UHC New Mexico Corporation ("New Mexico"),
      entered into a series of agreements with Sterling Bank (the "Bank") relating to
      a line of credit advanced by the Bank to Lothian Oil Inc. effective March 31,
      2006. The agreements included the following:
Promissory
      Note
.
      The
      Company and New Mexico, along with Lothian Oil Inc., Lothian Oil (USA) Inc.
      and
      Lothian Oil Texas I Inc. (collectively, "Lothian") executed a promissory note in
      the principal amount of $20,000,000 in favor of the Bank. The promissory note
      is
      payable in accordance with the terms of the Amended and Restated Credit
      Agreement.
Amended
      and Restated Credit Agreement
.
      The
      credit facility is a line of credit in the amount of $20,000,000 with
      availability established under an oil and gas borrowing base determined by
      the
      Bank in its sole discretion. On June 16, 2006, there was outstanding under
      a
      prior Credit Agreement between the Bank and Lothian $3,449,000 of principal
      and
      $14,948 of accrued and unpaid interest, plus a Letter of Credit in the amount
      of
      $500,000.00. These outstanding amounts constituted outstanding principal and
      interest and a Letter of Credit that make up part of the obligations under
      the
      Amended and Restated Credit Agreement. Proceeds of the credit facility may
      be
      used solely for (i) capital expenditures in relation to the development of
      the
      properties used to secure the credit facility, (ii) payment of fees and expenses
      under the Amended and Restated Credit Agreement and/or (iii) for general
      corporate purposes. The Letter of Credit may be used solely for general
      corporate purposes,
however,
      no Letter of Credit may be used in lieu or in support of stay or appeal bonds.
      Except as described herein, interest accrues on the credit facility at the
      prime
      rate plus 0.75% at any time the loan balance is less than $10,000,000 and at
      the
      prime rate plus 1.50% at any time the loan balance is equal to or greater than
      $10,000,000. Interest on past due principal and past due interest, to the extent
      permitted by applicable law, accrues at the prime rate plus 4%. Accrued and
      unpaid interest on the portion of the credit facility outstanding is due and
      payable monthly commencing on the last day of June, 2006, and continuing on
      the
      last day of each calendar month thereafter while any amount of the outstanding
      principal balance remains outstanding. The outstanding principal balance on
      the
      promissory note, together with all accrued and unpaid interest, are due and
      payable on April 30, 2008. The borrowing base for the loan was designated by
      the
      Bank as $5,250,000. The borrowing base will be reduced on the last day of each
      month by an amount designated by the Bank. The Bank designated $0.00 as the
      reduction to the borrowing base as of June 16, 2006. The Bank will redetermine
      the borrowing base on a semi-annual basis on December 1
st
and June
      1
st
of each
      year, starting on December 1, 2006. If at any time the loan balance exceeds
      the
      borrowing base then in effect, within 30 days of notice from the Bank of such
      occurrence, the Company, New Mexico and Lothian must (i) prepay, or make
      arrangements acceptable to the Bank for the prepayment of, the amount of such
      excess, (ii) provide additional collateral satisfactory to the Bank to secure
      the obligations, or (iii) effect any combination of these two alternatives
      that
      is acceptable to the Bank. There is no penalty for prepaying the loan. The
      Bank
      will be paid a facility fee equal to 1% on any future increase over the initial
      borrowing base on the date of any such borrowing base redetermination. The
      Bank
      is also entitled to be reimbursed for all expenses relating to the review,
      by
      third parties, of the properties securing the loan. Aside from the security
      interests described elsewhere in this Current Report, the Bank received a
      security interest in all funds belonging to Lothian, the Company or New Mexico
      that are on deposit with the Bank. As long as any part of the loan is
      outstanding or any commitment by the Bank must be made, the Company, New Mexico
      and Lothian have agreed to comply with a number of affirmative covenants
      including, but not limited to, providing to the Bank quarterly financial
      statements, annual financial statements, an officer's compliance certificate,
      oil and gas reserve reports and other documents, as well as maintaining their
      operations, all in accordance with the Amended and Restated Credit Agreement.
      The Company, New Mexico and Lothian also agreed to indemnify the Bank against
      any and all claims relating to the presence of hazardous materials on the
      properties used as security for the loan. On the closing date of the loan,
      which
      was June 16, 2006, Lothian paid all attorneys' fees incurred by the Bank in
      conjunction with the preparation of the documents described in this Current
      Report. Upon the occurrence of an event of default, as described in the Amended
      and Restated Credit Agreement, immediately and without notice, (i) all
      obligations will automatically become immediately due and payable; (ii) the
      commitment of the Bank will immediately cease and terminate unless and until
      reinstated by the Bank in writing; and (iii) the Bank may at any time and from
      time to time set-off and apply any and all funds belonging to Lothian, the
      Company or New Mexico that are on deposit with the Bank against any and all
      of
      the obligations of Lothian, the Company and New Mexico, even though the
      obligations may be unmatured.
Deed
      of Trust, Mortgage, Assignment of Production, Security Agreement and Financing
      Statement
.
      By
      executing the Deed of Trust, Mortgage, Assignment of Production, Security
      Agreement and Financing Statement, New Mexico provided to the Bank, as security
      for the loan, all of its oil, gas or other mineral leases, all of the benefits
      derived from agreements relating to the leases (such as area of mutual interest
      agreements, operating agreements or equipment leases), all appurtenances and
      properties belonging to or affixed to the leases (such as pipelines, oil wells
      or gas wells) and all of the oil, gas and other products extracted or refined
      from the property.
Security
      Agreement, Pledge and Financing Statement
.
By
      executing the Security Agreement, Pledge and Financing Statement, the Company
      and New Mexico provided to the Bank a security interest in and a lien on all
      of
      their right, title and interest in, to and under all improvements and all
      personal property of any kind or character (as defined in and subject to the
      provisions of the UCC), including the proceeds and products from any and all
      of
      such improvements and personal property, which is defined in this agreement
      as
      the "Collateral". The Collateral secures the payment and performance in full of
      all of the obligations set forth in the Amended and Restated Credit Agreement.
      The Security Agreement, Pledge and Financing Statement will remain in full
      force
      and effect until all of the indebtedness, as defined in the Amended and Restated
      Credit Agreement, is satisfied in full.
Guaranty
.
      UHC
      Petroleum Services, UHC Petroleum Corporation and Lothian Oil Texas II Inc.
      each
      agreed to guaranty to the Bank payment and performance of the Amended and
      Restated Credit Agreement.
Stock
      Pledge Agreement
.
      The
      Company pledged as additional security for the payment and performance of the
      Amended and Restated Credit Agreement all of its shares in New Mexico (the
      "Pledged Shares") including its right to receive securities convertible or
      exchangeable into, and all warrants, options or other rights to purchase shares
      of stock of any issuer, and the certificates or instruments representing such
      additional shares, convertible or exchangeable securities, warrants, and other
      rights and all dividends, cash, options, warrants, rights, instruments, and
      other property or proceeds from time to time received, receivable, or otherwise
      distributed in respect of or in exchange for any or all of such shares (the
      "Future Rights") and any proceeds of the Pledged Shares and the Future
      Rights.
Subordination
      Agreement
.
      Pursuant to the Subordination Agreement, Lothian Oil Inc. agreed to subordinate
      repayment of its loan to the Company and New Mexico in the amount of $4,000,000
      to the payment and performance of the Amended and Restated Credit Agreement
      and
      to subordinate the liens and security interests securing repayment of its loan
      to the liens and security interests securing repayment of the obligations set
      forth in the Amended and Restated Credit Agreement. In certain instances, which
      are defined in the Subordination Agreement, payments of interest may be made
      to
      Lothian Oil Inc.
Letter
      in Lieu of Transfer Order
.
      By
      signing this document, Lothian, the Company and New Mexico authorized
      disbursements of their share of revenues derived from the sale of oil, gas
      and
      other minerals derived from the properties securing the loan to be remitted
      to
      the Bank.
Item
      2.03
Creation
      of a Direct Financial Obligation
See
      the
      discussion under Item 1.01 above.
Item
        9.01
Financial
        Statements and Exhibits
Exhibit
                  10.1
Amended
                  and Restated Credit Agreement
Exhibit
                  10.2
Deed
                  of Trust, Mortgage, Assignment of Production,
Security
                  Agreement and Financing Statement
Exhibit
                  10.3
Security
                  Agreement, Pledge and Financing Statement
Exhibit
                  10.4
Guaranty
Exhibit
                  10.5
Stock
                  Pledge Agreement
Exhibit
                  10.6
Subordination
                  Agreement
Exhibit
                  10.7
Letter
                  in Lieu of Transfer Order
Exhibit
                  10.8
Promissory
                  Note
Exhibit
                  99.
Press
                  Release
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this Current Report to be signed on its behalf by the undersigned
      hereunto duly authorized.
Dated:
      June 30, 2006
UNITED
                HERITAGE CORPORATION
By:
/s/
C.
              Scott Wilson
C.
              Scott Wilson, Chief Executive Officer