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      SECTION&#160;13 OR 15(D) OF THE</strong></font></div>
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      of
      report (Date of earliest event reported) </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>April
      25, 2006</strong></font></div>
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      FUEL &amp; ENERGY CORPORATION</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>405
                N. Marienfeld, 3</strong></font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><sup><strong>rd</strong></sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>
                Floor, Midland, Texas</strong></font></div>
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                571-8049</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; 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 (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>see
      </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">General
      Instruction A.2. below):</font></div>
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      communications pursuant to Rule 425 under the Securities Act (17 CFR
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    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-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></div>
            </td>
            <td align="left" valign="top" width="80%">
              <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>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ENTRY
                INTO A MATERIAL DEFINITIVE
                AGREEMENT.</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">&#160;</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">On
  April 25, 2006, we sold shares of our Series A 8% Convertible Preferred Stock
  in a private placement, pursuant to which we have entered into material agreements
  as described in Item 3.02 below, which is incorporated into this Item 1.01 by
  reference. </font></div>
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    <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
                3.02</strong></font></div>
            </td>
            <td align="left" valign="top" width="80%">
              <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>UNREGISTERED
                SALES OF EQUITY SECURITIES.
</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">&#160;</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"><em>Sale
      of Series A Preferred Stock</em></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">On
  April 25, 2006, we sold a total of 6,050 shares of our Series A 8% Convertible
  Preferred Stock in a private placement of our securities to 7 investors in reliance
  upon the exemption provided by Section 4(2) of the Securities Act and/or Rule
  506 promulgated thereunder. Previously, on March 31, 2006, we sold a total of
  6,750 shares of our Series A 8% Convertible Preferred Stock, as reported on
  a Form 8-K filed with the Securities and Exchange Commission on April 4, 2006.</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">We
  sold the shares of Series A Preferred Stock for $1,000 per share, resulting
  in gross proceeds of $6,050,000. Our net proceeds from the sale were $5,626,500
  after payment of a commission and fees of approximately $423,500 to our placement
  agent, Sanders Morris Harris. We also issued a common stock warrant for the
  purchase of 201,667 shares of our common stock at an exercise price of $1.65
  to our placement agent pursuant to the terms of our engagement agreement with
  them and reimbursed them for $2,443.89 in expenses at the closing of the sale
  of Series A Preferred Stock. The form of warrant issued to our placement agent
  for the sales reported hereunder, as well as&#160;for&#160;the sales of the
  Series A Preferred Stock and Common Stock previously reported on our Forms 8-K
  filed with the Securities and Exchange Commission on April 4, 2006 and March
  15, 2006, is set forth as Exhibit 4.1 to this Form 8-K and incorporated herein
  by reference. </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">Each
      of
      the investors who purchased shares of the Series A Preferred Stock represented
      to us that they were an &#8220;accredited investor&#8221; within the meaning of Rule 501 of
      Regulation D under the Securities Act, and that the stock was to be acquired
      for
      their own account for investment and not with a view to, or for resale in
      connection with, any distribution and that they must bear the economic risk
      of
      their investment for an indefinite period of time because neither the preferred
      stock shares, nor the underlying common stock has been registered under any
      securities laws and therefore cannot be sold without registration under
      applicable securities laws or an exemption from such registration is
      available.</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">As
  part of the placement of the Series A Preferred Stock, we have filed a Certificate
  of Designation with the Nevada Secretary of State for the Series A Preferred
  Stock which provides for dividends of 8% per annum, a liquidation preference,
  optional conversion into common stock at an initial conversion price of $1.50,
  anti-dilution protection, optional redemption after five years by the holder
  at 125% of the initial purchase price and special voting rights, including the
  right to vote on all matters presented to our stockholders for their action
  or consideration (on an as-converted basis) and the right to elect one member
  to our Board of Directors (voting together as a single class). The foregoing
  description of the rights and preferences of the Series A Preferred Stock is
  not complete and is qualified in its entirety by reference to the full text
  of the Certificate of Designation for the Series A Preferred Stock, a copy of
  which was attached as an Exhibit to our Form 8-K filed with the Securities and
  Exchange Commission on April 4, 2006. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</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">We
  also entered into a registration rights agreement with the all of the investors
  in our Series A Preferred Stock, pursuant to which we will use commercially
  reasonable efforts to file with the SEC, a registration statement covering the
  shares of common stock issuable upon conversion of the Series A Preferred Stock
  within sixty (60) days after the final closing, and to cause such shares to
  be registered within one hundred and twenty (120) days (or in one hundred and
  eighty (180) days in the event of an SEC Review) following the date of the final
  closing. If such a registration statement is not filed within the sixty (60)
  day period or declared effective within the appropriate period set forth above,
  or if thereafter the registration statement is not effective (subject to blackout
  dates not to exceed thirty (30) consecutive trading days in any three hundred
  sixty five (365) day period) then the conversion price of the Series A Preferred
  Stock will be reduced by $0.25 and for each subsequent six-month period that
  the common stock is not registered, the conversion price will be reduced by
  an additional $0.25; </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>provided</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
  that the conversion price not be reduced to lower than $0.75 from such adjustment.
  The foregoing description of the registration rights agreement is not complete
  and is qualified in its entirety by reference to the full text of the form of
  the registration rights agreement, which was attached as an Exhibit to our Form
  8-K and filed with the Securities and Exchange Commission on April 4, 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</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">On
      April
      28, 2006, we issued a press release related to the sales of securities described
      above, a copy of which is attached hereto as Exhibit 99.1 </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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          <tr>
            <td align="left" valign="top" width="9%">
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            <td align="left" valign="top" width="81%">
              <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>FINANCIAL
                STATEMENTS AND EXHIBITS. </strong></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="4%">
              <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>(d)</strong></font></div>
            </td>
            <td align="left" valign="top" width="86%">
              <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>Exhibits.
                </strong></font></div>
            </td>
          </tr>

      </table>
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    <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">The
      following exhibits are filed or furnished herewith:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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    <div>
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          <tr>
            <td align="left" valign="middle" width="10%">&#160;</td>
            <td align="left" valign="bottom" width="5%">&#160;</td>
            <td align="left" valign="middle" width="75%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="10%">
              <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><u>Exhibit&#160;No.</u>&#160;&#160;&#160;&#160;</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="75%">
              <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><u>Description</u>&#160;&#160;&#160;</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="10%">&#160;</td>
            <td align="left" valign="bottom" width="5%">&#160;</td>
            <td align="left" valign="bottom" width="75%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="10%">
              <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">4.1</font></div>
            </td>
            <td align="left" valign="bottom" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="75%">
              <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">Form
                of Warrant issued to Sanders Morris Harris, Inc.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="10%">&#160;</td>
            <td align="left" valign="bottom" width="5%">&#160;</td>
            <td align="left" valign="bottom" width="75%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="10%">
              <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">99.1</font></div>
            </td>
            <td align="left" valign="bottom" width="5%">&#160;</td>
            <td align="left" valign="bottom" width="75%">
              <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">Press
                Release dated April 28, 2006</font></div>
            </td>
          </tr>

      </table>
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    <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"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <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>SIGNATURES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; 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 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"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="36%">&#160;</td>
            <td align="left" valign="top" width="6%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="48%">
              <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>UNITED
                FUEL &amp; ENERGY CORPORATION</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="36%">&#160;</td>
            <td align="left" valign="top" width="6%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="48%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="36%">&#160;</td>
            <td align="left" valign="top" width="6%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="48%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="36%">
              <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">Date:
                April 28, 2006</font></div>
            </td>
            <td align="left" valign="bottom" width="6%">
              <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">By:</font></div>
            </td>
            <td align="left" valign="top" width="26%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">/s/
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Charles
                McArthur</font></div>
            </td>
            <td align="left" valign="top" width="22%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="36%">&#160;</td>
            <td align="left" valign="top" width="6%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="48%">
              <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">Charles
                McArthur</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="36%">&#160;</td>
            <td align="left" valign="top" width="6%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="48%">
              <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>Chief
                Executive Officer and President
</strong></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</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>
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        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
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    <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="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>EXHIBIT
      INDEX </u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="middle" width="10%">&#160;</td>
            <td align="left" valign="bottom" width="5%">&#160;</td>
            <td align="left" valign="middle" width="75%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="10%">
              <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><u>Exhibit&#160;No.&#160;</u>&#160;&#160;&#160;</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="75%">
              <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><u>Description</u></strong></font></div>
            </td>
          </tr>
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            <td align="left" valign="bottom" width="5%">&#160;</td>
            <td align="left" valign="bottom" width="75%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="10%">
              <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">4.1</font></div>
            </td>
            <td align="left" valign="bottom" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
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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">Form
                of Warrant issued to Sanders Morris Harris, Inc.</font></div>
            </td>
          </tr>
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            <td align="left" valign="bottom" width="5%">&#160;</td>
            <td align="left" valign="bottom" width="75%">&#160;</td>
          </tr>
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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">99.1</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">Press
                Release dated April 28, 2006</font></div>
            </td>
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{"company-data": {"conformed-name": "UNITED FUEL & ENERGY CORP", "cik": "0001137031", "assigned-sic": "5960", "irs-number": "912037688", "state-of-incorporation": "NV", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-32473", "film-number": "06791518"}, "business-address": {"street1": "405 N. MARIENFELD", "city": "MIDLAND", "state": "TX", "zip": "79701", "phone": "432-571-8049"}, "mail-address": {"street1": "405 N. MARIENFELD", "city": "MIDLAND", "state": "TX", "zip": "79701"}, "former-company": [{"former-conformed-name": "BRANDS SHOPPING NETWORK INC", "date-changed": "20020201"}, {"former-conformed-name": "BRANDS SHOPPING NETWORK  INC", "date-changed": "20020201"}, {"former-conformed-name": "USA DEALERS AUCTION COM INC", "date-changed": "20010321"}]}
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
WASHINGTON,
      DC 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)
April
      25, 2006
UNITED
      FUEL & ENERGY CORPORATION
(Exact
      Name of Registrant as Specified in Its Charter)
Nevada
(State
                or Other Jurisdiction of Incorporation)
333-68008
91-2037688
(Commission
                File Number)
(IRS
                Employer Identification No.)
405
                N. Marienfeld, 3
rd
Floor, Midland, Texas
79701
(Address
                of Principal Executive Offices)
(Zip
                Code)
(432)
                571-8049
(Registrant's
                Telephone Number, Including Area Code)
(Former
                Name or Former Address, if Changed Since Last
                Report)
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 CFR
      240.14a-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(c) under the Exchange Act (17 CFR
      240.13e-4(c))
ITEM
                1.01
ENTRY
                INTO A MATERIAL DEFINITIVE
                AGREEMENT.
On
  April 25, 2006, we sold shares of our Series A 8% Convertible Preferred Stock
  in a private placement, pursuant to which we have entered into material agreements
  as described in Item 3.02 below, which is incorporated into this Item 1.01 by
  reference.
ITEM
                3.02
UNREGISTERED
                SALES OF EQUITY SECURITIES.
Sale
      of Series A Preferred Stock
On
  April 25, 2006, we sold a total of 6,050 shares of our Series A 8% Convertible
  Preferred Stock in a private placement of our securities to 7 investors in reliance
  upon the exemption provided by Section 4(2) of the Securities Act and/or Rule
  506 promulgated thereunder. Previously, on March 31, 2006, we sold a total of
  6,750 shares of our Series A 8% Convertible Preferred Stock, as reported on
  a Form 8-K filed with the Securities and Exchange Commission on April 4, 2006.
We
  sold the shares of Series A Preferred Stock for $1,000 per share, resulting
  in gross proceeds of $6,050,000. Our net proceeds from the sale were $5,626,500
  after payment of a commission and fees of approximately $423,500 to our placement
  agent, Sanders Morris Harris. We also issued a common stock warrant for the
  purchase of 201,667 shares of our common stock at an exercise price of $1.65
  to our placement agent pursuant to the terms of our engagement agreement with
  them and reimbursed them for $2,443.89 in expenses at the closing of the sale
  of Series A Preferred Stock. The form of warrant issued to our placement agent
  for the sales reported hereunder, as well as for the sales of the
  Series A Preferred Stock and Common Stock previously reported on our Forms 8-K
  filed with the Securities and Exchange Commission on April 4, 2006 and March
  15, 2006, is set forth as Exhibit 4.1 to this Form 8-K and incorporated herein
  by reference.
Each
      of
      the investors who purchased shares of the Series A Preferred Stock represented
      to us that they were an "accredited investor" within the meaning of Rule 501 of
      Regulation D under the Securities Act, and that the stock was to be acquired
      for
      their own account for investment and not with a view to, or for resale in
      connection with, any distribution and that they must bear the economic risk
      of
      their investment for an indefinite period of time because neither the preferred
      stock shares, nor the underlying common stock has been registered under any
      securities laws and therefore cannot be sold without registration under
      applicable securities laws or an exemption from such registration is
      available.
As
  part of the placement of the Series A Preferred Stock, we have filed a Certificate
  of Designation with the Nevada Secretary of State for the Series A Preferred
  Stock which provides for dividends of 8% per annum, a liquidation preference,
  optional conversion into common stock at an initial conversion price of $1.50,
  anti-dilution protection, optional redemption after five years by the holder
  at 125% of the initial purchase price and special voting rights, including the
  right to vote on all matters presented to our stockholders for their action
  or consideration (on an as-converted basis) and the right to elect one member
  to our Board of Directors (voting together as a single class). The foregoing
  description of the rights and preferences of the Series A Preferred Stock is
  not complete and is qualified in its entirety by reference to the full text
  of the Certificate of Designation for the Series A Preferred Stock, a copy of
  which was attached as an Exhibit to our Form 8-K filed with the Securities and
  Exchange Commission on April 4, 2006.
We
  also entered into a registration rights agreement with the all of the investors
  in our Series A Preferred Stock, pursuant to which we will use commercially
  reasonable efforts to file with the SEC, a registration statement covering the
  shares of common stock issuable upon conversion of the Series A Preferred Stock
  within sixty (60) days after the final closing, and to cause such shares to
  be registered within one hundred and twenty (120) days (or in one hundred and
  eighty (180) days in the event of an SEC Review) following the date of the final
  closing. If such a registration statement is not filed within the sixty (60)
  day period or declared effective within the appropriate period set forth above,
  or if thereafter the registration statement is not effective (subject to blackout
  dates not to exceed thirty (30) consecutive trading days in any three hundred
  sixty five (365) day period) then the conversion price of the Series A Preferred
  Stock will be reduced by $0.25 and for each subsequent six-month period that
  the common stock is not registered, the conversion price will be reduced by
  an additional $0.25;
provided
that the conversion price not be reduced to lower than $0.75 from such adjustment.
  The foregoing description of the registration rights agreement is not complete
  and is qualified in its entirety by reference to the full text of the form of
  the registration rights agreement, which was attached as an Exhibit to our Form
  8-K and filed with the Securities and Exchange Commission on April 4, 2006.
On
      April
      28, 2006, we issued a press release related to the sales of securities described
      above, a copy of which is attached hereto as Exhibit 99.1
Item 9.01
FINANCIAL
                STATEMENTS AND EXHIBITS.
(d)
Exhibits.
The
      following exhibits are filed or furnished herewith:
Exhibit No.
Description
4.1
Form
                of Warrant issued to Sanders Morris Harris, Inc.
99.1
Press
                Release dated April 28, 2006
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.
UNITED
                FUEL & ENERGY CORPORATION
Date:
                April 28, 2006
By:
/s/
Charles
                McArthur
Charles
                McArthur
Chief
                Executive Officer and President
EXHIBIT
      INDEX
Exhibit No.
Description
4.1
Form
                of Warrant issued to Sanders Morris Harris, Inc.
99.1
Press
                Release dated April 28, 2006