UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                    WASHINGTON, D.C.  20549

                          SCHEDULE 13G
                    (Amendment No. 8)

           Under the Securities Exchange Act of 1934


                       Castle Energy Corp
                        (Name of Issuer)

                        Common Par$0.50N
                 (Title of Class of Securities)

                           148449309
                         (CUSIP Number)

                            12/31/05
                 (Date of Event which Requires
                   Filing of this Statement)



Check the appropriate box to designate the rule pursuant to
which this Schedule is filed:

[X]  Rule 13d-1(b)
[ ]  Rule 13d-a(c)
[ ]  Rule 13d-1(d)

*The remainder of this cover page shall be filled out or a
reporting person's initial filing on this form with respect to
the subject class of securities, and for any subsequent
amendment containing information which would alter the
disclosures provided in a prior cover page.

The information required in the remainder of this cover page
shall not be deemed to be "filed" for the purpose of Section 18
of the Securities Exchange Act of 1934 ("Act") or otherwise
subject to the liabilities of that section of the Act but shall
be subject to all other provisions of the Act (however, see the
Notes).

CUSIP No. 148449309     SCHEDULE 13G     Page 2 of 7


1  Name of Reporting Person
                     Kestrel Investment Management Corporation
   IRS Identification No. of Above Person    94-3173193

2  Check the Appropriate Box if a Member of a Group
                                         (a) [ ]
                                         (b) [ ]

3  SEC USE ONLY


4  Citizenship or Place of Organization

                     California

                  5  Sole Voting Power

                       599,890

   NUMBER OF      6  Shared Voting Power
     SHARES
  BENEFICIALLY         -0-
 OWNED BY EACH
   REPORTING      7  Sole Dispositive Power
  PERSON WITH
                       640,190

                  8  Shared Dispositive Power

                       -0-

9  Aggregate Amount Beneficially Owned by each Reporting Person

   640,190

10 Check Box if the Aggregate Amount in Row (9) Excludes
Certain Shares*            [ ]

11 Percent of Class Represented by Amount in Row 9

   8.9%

12 Type of Reporting Person*

   CO, IA
CUSIP No. 148449309     SCHEDULE 13G       Page 3 of 7


1  Name of Reporting Person        David J. Steirman
   IRS Identification No. of Above Person

2  Check the Appropriate Box if a Member of a Group
                                         (a) [ ]
                                         (b) [ ]

3  SEC USE ONLY


4  Citizenship or Place of Organization

                     United States

                  5  Sole Voting Power

                       599,890

   NUMBER OF      6  Shared Voting Power
     SHARES
  BENEFICIALLY         -0-
 OWNED BY EACH
   REPORTING      7  Sole Dispositive Power
  PERSON WITH
                       640,190

                  8  Shared Dispositive Power

                       -0-

9  Aggregate Amount Beneficially Owned by each Reporting Person

   640,190

10 Check Box if the Aggregate Amount in Row (9) Excludes
Certain Shares*            [ ]

11 Percent of Class Represented by Amount in Row 9

   8.9%

12 Type of Reporting Person*

   IN
CUSIP No. 148449309     SCHEDULE 13G       Page 4 of 7


1  Name of Reporting Person        Abbott J. Keller
   IRS Identification No. of Above Person

2  Check the Appropriate Box if a Member of a Group
                                         (a) [ ]
                                         (b) [ ]

3  SEC USE ONLY


4  Citizenship or Place of Organization

                     United States

                  5  Sole Voting Power

                       599,890

   NUMBER OF      6  Shared Voting Power
     SHARES
  BENEFICIALLY         -0-
 OWNED BY EACH
   REPORTING      7  Sole Dispositive Power
  PERSON WITH
                       640,190

                  8  Shared Dispositive Power

                       -0-

9  Aggregate Amount Beneficially Owned by each Reporting Person

   640,190

10 Check Box if the Aggregate Amount in Row (9) Excludes
Certain Shares*            [ ]

11 Percent of Class Represented by Amount in Row 9

   8.9%

12 Type of Reporting Person*

   IN
CUSIP No. 148449309     SCHEDULE 13G        Page 5 of 7


Item 1(a).  Name of Issuer.

   Castle Energy Corp

Item 1(b).  Address of Issuer's Principal Executive Offices.

     ONE RADNOR CORPORATE CTR STE 250
     100 MATSONFORD RD
     RADNOR, PA  19087

Item 2(a).  Names of Persons Filing.

   Kestrel Investment Management Corporation, David J. Steirman
and Abbott J. Keller.

Item 2(b).  Address of Principal Business Office or, if none,
Residence.

   The business address of Kestrel Investment Management
Corporation, David J. Steirman and Abbott J. Keller is 411
Borel Avenue, Suite 403, San Mateo, CA  94402.

Item 2(c).  Citizenship.

   Kestrel Investment Management Corporation is a California
corporation, David J. Steirman and Abbott J. Keller are
citizens of the United States of America.

Item 2(d).  Title of Class of Securities.

   Common Par$0.50N

Item 2(e).  CUSIP Number.

   148449309

Item 3.     Type of Reporting Person.

   Kestrel Investment Management Corporation is an investment
advisor registered under Section 203 of the Investment Advisors
Act of 1940.  David J. Steirman and Abbott J. Keller are the
sole shareholders of Kestrel Investment Management Corporation.

Item 4.     Ownership.

   Reference is hereby made to items 5-9 and 11 of each of the
cover
 pages to this Schedule 13G, which Items are incorporated by
reference
 herein.  As used below, the term "Securities" refers to the
securities to
 which this Schedule relates.

   Kestrel Investment Management Corporation ("Kestrel"), as
investment
 manager of certain client accounts, and David J. Steirman and
 Abbott J. Keller, as Kestrel's principals, may be deemed to have
 the power to direct the voting or disposition of Securities
that are held
 by any such client accounts.  Therefore, Kestrel, Mr. Steirman
and/or
 Mr. Keller may be deemed to beneficially own such Securities.
Neither
 the filing of this Schedule nor any of its contents shall be
deemed to
 constitute an admission that Kestrel, Mr. Steirman or Mr.
Keller is, for
 any purpose, the beneficial owner of any Securities held by
client accounts,
 and each of those persons disclaims beneficial ownership as
to Securities
 held by client accounts, except to the extent of his or its
pecuniary interests therein.

   Under the definition of "beneficial ownership" in Rule 13d-3
under the Securities
 Exchange Act of 1934, as amended, it is also possible
that other directors,
 officers or employees of Kestrel might be deemed the "beneficial
owners" of
 some or all of the Securities in that they might be deemed to
share the power
 to direct the voting or disposition of such Securities.  Neither
the filing of this
 Schedule nor any of its contents shall be deemed to constitute an
admission
 that any of such individuals is, for any purpose, the beneficial
owner of any of
the securities to which this Schedule relates, and such beneficial
ownership is
 expressly disclaimed.

CUSIP No. 148449309     SCHEDULE 13G        Page 6 of 7


Item 5.     Ownership of Five Percent or Less of a Class.

   Not applicable.

Item 6.     Ownership of More Than Five Percent on Behalf of
Another Person.

   Kestrel serves as investment adviser to certain client accounts
that have the
 right to receive or the power to direct the receipt of dividends
from, or the
 proceeds from the sale of, the Securities.  Abbott J. Keller and
David J. Steirman
 are principals of Kestrel.  No individual client's holdings
exceed five percent of that
 common stock.

Item 7.     Identification and Classification of the Subsidiary
which Acquired the Security Being Reported on by the Parent
Holding Company.

   Not applicable.

Item 8.     Identification and Classification of Members of the
Group.

   Not applicable.

Item 9.     Notice of Dissolution of Group.

   Not applicable.

Item 10.    Certification.

   By signing below, each of the undersigned certifies that, to
the best of their respective knowledge and belief, the
securities referred to above were acquired in the ordinary
course of business and were not acquired for the purpose of and
do not have the effect of changing or influencing the control
of the issuer of such securities and were not acquired in
connection with or as a participant in any transaction having
such purposes or effect.

CUSIP No. 148449309     SCHEDULE 13G       Page 7 of 7


                           Signature

   After reasonable inquiry and to the best of their respective
knowledge and belief, the undersigned certifies that the
information set forth in this statement is true, complete and
correct.

DATED:

                     DAVID J. STEIRMAN



                     /s/ David J. Steirman
                     ________________________
                     David J. Steirman


DATED:

                     ABBOTT J. KELLER



                     /s/ ABBOTT J. KELLER
                     ________________________
                     Abbott J. Keller


DATED:

                     KESTREL INVESTMENT MANAGEMENT CORPORATION



                     /s/ David J. Steirman
                     ________________________
                     By: David J. Steirman
                     Its:     President