-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 E5432HA+Ss1vJoWZyA9G6VZNqqNMmXLH1D3KiOY7mr1rGZ88QoT6ss61e3xOqMej
 4KsQe1hxjnqdZjqSJVAwKA==

<SEC-DOCUMENT>0000932384-04-000387.txt : 20041004
<SEC-HEADER>0000932384-04-000387.hdr.sgml : 20041004
<ACCEPTANCE-DATETIME>20041004161701
ACCESSION NUMBER:		0000932384-04-000387
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040930
FILED AS OF DATE:		20041004
DATE AS OF CHANGE:		20041004

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			NICKERSON KENNETH W
		CENTRAL INDEX KEY:			0001248650

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-09261
		FILM NUMBER:		041062762

	BUSINESS ADDRESS:	
		STREET 1:		10780 HANSON STREET
		CITY:			JOHANNESBURG
		STATE:			MI
		ZIP:			49761
		BUSINESS PHONE:		9897321285

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KESTREL ENERGY INC
		CENTRAL INDEX KEY:			0000312842
		STANDARD INDUSTRIAL CLASSIFICATION:	CRUDE PETROLEUM & NATURAL GAS [1311]
		IRS NUMBER:				840772451
		STATE OF INCORPORATION:			CO
		FISCAL YEAR END:			0630

	BUSINESS ADDRESS:	
		STREET 1:		1726 COLE BOULEVARD
		STREET 2:		SUITE 210
		CITY:			LAKEWOOD
		STATE:			CO
		ZIP:			80401
		BUSINESS PHONE:		3032951939

	MAIL ADDRESS:	
		STREET 1:		1726 COLE BOULEVARD
		STREET 2:		SUITE 210
		CITY:			LAKEWOOD
		STATE:			CO
		ZIP:			80401

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TPEX EXPLORATION INC
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TANNER PRUIT EXPLORATION INC
		DATE OF NAME CHANGE:	19810126
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>zkestrel593009_ex.xml
<DESCRIPTION>9-30-04
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-09-30</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000312842</issuerCik>
        <issuerName>KESTREL ENERGY INC</issuerName>
        <issuerTradingSymbol>KEST</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001248650</rptOwnerCik>
            <rptOwnerName>NICKERSON KENNETH W</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>10780 HANSON STREET</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>JOHANNESBURG</rptOwnerCity>
            <rptOwnerState>MI</rptOwnerState>
            <rptOwnerZipCode>49751</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Options to Purchase Common Stock</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>0.60</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2004-09-30</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>5000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2004-09-30</value>
            </exerciseDate>
            <expirationDate>
                <value>2014-09-30</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>5000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>70081</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <ownerSignature>
        <signatureName>Kenneth W. Nickerson</signatureName>
        <signatureDate>2004-09-30</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----