8-K

                       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): April 4, 2003

                             KESTREL ENERGY, INC.
            (Exact Name of Registrant as Specified in its Charter)

        Colorado                 0-9261                      84-0772451
(State of Incorporation)    (Commission File              (IRS Employer ID
                                 Number)                       Number)

                         1726 Cole Boulevard, Suite 210
                            Lakewood, Colorado 80401
                    (Address of Principal Executive Offices)

                                 (303) 295-0344
                         (Registrant's Telephone Number,
                              including Area Code)

ITEM 5.  OTHER EVENTS AND REGULATION FD DISCLOSURE

      On April 4, 2003, Kestrel Energy, Inc. (the "Company") announced that its
shares of common stock would be delisted from trading on The Nasdaq SmallCap
Market effective April 9, 2003. The Company has no plans to appeal the
delisting. A copy of that press release announcing the delisting determination
is filed as Exhibit 99.1 and is incorporated herein by reference.


ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS

   (a) None

   (b) None

   (c) Exhibits

       99.1  Press Release dated April 4, 2003






Date:  April 7, 2003                      KESTREL ENERGY, INC.


                                          By:/S/BARRY D. LASKER
                                             --------------------------------
                                              Barry D. Lasker, President

EX-99

                                                                 EXHIBIT 99.1

KESTREL ENERGY, INC.

                                                                      NEWS
FOR IMMEDIATE RELEASE:                                         Nasdaq-KEST
April 4, 2003

KESTREL ENERGY, INC. LISTING TO MOVE FROM NASDAQ SMALL CAP MARKET TO OVER THE
COUNTER BULLETIN BOARD (OTC BB CODE KEST)

Denver, Colorado (April 4, 2003) - Kestrel Energy, Inc. (Nasdaq, SmallCap-KEST),
an oil and gas exploration and production company, today announced that the
listing of the Company's common stock will move from NASDAQ Small Cap to the
Over the Counter Bulletin Board (OTCBB) symbol KEST on April 9, 2003.

This move follows receipt of a determination letter by NASDAQ indicating
non-compliance with the $1 minimum share price requirement for continued listing
set forth in Marketplace Rule 4310(c)(4), and that its securities are,
therefore, subject to delisting from The Nasdaq SmallCap Market at the opening
of business on April 9, 2003. The Company will not appeal the determination.
Effective with the opening of business on April 9, 2003, the Company expects its
common stock to begin trading on the OTC Bulletin Board under the symbol "KEST".

The NASDAQ Stock Market Inc currently operates the OTCBB and has announced plans
(subject to SEC approval) to convert the OTCBB into a new market called BBX in
an effort to improve capital markets for smaller companies.

The BBX will have an electronic trading system with qualifying listing, income
and asset requirements. According to the senior vice president of the NASDAQ
Stock Market Mr McGrew "The BBX will offer a significant improvement over the
OTCBB for qualifying small companies by increasing liquidity in the market for
their securities, augmenting the opportunities to raise equity capital and
conferring the recognition of trading on a listed market".

For more information on the future BBX exchange please visit the BBX website at
www.bbxchange.com

In light of these developments the Company will not appeal the determination by
NASDAQ on its continuing listing on NASDAQ Small Cap.

Headquartered in Denver, Kestrel has producing properties in New Mexico,
Oklahoma, Texas and Wyoming.

Statements made in this press release that are not historical facts may be
forward-looking statements. Actual results may differ materially from those
projected in any forward-looking statement. There are a number of important
factors that could cause actual results to differ materially from those
anticipated or estimated by any forward-looking information. A description of
the risks and uncertainties which are generally attendant to Kestrel Energy and
its industry and other factors which could affect the Company's financial
results are included in the Company's report to the Securities and Exchange
Commission on Form 10-KSB.



                                    CONTACTS:
                              Kestrel Energy, Inc.
                             Barry Lasker, President
                                 (303) 295-0344
                                     E-mail:
                            mtemple@kestrelenergy.com