<PAGE>

                                                                  Exhibit 11.1
                                                                      (1 of 2)


                            Castle Energy Corporation
                 Statement of Computation of Earnings Per Share
                (Dollars in thousands, except per share amounts)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                 Year Ended September 30,
                                                         -----------------------------------------------------------------
                                                                       2001                               2000*
                                                         -----------------------------       -----------------------------
                                                            Basic            Diluted            Basic            Diluted
                                                         -----------       -----------       -----------       -----------
<S>                                                        <C>               <C>               <C>               <C>
     I.  Shares Outstanding, Net of Treasury
              Stock Purchased and Options Exercised
              During the Period:

              Stock, net                                   6,712,884         6,712,884         7,639,287         7,639,287
              Purchase of treasury stock (weighted)          (69,160)          (69,160)         (699,937)         (699,937)
                                                         -----------       -----------       -----------       -----------
                                                           6,643,724         6,643,724         6,939,350         6,939,350

    II.  Weighted Equivalent Shares:

              Assumed options and warrants exercised                           175,131                             163,453
                                                         -----------       -----------       -----------       -----------

   III.  Weighted Average Shares and Equivalent Shares     6,643,724         6,818,855         6,939,350         7,102,803
                                                         ===========       ===========       ===========       ===========

    IV.  Net Income                                      $     1,716       $     1,716       $     5,069       $     5,069
                                                         ===========       ===========       ===========       ===========

     V.  Net Income Per Share                            $       .26       $       .25       $       .73       $       .71
                                                         ===========       ===========       ===========       ===========
</TABLE>



* Retroactively restated to reflect 200% stock dividend effective January 31,
  2000


<PAGE>
                                                                   Exhibit 11.1
                                                                        (2 of 2)


                            Castle Energy Corporation
                 Statement of Computation of Earnings Per Share
                (Dollars in thousands, except per share amounts)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                            Three Months Ended September 30,
                                                         ----------------------------------------------------------------
                                                                       2001                               2000*
                                                         -----------------------------       ----------------------------
                                                             Basic           Diluted             Basic          Diluted
                                                         -----------       -----------       -----------      -----------
<S>                                                        <C>               <C>               <C>              <C>
     I.  Shares Outstanding, Net of Treasury
              Stock Purchased and Options Exercised
              During the Period:

              Stock, net                                   6,632,884         6,632,884         6,752,887        6,752,887
              Purchase of treasury stock (weighted)                                               (2,840)          (2,840)
                                                         -----------       -----------       -----------      -----------
                                                           6,632,884         6,632,884         6,750,047        6,750,047

    II.  Weighted Equivalent Shares:

              Assumed options and warrants exercised                           121,714                            214,594
                                                         -----------       -----------       -----------      -----------

   III.  Weighted Average Shares and Equivalent Shares     6,632,884         6,754,598         6,750,047        6,964,641
                                                         ===========       ===========       ===========      ===========

    IV.  Net Income (loss)                               ($    1,322)      ($    1,322)      $     4,063      $     4,063
                                                         ===========       ===========       ===========      ===========

     V.  Net Income (Loss) Per Share                     ($      .20)      ($      .20)      $       .60      $       .58
                                                         ===========       ===========       ===========      ===========

</TABLE>

* Retroactively restated to reflect 200% stock dividend effective January 31,
  2000