EXHIBIT 11.1    (1  of 2)

  CASTLE ENERGY CORPORATION      STATEMENT OF COMPUTATION OF EARNINGS PER SHARE    (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)    (UNAUDITED)

|                                                                                                       | THREE MONTHS    ENDED JUNE 30, |   |
|------------------------------------------------------------------------------------------------------------|--------------------------------|--------|
|                                                                                                       |                                |   |
|                                                                                                       | 2004                           |   | 2003 |   |
|                                                                                                       |                                |   |  |   |
|                                                                                                       | BASIC                          |   | DILUTED |   | BASIC |   | DILUTED |   |
|                                                                                                       |                                |   |  |   |  |   |  |   |
| I. Shares Outstanding, Net of Treasury                                                                     |                           |   |   |   |   |   | (Restated) |   | (Restated) |   |
|       Stock Purchased and        Options Exercised During        the Period: |                           |   |   |   |   |   |   |   |   |   |   |
|                                                                                                       |                           |   |   |   |   |   |   |   |   |   |   |
|          Stock,        net                                    | 6,715,112                      |   | 6,715,112 |   | 6,592,884 |   | 6,592,884 |   |
|          Purchase        of treasury stock (weighted)         |                           |   |   |   |   |   |   |   |   |   |   |
|                                                                                                       |                                |   |  |   |  |   |  |   |
|                                                                                                       | 6,715,112                      |   | 6,715,112 |   | 6,592,884 |   | 6,592,884 |   |
|                                                                                                       |                           |   |   |   |   |   |   |   |   |   |   |
| II. Weighted Equivalent Shares:                                                                            |                           |   |   |   |   |   |   |   |   |   |   |
|                                                                                                       |                           |   |   |   |   |   |   |   |   |   |   |
|          Assumed        options and warrants exercised        |                           |   |   |   | 303,600 |   |   |   |   | 24,012 |   |
|                                                                                                       |                                |   |  |   |  |   |  |   |
|                                                                                                       |                           |   |   |   |   |   |   |   |   |   |   |
| III. Weighted Average Shares and Equivalent Shares                                                         | 6,715,112                      |   | 7,018,712 |   | 6,592,884 |   | 6,616,896 |   |
|                                                                                                       |                                |   |  |   |  |   |  |   |
|                                                                                                       |                           |   |   |   |   |   |   |   |   |   |   |
|    IV. Net Income (Loss)                                                                    | $                              | 2,713  |   | $ | 2,713 |   | ($ 728 | ) | ($ 728 | ) |
|                                                                                                       |                                |   |  |   |  |   |  |   |
|                                                                                                       |                           |   |   |   |   |   |   |   |   |   |   |
|    V. Net Income (Loss) Per Share                                                           | $                              | .40    |   | $ | .39 |   | ($.11 | ) |   | ($.11 | ) |
|                                                                                                       |                                |   |  |   |  |   |  |   |

 

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 Exhibit 11.1  (2  of 2) 

  CASTLE ENERGY CORPORATION      STATEMENT OF COMPUTATION OF EARNINGS PER SHARE    (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)    (UNAUDITED)

|                                                                                            | NINE MONTHS ENDED JUNE 30, |   |
|-------------------------------------------------------------------------------------------------|----------------------------|--------|
|                                                                                            |                            |   |
|                                                                                            | 2004                       |   | 2003 |   |
|                                                                                            |                            |   |  |   |
|                                                                                            | BASIC                      |   | DILUTED |   | BASIC |   | DILUTED |   |
|                                                                                            |                            |   |  |   |  |   |  |   |
| I. Shares Outstanding, Net of Treasury                                                          |                       |   |   |   |   |   |   |   |   |   |   |
|       Stock Purchased During    the Period:                       |                       |   |   |   |   |   |   |   |   |   |   |
|                                                                                            |                       |   |   |   |   |   |   |   |   |   |   |
|          Stock,    net                             | 6,652,995                  |   | 6,652,995 |   | 6,592,884 |   | 6,592,884 |   |
|          Purchase    of treasury stock (weighted)  |                       |   |   |   |   |   |   |   |   |   |   |
|                                                                                            |                            |   |  |   |  |   |  |   |
|                                                                                            | 6,652,995                  |   | 6,652,995 |   | 6,592,884 |   | 6,592,884 |   |
|                                                                                            |                       |   |   |   |   |   |   |   |   |   |   |
| II. Weighted Equivalent Shares:                                                                 |                       |   |   |   |   |   |   |   |   |   |   |
|                                                                                            |                       |   |   |   |   |   |   |   |   |   |   |
|          Assumed    options and warrants exercised |                       |   |   |   | 233,696 |   |   |   |   | 8,880 |   |
|                                                                                            |                            |   |  |   |  |   |  |   |
|                                                                                            |                       |   |   |   |   |   |   |   |   |   |   |
| III. Weighted Average Shares and Equivalent Shares                                              | 6,652,995                  |   | 6,886,691 |   | 6,592,884 |   | 6,601,764 |   |
|                                                                                            |                            |   |  |   |  |   |  |   |
|                                                                                            |                       |   |   |   |   |   |   |   |   |   |   |
|    IV. Net Income (Loss)                                                         | $                          | 13,633 |   | $ | 13,633 |   | ($ 1,397 | )* | ($ 1,397 | )* |
|                                                                                            |                            |   |  |   |  |   |  |   |
|                                                                                            |                       |   |   |   |   |   |   |   |   |   |   |
|    V. Net Income (Loss) Per Share                                                | $                          | 2.05   |   | $ | 1.98 |   | ($.21 | ) |   | ($.21 | ) |
|                                                                                            |                            |   |  |   |  |   |  |   |

Restated to reflect $258 charge to general and administrative expenses. Such    charge represents the reversal of a $258 credit to general and administrative    expenses for the quarter ended September 30,2002.

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