SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549
                                 FORM 10-Q/A
                              (Amendment No. 1)



[X]  Quarterly  Report  Pursuant  to  Section  13 or 15(d)  of the  Securities
Exchange Act of 1934
                    For the period ended December 31, 2001

                                      or

[ ]  Transition  Report  Pursuant  to  Section  13 or 15(d) of the  Securities
Exchange Act of 1934
     For the transition period from ---------- to ---------------

                       Commission File Number: 0-9261

                             KESTREL ENERGY, INC.
            (Exact name of registrant as specified in its charter)

              Colorado                                  84-0772451
(State of other jurisdiction of            (I.R.S. Employer Identification No.)
  incorporation or organization)

999 18th Street, Suite 2490, Denver, CO                   80202
(Address of principal executive offices)                Zip Code)

                                (303) 295-0344
             (Registrant's telephone number, including area code)



Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.

                                [X] Yes [ ] No



                    APPLICABLE ONLY TO CORPORATE ISSUERS:

     The number of shares outstanding of common stock, as of December 31,
                               2001: 7,700,200


                          PART II. OTHER INFORMATION

      The Registrant hereby amends this Item 6 to file Exhibit 10.2 which was
not available for the initial filing.




ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K

                        (a)   Exhibits
                              *10.1 Stock Option Plan as of December 6, 2001
                              10.2 Wells Fargo Term Loan Agreement dated
                              November 29, 2001
                        (b)   Reports on Form 8-K
                              A report on Form 8-K dated December 6, 2001
                              under Item 9 was filed with the Commission on
                              December 7, 2001.

* Previously filed


                                  SIGNATURES


      Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.





                                          KESTREL ENERGY, INC.
                                          (Registrant)


Date:  February 27, 2002                  /s/Barry D. Lasker
                                          Barry D. Lasker
                                          President,    Principal    Executive
Officer,
                                          and Director

Date:  February 27, 2002                  /s/Mark A. Boatright
                                          Mark A. Boatright
                                          Vice President - Finance,
                                          Principal Financial and Accounting
                                           Officer