Trouble processing file

[villumanati]

Hello I am new to python and am attempting to read a text file.

The file is of the below format. Note the \r represents carriage return. \n represents a new line.
These aren't actually present in the file unless I turn on "view line endings" on on my text editor

Would someone tell me what is the best approach to get this file read? I am attempting to read the file and do some other manipulation to each line of data that was read in then write to a new file. I seem to be making a mistake on the line with 5 fields.
I can read the first 2 rows easily, but the program stops when it gets to the third line.

field1|field2|field3\r\n
field1|field2|field3\r\n
field1|field2|field3|field4|field5\r\n
\r\n
\r
string 1\r
\r\n
\r
string 2\r
\r\n
\r
string 3\r
field1|field2|field3|field4|field5\r\n
\r\n
\r
string 1\r
\r\n
\r
string 2\r
\r\n
\r
string 3\r

MY DESIRED OUTPUT that should be written to a new file

field1|field2|field3|||^
field1|field2|field3|||^
field1|field2|field3|field4|field5|


string 1

string 2


string 3^
field1|field2|field3|field4|field5|


string 1

string 2


string 3^

Here is the actual code

with open('myFile.txt','r') as f:
    line = f.readlines(1);
    while line:
        line = f.readlines(1)    
        if not line:
            print('List is empty')
            continue
        else:
            numofPipes = line[0].count('|')

        if numofPipes == 95:
            newOutput = line[0].rstrip('\r').rstrip('\n') + '|||||||||^'
            print(newOutput)
        elif numofPipes == 103:
            newOutput = line[0].rstrip('\r').rstrip('\n') + '|'       
            # finish inserting code to continue to read lines until condition met
            reportText = f.realines(1)
            print(newOutput)

[Larz60+]

import csv

with open('myFile.txt','r') as f:
    crdr = csv.reader(f, delimiter='|')
    for row in crdr:
        print(row)

Then process as list