Hi Tim,
Castor oil will work ok, basically you're looking for an oil with a similar density as seawater, the idea that you wan't the sonar pulse to travel through the oil at around 1500m/s (same average as seawater) so you minimise errors.
Instead of making a well that you sit the transducer in and fill with oil, the other option is to just Sikaflex the transducer straight onto the hull. I've gone this route on my RIB. Works well too.
If you decide on the Sikaflex route, then make sure you get a complete seal with no air bubbles under the transducer or you will find it doesn't give an accurate depth if at all.
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