**EXHIBIT 11**

 

**GATEWAY ENERGY CORPORATION & SUBSIDIARIES**

 

**STATEMENT REGARDING COMPUTATION OF PER SHAREEARNINGS**

 
|                                                                                                                            |   | **Three Months Ended****June 30,** |     | **Six Months Ended****June 30,** |   |
|---------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|----------|----------------------------------|--------|
|                                                                                                                            |   | **2003**                           |     | **2002**                         |   | **2003** |   | **2002** |   |
| Weighted  average number of common shares outstanding                                                                           |   | 15,426,317                         |     | 15,373,719                       |   | 15,426,317 |   | 15,364,351 |   |
|                                                                                                                            |   |                               |     |                             |   |   |   |   |   |
| Add shares issuable pursuant to common  stock options/warrants less shares assumed repurchased at the average market  price (1) |   | 32,292                             |     | 31,716                           |   | 27,082 |   | 33,129 |   |
|                                                                                                                            |   |                               |     |                             |   |   |   |   |   |
| Tentative numer of shares for computation  of fully diluted earnings per share                                                  |   | 15,458,609                         |     | 15,405,435                       |   | 15,453,399 |   | 15,397,480 |   |
|                                                                                                                            |   |                               |     |                             |   |   |   |   |   |
| Loss from continuing operations                                                                                                 |   | $                                  | (441,462 | )                                | $      | (430,137 | ) | $ | (506,627 | ) | $ | (638,689 | ) |
| Discontinued operations                                                                                                         |   | —                             |     | 35,080                           |   | — |   | 14,501 |   |
| Loss before cumulative effect of change in  accounting principal                                                                |   | $                                  | (441,462 | )                                | $      | (395,057 | ) | $ | (506,627 | ) | $ | (624,188 | ) |
| Cumulative effect of change in accounting  principal                                                                            |   | —                             |     | —                           |   | (105,777 | ) | — |   |
| Net (loss)                                                                                                                      |   | $                                  | (441,462 | )                                | $      | (395,057 | ) | $ | (612,404 | ) | $ | (624,188 | ) |
|                                                                                                                            |   |                               |     |                             |   |   |   |   |   |
| Basic and diluted loss per common share:                                                                                        |   |                               |     |                             |   |   |   |   |   |
| Continuing operations                                                                                                           |   | $                                  | (0.03    | )                                | $      | (0.03 | ) | $ | (0.03 | ) | $ | (0.04 | ) |
| Discontinued operations                                                                                                         |   | —                             |     | —                           |   | — |   | — |   |
| Cumulative effect of change on accounting  principal                                                                            |   | —                             |     | —                           |   | (0.01 | ) | — |   |
| Net loss                                                                                                                        |   | $                                  | (0.03    | )                                | $      | (0.03 | ) | $ | (0.04 | ) | $ | (0.04 | ) |

 

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(1) These figures are not used in the diluted earnings per sharecalculations as their effect would be antidilutive.

 

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