**EXHIBIT 11**

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# **GATEWAY ENERGY CORPORATION ANDSUBSIDIARIES**

 

**STATEMENT REGARDING COMPUTATION OF PER SHAREEARNINGS**

 
|                                                                                                                        |   | **Three Months Ended   March 31,** |       |
|-----------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|------------|
|                                                                                                                        |   | **2003**                           |       | **2002** |   |
|                                                                                                                        |   |                               |       |   |   |
| Weighted  average number of common shares outstanding                                                                       |   | 15,426,317                         |       | 15,354,880 |   |
|                                                                                                                        |   |                               |       |   |   |
| Add shares  issuable pursuant to common stock options/warrants less shares assumed  repurchased at the average market price |   | 23,345                             |  (1)  | 34,875 |  (1) |
|                                                                                                                        |   |                               |       |   |   |
| Tentative  number of shares for computation of diluted earnings per share                                                   |   | 15,449,662                         |       | 15,389,755 | ** ** |
|                                                                                                                        |   |                               | ** ** |   | ** ** |
| Loss from  continuing operations                                                                                            |   | $                                  | (65,165    | ) | $ | (208,556 | ) |
|                                                                                                                        |   |                               |       |   |   |
| Discontinued  operations – see Note 3                                                                                  |   | —                             |       | (20,575 | ) |
|                                                                                                                        |   |                               |       |   |   |
| Loss before  cumulative effect of change in accounting principal                                                            |   | (65,165                            | )          | (229,131 | ) |
|                                                                                                                        |   |                               |       |   |   |
| Cumulative  effect of change in accounting for future asset retirement obligations – see  Note 2                       |   | (105,777                           | )          | — |   |
|                                                                                                                        |   |                               |       |   |   |
| Net loss                                                                                                                    |   | $                                  | (170,942   | ) | $ | (229,131 | ) |
|                                                                                                                        |   |                               |       |   |   |
| Basic and  diluted loss per common share:                                                                                   |   |                               |       |   |   |
| Continuing  operations                                                                                                      |   | $                                  | —     |   | $ | (0.01 | ) |
| Discontinued  operations                                                                                                    |   | —                             |       | — |   |
| Cumulative  effect of change in accounting principal                                                                        |   | (0.01                              | )          | — |   |
| Net loss                                                                                                                    |   | $                                  | (0.01      | ) | $ | (0.01 | ) |

 

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(1)     The figures are not used in the diluted earningsper share calculations as their effect would be antidilutive.

 

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