**GATEWAY ENERGY CORPORATION & SUBSIDIARIES**

**EXHIBIT 11**

 

**STATEMENT REGARDING COMPUTATION OF PER SHAREEARNINGS**

 
|                                                                                                                           |   | **Three Months Ended********September 30,** |     | **Nine Months Ended********September 30,** |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|----------|--------------------------------------------|--------|
|                                                                                                                           |   | **2002**                                    |     | **2001**                                   |   | **2002** |   | **2001** |   |
| Weighted average  number of common shares outstanding                                                                          |   | 15,426,318                                  |     | 15,358,633                                 |   | 15,385,234 |   | 15,331,889 |   |
|                                                                                                                           |   |                                        |     |                                       |   |   |   |   |   |
| Add shares  issuable pursuant to common stock options/warrants less shares assumed  repurchased at the average market price(1) |   | —                                      |     | 83,577                                     |   | 18,185 |   | 103,544 |   |
|                                                                                                                           |   |                                        |     |                                       |   |   |   |   |   |
| Tentative numer of  shares for computation of fully diluted earnings per share                                                 |   | 15,426,318                                  |     | 15,442,210                                 |   | 15,403,419 |   | 15,435,433 |   |
|                                                                                                                           |   |                                        |     |                                       |   |   |   |   |   |
| Net (loss) income                                                                                                              |   | $                                           | (129,650 | )                                          | $      | 115,442 |   | $ | (753,838 | ) | $ | (443,183 | ) |
|                                                                                                                           |   |                                        |     |                                       |   |   |   |   |   |
| Basic (loss)  income per common share                                                                                          |   | $                                           | (0.01    | )                                          | $      | 0.01 |   | $ | (0.05 | ) | $ | (0.03 | ) |
|                                                                                                                           |   |                                        |     |                                       |   |   |   |   |   |
| Diluted (loss)  income per common share                                                                                        |   | $                                           | (0.01    | )                                          | $      | 0.01 |   | $ | (0.05 | ) | $ | (0.03 | ) |

 

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(1) The nine month figures are not used in the diluted earnings pershare calculations as their effect would be antidilutive.

 

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