SABA PETROLEUM COMPANY Exhibit 11.1 Computation of Earnings (Loss) Per Common Share For the Three Months Ended March 31, 1998 and 1997 Three months Ended March 31 1998 1997 ---- ---- Basic Earnings Net income (loss) before minority interest in earnings (loss) of consolidated subsidiary (12,023,201) 1,530,012 Minority interest in earnings (loss) of consolidated subsidiary 6,701 (88,430) Preferred Stock dividends (150,000) - ------------------- ------------------ =================== ================== Net income (loss) available to Common (12,166,500) 1,441,582 =================== ================== Basic Shares Weighted average number of Common =================== ================== Shares outstanding 10,917,991 10,442,356 =================== ================== Basic Earnings per Common Share =================== ================== Net income (loss) available to Common $ (1.11) $ 0.14 =================== ================== Diluted Earnings Net income (loss) before minority interest in earnings (loss) of consolidated subsidiary (12,023,201) 1,530,012 Minority interest in earnings (loss) of consolidated subsidiary 6,701 (88,430) Preferred stock dividends (150,000) - Plus interest expense attributable to Debentures, net of related income taxes - 51,289 ------------------- =================== ================== Net income (loss) available to Common (12,166,500) 1,492,871 =================== ================== Diluted Shares Weighted average number of Common Shares outstanding 10,917,991 10,442,356 Effect of dilutive securities: Of shares underlying options - 404,013 Of shares underlying convertible Debentures - 1,171,491 ------------------- =================== ================== Diluted Shares 10,917,991 12,017,860 =================== ================== Diluted Earnings per Common Share =================== ================== Net income (loss) $ (1.11) $ 0.12 =================== ==================