EXHIBIT 11.1


                        MILLER EXPLORATION COMPANY
                 COMPUTATION OF EARNINGS PER COMMON SHARE

                                                  YEAR ENDED DECEMBER 31,
                                                           1998
                                                  -----------------------
                                           (In thousands, except per share data)
                                                       
BASIC EARNINGS (LOSS) PER
SHARE
Net income (loss)                                         $(41,800)  
Shares
  Weighted average shares outstanding                       11,153 
                                                          -------- 
Basic earnings (loss) per share                           $  (3.75) 
                                                          ======== 
DILUTED EARNINGS (LOSS) PER
SHARE
Net income (loss)                                         $(41,800) 
Shares
  Weighted average shares
  outstanding                                               11,153 
                                                          -------- 
Diluted earnings (loss) per share                         $  (3.75) 
                                                          ========