<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE AUDITED
CONSOLIDATED FINANCIAL STATEMENTS OF COSTILLA ENERGY, INC. FOR THE YEAR ENDED
DECEMBER 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               DEC-31-1997
<CASH>                                           3,615
<SECURITIES>                                         0
<RECEIVABLES>                                   14,553
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                                19,080
<PP&E>                                         240,238
<DEPRECIATION>                                  72,298
<TOTAL-ASSETS>                                 194,088
<CURRENT-LIABILITIES>                           30,591
<BONDS>                                        163,087
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                         1,015
<OTHER-SE>                                       (605)
<TOTAL-LIABILITY-AND-EQUITY>                   194,088
<SALES>                                         72,300
<TOTAL-REVENUES>                                76,501
<CGS>                                           30,029
<TOTAL-COSTS>                                   36,617
<OTHER-EXPENSES>                                54,598
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                              12,979
<INCOME-PRETAX>                               (36,100)
<INCOME-TAX>                                       152
<INCOME-CONTINUING>                           (36,252)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                  (219)
<CHANGES>                                            0
<NET-INCOME>                                  (36,471)
<EPS-PRIMARY>                                   (3.51)
<EPS-DILUTED>                                   (3.51)