<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS OF COSTILLA ENERGY INC. FOR THE
THREE MONTHS ENDED MARCH 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               MAR-31-1998
<CASH>                                           3,473
<SECURITIES>                                         0
<RECEIVABLES>                                   14,642
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                                19,904
<PP&E>                                         268,527
<DEPRECIATION>                                  77,938
<TOTAL-ASSETS>                                 219,743
<CURRENT-LIABILITIES>                           33,107
<BONDS>                                        195,519
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           998
<OTHER-SE>                                    (10,066)
<TOTAL-LIABILITY-AND-EQUITY>                   219,743
<SALES>                                         15,345
<TOTAL-REVENUES>                                15,887
<CGS>                                            6,785
<TOTAL-COSTS>                                    9,936
<OTHER-EXPENSES>                                 6,059
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               4,739
<INCOME-PRETAX>                                (7,340)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                            (7,340)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                  (299)
<CHANGES>                                            0
<NET-INCOME>                                   (7,639)
<EPS-PRIMARY>                                   (0.76)
<EPS-DILUTED>                                   (0.76)