<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, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH 10-K.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               DEC-31-1998
<CASH>                                           5,251
<SECURITIES>                                         0
<RECEIVABLES>                                   11,859
<ALLOWANCES>                                       864
<INVENTORY>                                          0
<CURRENT-ASSETS>                                17,292
<PP&E>                                         321,232
<DEPRECIATION>                                 135,678
<TOTAL-ASSETS>                                 210,954
<CURRENT-LIABILITIES>                           75,626
<BONDS>                                        181,780
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          5
<COMMON>                                         1,275
<OTHER-SE>                                    (47,732)
<TOTAL-LIABILITY-AND-EQUITY>                   210,954
<SALES>                                         62,785
<TOTAL-REVENUES>                                63,602
<CGS>                                           27,366
<TOTAL-COSTS>                                   40,089
<OTHER-EXPENSES>                                92,125
<LOSS-PROVISION>                                   663
<INTEREST-EXPENSE>                              19,596
<INCOME-PRETAX>                               (99,974)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                           (99,974)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                  (299)
<CHANGES>                                            0
<NET-INCOME>                                 (100,273)
<EPS-PRIMARY>                                  (10.24)
<EPS-DILUTED>                                  (10.24)