MIDLAND, Texas, March 7 /PRNewswire/ -- Costilla Energy Inc.
(Nasdaq: COSE) today reported an 85 percent success rate in its 17 wells
completed during the first two months of 1997.
    Highlights of Company-operated completions include:

    * MacGyver-Green Acres 3-D Program, Howard County, Texas -- Hamlin 18
      #1701 is the 24th well completed in this prospect.  The well is
      producing 224 barrels of oil and 277,000 cubic feet of natural gas per
      day.  The 1997 drilling plan includes 20 wells in this prospect.

    * Personville Field, Limestone County, Texas -- Tucker #4 is the third
      recently completed Cotton Valley sand well, producing at a daily rate of
      3 million cubic feet of natural gas. The Company plans 14 additional
      wells in this area.

    * Caldwell-Stone Field Program, Burleson County, Texas -- Completion of
      the first two of seven planned horizontal wells in the Austin Chalk are
      the Patterson "G" 1-H, producing 326 barrels of oil and 727,000 cubic
      feet of gas per day, and Mais-Kachtik 1-H, producing 364 barrels of oil
      and 952,000 cubic feet of gas per day.

    * Edwards-McElroy Program, Crane County, Texas -- Mobil Fee #6 is the
      15th successful well on this prospect, with a potential of 383 barrels
      of oil and 253,000 cubic feet of gas daily.  The Company plans to drill
      20 wells during 1997 on this property.

    The Company is completing the initial well and drilling the second well
on its 8,900-acre Paisano Ranch prospect in McMullen County, Texas.  Costilla
has identified about 100 locations for potential future drilling.
    Costilla President and Chief Operating Officer Michael J. Grella also
announced that as of February 28, 1997, the Company's daily overall production
rate had reached 13,400 barrels of oil equivalent.
    Costilla will report its fourth quarter and year-end 1996 results
Wednesday, March 12, 1997.
    Costilla Energy Inc. is an independent energy company engaged in the
exploration, acquisition and development of oil and gas properties with
operations primarily in the Permian Basin area of Texas and New Mexico, the
Gulf Coast, and the Rocky Mountain regions.  The Company and its predecessor
have been in business since 1988.

Link to this page: