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EXHIBIT 99.3
[COSTILLA ENERGY INC. LETTERHEAD]
NEWS FOR IMMEDIATE RELEASE
COSTILLA ENERGY REPORTS CLOSING OF SALE TO LOUIS DREYFUS
MIDLAND, Texas, June 15, 2000 - Costilla Energy, Inc. reported today that the
sale of its oil and gas assets to Louis Dreyfus Natural Gas Corp. (NYSE: LD) has
been completed. The gross purchase price for the properties was $133.25 million,
which is subject to certain adjustments called for in the Asset Purchase
Agreement with Louis Dreyfus. Proceeds from the sale will be distributed to
Costilla's creditors in accordance with an amended plan of reorganization which
the Company anticipates filing with the U.S. Bankruptcy Court for the Western
District of Texas as soon as possible.
Certain statements in this news release constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risks, uncertainties, and
other factors which may cause the actual results, performance, or achievements
of Costilla Energy, Inc. to be materially different from any future results,
performance, or achievements expressed or implied by such forward-looking
statements. Such factors include, among others, the following: the volatility of
oil and gas prices; the Company's ability to replace its oil and gas reserves;
the availability of capital resources; the reliance upon estimates of proved
reserves; operating hazards and uninsured risks; competition; government
regulation; and the ability of the Company to implement its business strategy.
Additional information is available in the Company's filings with the Securities
and Exchange Commission, which are incorporated by this reference as though
fully set forth herein.
