March 27, 1998







Securities and Exchange Commission
450 Fifth St., N.W.
Judiciary Plaza
Washington, D.C.  20549-1004

Via Edgar Electronic Filing System

                                                      In Re:  File Number 0-9219
                                                              ------------------

Gentlemen:

                Pursuant  to   regulations   of  the   Securities  and  Exchange
Commission,   submitted  herewith for  filing on behalf  of  Avoca, Incorporated
(the "Company")  is the Company's  Report  on  Form  10-KSB for the period ended
December 31, 1997.

                This  filing is being  effected  by direct  transmission  to the
Commission's EDGAR System.

                                               Sincerely,


                                               /s/ Edward B. Grimball
                                               ---------------------------------
                                               Edward B. Grimball
                                               Executive Vice President &
                                               Chief Financial Officer
                                               (504) 586-7570

EBG/drm
<PAGE>
                       Securities and Exchange Commission
                             Washington, D.C. 20549
                                   FORM 10-KSB

X /   Annual report pursuant  to  Section 13 or 15(d) of the Securities Exchange
---   Act of 1934 for the fiscal year ended December 31, 1997
                                       or
  /   Transition  report  pursuant  to  Section  13  or  15(d) of the Securities
---   Exchange Act of 1934 for the transition period from           to
                                                          ----------  ----------

Commission file number 0-9219
                       ------
                               AVOCA, INCORPORATED
--------------------------------------------------------------------------------
                 (Name of small business issuer in its charter)

              Louisiana                             72-0590868
-------------------------------------    ---------------------------------------
   (State or other jurisdiction of       (I.R.S. Employer Identification Number)
    incorporation or organization)

   P. O. Box 61260, New Orleans, LA.                    70161
---------------------------------------- ---------------------------------------
(Address of principal executive offices)              (Zip Code)

Registrant's telephone number   (504) 552-4720
                             -------------------

Securities registered under Section 12(b) of the Act:
          Title of each class                    Name of each exchange on
                                                     which registered
                  None                                     None
------------------------------------     ---------------------------------------

Securities registered under Section 12(g) of the Exchange Act:
                           Common Stock - No Par Value
                           ---------------------------
                                (Title of Class)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that  registrant  was  required to file such  reports),  and (2) has been
subject to such filing requirements for the past 90 days. Yes X  No
                                                             ---   ---

Check if there is no disclosure  of  delinquent  filers in response to Item  405
of  Regulation   S-B   contained   in   this  form,  and no  disclosure  will be
contained,  to the  best of  registrant's  knowledge,  in  definitive  proxy  or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. X
                                     ---

State issuer's revenues for its most recent fiscal year.  $1,364,571
                                                        ------------

The  aggregate   market  value  of  common  stock  held  on  March  2,  1998  by
non-affiliates of the registrant was $8,118,157. Such value has been computed on
the basis of the  average  bid and asked  prices of the stock and by  excluding,
from the 830,500 shares  outstanding on that date, all stock  beneficially owned
by officers and directors of the  registrant  and by  beneficial  owners of more
than  five  percent  of its  stock,  even  though  all such  persons  may not be
affiliates as defined in SEC Rule 12b-2.

The Company has only one class of common  stock,  of which  830,500  shares were
outstanding on March 2, 1998.

Parts I and II  incorporate by reference  information  from the Annual Report to
Shareholders  for the year ended  December 31, 1997.  Part III  incorporates  by
reference  information  from the Company's  Proxy  Statement  dated February 18,
1998.

Transitional Small Business Disclosure Format (check one):  Yes    No X
                                                               ---   ---

An exhibit index is located on page 15


<PAGE>



                               AVOCA, INCORPORATED

                          Index to 10-KSB Annual Report


                                                                            PAGE
PART I

Item 1:          Description of Business                                     3-8
Item 2:          Description of Property                                     8-9
Item 3:          Legal Proceedings                                             9
Item 4:          Submission of Matters to a Vote of Security Holders           9


PART II

Item 5:          Market for Common Equity
                 and Related Stockholder Matters                              10
Item 6:          Management's Discussion and Analysis or Plan of
                 Operation                                                    10
Item 7:          Financial Statements                                         10
Item 8:          Changes In and Disagreements With Accountants on
                 Accounting and Financial Disclosure                          10


PART III

Item 9:          Directors, Executive Officers, Promoters and
                 Control Persons; Compliance With Section 16(a)
                 of the Exchange Act                                       10-11
Item 10:         Executive Compensation                                       11
Item 11:         Security Ownership of Certain Beneficial Owners
                 and Management                                               11
Item 12:         Certain Relationships and Related Transactions               11
Item 13:         Exhibits and Reports on Form 8-K                          11-13





                               Page 2 of 15 Pages

<PAGE>



                                     PART I

Item 1     Description of Business
------     -----------------------

           Avoca, Incorporated ("the Company") is a Louisiana corporation formed
in 1931. It owns and manages approximately 16,000 acres comprising virtually all
of Avoca Island, which is located about 90 miles west of New Orleans in St. Mary
Parish,  Louisiana,  adjacent to and  immediately  southeast of Morgan City. The
island,  approximately  two-thirds of which is under shallow water, is rural and
virtually  undeveloped except for exploration and development of its oil and gas
resources.
           Avoca, Incorporated is a passive royalty company that derives most of
its income from  royalties,  bonuses and delay  rentals under oil and gas leases
covering its Avoca Island  acreage,  as well as seismic  permits and interest on
its  investments.  The  following  table  and  accompanying  lease  map  furnish
information  respecting mineral leases in effect for the year ended December 31,
1997.


                               Page 3 of 15 Pages

<PAGE>
<TABLE>
<CAPTION>



MINERAL INCOME


Year Ended December 31, 1997
                                                                                              Initial    Income Recognized in 1997
                                                            Date of                            Rental      Lease Bonus       Net
Lessee                         Operator                      Lease     Acreage   Expiration   Per Acre    or Delay Rental  Royalties
------------------------------------------------------------------------------------------------------------------------------------

<S>                            <C>                          <C>        <C>       <C>              <C>        <C>            <C>
Texaco, Inc.                   Texaco, Inc.                 5/17/63     41.900   Termination      $ 75       $     --       $    490
                                                                                 of production

Alliance Operating Company     Delta Operating Corporation  8/14/87    276.733   Termination      $200             --        157,419
                                                                                 of production

Capital Energy, Inc.           Black Gold Production        *1/2/96     45.029   Termination      $125             --         54,327
                               Company                                           of production
                                                                                 or 1/2/97 if
                                                                                 nonproducing

Burlington Resources Oil &     Burlington Resources Oil &   8/12/96    420.000   Termination      $110         46,200             --
Gas Company                    Gas Company                                       of production
                                                                                 or 8/12/99 if
                                                                                 nonproducing

Burlington Resources Oil &     Burlington Resources Oil &  12/12/97  2,100.000   Termination      $150        315,000             --
Gas Company                    Gas Company                                       of production
                                                                                 or 12/12/00 if
                                                                                 nonproducing

Burlington Resources Oil &     Burlington Resources Oil &  12/12/97  1,565.000   Termination      $150        234,750             --
Gas Company                    Gas Company                                       of production
                                                                                 or 12/12/00 if
                                                                                 nonproducing

                                                                                                             $595,950       $212,236
                                                                                                             ========       ========

*---This  lease  supersedes  a lease dated  January  19, 1960 with Cabot  Carbon
Corporation.


</TABLE>

                               Page 4 of 15 Pages


<PAGE>



                       [Map of Avoca Island appears here,
                    showing property of Avoca, Incorporated,
                       mineral leases and well locations]








                               Page 5 of 15 Pages


<PAGE>



Item 1     Description of Business (continued)
------     -----------------------

           At December 31, 1997,  4,448 acres of the Company's land were covered
by oil and gas leases.  Approximately 363 acres were held by production pursuant
to leases (in favor of Texaco,  Inc.,  Alliance  Operating  Company  and Capital
Energy,  Inc.)  providing for  royalties  ranging from 25% to 30%. The remaining
4,085 acres are  covered by leases in favor of  Burlington  Resources  Oil & Gas
Company. The first lease,  granted in 1996,  stipulates a 21% royalty. The other
two leases were granted in 1997 and stipulate a 22% royalty.
           In recent years, the Delta Operating  Corporation  (formerly Alliance
Operating  Company)  Avoca No. 1 well in the Ramos Field has been the  Company's
largest  producing  well.  Royalties  from the  Avoca  No.  1, in  which  Avoca,
Incorporated has a net revenue  interest of approximately  19%, were responsible
for  approximately  94% of the Company's royalty income during 1995, 66% in 1996
and 74% in 1997.  Production from the well was 245,165 thousand cubic feet (mcf)
of gas and 3,604  barrels of  condensate in 1997 as compared with 238,455 mcf of
gas and 3,787 barrels of  condensate in 1996,  and 259,513 mcf and 4,158 barrels
in 1995.
           The  Intercoastal  Shipyard  No.  2  well,  operated  by  Black  Gold
Production  Company under the Capital Energy,  Inc. lease dated January 2, 1996,
ceased  production  on April 8, 1997.  Workover  operations  have failed and the
operator has advised the Company  that the well is to be plugged and  abandoned.
The well, also located in the Ramos Field, produced 217,721 mcf of gas and 5,911
barrels of  condensate  during  1997,  as compared  with  883,498 mcf and 25,423
barrels in 1996.
           The Company's  share of production  from the Bateman Lake Field tract
leased to Texaco, Inc. has been negligible in recent years.

                               Page 6 of 15 Pages


<PAGE>



           In addition to  information  regarding  prices,  the following  table
shows the Company's  share of gas produced (in terms of thousand cubic feet) and
oil  delivered  (in terms of barrels) from the Ramos Field during the last three
years.

           Company's Share                       Average Sales Price
           ---------------                       -------------------
   Year     Gas Volume     Oil Volume        Per mcf          Per bbl
   1995     50,501 mcf       809 bbls         $1.73            $18.00
   1996     82,228 mcf     1,770 bbls         $2.81            $21.66
   1997     56,537 mcf       941 bbls         $2.83            $20.84

         The Company  granted two  mineral  leases in each of 1997 and 1996,  as
compared with no leases in 1995.  Except for reworking  operations,  no drilling
operations  were  conducted on Avoca  Island  during the three year period ended
December 31, 1997.
           During 1997,  the Company's  granted two seismic  permits  covering a
total of 915 acres.  It also  extended  the term of another  permit,  granted in
1996,  covering 7,535 acres. In 1996,  three seismic permits  (including the one
extended in 1997)  covering  17,938 total acres were granted.  In the aggregate,
the five permits cover virtually all of Avoca Island.
           Further  information   respecting  oil  and  gas  operations  on  the
Company's  property appears under the captions "Report to the  Shareholders" and
"Management's  Discussion  and  Analysis of Financial  Condition  and Results of
Operations"  on  pages  4  and  14  of  the  Company's  1997  Annual  Report  to
Shareholders,   attached  as  an  exhibit  hereto  and  incorporated  herein  by
reference.  The Company's  activities with respect to oil and gas are limited to
the granting of leases,  seismic  permits and the  collection of bonuses,  delay
rentals  and  landowner   royalties   thereunder.   Accordingly,   only  limited
information,  furnished  primarily by the Company's  lessees,  has been included
with respect to oil and gas operations  affecting the Company's lands.  Complete
information respecting these and

                               Page 7 of 15 Pages


<PAGE>



related  matters,  such as proved  reserves,  is  unavailable to the Company and
cannot be obtained without unreasonable effort or expense.
           Wild game,  bird hunting and  non-commercial  fishing rights on Avoca
Island are leased to Avoca Duck Club and the  possibility  of a cattle  lease is
being considered.
           The  Company  has no  employees  but  retains  the  services of three
individuals as independent  contractors.  One acts as consultant to the Board of
Directors and assists with the Company's day to day business affairs.  The other
two  individuals  maintain the  Company's  financial  records and watch over the
Company's lands, respectively.
           Additional  information  regarding the Company's business is included
under Item 2 of this report, incorporated herein by reference.

Item 2     Description of Property
------     -----------------------

           The Company owns approximately  16,000 acres comprising virtually all
of  Avoca  Island.   The  island,   located  in  St.  Mary  Parish,   Louisiana,
approximately 90 miles west of New Orleans, lies southeast of the greater Morgan
City area,  from which it is separated  by Bayou Boeuf.  There are no bridges or
roads leading to the island.  Access is by means of a free ferry which  operates
on a regular schedule across Bayou Boeuf (a distance of approximately  500 feet)
and connects the  northwest  tip of the island with the Morgan City area.  Ferry
service is interrupted by periodic  mechanical  breakdowns and during periods of
high water.
           Avoca Island is within the Morgan City Harbor and Terminal  District.
Bayou  Boeuf  and Bayou  Chene,  which  border  the  island  for a  distance  of
approximately  thirteen  miles  and  form its  northern,  eastern  and  southern
perimeters, are part of the Gulf section of the Intracoastal Waterway.

                               Page 8 of 15 Pages


<PAGE>



           Approximately one-third of the island, located along its northern and
eastern  perimeters,  is dry ground.  The remaining  two-thirds is under shallow
water. Avoca Island is rural, and its surface is virtually undeveloped.
           Over the years, preliminary studies and proposals have been made with
regard to a bridge linking Avoca Island with the mainland.  Nothing definite has
resulted  from  these  efforts  but,  with  the  Company's  cooperation,  a  new
feasibility  study  has  recently  been   commissioned  by  local   governmental
authorities.
           A study conducted with the assistance of LSU's Cooperative  Extension
Service in 1991 indicates that aquaculture and tree farming are not economically
feasible and that the island's  suitability for farming is limited.  The Company
is  continuing  its  search  for ways to  prudently  develop  Avoca  Island  for
agricultural  and  commercial  use. In addition to ongoing  surface  maintenance
operations  and its long  standing  lease of hunting and  fishing  rights to the
Avoca Duck Club,  the Company as lessor is  experimenting  with a cattle grazing
operation covering  approximately  3,200 acres on the northern and western parts
of the island.
           Information  respecting development of oil and gas resources on Avoca
Island  is  provided  under  Item  1 of  this  report,  incorporated  herein  by
reference.

Item 3     Legal Proceedings
------     -----------------

           Not applicable.

Item 4     Submission of Matters to
------     a Vote of Security Holders
           --------------------------

           Not Applicable



                               Page 9 of 15 Pages


<PAGE>



                                     PART II

Item 5     Market for Common Equity
------     and Related Stockholder Matters
           -------------------------------

           The  information  called for by this item  appears  under the caption
"Stock Prices and Related  Security  Holder Matters" on page 15 of the Company's
1997  Annual  Report  to  Shareholders,   attached  as  an  exhibit  hereto  and
incorporated herein by reference.

Item 6     Management's Discussion and
------     Analysis or Plan of Operation
           -----------------------------

           The information  called  for by this item appears under the  captions
"Report to  the  Shareholders"  and  "Management's  Discussion  and Analysis  of
Financial Condition and Results of Operations"  on pages 4 and 14, respectively,
of the Company's  1997  Annual  Report  to Shareholders,  attached as an exhibit
hereto and incorporated herein by reference.

Item 7     Financial Statements
------     --------------------

           The  information  called for by this item  appears on pages 5 through
13 of  the Company's 1997 Annual Report to Shareholders,  attached as an exhibit
hereto and incorporated herein by reference.

Item 8     Changes In and Disagreements With
------     Accountants on Accounting and Financial Disclosure
           --------------------------------------------------

           Not applicable

                                    PART III

Item 9     Directors, Executive Officers,
------     Promoters and Control Persons; Compliance
           With Section 16(a) of the Exchange Act
           --------------------------------------

           The Company  has  two executive officers, both of whom are directors:
Edward  B.  Grimball,   President,   and  M.  Cleland  Powell,  III,  Secretary-
Treasurer. Information concerning such

                               Page 10 of 15 Pages


<PAGE>



persons  and  the   Company's   other   directors  is  shown  under the  caption
"Number  and  Election of  Directors"  on pages 3 and 4 of the  Company's  Proxy
Statement dated February 18, 1998, incorporated herein by reference.

Item 10       Executive Compensation
-------       ----------------------

              The  information called for by this item appears under the caption
"Information  Concerning Management - Executive  Compensation" on page 5 of  the
Company's  Proxy  Statement  dated  February  18, 1998,  incorporated  herein by
reference.

Item 11       Security Ownership of Certain
-------       Beneficial Owners and Management
              --------------------------------

           The  information  called  for  by this item appears under the caption
"Voting Securities"  on pages  2  and  3,  and under  the  caption  "Number  and
Election of  Directors" on pages 3 and 4, of the Company's Proxy Statement dated
February 18, 1998, incorporated herein by reference.

Item 12       Certain Relationships
-------       and Related Transactions
              ------------------------

              The information  called for by this item appears under the caption
"Information  Concerning  Management - Certain  Relationships"  on page 5 of the
Company's  Proxy  Statement  dated  February  18, 1998,  incorporated  herein by
reference.

                                     PART IV

Item 13       Exhibits and Reports on Form 8-K
-------       --------------------------------

(a)1.         Financial Statements

              The  following  financial   statements  of  Avoca,   Incorporated,
included  in its  1997  Annual  Report  to  Shareholders,  are  incorporated  by
reference in Part II, Item 7:
              Report  of  Ernst & Young LLP, Independent Auditors, dated January
15, 1998

                               Page 11 of 15 Pages


<PAGE>



              Balance sheet - December 31, 1997

              Statements of Income - years ended
              December 31, 1997 and 1996

              Statements of Retained Earnings -
              years ended December 31, 1997 and 1996

              Statements of Cash Flows - years ended
              December 31, 1997 and 1996

              Notes to Financial Statements -
              December 31, 1997

(a)2.         Exhibits required by Item 601 of Regulation S-B:

              3.1       Copy of Composite Charter(1)

              3.2       Copy of Charter, dated October 21, 1931(1)

              3.3       Copy of amendment to Charter, dated
                        September 13, 1972(1)

              3.4       Copy of amendment to Charter, dated
                        May 30, 1975(1)

              3.5       Copy of amendment to Charter, dated
                        September 15, 1981(2)

              3.6       Copy of amendment to Charter, dated
                        March 17, 1987(2)

              3.7       Copy of Composite Charter (as of
                        August 14, 1987)(2)

              4.0       Copy of specimen stock certificate(1)

              13        Annual Report to Shareholders for
                        the year ended December 31, 1997.  Except for
                        the information expressly specifically
                        incorporated by reference in this Form 10-KSB,
                        the annual report is provided solely for the
                        information of the Securities and Exchange
                        Commission and is not to be deemed filed
                        as part of the Form 10-KSB.

                               Page 12 of 15 Pages


<PAGE>




              23        Consent of independent auditors

              27        Financial Data Schedule

(b)           Reports on Form 8-K

                        Registrant filed no reports on Form 8-K during the three
                        months ended December 31, 1997.

------------------------------
(1)   Incorporated   by  reference  from   registrant's   Form  10  Registration
      Statement,  filed with the Securities and Exchange Commission on April 29,
      1980, Commission file number 0-9219.

(2)   Incorporated by reference from registrant's Form 8 Report dated August 14,
      1987, Commission file number 0-9219.

                               Page 13 of 15 Pages


<PAGE>



                                   SIGNATURES

              Pursuant to the requirements  of  Section 13 of the Securities Act
of 1934, the registrant has duly caused this report to be signed  on its  behalf
by the  undersigned, thereunto duly authorized.

Avoca, Incorporated


By: /s/ Edward B. Grimball
   -------------------------------------
       Edward B. Grimball
       President and principal executive,
       financial and accounting officer

Date: March 17 , 1998
            --

              Pursuant to the  requirements  of the  Securities  Exchange Act of
1934,  this report has been signed below by the  following  persons on behalf of
the registrant and in the capacities and on the dates indicated.

/s/ Richard W. Fox
--------------------------------
Richard W. Fox, Director
Date:  March 17, 1998
             --

/s/ Edward B. Grimball
--------------------------------
Edward B. Grimball, Director
Date:  March 17, 1997
             --

/s/ Peter V. Guarisco
--------------------------------
Peter V. Guarisco, Director
Date:  March 17, 1997
             --

/s/ Guy C. Lyman, Jr.
--------------------------------
Guy C. Lyman, Jr., Director
Date:  March 17, 1997
             --

/s/ M. Cleland Powell, III
--------------------------------
M. Cleland Powell, III, Director
Date:  March 17, 1997
             --


                               Page 14 of 15 Pages


<PAGE>


                                  Exhibit Index


                                                               Sequentially
                                                                 Numbered
 Exhibit                 Description                               Page
 -------                 -----------                           ------------

   3.1            Copy of Composite Charter(1)

   3.2            Copy of Charter, dated October 21, 1931(1)

   3.3            Copy of amendment to Charter, dated
                  September 13, 1972(1)

   3.4            Copy of amendment to Charter, dated
                  May 30, 1975(1)

   3.5            Copy of amendment to Charter, dated
                  September 15, 1981(2)

   3.6            Copy of amendment to Charter, dated
                  March 17, 1987(2)

   3.7            Copy of Composite Charter (as of
                  August 14, 1987)(2)

   4.0            Copy of specimen stock certificate(1)

    13            Annual Report to Shareholders  for the year
                  ended December 31, 1997.  Except for the
                  information   expressly  specifically
                  incorporated by reference in this Form  10-KSB,
                  the annual report  is  provided  solely   for
                  the information of the Securities and Exchange
                  Commission  and is not to be deemed filed
                  as part of the Form 10-KSB.

    23            Consent of independent auditors


    27            Financial Data Schedule


--------------------
(1) Incorporated   by   reference  from   registrant's   Form  10   Registration
Statement,  filed with the Securities and Exchange Commission on April 29, 1980,
Commission file number 0-9219.

(2) Incorporated by reference from  registrant's  Form 8 Report dated August 14,
1987, Commission file number 0-9219.

                               Page 15 of 15 Pages

<PAGE>
                                                                      EXHIBIT 13



















   AVOCA                                            Annual Report
INCORPORATED                                        ----------------------------
                                                    1997



<PAGE>



                            [Blank page appears here]


<PAGE>



Description of Business

         Avoca,   Incorporated  owns  and  manages  approximately  16,000  acres
comprising  virtually all of Avoca Island,  which is located about 90 miles west
of New  Orleans in St.  Mary  Parish,  Louisiana,  adjacent  to and  immediately
southeast of Morgan City. The island is rural and virtually  undeveloped  except
for exploration and development of its oil and gas resources.

         Avoca,  Incorporated is largely a passive royalty company which derives
most of its income from  royalties,  bonuses and delay rentals under oil and gas
leases covering its Avoca Island acreage.

Directors and Officers

Richard W. Fox, Director;
Investor, formerly Manager,
Sandy Run Farm L.L.C.;
prior thereto Vice President, FirstNBC
(Trust Investment Department)

Edward B. Grimball,
Director and President;
Chief Financial Officer and
Executive Vice President,
Whitney National Bank


Peter V. Guarisco, Director;
Chairman, Hellenic, Inc.

Guy C. Lyman, Jr., Director;
Attorney, Milling, Benson, Woodward,
Hillyer, Pierson & Miller, L.L.P.

M. Cleland Powell, III,
Director and Secretary-Treasurer;
Senior Vice President,
Whitney National Bank













                                 [Picture of cypress tree in lake appears here.]

                                                           AVOCA, Incorporated 3

<PAGE>

Report to the Shareholders

Issued Preliminary to the Sixty-Sixth
Annual Meeting of Shareholders on March 17, 1998

Dear Shareholders:
         The Company  enjoyed  another  commendable  year in 1997.  Despite a 7%
decline in net  royalties and a 41% decline in seismic  permit fees,  net income
increased  by 78%,  from  $423,651 in 1996 to $752,298 in 1997.  The increase is
primarily  attributable  to  bonuses  on two new  oil,  gas and  mineral  leases
covering a total of 3,665 acres.
         Annual per share  earnings  were $.91 in 1997 as compared  with $.51 in
1996.  Dividends  per  share  were  raised  from  $.45 to $.75 in line  with the
Company's increased income.
         The Delta  Operating  Corporation (formerly Alliance Operating Company)
Avoca  No. 1 well  continued to produce  during 1997 at  approximately  the same
levels  achieved in  1996.  Gas  and   condensate  prices  were      essentially
unchanged from 1996.   The Avoca No. 1,  located in the Ramos  Field,  accounted
for 74% of the Company's royalty income in 1997.
         The Intercoastal Shipyard No. 2 well, operated by Black Gold Production
Company  under the Capital  Energy,  Inc.  lease dated  January 2, 1996,  ceased
production on April 8, 1997. Recent attempts to restore  production have failed,
and the  operator  has advised  the  Company  that the well is to be plugged and
abandoned. The well, also located in the Ramos Field, was responsible for 26% of
the Company's royalty income in 1997.
         Two new 3-D seismic  permits,  covering 915 acres in the aggregate were
granted during the year.  One of the permits  includes an option to lease all or
part  (but not  less  than 298  acres)  of the  permitted  acreage  for  mineral
development.
         Management is continuing  its efforts to prudently  develop the surface
of Avoca  Island as well as its oil and gas  resources.  In addition to its long
standing lease of hunting and fishing rights to the Avoca Duck Club, the Company
is considering agricultural and commercial opportunities on the northern part of
the island.
         The Company's  operations and financial condition are further discussed
on page 14 of this report and a complete list of mineral  leases is shown inside
the back cover.

                                                     Respectfully submitted,
                                                     /s/ Edward B. Grimball
                                                     Edward B. Grimball
                                                     President

February 6, 1998

4     AVOCA, Incorporated

<PAGE>



Report of Ernst & Young LLP,
Independent Auditors


The Board of Directors
Avoca, Incorporated


         We have audited the accompanying  balance sheet of Avoca,  Incorporated
as of  December  31,  1997,  and the  related  statements  of  income,  retained
earnings,  and cash flows for each of the two years in the period ended December
31, 1997.  These financial  statements are the  responsibility  of the Company's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audits.
         We conducted our audits in accordance with generally  accepted auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
         In our opinion,  the  financial  statements  referred to above  present
fairly, in all material respects, the financial position of Avoca,  Incorporated
at December 31, 1997,  and the results of its  operations and its cash flows for
each of the two years in the period ended December 31, 1997, in conformity  with
generally accepted accounting principles.



                                                     /s/ Ernst & Young LLP

New Orleans, Louisiana
January 15, 1998



                                                           AVOCA, Incorporated 5

<PAGE>



BALANCE SHEET
                                                                     December 31
                                                                            1997
--------------------------------------------------------------------------------
ASSETS

CURRENT ASSETS
      Cash and cash equivalents                                      $   500,370
      Short-term investments                                           1,376,479
      Accounts receivable                                                 37,663
      Accrued interest receivable                                         31,630
      Prepaid expenses                                                     4,941
      Recoverable income taxes                                               206
                                                                     -----------
                                  TOTAL CURRENT ASSETS                 1,951,289

PROPERTY AND EQUIPMENT
      Land and land improvements                                         613,751
      Buildings                                                           57,450
                                                                     -----------
                                                                         671,201
      Less accumulated depreciation and depletion                        598,386
                                                                     -----------
                                                                          72,815

OTHER ASSETS
      Long-term investments                                              930,177
      Avoca Drainage Bonds, $415,000, in default --
           at nominal amount                                                   1
                                                                     -----------
                                                                     $ 2,954,282
                                                                     ===========






















6     AVOCA, Incorporated

<PAGE>



                                                                     December 31
                                                                            1997
--------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITES
      Accounts payable and accrued expenses                          $    18,033
      Dividends payable                                                  622,875
                                                                     -----------
                             TOTAL CURRENT LIABILITIES                   640,908

DEFERRED INCOME TAXES                                                     13,395

SHAREHOLDERS' EQUITY
      Common stock, no par value -- authorized,
           issued and outstanding 830,500 shares
           (no change during the year)                                    94,483
      Retained earnings                                                2,205,496
                                                                     -----------
                            TOTAL SHAREHOLDERS' EQUITY                 2,299,979

                                                                     $ 2,954,282
                                                                     ===========






























                                        [Picture of christmas tree appears here]

See accompanying notes.

                                                           AVOCA, Incorporated 7

<PAGE>

<TABLE>
<CAPTION>


STATEMENTS OF INCOME

                                                                                       Year ended December 31,
                                                                                    1997                      1996
------------------------------------------------------------------------------------------------------------------

Revenue:
<S>                                                                          <C>                         <C>
      Royalties                                                              $   218,521                 $ 234,289
         Less severance taxes                                                      6,285                     5,240
                                                                             -----------                 ---------
                                                                                 212,236                   229,049

      Lease bonuses and delay rentals                                            595,950                    84,075
      Lease option payments                                                       45,813                        --
      Seismic permit fees                                                        211,241                   356,830
      Pipeline rights-of-way                                                     138,772                        --
      Interest income                                                            126,356                   121,531
      Rental income                                                               27,800                    27,700
      Other                                                                        6,403                     8,309
                                                                             -----------                 ---------
                                                                               1,364,571                   827,494
Expenses:
      Attorney fees and expenses                                                  12,826                    18,093
      Auditing fees                                                               16,000                    15,000
      Bookkeeping and clerical services                                            6,000                     5,250
      Management fees                                                             46,000                    41,000
      Directors' fees                                                              5,000                     5,000
      Geological and engineering fees and expenses                                 6,451                    14,349
      Insurance                                                                   22,460                    23,366
      Office and miscellaneous expenses                                           24,421                    23,272
      Taxes, other than income taxes                                              22,272                    23,664
      Repairs and cleanup expenses                                                31,732                    11,126
                                                                             -----------                 ---------
                                                                                 193,162                   180,120
                                                                             -----------                 ---------

                                      INCOME BEFORE INCOME TAXES              $1,171,409                   647,374

Income taxes                                                                     419,111                   223,723
                                                                             -----------                 ---------

                                                      NET INCOME             $   752,298                 $ 423,651
                                                                             ===========                 =========

Earnings per share                                                           $       .91                 $     .51
                                                                             ===========                 =========

Dividends per share                                                          $       .75                 $     .45
                                                                             ===========                 =========
</TABLE>













See accompanying notes.

8     AVOCA, Incorporated

<PAGE>
<TABLE>
<CAPTION>



                                                                                  STATEMENTS OF RETAINED EARNINGS



                                                                                           Year ended December 31,
                                                                                    1997                      1996
------------------------------------------------------------------------------------------------------------------
Retained Earnings:
<S>                                                                          <C>                       <C>
      Balance at beginning of year                                           $ 2,076,073               $ 2,026,147

      Net income for the year                                                    752,298                   423,651
                                                                             -----------               -----------
                                                                               2,828,371                 2,449,798

      Cash dividends:
         1997 - $ .75 per share                                                  622,875                        --
         1996 - $ .45 per share                                                       --                   373,725
                                                                             -----------               -----------

                   BALANCE AT END OF YEAR                                    $ 2,205,496               $ 2,076,073
                                                                             ===========               ===========


</TABLE>






























See accompanying notes.              [Picture of tractor in field appears here.]

                                                           AVOCA, Incorporated 9

<PAGE>

<TABLE>
<CAPTION>


STATEMENTS OF CASH FLOWS

                                                                                           Year ended December 31,
                                                                                       1997                   1996
--------------------------------------------------------------------------------------------------------------------

OPERATING ACTIVITIES
<S>                                                                           <C>                    <C>
    Net income                                                                $     752,298          $     423,651
    Adjustments to reconcile net income to
       net cash provided by operating activities:
        Depreciation expense                                                          2,735                  2,735
        Deferred income taxes                                                          (507)                  (507)
        Change in operating assets and liabilities:
           Accounts receivable                                                        6,967                (29,181)
           Accrued interest receivable                                               (7,368)                 3,147
           Prepaid expenses                                                             202                    151
           Accounts payable and accrued expenses                                        927                 (8,402)
           Income taxes                                                              (9,427)               (27,603)
                                                                              --------------         --------------

                                             NET CASH PROVIDED BY
                                             OPERATING ACTIVITIES                   745,827                363,991

INVESTING ACTIVITIES
    Purchase of short-term investments                                             (509,709)            (1,008,097)
    Purchase of long-term investments                                            (1,255,150)              (639,169)
    Maturity of investments                                                       1,828,000              1,268,229
                                                                              --------------         --------------

                                            NET CASH PROVIDED BY
                                  (USED IN) INVESTING ACTIVITIES                     63,141               (379,037)

FINANCING ACTIVITIES
    Dividends paid                                                                 (373,725)              (124,575)
                                                                              --------------         --------------

                                                NET CASH USED IN
                                            FINANCING ACTIVITIES                   (373,725)              (124,575)
                                                                              --------------         --------------

                                          INCREASE (DECREASE) IN
                                       CASH AND CASH EQUIVALENTS                   (435,243)              (139,621)

Cash and cash equivalents at beginning of year                                       65,127                204,748
                                                                              --------------         --------------

                                       CASH AND CASH EQUIVALENTS
                                                  AT END OF YEAR              $     500,370          $      65,127
                                                                               ==============         ==============







</TABLE>



See accompanying notes.

10     AVOCA, Incorporated

<PAGE>



                                                   NOTES TO FINANCIAL STATEMENTS
December 31, 1997

NOTE A--Significant Accounting Policies

General: Avoca,  Incorporated (the Company) owns and leases land, located in St.
Mary Parish,  Louisiana,  to unaffiliated  parties for oil and gas  exploration.
Income in the accompanying  financial statements is primarily derived from lease
bonuses, delay rentals, seismic permit fees, sale of rights-of-way and royalties
received  from oil and gas  production  related to these  leases.  Estimates  of
proved reserves related to the leases are not available.

Cash Equivalents:  Cash equivalents   consists of investments with a maturity of
three months or less from date of purchase.

Investments: Short-term investments consist of United States Government Treasury
Bills and United States  Government  Treasury Notes with an original maturity of
greater  than three  months  but with  maturity  dates  within one year from the
balance sheet date.
         Long-term  investments  consist of United  States  Government  Treasury
Notes due in 1999.
         Management determines the appropriate classification of debt securities
at the time of purchase  and  reevaluates  such  designation  as of each balance
sheet date. Debt securities are classified as held-to-maturity  when the Company
has the  positive  intent  and  ability  to hold  the  securities  to  maturity.
Held-to-maturity  securities  are stated at  amortized  cost  including  accrued
interest.  At  December  31,  1997  all  short-term  investments  and  long-term
investments  were  classified  as  held-to-maturity.   The  fair  value  of  the
investments approximated the carrying value at December 31, 1997.

Property and  Equipment:  Land is carried at cost less amounts  received for the
sale of rights-of-way and similar servitudes. Land improvements and building are
carried at cost and depreciated over their estimated useful life of 30 years.

Income Taxes:  The Company accounts for income taxes using the liability method.

Use of Estimates:  The  preparation of financial  statements in conformity  with
generally accepted  accounting  principles requires management to make estimates
and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.

NOTE B--Income Taxes

The  components  of income tax expense  for the years  ended  December 31 are as
follows:
<TABLE>
<CAPTION>
                                                                     1997                1996
---------------------------------------------------------------------------------------------

Current
<S>                                                              <C>                 <C>
         Federal                                                 $370,259            $200,184
         State                                                     49,359              24,046
                                                                ---------           ---------
                                        TOTAL CURRENT             419,618             224,230
                                                                ---------           ---------

Deferred:
         Federal                                                     (443)               (453)
         State                                                        (64)                (54)
                                                                ----------          ----------
                                       TOTAL DEFERRED                (507)               (507)
                                                                ----------          ----------

                                                                $ 419,111           $ 223,723
                                                                ==========          ==========

</TABLE>


The deferred income tax liability of $13,395 relates to a difference between the
accounting and income tax basis of property and equipment.

The  Company  paid  income  taxes of  $430,000  and  $252,664  in 1997 and 1996,
respectively.


                                                          AVOCA, Incorporated 11

<PAGE>



NOTES TO FINANCIAL STATEMENTS (Continued)


B. Income Taxes (continued)

The  reconciliations  between  the  federal  statutory  income  tax rate and the
Company's  effective  income tax rate,  based on income  before income taxes and
extraordinary item, for the years ended December 31 are as follows:


<TABLE>
<CAPTION>


                                                                       1997                     1996
                                                               Amount        Rate        Amount       Rate
                                                              ---------------------------------------------
<S>                                                           <C>            <C>        <C>           <C>
Tax expense based on federal statutory rate                   $398,279       34.0%      $220,107      34.0%
Statutory percentage depletion                                 (11,145)      (0.9)       (11,949)     (1.8)
State income taxes (net of federal income tax deduction)        49,380        4.2         24,045       3.7
Other                                                          (17,403)      (1.5)        (8,480)     (1.3)
                                                              ---------      -----      ---------     -----
                                            INCOME TAXES      $419,111       35.8%      $223,723      34.6%
                                                              =========      =====      =========     =====
</TABLE>



























12     AVOCA, Incorporated

<PAGE>



                                                              NOTES TO FINANCIAL
                                                          STATEMENTS (Continued)
NOTE C--Major Customers

The net  royalties  received  from  two  independent  oil  and  gas  exploration
companies  accounted for 99% of total net royalties recorded for the years ended
December  31,  1997 and 1996.  Substantially  all of the  lease  bonus and delay
rental  revenue in 1997 was the result of leases with one company.  Lease option
payments  consisted of payments from one company for the year ended December 31,
1997.  Seismic permit fees recognized in 1997 and 1996 are the result of permits
with two oil and gas exploration  companies and one seismic  company,  of which,
one company  accounted  for 89% of the revenue in 1997.  Pipeline  rights-of-way
revenue  recognized in 1997 is the result of  rights-of-way  agreements with two
companies.


NOTE D--Related Party Transactions

A member of the Board of  Directors is of counsel with the law firm which serves
as legal  counsel for the  Company.  Fees paid to this law firm were $13,676 and
$25,377 for the years ended December 31, 1997 and 1996, respectively.


NOTE E--Oil and Gas Quantities Produced

The  following  table  reflects the  Company's  share of the oil and gas volumes
produced from leases held under production during each of the last two years:

                                                           Production
                                                 -----------------------------
                                                    Oil                  Gas
                                                   (BBLs)               (MCFs)
                                                 -----------------------------

1997                                                 941                56,537
1996                                               1,770                82,228


NOTE F--Commitment

The  Company  has a lease  with the Avoca  Duck Club (the  Club),  an  unrelated
entity,  to allow the  members of the Club use of the island for the  purpose of
hunting  wild game and birds,  and for  noncommercial  fishing.  The term of the
lease  commenced June 1, 1994 for a period of ten years with the Club having two
ten-year  options to extend the  lease.  Under the terms of the lease,  the Club
constructed a new building  including a separate apartment for the exclusive use
of the Company's  caretaker of the island.  This building  replaced the building
destroyed by fire in December 1992.  During 1994,  under the terms of the lease,
the Company  contributed  $50,000,  which  represents  the  approximate  cost to
construct the apartment.

If the Company elects to exercise its unrestricted, unconditional and absolutely
discretionary  right to  terminate  the lease  before  the end of its term,  the
Company  must  reimburse  the  Club  for its  unamortized  cost of the  building
(excluding the Company's cash contribution), based on straight-line depreciation
over 30 years. Under the lease, the Club's unamortized cost of the building will
be reduced over time to an ultimate reimbursable amount not less than $80,000.


NOTE G--Earnings Per Share

The Company  adopted  Financial  Accounting  Standards  Board Statement No. 128,
Earnings per Share,  in 1997. The statement  replaced the calculation of primary
and fully diluted  earnings per share with basic and diluted earnings per share.
Due to the Company's  simple capital  structure,  basic and diluted earnings per
share are the same, and the adoption had no impact on current year or previously
reported earnings per share amounts.















                                                [Picture of egret appears here.]


                                                          AVOCA, Incorporated 13

<PAGE>



Management's Discussion and
Analysis of Financial Condition and
Results of Operations



Liquidity and Capital Resources
The Company's continued liquidity is evidenced by the fact that more than 95% of
its  assets,  as measured by book  value,  are cash and cash  equivalents,  U.S.
Government and U.S.  Government agency securities.  Current  liabilities at year
end were $640,908,  including a $622,875  dividend declared in December 1997 but
not paid until  January  1998.  The  Company's  business is largely  passive and
consequently  all  capital   requirements   for  exploration,   development  and
production of the Company's mineral resources are funded by its lessees. Current
financial  resources and  anticipated  net income are expected to be adequate to
meet cash requirements in the year ahead.

1997 As Compared to 1996
The  Company  enjoyed  another  commendable  year  in  1997.  Revenue  increased
primarily  because  of two new oil,  gas and  mineral  leases  which  netted the
Company  $549,750 in bonuses  during the year.  The new leases  were  granted to
Burlington  Resources  Oil & Gas Co. under an option  included in the 7,330 acre
seismic permit it acquired from the Company in November of 1996. Burlington paid
the Company an  additional  $45,813 to extend until March 15, 1998 its option to
lease all or part (but not less than half) of the remaining  3,665 acres subject
to the 1996 option. No revenues were received from this source in 1996.
         Royalty   income  net  of   severance   taxes   decreased   $16,813  or
approximately  7% in 1997  because the  Intercoastal  Shipyard No. 2 well ceased
production on April 8, 1997.  Prior thereto,  the well produced 5,911 barrels of
condensate and 217,721 Mcf of gas,  compared to 25,473 barrels of condensate and
883,498 Mcf of gas in 1996. The operator,  Black Gold Production Company,  Inc.,
has advised the Company that the recent workover operations have failed, and the
well is to be plugged and abandoned.
         The  overall  performance  of the  Delta  Operating  Company  (formerly
Alliance  Operation  Company)  Avoca  No.  1 well,  which  was  responsible  for
approximately  74% of the Company's  royalty income in 1997,  improved  slightly
during the year.  While  condensate  recoveries  decreased from 3,787 barrels in
1996 to 3,604  barrels in 1997,  total gas  recoveries  from the Avoca No. 1, in
which the Company has a net revenue  interest of  approximately  19%,  increased
from 238,455 Mcf of 245,165 Mcf of gas during the same period.  The operator has
told the Company that the increase in gas  production  results from a successful
chemical  treatment  to clean  the  producing  formation  near the  wellbore  in
September of 1996.
         Revenue from seismic permit fees decreased by $145,589 or approximately
41% in 1997 because fewer acres were permitted for 3-D exploration than in 1996.
The  decrease  would have been  greater but for  receipt of $188,375  from Texas
Meridian Resources Exploration,  Inc. to extend until November 30, 1997 the term
of its 3-D seismic  permit  covering 7,535 acres and also to extend from January
10,  1998 until May 31,  1998 its option to lease all or part (but not less than
753 acres) of the permitted area.
         Two new gas and condensate transmission pipeline rights-of-way on Avoca
Island  contributed an additional  $138,772 to revenue in 1997 (reflected in the
income statement as pipeline  rights-of-way).  No rights-of-way  were granted in
1996.
         Interest  income  on  U.S.   Government  and  U.S.   Government  agency
securities  increased $4,825 or approximately 4% due to the availability of more
funds for investment.
         Overall  expenses were $13,042 or  approximately 7% higher in 1997 than
in 1996. Increased auditing fees, bookkeeping and clerical services,  management
fees, office and miscellaneous  expenses,  and repairs and cleanup expenses were
partially  offset by reduced  attorney fees,  geological and  engineering  fees,
insurance,  and taxes other than income taxes. The $5,000 increase in management
fees reflects an exceptional  bonus paid to the Company's manager in recognition
of commendable  results  achieved in 1996.  The $20,606  increase in repairs and
cleanup expenses is attributable to ongoing surface  maintenance on the northern
part of Avoca Island.  The $5,267  decrease in attorney fees and $7,898 decrease
in geological and engineering fees results from less need for such  professional
services.
         In  comparison  with 1996,  income tax  expense for 1997  increased  by
$195,388 as a result of an increase in taxable income.
         Income increased by $328,647 or 78% in comparison with 1996. Net income
was  $.91 per  share  in 1997 as  compared  to $.51 in  1996.  In line  with the
Company's  increased income,  dividends increased from $.45 per share in 1996 to
$.75 per share in 1997. Future dividends will be largely dependent on the amount
of oil and gas related income received.
         Further  information  regarding the Company's  financial  condition and
results of operations is contained in the President's message on page 4.


14     AVOCA, Incorporated

<PAGE>



                                                        STOCK PRICES AND RELATED
                                                         SECURITY HOLDER MATTERS

As of January 6, 1998,  there were  approximately  780  holders of record of the
Company's stock, which is traded in the over-the-counter market.
         The following  table shows the range of high and low bid quotations for
the Company's  stock for each  quarterly  period  during the last two years,  as
quoted by the National Quotation Bureau,  Incorporated.  Such quotations reflect
inter-dealer  prices,  without retail mark-up,  mark-down or commissions and may
not necessarily reflect actual transactions. The table also shows the amount and
frequency of cash dividends declared by the Company during the same period.
<TABLE>
<CAPTION>

Period               High           Low       Declared       Record Date   Date Paid     Amount
1997
<S>                 <C>           <C>          <C>              <C>        <C>            <C>
  First Quarter     $15.00        $ 8.25
  Second Quarter     15.75         14.50
  Third Quarter      18.00         15.00
  Fourth Quarter     20.75         18.13       12-18-97         1-6-98      1-22-98       $.75

1996
  First Quarter     $ 6.75        $ 5.87
  Second Quarter      8.00          5.87
  Third Quarter       8.25          7.50
  Fourth Quarter      9.75          7.50       12-20-96         1-7-97      1-21-97       $.45
</TABLE>

AVOCA
INCORPORATED
The Company will furnish without charge a copy of its 1997 Annual Report on Form
10-KSB to be filed with the  Securities and Exchange  Commission,  including the
financial statements and financial statement schedules thereto, to any record or
beneficial  owner of its Common  Stock as of February 6, 1998.  Requests for the
report must be in writing addressed to Avoca, Incorporated,  P.O. Box 61260, New
Orleans,  Louisiana 70161, Attention: M. Cleland Powell. If made by a person who
was not a shareholder  of record on February 6, 1998, the request must include a
good faith  representation  that such  person was a  beneficial  owner of Common
Stock on that date.  Copies of any exhibits to the Form 10-KSB will be furnished
upon payment of $.20 per page plus postage to cover the cost of furnishing  such
copies.

                                                          AVOCA, Incorporated 15

<PAGE>



                       [Map of Avoca Island appears here,
                    showing property of Avoca, Incorporated,
                       mineral leases and well locations]



<PAGE>
<TABLE>
<CAPTION>



MINERAL INCOME


Year Ended December 31, 1997
                                                                                              Initial    Income Recognized in 1997
                                                            Date of                            Rental      Lease Bonus       Net
Lessee                         Operator                      Lease     Acreage   Expiration   Per Acre    or Delay Rental  Royalties
------------------------------------------------------------------------------------------------------------------------------------

<S>                            <C>                          <C>        <C>       <C>              <C>        <C>            <C>
Texaco, Inc.                   Texaco, Inc.                 5/17/63     41.900   Termination      $ 75       $     --       $    490
                                                                                 of production

Alliance Operating Company     Delta Operating Corporation  8/14/87    276.733   Termination      $200             --        157,419
                                                                                 of production

Capital Energy, Inc.           Black Gold Production        *1/2/96     45.029   Termination      $125             --         54,327
                               Company                                           of production
                                                                                 or 1/2/97 if
                                                                                 nonproducing

Burlington Resources Oil &     Burlington Resources Oil &   8/12/96    420.000   Termination      $110         46,200             --
Gas Company                    Gas Company                                       of production
                                                                                 or 8/12/99 if
                                                                                 nonproducing

Burlington Resources Oil &     Burlington Resources Oil &  12/12/97  2,100.000   Termination      $150        315,000             --
Gas Company                    Gas Company                                       of production
                                                                                 or 12/12/00 if
                                                                                 nonproducing

Burlington Resources Oil &     Burlington Resources Oil &  12/12/97  1,565.000   Termination      $150        234,750             --
Gas Company                    Gas Company                                       of production
                                                                                 or 12/12/00 if
                                                                                 nonproducing

                                                                                                             $595,950       $212,236
                                                                                                             ========       ========

*---This  lease  supersedes  a lease dated  January  19, 1960 with Cabot  Carbon
Corporation.


</TABLE>

<PAGE>


                                                                      EXHIBIT 23

                         Consent of Independent Auditors


We consent to the incorporation by reference in this Annual Report (Form 10-KSB)
of Avoca,  Incorporated  of our report dated  January 15, 1998,  included in the
1997 Annual Report to Shareholders of Avoca, Incorporated.

                                                     /s/ Ernst & Young LLP

New Orleans, Louisiana
January 15, 1998