March 22, 2001







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, 2000.

                The financial statements in  the  report do not reflect a change
from  the  preceding  year  in  any accounting principles or practices or in the
methods of application of those principles or practices.

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

                                               Sincerely,


                                               /s/ Guy C. Lyman, Jr.
                                               ---------------------------------
                                               Guy C. Lyman, Jr.
                                               Attorney at Law
                                               Milling Benson Woodward L.L.P.
                                               (504) 569-7160

GCL/kfl
<PAGE>

                                 UNITED STATES
                       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, 2000

   /  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
          incorporation or organization)                  Identification Number)

228 St. Charles Avenue, Suite 838, New Orleans, LA               70130
-----------------------------------------------------    -----------------------
     (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.  $2,384,160
                                                          ----------

The  aggregate   market  value  of  common  stock  held  on  March  1,  2001  by
non-affiliates of the registrant was $9,438,608. 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 1, 2001.

Parts I and II  incorporate by reference  information  from the Annual Report to
Shareholders  for the year ended  December 31, 2000.  Part III  incorporates  by
reference  information  from the Company's  Proxy  Statement  dated February 20,
2001.

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

An exhibit index is located on page 17


<PAGE>






                               AVOCA, INCORPORATED

                          Index to 10-KSB Annual Report

                                                                            PAGE

PART I

Item 1:          Description of Business                                     3-9
Item 2:          Description of Property                                    9-10
Item 3:          Legal Proceedings                                         10-11
Item 4:          Submission of Matters to a Vote of Security Holders          11


PART II

Item 5:          Market for Common Equity
                 and Related Stockholder Matters                              11
Item 6:          Management's Discussion and Analysis or Plan of
                 Operation                                                    11
Item 7:          Financial Statements                                         12
Item 8:          Changes in and Disagreements with Accountants
                 on Accounting and Financial Disclosures                      12

PART III

Item 9:          Directors, Executive Officers, Promoters and
                 Control Persons; Compliance With Section 16(a)
                 of the Exchange Act                                       12-13
Item 10:         Executive Compensation                                       13
Item 11:         Security Ownership of Certain Beneficial Owners
                 and Management                                               13
Item 12:         Certain Relationships and Related Transactions               13
Item 13:         Exhibits and Reports on Form 8-K                          13-15




                                                              Page 2 of 17 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.  The following table and  accompanying  lease
map furnish  information  respecting mineral leases in effect for the year ended
December 31, 2000.

                                                              Page 3 of 17 Pages
<PAGE>
<TABLE>
<CAPTION>
MINERAL INCOME

Year Ended December 31, 2000

                                                                                        Initial         Income Recognized in 2000
                                            Date of                                     Payment         Lease Bonus           Net
Lessee/Operator                             Lease          Acreage     Expiration       Per Acre        or Delay Rental    Royalties
------------------------------------------------------------------------------------------------------------------------------------
<S>                                        <C>            <C>         <C>                 <C>            <C>              <C>
Texaco, Inc.                               5/17/63         41.900      Termination        $ 75           $   --           $       79
                                                                      of production

Alliance Operating Company*                8/14/87        276.733      Termination        $200               --              174,174
                                                                      of production

Burlington Resources Oil & Gas Company     8/12/96          7.914      Termination        $110
                                                                      of production
                                                                                                             --              156,007
Burlington Resources Oil & Gas Company    12/12/97        127.476      Termination        $150
                                                                      of production

The Meridian Resource & Exploration Co.    5/27/98        406.720      Termination        $200           81,345            1,294,475
                                                                      of production
                                                                      or 5/27/01 if
                                                                      nonproducing

CNG Producing Company                      8/19/99      1,637.550      Termination        $200          327,510                   --
                                                                      of production
                                                                      or 8/19/02 if
                                                                      nonproducing

The Meridian Resource & Exploration Co.   11/18/99         80.000      Termination        $300           24,000                   --
                                                                      of production
                                                                      or 11/18/02 if
                                                                      nonproducing

The Meridian Resource & Exploration Co.   11/23/99        131.680      Termination        $350           46,088                    -
                                                                      of production
                                                                      or 11/23/02 if
                                                                      nonproducing

McRae Exploration & Production, Inc.        7/3/00        158.000      Termination        $200           31,600                   --
                                                                      of production
                                                                      or 7/03/03 if
                                                                      nonproducing

Burlington Resources Oil & Gas Company    11/15/00         51.410      Termination        $350           17,993                   --
                                                                      of production
                                                                      or 11/15/03 if
                                                                      nonproducing

The Meridian Resource & Exploration Co.   12/06/00         50.460      Termination        $350           17,661                   --
                                                                      of production
                                                                      or 12/06/03 if
                                                                      nonproducing
                                                                                                       --------           ----------
*Delta Operating corporation is the operator                                                           $546,197           $1,624,735
                                                                                                       ========           ==========
</TABLE>


                                                              Page 4 of 17 Pages
<PAGE>



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

                                                              Page 5 of 17 Pages
<PAGE>



Item 1     Description of Business (continued)
------     -----------------------
           At December 31, 2000,  approximately 20% of the Company's land (3,051
acres) was  covered by oil and gas leases.  Approximately 535 acres were held by
production.  The  remaining  2,516  acres  were  covered  by  leases  which,  if
nonproducing,  will expire at the end of their three year  primary  terms unless
the lessees pay delay rentals to maintain them in effect. The leases (11 in all)
stipulate royalties ranging from 21% to 30%.

           In 2000, the Delta Operating Corporation (formerly Alliance Operating
Company)  Avoca No. 1 well,  located in the Ramos  Field,  was  responsible  for
$174,174 or  approximately  11% of the Company's  royalty  income.  The well was
responsible  for 35% and 99% of the  Company's  royalty  income in 1999 and 1998
respectively.  Total gas and condensate recoveries from the Avoca No. 1 well (in
which the Company has a net revenue  interest of  approximately  19%)  decreased
from 275,816 Mcf of gas and 3,950  barrels of  condensate in 1999 to 216,264 Mcf
of gas and 3,463 barrels of condensate in 2000.

           Since 1999, The Meridian Resources &  Exploration  Co.,  ("Meridian")
C.M.  Thibodaux  No. 1 and No. 3 wells have been the Company's  largest  royalty
producers. The C. M. Thibodaux No. 1 well was placed on production June 15, 1999
from the Operc 5 sand, went off production June 25 due to a blowout of the C. M.
Thibodaux No. 2 well and returned to production  August 24 after the plugging of
the No.  2 well.  The C.M.  Thibodaux  No. 3 well  went on  production  in early
November of 1999 from the Operc B sand.  Royalties  from these  wells,  in which
Avoca,  Incorporated has a net revenue  interest of 2.87%,  were responsible for
80% of the Company's royalty income during 2000, up from 65% in 1999. Total 2000
production  from the C. M.  Thibodaux No. 1 and No. 3 wells was 7,898,975 Mcf of
gas, 342,428 barrels of condensate and 10,547,944 gallons of natural gas liquids
(NGL) as reported on the check vouchers, a substantial increase over the

<PAGE>
1,337,524 Mcf of gas,  149,060  barrels of  condensate and 5,117,661  gallons of
natural gas liquids (NGL) produced in 1999.

           The Conrad Industries No. 1 well, drilled by Burlington Resources Oil
& Gas Company  ("Burlington")  and located in the Wyandotte  Field  opposite the
northern  part of Avoca  Island,  was placed on  production  April 29,  2000 and
generated  $156,007 in royalty income for the Company before it "watered out" on
August 20,  2000.  The  average  daily  production  was 5,261 Mcf of gas and 109
barrels of condensate.  Burlington is in the process of sidetracking the well in
an attempt to restore  production.  Avoca's net revenue  interest in the unit is
approximately 6.30%.

           The Company's  share of production  from the Bateman Lake Field tract
leased to Texaco, Inc. has been negligible in recent years.

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

                     Volume                            Average Sales Price
-------------------------------------------       ------------------------------
Year       Gas          Oil        NGL            Per mcf   Per bbl      Per gal
1998    60,587 mcf    818 bbls                    $ 2.28    $ 12.62
1999    89,891 mcf  7,056 bbls  146,822 gal       $ 2.41    $ 18.06        $ .35
2000   284,030 mcf  9,934 bbls  199,688 gal       $ 4.28    $ 27.80        $ .42

           Although  mineral  leasing  activity  decreased in 2000 (three leases
covering 260 acres  as compared with four mineral leases covering 2,729 acres in
1999 and two leases covering 1,115 acres in 1998), drilling  activity  increased
significantly.  In August,  Meridian spudded the Avoca No. 5-1 well in Section 5
on the  southwest  part of the island.  The well was drilled to a total depth of
18,817 feet before being abandoned in November as a dry hole. In July,  Meridian
spudded the Avoca No. 47-1 well which bottomholed in Section 47 on the northeast
end of the island.  In early  December,  the well was placed on  production  and
tested at gross  daily  flow  rates of up to 15.5 Mcf of gas and

                                                              Page 7 of 17 Pages
<PAGE>
187 barrels of oil. As a result of the successful Avoca No. 47-1 well,  Meridian
spudded  the Avoca No.  47-2 well on  December  9, 2000  which  is  expected  to
bottomhole approximately 1,700 feet  south of the No. 47-1 well.  Burlington has
advised the Company  that it has  permitted a new well that will  bottomhole  in
Section 36, near the eastern end of the island.

           Further  information   regarding  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  14-15  of the  Company's  2000  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, options,  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  regarding  these and 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 the Avoca Duck Club. A 600 acre,  seven-year  cattle lease,
signed in 1998,  has helped to minimize  expenditures  toward land  clearing and
fence  maintenance.  This lease has been  superceded  by a  758-acre  lease that
expires in 2007.

           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.

                                                              Page 8 of 17 Pages
<PAGE>

           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  Bouef  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.
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,  but no definitive
action has resulted from these efforts.  With the Company's  cooperation,  a new
feasibility  study  concerning  industrial   development  of  Avoca  Island  was
completed in 1998 by the St. Mary Parish government and has been reviewed by the
Company and others.

           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


                                                              Page 9 of 17 Pages
<PAGE>
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 in 1998 signed
a cattle grazing lease covering approximately 600 acres on the north and western
parts of the island. The lease was replaced by a new lease,  covering 758 acres,
in 2000.

           Information  regarding  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
------     -----------------

           Avoca,  Incorporated  on December 29, 1999 filed in the 16th Judicial
District Court for the Parish of St. Mary (Docket No. 105195) a lawsuit to evict
a former  lessee,  Ernest  Singleton,  from a small parcel of land (less than 10
acres) located in the northeast part of Avoca Island.  The parcel is included in
The  Meridian  Resource &  Exploration,  Inc.'s  647.504  acre unit for the C.M.
Thibodaux  Nos. 1 and 3 wells.

           Having  answered  the  Company's  petition,  the defendant  and other
heirs of John Singleton  filed a Notice of Lis  Pendens,  Reconventional  Demand
and Petition in Nullity claiming  ownership  of the parcel  (and other lands not
claimed  by  the  Company)  and  asserting  that  a 1970  court  judgment  which
recognized  the Company's  title to the disputed  area is a nullity.  Responsive
Peremptory Exceptions of Prescription and Res Judicata were filed by the Company
on March 3, 2000.

           On June 7, 2000, the court rendered  judgment in favor of the Company
in the eviction proceedings and ordered Ernest Singleton to vacate the premises.
Although Mr. Singleton has left Avoca Island, an appeal has been filed.

                                                             Page 10 of 17 Pages
<PAGE>

           In December, 2000, thirty-four named individuals, alleging themselves
to be  descendants  of the  original  owners of the  property  described  in the
petition  and  reconventional  demand,  were  allowed  to  intervene  and assert
ownership  claims in the  proceedings.  In  response,  a Dilatory  Exception  of
Vagueness was filed.

           On March 13,  2001,  the court  issued  Reasons for  Judgment,  which
includes seven pages of scholarly  reasons,  upholding  Avoca's exception of res
judicata and dismissing the  Singletons'  Reconventional  Demand and Petition in
Nullity at the  reconvenors'  cost. Notwithstanding  the intervenors'  claim and
pending appeal of the court's earlier eviction ruling, as a practical  matter, a
judgment in accordance with the March 13, 2001 Reasons For Judgment  should  put
an end to the litigation.  Nevertheless, a judgment has not yet been entered and
an appeal is possible.

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

           Not Applicable

                                     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
2000  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  14-15,
respectively,  of the Company's 2000 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  2000 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 Disclosures
            ---------------------------------------------

            Not Applicable

                                                             Page 11 of 17 Pages
<PAGE>
                                    PART III

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

           The Company has three executive  officers, all of whom are directors:
Robert C. Baird, Jr., President, J. Scott Tucker, Vice President, and M. Cleland
Powell,  III,  Secretary-Treasurer.  Information  concerning  such  persons  and
another director, Guy C. Lyman, Jr., and concerning Richard W. Fox, who resigned
as a director and Vice President of the Company on March 9, 2001, is shown under
the caption "Number and Election of Directors" on pages 3 and 4 of the Company's
Proxy Statement dated February 20, 2001,  incorporated herein by reference.  Mr.
Fox has been  replaced  as a  director  by Bernard E.  Boudreaux,  Jr.,  who was
nominated by  management  and elected at the  Company's  2001 Annual  Meeting of
Shareholders  to serve for one year and until his  successor  is chosen  and has
qualified.

           Mr.  Boudreaux,  age 64, has  served  as  Executive  Counsel  to  the
Governor of Louisiana  since January 2000.  Prior  thereto,  he was the District
Attorney for Iberia, St. Martin and St. Mary Parishes, Louisiana.

           Mr. Boudreaux is Chairman  of  the Board of Sterling Sugars, Inc.  He
owns no stock of Avoca, Incorporated.

           The balance of the information called for by this item appears  under
the caption "Section 16(a)  Beneficial  Ownership Reporting  Compliance" on page
5 of the Company's Proxy Statement dated February 20, 2001, incorporated  herein
by reference.

Item 10    Executive Compensation
-------    ----------------------
           Information  concerning   Mr.  Boudreaux's    ownership   of   Avoca,
Incorporated  stock is included  under Item 9, supra.  The remaining information
called for by this item appears under the

                                                             Page 12 of 17 Pages

<PAGE>

caption "Information  Concerning  Management - Executive  Compensation" on  page
5 of the Company's Proxy Statement dated February 20, 2001, 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
20, 2001, 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  20, 2001,  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  2000  Annual  Report  to  Shareholders,  are  incorporated  by
reference in Part II, Item 7:

            Report of Arthur Andersen LLP, Independent Public Accountants, dated
            January 11, 2001

            Balance sheet - December 31, 2000

            Statements of Income - years ended
            December 31, 2000 and 1999

            Statements of Retained Earnings -
            years ended December 31, 2000 and 1999


                                                             Page 13 of 17 Pages
<PAGE>



            Statements of Cash Flows - years ended
            December 31, 2000 and 1999

            Notes to Financial Statements -
            December 31, 2000

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

            3.1       Copy of Composite Charter1

            3.2       Copy of Charter, dated October 21, 19311

            3.3       Copy of amendment to Charter, dated
                      September 13, 19721

            3.4       Copy of amendment to Charter, dated
                      May 30, 19751

            3.5       Copy of amendment to Charter, dated
                      September 15, 19812

            3.6       Copy of amendment to Charter, dated
                      March 17, 19872

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

            4.0       Copy of specimen stock certificate1

            13        Annual Report to Shareholders for
                      the year ended December 31, 2000.  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.

            27        Financial Data Schedule

                                                             Page 14 of 17 Pages
<PAGE>

(b)           Reports on Form 8-K

              One Form 8-K, dealing with declaration of an annual dividend,  was
filed on December 19, 2000.

----------------------
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 17 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/Robert C. Baird, Jr.
    ------------------------------------------------
    Robert C. Baird, Jr.
    President and principal executive,
    financial and accounting officer

Date: March  20 , 2001
            ----

      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/Robert C. Baird, Jr.
---------------------------------------
Robert C. Baird, Jr., Director
Date: March  20 , 2001
            ----


/s/Guy C. Lyman, Jr.
---------------------------------------
Guy C. Lyman, Jr., Director
Date: March  20 , 2001
            ----



---------------------------------------
M. Cleland Powell, III, Director
Date: March     , 2001
            ----


/s/J. Scott Tucker
---------------------------------------
J. Scott Tucker, Director
Date: March  20 , 2001
            ----

                                                             Page 16 of 17 Pages
<PAGE>
                                  Exhibit Index

                                                                    Sequentially
                                                                      Numbered
Exhibit No.                        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,
                                2000.  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.

    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 17 of 17 Pages



<PAGE>
                                                                      EXHIBIT 13






                   AVOCA                           Annual Report
                                                   --------------------------
                INCORPORATED                       2000




<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


Robert C. Baird, Jr.,                           Guy C. Lyman, Jr., Director;
Director and President                          Attorney,
Executive Vice President,                       Milling Benson Woodward L.L.P.
Whitney National Bank
                                                M. Cleland Powell, III, Director
Richard W. Fox,                                 and Secretary Treasurer;
Director and Vice President;                    Senior Vice President,
President, Fox Financial                        Whitney National Bank
Consulting, Inc. (business valuation)
and Manager, Longford Farm, L.L.C.              J. Scott Tucker; Director;
(land management, farming and                   President and Chief Executive
investments)                                    Officer, Hellenic, Inc. (real
                                                estate, oil and gas,
                                                investments, construction)



                                                           AVOCA, Incorporated 3
<PAGE>
Report to the Shareholders

Issued Preliminary to the Sixty-ninth
Annual Meeting of Shareholders on March 20, 2001

Dear Shareholders:

         Aided by higher oil and gas prices,  the Company in 2000  continued  to
benefit from ongoing  interest in exploration  and development of Avoca Island's
mineral  resources.  The Company's net income increased by 76%, from $803,584 in
1999 to $1,415,018 in 2000. The increase was  attributable to a 330% increase in
revenue  from  royalty  income net of  severance  taxes  which more than  offset
decreases in revenue from bonuses and delay rentals and lease option payments.

         The major  contributor  to royalty income was a full year of production
from The Meridian  Resource & Exploration,  Inc. C. M. Thibodaux No. 1 and No. 3
wells in the Ramos Field, which produced $1,294,475 or 80% of the Company's 2000
net royalty income. The Company's remaining royalty income was produced by Delta
Operating  Corporation Avoca No. 1 well, also in the Ramos Field, and Burlington
Resources Oil & Gas Company Conrad  Industries No. 1 well in the Wyandotte Field
before it watered out on August 20, 2000.

         Although  leasing  activity   decreased  in  2000,   drilling  activity
increased  significantly.  In August, Meridian spudded the Avoca No. 5-1 well in
Section 5 on the southwest  part of the island.  The well was drilled to a total
depth of 18,817 feet before being  abandoned in November as a dry hole. In July,
Meridian spudded the Avoca No. 47-1 well which  bottomholed in Section 47 on the
northeast  end of the  island.  In  early  December,  the  well  was  placed  on
production and tested at gross daily flow rates of up to 15.5 Mcf of gas and 187
barrels of oil.  As a result of the  successful  Avoca No.  47-1 well,  Meridian
spudded  the Avoca No.  47-2 well on  December  9, 2000  which  will  bottomhole
approximately 1,700 feet south of the No. 47-1 well.

         The Company  continues to explore  opportunities for use of the surface
acreage of Avoca  Island in  addition to the  long-standing  hunting and fishing
lease with the Avoca Duck Club.  The 600-acre  cattle lease executed in 1998 was
replaced by a 758-acre  cattle lease,  thereby  increasing  the acreage on which
surface maintenance costs have been eliminated.

         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.  We  appreciate  your  continued  interest and support of Avoca,
Incorporated.

                                                        Respectfully submitted,


                                                        /s/ Robert C. Baird, Jr.
                                                        Robert C. Baird, Jr.
                                                        President


4  AVOCA, Incorporated

<PAGE>

Report of
Independent Public Accountants

To the Stockholders of
Avoca, Incorporated

         We have audited the accompanying  balance sheet of Avoca,  Incorporated
(a Louisiana  corporation) as of December 31, 2000 and the related statements of
income,  retained earnings, and cash flows for the years ended Dec. 31, 2000 and
1999.  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 auditing standards generally
accepted in the United States.  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
as of December 31, 2000 and the results of its operations and its cash flows for
the  years  ended  December  31,  2000 and 1999 in  conformity  with  accounting
principles generally accepted in the United States.

                                                         /s/ Arthur Andersen LLP

New Orleans, Louisiana
January 11, 2001

                                                          AVOCA, Incorporated  5

<PAGE>
BALANCE SHEET

                                                                    December 31
                                                                       2000
                                                                    -----------

ASSETS

CURRENT ASSETS
      Cash and cash equivalents                                     $   526,590
      Short-term investments                                          2,342,317
      Accounts receivable                                               159,895
      Accrued interest receivable                                        64,308
      Recoverable income taxes                                           13,392
      Prepaid expenses                                                    9,170
                                                                    -----------
           TOTAL CURRENT ASSETS                                       3,115,672

PROPERTY AND EQUIPMENT
      Net of accumulated depreciation and depletion of $609,270          68,943

OTHER ASSETS
      Long-term investments                                             725,000
      Avoca Drainage Bonds, $415,000, in default -
          at nominal amount                                                   1
                                                                    -----------
                                                                     $3,909,616
                                                                    ===========

                                                          AVOCA, Incorporated  6

<PAGE>
LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
      Accounts payable and accrued expenses                         $    22,581
      Dividends payable                                               1,287,275
                                                                    -----------
          TOTAL CURRENT LIABILITIES                                   1,309,856

DEFERRED INCOME TAXES                                                    11,874

SHAREHOLDERS' EQUITY
      Common stock, no par value -- authorized, issued and
           outstanding 830,500 shares                                    94,483
      Retained earnings                                               2,493,403
                                                                    -----------
          TOTAL SHAREHOLDERS' EQUITY                                  2,587,886


                                                                     $3,909,616
                                                                    ===========

See accompanying notes.

                                                          AVOCA, Incorporated  7
<PAGE>
STATEMENTS OF INCOME

                                                    Year ended December 31
                                                2000                      1999
                                                --------------------------------

Revenue:
      Royalties                                 $ 1,680,232            $ 398,793
         Less severance taxes                        55,497               21,605
                                                -----------            ---------
                                                  1,624,735              377,188

      Lease bonuses and delay rentals               546,197              780,943
      Lease option payments                              --              113,941
      Interest income                               171,231              134,791
      Rental income                                  33,708               30,783
      Other                                           8,289                7,164
                                                -----------            ---------
                                                  2,384,160            1,444,810
Expenses:
      Attorney fees and expenses                     53,124               14,597
      Auditing fees                                  21,275               17,800
      Bookkeeping and clerical services               7,350                6,000
      Management fees                                59,425               52,624
      Directors' fees                                 6,250                5,000
      Geological and engineering fees and
        expenses                                     26,550               13,885
      Insurance                                      25,905               25,335
      Office and miscellaneous expenses              43,211               31,857
      Taxes, other than income taxes                 22,153               20,564
      Repairs and cleanup expenses                   16,518               17,913
                                                -----------            ---------
                                                    281,761              205,575
                                                -----------            ---------

            INCOME BEFORE INCOME TAXES            2,102,399            1,239,235

Income taxes                                        687,381              435,651
                                                -----------            ---------

                            NET INCOME           $1,415,018           $  803,584
                                                ===========           ==========

Earnings per share (basic and diluted)           $     1.70           $      .97
                                                ===========           ==========

Dividends declared per share                     $     1.55           $      .85
                                                ===========           ==========













See accompanying notes.

8  AVOCA, Incorporated
<PAGE>



                                                 STATEMENTS OF RETAINED EARNINGS

                                                          Year ended December 31
                                                 2000                       1999
--------------------------------------------------------------------------------

Retained Earnings:

      Balance at beginning of year        $ 2,365,660                 $2,268,001

      Net income for the year               1,415,018                    803,584
                                          -----------                -----------
                                            3,780,678                  3,071,585

      Cash dividends:
         2000 - $1.55 per share             1,287,275                          -
         1999 - $ .85 per share                     -                    705,925
                                          -----------                -----------

                BALANCE AT END OF YEAR    $ 2,493,403                 $2,365,660
                                          ===========                 ==========



See accompanying notes.

                                                          AVOCA, Incorporated  9
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CASH FLOWS

                                                                                            Year ended December 31
                                                                                       2000                   1999
------------------------------------------------------------------------------------------------------------------

OPERATING ACTIVITIES
<S>                                                                           <C>                    <C>
    Net income                                                                $   1,415,018          $     803,584
    Adjustments to reconcile net income to net
       cash provided by operating activities:
        Depreciation expense                                                          4,389                  3,760
        Deferred taxes                                                                 (507)                  (507)
        Change in operating assets and liabilities:
           Accounts receivable                                                      (63,895)               (74,411)
           Accrued interest receivable                                              (30,329)                (5,426)
           Prepaid expenses                                                            (668)                (1,934)
           Accounts payable and accrued expenses                                      5,666                    750
           Income taxes                                                               6,281                (21,041)
                                                                              -------------          --------------
                                             NET CASH PROVIDED BY
                                             OPERATING ACTIVITIES                 1,335,955                704,775

INVESTING ACTIVITIES
    Purchase of short-term investments                                           (1,787,591)              (148,767)
    Purchase of long-term investments                                                    --             (1,503,873)
    Maturity of investments                                                         922,578              1,662,334
    Purchase of equipment                                                                --                 (2,512)
                                                                              -------------          --------------

                                             NET CASH PROVIDED BY
                                   (USED IN) INVESTING ACTIVITIES                  (865,013)                 7,182

FINANCING ACTIVITIES
    Dividends paid                                                                 (705,925)              (265,760)
                                                                              --------------         --------------

                                                 NET CASH USED IN
                                             FINANCING ACTIVITIES                  (705,925)              (265,760)
                                                                              --------------         --------------

                                           INCREASE (DECREASE) IN
                                        CASH AND CASH EQUIVALENTS                  (234,983)               446,197

Cash and cash equivalents at beginning of year                                      761,573                315,376
                                                                              -------------          -------------

                                        CASH AND CASH EQUIVALENTS
                                                   AT END OF YEAR             $     526,590          $     761,573
                                                                              =============          =============

</TABLE>

See accompanying notes.

10  AVOCA, Incorporated
<PAGE>
                                                   NOTES TO FINANCIAL STATEMENTS

December 31, 2000

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.  In
addition to interest  income and the  leasing of hunting  rights,  income in the
accompanying financial statements is primarily derived from lease bonuses, delay
rentals,  lease  option  payments  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  consist  of investments with a maturity of
three months or less from date of purchase.

Investments:  Short-term  investments  consist  of a  United  States  Government
Treasury Note and United States  Government  agency  securities 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 three United States Government agency
securities due in 2002.

         Management determines the appropriate classification of debt securities
at the time of purchase. 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, 2000 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, 2000.

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.
Equipment  is carried at cost and  depreciated  over  estimated  useful lives of
three to five years.

Income Taxes: The Company accounts for income taxes in accordance with Statement
of Financial  Accounting Standards (SFAS) No. 109 "Accounting for Income Taxes."
Income  taxes  include   deferred  taxes  resulting   primarily  from  temporary
differences  due to  differences  in bases amounts and  depreciation  periods of
property and equipment for financial reporting purposes and income tax purposes.

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.

Fair Value of Financial  Instruments:  The fair value of the Company's financial
assets and liabilities approximates book value at December 31, 2000.


                                                         AVOCA, Incorporated  11
<PAGE>



NOTES TO FINANCIAL
STATEMENTS (Continued)

NOTE B-Income Taxes

The  components  of income tax expense  for the years  ended  December 31 are as
follows:

                                                         2000               1999
--------------------------------------------------------------------------------

Current:
         Federal                                    $ 599,414         $ 382,803
         State                                         88,474            53,355
                                                    ---------         ---------
                            TOTAL CURRENT             687,888           436,158
                                                    ---------         ---------

Deferred:
         Federal                                         (442)             (445)
         State                                            (65)              (62)
                                                    ---------        ----------
                            TOTAL DEFERRED               (507)             (507)
                                                    ---------        ----------
                                                    $ 687,381         $ 435,651
                                                    =========         =========

The deferred income tax liability of $11,874 relates to a difference between the
accounting and income tax basis of property and equipment.

The  Company  paid  income  taxes of  $684,000  and  $455,000  in 2000 and 1999,
respectively.

NOTE B-Income Taxes (continued)

The  reconciliations  between  the  federal  statutory  income  tax rate and the
Company's  effective  income tax rate,  for the years  ended  December 31 are as
follows:
<TABLE>
<CAPTION>
                                                                      2000                     1999
                                                              Amount        Rate       Amount         Rate
-----------------------------------------------------------------------------------------------------------
<S>                                                         <C>             <C>       <C>             <C>
Tax expense based on federal statutory rate                 $714,816        34.0%     $421,340        34.0%
Statutory percentage depletion                               (85,606)       (4.1)      (20,339)       (1.6)
State income taxes (net of federal income tax deduction)      87,179         4.1        53,311         4.3
Other                                                        (29,008)       (1.4)      (18,661)       (1.5)
                                                             --------       ------     --------       -----

                                           INCOME TAXES     $687,381        32.7%     $435,651        35.2%
                                                             =======        =====      =======        =====
</TABLE>

12  AVOCA, Incorporated

<PAGE>



                                                              NOTES TO FINANCIAL
                                                          STATEMENTS (Continued)

NOTE C-Major Customers

The net  royalties  received  from  three  independent  oil and gas  exploration
companies  accounted for  virtually all of total net royalties  recorded for the
year ended December 31, 2000 compared to two independent oil and gas exploration
companies  accounting for virtually all of total net royalties  recorded for the
year ended  December 31, 1999.  Lease bonus and delay rental revenue in 2000 and
1999 was the result of leases with four and three companies, respectively. Lease
option  payments  consisted of payments  from two  companies  for the year ended
December 31, 1999.

NOTE D-Oil and Gas Quantities Produced (unaudited)

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              NGL
                                     (BBLs)             (MCFs)           (GALs)
                                     -------------------------------------------
2000                                 11,204            301,232           302,613
1999                                  7,056             89,891           146,822


NOTE E-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  Company's  land 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.  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  undepreciated  cost of the  building
(excluding the Company's cash contribution), based on straight-line depreciation
over 30 years.  Under the lease, the Club's  undepreciated  cost of the building
will be  reduced  over time to an  ultimate  reimbursable  amount  not less than
$80,000.

                                                         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 92% 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 $1,309,856,  including a $1,287,275  dividend declared in December 2000
but not paid until January 2001.

         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.

2000 As Compared to 1999

         The Company's  profitability continued to increase in 2000. Revenue for
the  year  increased   $939,350  or  approximately  65%  primarily  because  the
$1,247,547  increase in royalty  income net of severance  taxes more than offset
the $234,746  decrease in revenue from lease  bonuses and delay  rentals and the
$113,941 decrease in lease option payments.

         Royalty   income,  net  of  severance  taxes,  rose  from   $377,188 to
$1,624,735 or  approximately  330%,  principally  because of production from The
Meridian Resources & Exploration  Company's C.M. Thibodaux No. 1 and No. 3 wells
in  the  Ramos  Field.   The  two  wells  were  responsible  for  $1,294,475  or
approximately  80% of the Company's  total net royalty income in 2000. The No. 1
well was  placed on  production  June  15,1999  from the Operc 5 sand,  went off
production June 25, 1999 due to the blowout of the C.M. Thibodaux No. 2 well and
returned to production August 24, 1999 after the successful  plugging of the No.
2 well.  The No. 3 well (a  replacement  for the No. 2 well) went on  production
from the Operc B sand in early November 1999. The Company's net revenue interest
in both wells is approximately  2.87%.  Total 2000 production from the Thibodaux
No. 1 & No. 3 wells was 7,898,975 Mcf of gas,  342,428 barrels of condensate and
10,547,944 gallons of natural gas liquids as reported on the check vouchers.

         In 2000,  the  Delta Operating Corporation (formerly Alliance Operating
Company) Avoca No. 1 well, also in the Ramos Field, was responsible for $174,174
or  approximately  11% of the company's  royalty  income.  In 1999, the well was
responsible for 35% of the Company's  royalty  income.  Total gas and condensate
recoveries  from the Avoca No. 1 well (in which the  Company  has a net  revenue
interest  of  approximately  19%)  decreased  from  275,816 Mcf of gas and 3,950
barrels  of  condensate  in 1999 to  216,264  Mcf of gas and  3,463  barrels  of
condensate in 2000.  The well was shut in for several days in July to acid treat
the  producing  formation.  According  to the well's  operator,  performance  is
improving.  The  average  2000  sales  prices  from the  Avoca  No. 1 well  were
approximately  $4.18  per Mcf of gas and  $26.83  per  barrel of  condensate  as
compared to $2.42 per Mcf of gas and $15.70 per barrel of condensate in 1999.

         Burlington  Resources Oil & Gas Company's Conrad Industries No. 1 well,
located in the Wyandotte  Field opposite the northern part of Avoca Island,  was
placed on production April 29, 2000 and generated $156,007 in royalty income for
the  Company  before it "watered  out" on August 20,  2000.  The  average  daily
production was 5,261 Mcf of gas and 109 barrels of condensate.  Burlington is in
the  process of  sidetracking  the well in an  attempt  to  restore  production.
Avoca's net revenue interest in the unit is approximately 6.30%.  Burlington has
advised the Company that it has permitted  another well (the Avoca No. 1), which
will  bottomhole in Section 36, T16S,  R13E, near the eastern end of the island,
to a total  depth of  21,000  feet to test the CRIS A-1 sand.  Depending  on rig
availability, Burlington hopes to spud the well in the first quarter of 2001.

         On July 27, 2000,  Meridian  spudded the Avoca No. 47-1 well, which has
bottomholed  in Section 47 on the northeast  end of Avoca  Island.  The well was
placed on  production  December 4, 2000 from  perforations  in the Operc 3 sands
from  19,444 to 19,464  feet and tested at gross  daily flow rates of up to 15.5
Mcf of gas,  187  barrels of oil,  on a 17/64  inch choke with a flowing  tubing
pressure of 11,300 psig.

         On August  30,  2000,  Meridian  spudded  the Avoca No.  5-1 well on an
880-acre tract in Section 5 on the southwest  part of the island,  approximately
3.5 miles  southwest of the Avoca No. 47-1 well.  On November 6, 2000,  Meridian
advised  the  Company the Avoca No. 5-1 well had reached a total depth of 18,817
feet in a sidetrack hole and was being  abandoned as a dry hole.  Since Meridian
has elected not to pay the $176,000  delay  rental due  November  18, 2000,  its
lease on this tract has expired.

         On December 9, 2000, Meridian spudded the Avoca No. 47-2 well, which is
permitted  to a total  depth of 20,000  feet,  to test the Operc 5 sand and will
bottomhole approximately 1,700 feet south of the Avoca No. 47-1 well.

         As compared with four new oil, gas and mineral leases covering 2,729.23
acres which were  responsible  for $573,598 in lease  bonuses  during 1999,  the
Company  during 2000  granted  three new leases  which  netted  $67,254 in lease
bonuses.  An option  granted  last year  resulted  in a 158-acre  lease to McRae
Exploration & Production,  Inc. A 51.41-acre lease was granted to Burlington and
a 50.46-acre lease was granted to Meridian.

         Interest  income   on  U.S.  Government  and  U.S.   Government  agency
securities increased slightly due to the availability of

                                                          Continued on next page

                                                         AVOCA, Incorporated  14
<PAGE>
Management's Discussion and
Analysis of Financial Condition and
Results of Operations (Continued)

increased funds for investment and slightly higher interest rates.

         Overall expenses were $76,186 or approximately  37% higher in 2000 than
in 1999.  Of the  $38,527  increase  in legal  fees and  expenses,  $34,984  was
attributable to legal fees relating to a lawsuit to evict a former lessee from a
small parcel of land located on the northeast  part of the island.  The lawsuit,
in which the defendant and members of his family have asserted ownership claims,
is  also   responsible  for  $5,633  of  the  $11,354  increase  in  office  and
miscellaneous  expenses. The $12,665 increase in geological and engineering fees
and expenses resulted from an increased need for these services in 2000.

         In comparison  with 1999,  income tax expense  increased  $251,730 as a
result of an increase in taxable income.

         Basic and diluted net income was $1.70 per share in 2000 as compared to
$.97 per share in 1999. In line with the Company's  increased income,  dividends
increased  from  $.85  per  share  in 1999 to $1.55  per  share in 2000.  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.

STOCK PRICES AND RELATED
SECURITY HOLDER MATTERS

         As of January 8, 2001,  there were  approximately 696 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 reflect actual  transactions.  The table also shows the amount and frequency
of cash dividends declared by the Company during the same period.

Period               High    Low     Declared   Record Date   Date Paid  Amount
2000
  First Quarter     $21.00  $18.75
  Second Quarter     21.00   18.00
  Third Quarter      25.00   18.50
  Fourth Quarter     25.00   18.00   12-14-00     1-8-01        1-22-01   $1.55

1999
  First Quarter     $14.00  $12.00
  Second Quarter     22.00   15.00
  Third Quarter      23.00   19.00
  Fourth Quarter     21.00   19.00   12-17-99     1-6-00        1-21-00    $.85


AVOCA
INCORPORATED

The Company will furnish without charge a copy of its 2000 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 7, 2001.  Requests for the
report must be in writing  addressed  to Avoca,  Incorporated,  228 St.  Charles
Avenue, Suite 838, New Orleans,  Louisiana 70130,  Attention: M. Cleland Powell,
III.  If made by a person who was not a  shareholder  of record on  February  7,
2001, the request must include a good faith  representation that such person was
a beneficial owner of Common Stock on that date.

                                                         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, 2000

                                                                                        Initial         Income Recognized in 2000
                                            Date of                                     Payment         Lease Bonus           Net
Lessee/Operator                             Lease          Acreage     Expiration       Per Acre        or Delay Rental    Royalties
------------------------------------------------------------------------------------------------------------------------------------
<S>                                        <C>            <C>         <C>                 <C>            <C>              <C>
Texaco, Inc.                               5/17/63         41.900      Termination        $ 75           $   --           $       79
                                                                      of production

Alliance Operating Company*                8/14/87        276.733      Termination        $200               --              174,174
                                                                      of production

Burlington Resources Oil & Gas Company     8/12/96          7.914      Termination        $110
                                                                      of production
                                                                                                             --              156,007
Burlington Resources Oil & Gas Company    12/12/97        127.476      Termination        $150
                                                                      of production

The Meridian Resource & Exploration Co.    5/27/98        406.720      Termination        $200           81,345            1,294,475
                                                                      of production
                                                                      or 5/27/01 if
                                                                      nonproducing

CNG Producing Company                      8/19/99      1,637.550      Termination        $200          327,510                   --
                                                                      of production
                                                                      or 8/19/02 if
                                                                      nonproducing

The Meridian Resource & Exploration Co.   11/18/99         80.000      Termination        $300           24,000                   --
                                                                      of production
                                                                      or 11/18/02 if
                                                                      nonproducing

The Meridian Resource & Exploration Co.   11/23/99        131.680      Termination        $350           46,088                    -
                                                                      of production
                                                                      or 11/23/02 if
                                                                      nonproducing

McRae Exploration & Production, Inc.        7/3/00        158.000      Termination        $200           31,600                   --
                                                                      of production
                                                                      or 7/03/03 if
                                                                      nonproducing

Burlington Resources Oil & Gas Company    11/15/00         51.410      Termination        $350           17,993                   --
                                                                      of production
                                                                      or 11/15/03 if
                                                                      nonproducing

The Meridian Resource & Exploration Co.   12/06/00         50.460      Termination        $350           17,661                   --
                                                                      of production
                                                                      or 12/06/03 if
                                                                      nonproducing
                                                                                                       --------           ----------
*Delta Operating corporation is the operator                                                           $546,197           $1,624,735
                                                                                                       ========           ==========
</TABLE>