November 12, 1997







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-QSB for the period ended
September 30, 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>

                     U.S. Securities and Exchange Commission

                             Washington, D.C. 20549

                                   FORM 10-QSB

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended  September 30, 1997

[ ]  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
--------------------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)

               Louisiana                              72-0590868
     -------------------------------               ------------------
     (State or other jurisdiction of                (I.R.S. Employer
     incorporation or organization)                Identification No.)


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


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


                    ------------------------------------------
                     (Former name, former address and former
                    fiscal year, if changed since last report

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 the registrant was required to  file such reports), and (2) has been
subject to such filing requirements for the past 90 days.  Yes  X    No
                                                              -----    -----

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:   830,500 shares on October 31, 1997
                                          --------------------------------------

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

An exhibit index is located at page   11   of this report.
                                    ------ 


<PAGE>
<TABLE>
<CAPTION>
 
                                                        AVOCA, INCORPORATED
 
                                                             I N D E X




                                                                                                                Page No.
                                                                                                                --------
Part I.           Financial Information (Unaudited)
                  ---------------------

<S>                                                                                                                 <C>
                  Condensed Balance Sheet - September 30, 1997                                                      4

                  Condensed Statements of Income
                           Three Months Ended September 30, 1997
                           and 1996 and Nine Months Ended
                           September 30, 1997 and 1996                                                              5              

                  Condensed Statements of Cash Flows
                           Nine Months Ended September 30, 1997
                           and 1996                                                                                 6

                  Notes to Condensed Financial Statements                                                           7

                  Management's Discussion and Analysis or
                  Plan of Operation                                                                              8-10

Part II.          Other Information
                  -----------------

                  Exhibits and Reports on Form 8-K                                                                 11

                  Signature                                                                                        11
</TABLE>





                               Page 2 of 12 Pages
<PAGE>



                               AVOCA, INCORPORATED

                         PART I - FINANCIAL INFORMATION

                           Item 1 Financial Statements































                               Page 3 of 12 Pages

<PAGE>
<TABLE>
<CAPTION>
                                                         Avoca, Incorporated

                                                 Condensed Balance Sheet (Unaudited)

                                                         September 30, 1997



Assets
Current assets:
<S>                                                                                                            <C>          
      Cash                                                                                                     $     42,204
      Short-term investments                                                                                      1,463,816
      Accounts receivable                                                                                            25,380
      Accrued interest receivable                                                                                    49,998
      Prepaid expenses                                                                                               10,053
                                                                                                               ------------
Total current assets                                                                                              1,591,451

Property and equipment, less accumulated depreciation and depletion                                                  73,499

Other assets:
      Long-term investments                                                                                         829,224
      Avoca Drainage Bonds, $415,000, in default -- at nominal amount                                                     1
                                                                                                               ------------
                                                                                                               $  2,494,175
                                                                                                               ============


Liabilities and shareholders' equity
Current liabilities:
      Accounts payable                                                                                         $      1,496
      Income taxes payable                                                                                           21,255
                                                                                                               ------------
Total current liabilities                                                                                            22,751

Deferred income taxes                                                                                                13,522

Shareholders' equity:
      Common stock, no par value -- authorized, issued and outstanding
           830,500 shares                                                                                            94,483
      Retained earnings                                                                                           2,363,419
                                                                                                               ------------
Total shareholders' equity                                                                                        2,457,902
                                                                                                               ------------
                                                                                                               $  2,494,175
                                                                                                               ============


See accompanying notes

</TABLE>

                               Page 4 of 12 Pages

<PAGE>

<TABLE>
<CAPTION>


                                                         Avoca, Incorporated

                                             Condensed Statements of Income (Unaudited)



                                                                    Three months ended                        Nine months ended
                                                                      September 30                              September 30
                                                               1997                1996                 1997                 1996
                                                           --------             --------             --------             --------
Revenue:
<S>                                                        <C>                  <C>                  <C>                  <C>     
    Royalties                                              $ 38,400             $ 70,443             $169,053             $166,063
    Less severance taxes                                      1,953                1,203                4,320                3,474
                                                           --------             --------             --------             --------
                                                             36,447               69,240              164,733              162,589

    Lease bonuses and delay rentals                          46,200               46,200               46,200               84,075
    Seismic permits                                               -              265,205              211,241              265,205
    Interest income                                          33,529               32,092               91,540               88,168
    Rental and other income                                   3,484                4,012               24,484               25,012
                                                           --------             --------             --------             --------
                                                            119,660              416,749              538,198              625,049


Expenses:
    Legal and accounting services                             3,779                6,513               15,803               20,285
    Consultant fees                                           9,000                9,000               37,000               32,000
    Geological and engineering fees                             641                6,428                4,516               11,152
    Insurance                                                 5,511                5,747               17,003               17,600
    Miscellaneous expenses                                    5,258                2,779               35,831               28,820
                                                           --------             --------             --------             --------

                                                             24,189               30,467              110,153              109,857
                                                           --------             --------             --------             --------


Income before income taxes                                   95,471              386,282              428,045              515,192

Income taxes                                                 66,811              119,257              140,699              148,556
                                                           --------             --------             --------             --------

Net income                                                 $ 28,660             $267,025             $287,346             $366,636
                                                           ========             ========             ========             ========




Net income per share                                       $    .04             $    .32             $    .35             $    .44
                                                           ========             ========             ========             ========





See accompanying notes.
</TABLE>


                               Page 5 of 12 Pages
<PAGE>
<TABLE>
<CAPTION>



                                                         Avoca, Incorporated

                                           Condensed Statements of Cash Flows (Unaudited)




                                                                                             Nine months ended
                                                                                                September 30
                                                                                               1997                 1996
                                                                                       ----------------------------------

Operating activities
<S>                                                                                     <C>                    <C>      
Net income                                                                              $   287,346            $  366,636
Adjustments to reconcile net income to net cash
  provided by (used in) operating activities:
      Depreciation expense                                                                    2,051                 2,052
      Deferred taxes                                                                     (     380)             (     380)
      Changes in operating assets and liabilities:
        Operating assets                                                                 (  11,396)             (  35,624)
        Operating liabilities                                                            (   3,576)                49,834
                                                                                        -----------            -----------
Net cash provided by operating activities                                                  274,045                382,518

Investing activities
Maturity of short-term investments                                                       1,493,776                583,987
Purchase of short-term investments                                                      (  587,795)             ( 339,352)
Purchase of long-term investments                                                       (  829,224)             ( 639,169)
                                                                                       ------------            -----------
Net cash provided by (used in) investing activities                                         76,757              ( 394,534)

Financing activities
Dividends paid                                                                          (  373,725)             ( 124,575)
                                                                                       ------------            -----------
Net cash used in financing activities                                                   (  373,725)             ( 124,575)
                                                                                       ------------            -----------

Decrease in cash and cash equivalents                                                   (   22,923)             ( 136,591)
Cash and cash equivalents at beginning of period                                            65,127                204,748
                                                                                       ------------            -----------
Cash and cash equivalents at end of period                                             $    42,204             $   68,157
                                                                                       ============            ===========
</TABLE>








See accompanying notes.


                               Page 6 of 12 Pages
<PAGE>


                               Avoca, Incorporated

               Notes to Condensed Financial Statements (Unaudited)

                      Nine months ended September 30, 1997





1. Basis of Accounting

         The accompanying  unaudited  condensed  financial  statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions of Form 10-QSB and  Item  310(b)
of Regulation S-B. Accordingly, they  do  not include all of the information and
footnotes  required  by  generally  accepted  accounting principles for complete
financial statements.  In the opinion of management, all adjustments (consisting
of normal  recurring accruals) considered necessary for a fair presentation have
been included. Operating  results  for the nine-month period ended September 30,
1997 are not necessarily indicative of the results that may  be expected for the
year  ended  December 31, 1997. For  further information, refer to the financial
statements and  footnotes thereto included in the Company's annual shareholders'
report incorporated by reference in the Form 10- KSB for the year ended December
31, 1996.

         The Company considers its United States Government securities held with
a maturity of three months or less when purchased to be cash equivalents.






                               Page 7 of 12 Pages
<PAGE>


Item 2 -          Management's Discussion and
                  Analysis or Plan of Operation

         The unaudited  condensed  statements of income show that net income for
the third quarter of 1997, as compared with the third quarter of 1996, decreased
from $267,025 to $28,660. The primary reason for the decrease was the absence of
seismic  permits  during the third  quarter of 1997,  as compared  with $265,205
received from this source during the third quarter of 1996.
         The  decrease is also  attributable  to a third  quarter  reduction  in
royalty  income net of  severance  taxes of $32,793,  or  approximately  47%, as
compared with the comparable  period of 1996. The decrease  occurred because the
Intercoastal  Shipyard No. 2 well under the Capital  Energy Inc.  lease has been
off production  since April 8, 1997. The well was responsible for  approximately
60% of the Company's royalty income for the third quarter of 1996.  Although the
operator  has  informed  the  Company  that it intends to reenter the well in an
attempt to reestablish production, the future of the well remains uncertain.
         The above mentioned decrease in net income would have been greater were
it not  for  improved  performance  of the  Delta  Operating  Company  (formerly
Alliance  Operating  Corporation)  Avoca No. 1 well.  Although the average sales
price of gas decreased  from $2.53 per MCF for the three months ended  September
30, 1996 to $2.37 per MCF for the three months  ended  September  30, 1997,  gas
production  from  the  Avoca  No.  1 well  for the  third  quarter  of 1997  was
approximately 49% higher than the comparable period of 1996.
         Lease  bonuses and delay  rentals for the third  quarter of 1997 remain
unchanged from the comparable period of 1996.

                               Page 8 of 12 Pages

<PAGE>



         As compared with the third quarter of 1996,  expenses  decreased $6,278
or  approximately  21% because reduced legal fees and geological and engineering
fees offset an increase in miscellaneous expenses.
         The change in income  tax  expense for the three months ended September
30, 1997  resulted  from  a  decrease in taxable income for the third quarter of
1996.  The  effective  tax  rate  for the  three months ended September 30, 1997
increased  to  reflect a revision  in the Company's estimated effective tax rate
for the year ended September 30, 1997.
         Total  revenue  for the nine month  period  ended  September  30,  1997
declined $ 86,851, or approximately  14%, because of a decrease in lease bonuses
and delay rentals and seismic permits.
         Income from seismic  permits for the nine month period ended  September
30, 1997  decreased  $53,964,  or  approximately  20%,  because fewer acres were
permitted for 3-D seismic  exploration than during the  corresponding  period of
1996.
         Lease  bonuses  and delay  rentals  for the first  nine  months of 1997
decreased by $37,875,  or  approximately  45%, of which  $32,250 was a quarterly
delay rental received from I.P.  Petroleum Co. during the first quarter of 1996.
The lease was terminated for non-payment of the quarterly  rental payment due in
the second quarter of 1996. The remaining  decrease of $5,625 is attributable to
a lease bonus  received  during the first  quarter of 1996 from Capital  Energy,
Inc.  Acreage under this lease is held by the  Intercoastal  Shipyard No. 2 well
discussed  above. No drilling  operations  were conducted  during the first nine
months of 1997 although extensive 3-D seismic operations were conducted on Avoca
Island.
         Revenues from  royalties  net of severance  taxes during the first nine
months of 1997 increased  $2,144,  or approximately 1%, because of increased gas
production  from the Delta  Operating  Company  No. 1 well,  offset  by  reduced
production  from the  Intercoastal  Shipyard  No. 2 well that


                               Page 9 of 12 Pages

<PAGE>

ceased production April 8, 1997. Gas production from the Delta Operating Company
No. 1 well for the first nine months of 1997 was  approximately  11% higher than
production for the comparable period of 1996, and the average sales price of gas
rose slightly from $2.77 per MCF for the nine months ended September 30, 1996 to
$2.79 per MCF  for  the nine months ended September 30, 1997. For the first nine
months of 1997,  the  well  was  responsible  for 67% of  the  Company's royalty
income.
         Interest  income  on  U.S.   Government  and  U.S.   Government  agency
securities  for the nine months ended  September 30, 1997 increased  $3,372,  or
approximately 4%, due to higher interest rates.
         Expenses  for the nine  month  period  ended  September  30,  1997 were
virtually unchanged from 1996.  Decreases in geological and engineering fees and
in legal and  accounting  services,  which  reflect a reduction in  professional
fees, were offset by an increase in consultant fees and miscellaneous expenses.
         The income tax expense for the nine months ended  September 30, 1997 is
33% of income  before  income  taxes,  which is the expected  income tax rate of
1997.
         The  Company's  continued  liquidity  is  evidenced  by the  fact  that
approximately  94% of its assets,  as measured by book value,  are cash and U.S.
Government and U.S. Government agency securities.
         In  addition  to  interest  income,  the  Company  customarily  derives
essentially  all of its other  income  from the  granting of oil and gas leases,
seismic  permits,  the  collection  of bonus and  delay  rentals  and  royalties
thereunder, and the leasing of hunting rights. The Company's business is passive
and all capital requirements for exploration,  development and production of the
Company's mineral resources are funded by its lessees.





                               Page 10 of 12 Pages
<PAGE>


                           Part II - OTHER INFORMATION

Item 6 - Exhibits and Reports on Form 8-K

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

         Exhibit 27 - Financial Data Schedule.

         (b)      Reports on Form 8-K

         Reports on Form 8-K: No reports  have been filed during the quarter for
which this report is filed.

                                   SIGNATURES
                                   ----------

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

                                       AVOCA, INCORPORATED
                                       -------------------
                                            Registrant


                                       /s/ Edward B. Grimball
                                       -----------------------------------------
                                       Edward B. Grimball
                                       President and Principal Financial Officer










                               Page 11 of 12 Pages
<PAGE>




                                  EXHIBIT INDEX


                                                  Sequentially
 Exhibit                                            Numbered
 Number       Description                             Page


   27         Financial Data Schedule




                               Page 12 of 12 Pages