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 June 30, 2001
                               -------------------------------------------------

[ ]  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.)

       228 St. Charles Avenue, Suite 838, New Orleans, Louisiana 70130
--------------------------------------------------------------------------------
                    (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 July 27, 2001
                                          --------------------------------------

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



                                                                    Page 1 of 13
<PAGE>



                               AVOCA, INCORPORATED
                              --------------------
                                    I N D E X
                                    ---------
                                                                       Page No.

Part I.           Financial Information (Unaudited)
                  ---------------------

                  Condensed Balance Sheet - June 30, 2001                     4

                  Condensed Statements of Income
                           Three Months Ended June 30, 2001
                           and 2000 and Six Months Ended
                           June 30, 2001 and 2000                             5

                  Condensed Statements of Cash Flows
                           Six Months Ended June 30, 2001
                           and 2000                                           6

                  Notes to Condensed Financial Statements                     7

                  Management's Discussion and Analysis or
                  Plan of Operation                                        8-11

Part II.          Other Information
                  -----------------
                  Legal Proceedings                                       11-12

                  Exhibits and Reports on Form 8-K                           12

                  Signature                                                  13



                                                                   Page 2 of 13
<PAGE>



                               AVOCA, INCORPORATED

                         PART I - FINANCIAL INFORMATION

                           Item 1 Financial Statements



                                                                   Page 3 of 13

<PAGE>
                               Avoca, Incorporated

                       Condensed Balance Sheet (Unaudited)

                                  June 30, 2001



Assets
Current assets:
     Cash and cash equivalents                                       $    24,152
     Short-term investments                                            1,694,810
     Accounts receivable                                                 396,957
     Accrued interest receivable                                          55,093
     Prepaid income taxes                                                 31,725
     Prepaid expenses                                                     22,377
                                                                     -----------
Total current assets                                                   2,225,114

Property and equipment, less accumulated
   depreciation and depletion                                             66,749

Other assets:
     Long-term investments                                             1,390,000
     Avoca Drainage Bonds, $415,000, in default -- at nominal amount           1
                                                                     -----------
                                                                     $ 3,681,864
                                                                     ===========


Liabilities and shareholders' equity
Current liabilities:
     Accounts payable and accrued expenses                           $     3,278
                                                                     -----------
Total current liabilities                                                  3,278

Deferred income taxes                                                     11,621

Shareholders' equity:
     Common stock, no par value -- authorized, issued and outstanding
          830,500 shares                                                  94,483
     Retained earnings                                                 3,572,482
                                                                     -----------
Total shareholders' equity                                             3,666,965
                                                                     -----------
                                                                     $ 3,681,864
                                                                     ===========


See accompanying notes

                                                                   Page 4 of 13



<PAGE>
<TABLE>
<CAPTION>

                                                             Avoca, Incorporated

                                               Condensed Statements of Income (Unaudited)


                                                             Three months ended                           Six months ended
                                                                   June 30                                    June 30
                                                           2001               2000                   2001                  2000
                                                           ----               ----                   ----                  ----
Revenue:
<S>                                                  <C>                 <C>                     <C>                    <C>
   Royalties                                          $ 1,255,705         $   361,544           $  2,906,918           $  678,143
   Less severance taxes                                    33,869              14,189                 65,331               30,417
                                                      -----------         -----------           ------------           ----------
                                                        1,221,836             347,355              2,841,587              647,726

   Lease option payments                                  200,000                   -                200,000                   -
   Delay rentals                                                -              81,345                      -               81,345
   Interest income                                         52,626              36,470                 95,645               71,177
   Rental income                                           25,795              25,298                 25,795               25,308
                                                      -----------         -----------           ------------           ----------
                                                        1,500,257             490,468              3,163,027              825,556

Expenses:
   Legal and accounting services                           12,660              23,313                 28,778               48,119
   Consultant fees                                         12,550              12,300                 40,513               35,125
   Geological and engineering fees                          1,450               2,324                 16,927               12,255
   Insurance                                                6,840               6,549                 13,680               13,059
   Miscellaneous expenses                                   9,302               8,720                 40,345               38,573
                                                      -----------         -----------           ------------           ----------
                                                           42,802              53,206                140,243              147,131
                                                      -----------         -----------           ------------           ----------

Income before income taxes                              1,457,455             437,262              3,022,784              678,425

Income taxes                                              464,062             137,053                947,105              210,657
                                                      -----------         -----------           ------------           ----------

Net income                                            $   993,393         $   300,209           $  2,075,679           $  467,768
                                                      ===========         ===========           ============           ==========



Earnings per share                                    $      1.20         $      0.36           $       2.50           $     0.56
                                                      ===========         ===========           ============           ==========
    (basic and diluted)


</TABLE>


See accompanying notes


Page 5 of 13

<PAGE>

                               Avoca, Incorporated

                 Condensed Statements of Cash Flows (Unaudited)


                                                         Six months ending
                                                              June 30
                                                       2001              2000
                                                   -----------------------------


Operating activities
Net income                                         $ 2,075,679        $ 467,768
Adjustments to reconcile net income to net cash
  provided by (used in) operating activities:
     Depreciation expense                                2,194            2,194
     Deferred taxes                                       (253)            (253)
     Changes in operating assets and liabilities:
         Operating assets                             (259,387)         (59,174)
         Operating liabilities                         (19,303)          25,715
                                                   ------------       ----------
Net cash provided by operating activities            1,798,930          436,250

Investing activities
     Purchase of investments                        (2,602,296)        (648,416)
     Maturity of investments                         2,584,803          199,938
                                                   ------------       ----------
Net cash used in investing activities                  (17,493)        (448,478)

Financing activities
Dividends paid                                      (2,283,875)        (705,925)
                                                   ------------       ----------
Net cash used in financing activities               (2,283,875)        (705,925)

Decrease in cash and cash equivalents                 (502,438)        (718,153)

Cash and cash equivalents at beginning of period       526,590          761,573
                                                   ------------       ----------

Cash and cash equivalents at end of period         $    24,152        $  43,420
                                                   ============       ==========



See accompanying notes


                                                                   Page 6 of 13



<PAGE>

                               Avoca, Incorporated

               Notes to Condensed Financial Statements (Unaudited)

                         Six months ended June 30 , 2001

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 normal and recurring
adjustments and accruals considered  necessary for a fair presentation have been
included. Operating results for the six-month period ended June 30, 2001 are not
necessarily  indicative  of the results  that may be expected for the year ended
December 31, 2001. 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,
2000.

         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 13

<PAGE>

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

         The unaudited  condensed  statements of income show that net income for
the second quarter of 2001 as compared with the second quarter of 2000 increased
from $300,209 to $993,393 or approximately 231%.
         Revenue from royalties,  net of severance taxes increased from $347,355
to  $1,221,836  primarily  because  of  royalties  received  from  The  Meridian
Resources & Exploration Company on a new well, the Avoca No. 47-1, which went on
production  December 4, 2000.  The increase in revenue is also  attributable  to
increased  royalties  received  on the  C.M.  Thibodaux  No.  1 and No. 3 wells.
Production  from  the  three  Meridian  wells  was  responsible  for  98% of the
Companyss.s  royalty income for the second quarter of 2001. All of the wells are
in the Ramos  Field,  across  Bayou Chene just north of the eastern end of Avoca
Island.
         The  Avoca  No.  47-1  well  (in which the  Company  has a net  revenue
interest  of  approximately  12.41%) bottomed  holed in  Section  47 west of the
C.M. Thibodaux  No. 1 and  No. 3 wells and produces  from the Operc 3 sand.  The
current approximate daily  production is 13,400  Mcf of gas  and 175  barrels of
condensate.
         During  the  second  quarter of 2001,  total  production  from the C.M.
Thibodaux No. 1 and No. 3 wells (in which the Company has a net revenue interest
of approximately 2.71%) was substantially  unchanged as compared with the second
quarter of 2000,  but the average sales price of gas from these wells  increased
108 %. Both wells produced from Operc sands.
         Meridian used the surface  location and the surface casing of the Avoca
No. 47-2 well (which was abandoned in early May, 2001 because its objective, the
Operc 5 sand,  was faulted out) to drill the  Thibodaux  No. 25-2 well to bottom
hole in Bayou Chene opposite the eastern end of Avoca


                                                                   Page 8 of 13
<PAGE>

Island.  The  Thibodaux No. 25-2 well was drilled to a vertical  depth of 18,720
feet targeting  the Operc A, B, C and 3 sands.  On July 20,  2001,  a  Meridian
representative  advised the Company  that the well had logged as a  non-producer
and was being  temporarily abandoned awaiting further evaluation.
         Despite a 78%  increase  in the  average  sales  price of gas,  royalty
income  from  the  Delta  Operating  Corporation  (formerly  Alliance  Operating
Company)  Avoca No. 1 well,  also in the Ramos Field,  for the second quarter of
2001 declined to $21,566 as compared to $37,877 for the second  quarter of 2000.
The decrease is attributable  to a 63% decline in gas  production.  According to
the well's  operator,  the  treatment for scale in March 2001 was not a complete
success  and the well  was  treated  again on May 11,  2001.  Since  the  second
treatment,  the operator has advised the company that it sees a slow improvement
in the well'L/F performance.
         The Conrad Industries No. 1 well, drilled by Burlington Resources Oil &
Gas Company and located in the  Wyandotte  Field  opposite the northern  part of
Avoca Island,  was placed on production April 29, 2000 and generated  $37,109 in
royalty  income for the Company in the second quarter of 2000 before it "watered
out" on August 20, 2000.  Burlington  abandoned its  sidetracking  operations in
April 2001 and the well has been plugged and abandoned.
         On March 29,  2001,   Burlington  spudded  the  Avoca  No.  36-1  well,
which will bottom  hole in  Section 36 near  the eastern end of the island.  The
Avoca No.  36-1 well  is a 20,500-foot  test of  the  Cris  A-2 sand,  which  is
below the Operc sands producing from the  Meridian wells.  The well is currently
drilling at approximately 18,140 feet.
         The Company  received  lease option  payments of $200,000 in the second
quarter of 2001 from the granting of a new oil, gas and mineral  lease option to
Burlington.  The  option,  which  covers


                                                                   Page 9 of 13
<PAGE>

1,873.0147  acres in the center of the island,  is for six months or sixty  days
after the testing of the Burlington No. 36-1 well, whichever comes first. If the
option is  exercised,  half of  the option  payment will be credited towards the
$500,000 lease bonus.
         Interest  income  on  U.S.   Government  and  U.S.   Government  agency
securities  increased  $16,156  or  approximately  44%  due to  increased  funds
available for investment.
         As  compared  with the second  quarter  of 2000,  total  expenses  were
reduced $10,404 or  approximately  20%. The primary reason for the reduction was
an $11,452  decrease in  attorneys  fees  (included  under legal and  accounting
services)  associated with the litigation described under Item 3 of this report.
         The change in income tax  expense for the three  months  ended June 30,
2001 resulted from an increase in taxable  income for the second quarter of 2001
as compared to the second quarter of 2000.
         Total  revenue  for the  six-month  period  ended  June 30,  2001  rose
$2,337,471 or  approximately  283% because of a substantial  increase in royalty
income and income from lease option payments.
         Royalty   income,  net of  severance  taxes for the first six months of
2001 was  approximately   338% higher  than  the  corresponding  period of 2000.
The primary reasons for the increase  are royalty  income from the new Avoca No.
47-1 well,  increased  royalty  income from the C.M.  Thibodaux No. 1 and No. 3
wells and the Burlington lease option payment, all previously discussed.
         Interest  income  on  U.S.   Government  and  U.S.   Government  agency
securities increased $24,468 or approximately 34% because of the availability of
increased funds for investment.
         Expenses for the six-month period ended June 30, 2001 decreased $6,888
or approximately


                                                                  Page 10 of 13

<PAGE>

5%.  Of the  $19,341  decrease  in legal and  accounting  services,  $17,316  is
primarily  attributable  to the above mentioned  reduction in litigation  costs,
which more than offset slight  increases in consultant  fees and  geological and
engineering fees, insurance and miscellaneous expenses.
         The change in income tax expense for the six months ended June 30, 2001
resulted from an increase in taxable  income for the first six months of 2001 as
compared to the first six months of 2000.
         The  Company's  continued  liquidity  is  evidenced  by the  fact  that
approximately  84% 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 and the leasing of hunting  rights,  the
Company  customarily  derives  essentially all of its other income from bonuses,
delay  rentals and  royalties  under oil,  gas and  mineral  leases of its Avoca
Island acreage.  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.

                           Part II - OTHER INFORMATION

Item 1 - 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


                                                                  Page 11 of 13
<PAGE>

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.
         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,
the judgment  entered in accordance with the March 13, 2001 Reasons For Judgment
should put an end to the litigation.  Nevertheless,  a notice of appeal has been
filed.

Item 6 - Exhibits and Reports on Form 8-K

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

         NONE

         (b)      Reports on Form 8-K

         One Form 8-K, dealing with declaration of a special dividend, was filed
on June 11, 2001.




                                                                  Page 12 of 13
<PAGE>

                                   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


August 2, 2001                         /s/Robert C. Baird, Jr.
                                       -----------------------------------------
                                       Robert C. Baird, Jr.
                                       President and Principal Financial Officer



                                                                  Page 13 of 13