<PAGE>


                                 August 10, 1999







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
June 30, 1999.

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

                                               Sincerely,


                                               /s/ Robert C. Baird, Jr.
                                               ---------------------------------
                                               Robert C. Baird, Jr.
                                               Executive Vice President &
                                               Principal Financial Officer
                                               (504) 599-3069

RCB/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     June 30, 1999
                              --------------------------------------------------

[ ]  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 31, 1999
                                           -------------------------------------

Transitional Small Business Disclosure Former (check one);  Yes        No  X
                                                               -----     -----
An exhibit index is located at page  13  of this report.
                                   ------


                                       1
<PAGE>



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

                                    I N D E X
                                    ---------



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

                  Condensed Balance Sheet - June 30, 1999                      4

                  Condensed Statements of Income
                           Three Months Ended June 30, 1999
                           and 1998 and Six Months Ended
                           June 30, 1999 and 1998                              5

                  Condensed Statements of Cash Flows
                           Six Months Ended June 30, 1999
                           and 1998                                            6

                  Notes to Condensed Financial Statements                      7

                  Management's Discussion and Analysis or
                  Plan of Operation                                         8-12

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

                  Exhibits and Reports on Form 8-K                            12

                  Signature                                                   12


                                       2
<PAGE>



                               AVOCA, INCORPORATED

                         PART I - FINANCIAL INFORMATION

                           Item 1 Financial Statements

                                       3
<PAGE>
<TABLE>
<CAPTION>
                               Avoca, Incorporated

                       Condensed Balance Sheet (Unaudited)

                                  June 30, 1999


Assets
Current assets:
<S>                                                                                     <C>
      Cash                                                                              $     43,163
      Short-term investments                                                               1,132,844
      Accounts receivable                                                                     22,505
      Accrued interest receivable                                                             27,192
      Prepaid expenses                                                                         6,637
                                                                                        ------------
Total current assets                                                                       1,232,341

Property and equipment, less accumulated depreciation and depletion                           73,325

Other assets:
      Long-term investments                                                                1,253,180
      Avoca Drainage Bonds, $415,000, in default -- at nominal amount                              1
                                                                                        ------------
                                                                                        $  2,558,847
                                                                                        ============


Liabilities and shareholders' equity
Current liabilities:
      Accounts payable and accrued expenses                                             $      3,116
      Income taxes payable                                                                    31,950
                                                                                        ------------
Total current liabilities                                                                     35,066

Deferred income taxes                                                                         12,635

Shareholders' equity:
      Common stock, no par value -- authorized, issued and outstanding
           830,500 shares                                                                     94,483
      Retained earnings                                                                    2,416,663
                                                                                        ------------
Total shareholders' equity                                                                 2,511,146
                                                                                        ------------
                                                                                        $  2,558,847
                                                                                        ============


See accompanying notes
</TABLE>

                                       4
<PAGE>
<TABLE>
<CAPTION>



                               Avoca, Incorporated

                   Condensed Statements of Income (Unaudited)




                                                                Three months ended                         Six months ended
                                                                     June 30                                    June 30
                                                               1999                 1998                 1999                1998
                                                          ---------            ---------            ---------            ---------
Revenue:
<S>                                                       <C>                  <C>                  <C>                  <C>
    Royalties                                             $  32,771            $  39,495            $  72,112            $  72,083
    Less severance taxes                                      1,459                1,967                3,692                3,269
                                                          ---------            ---------            ---------            ---------
                                                             31,312               37,528               68,420               68,814
    Lease bonuses and delay rentals                          81,345              222,918               81,345              222,918
    Lease option payments                                    79,938                   -                79,938                   -
    Interest income                                          31,299               31,845               63,107               64,503
    Rental and other income                                  23,583               21,000               23,583               21,000
                                                          ---------            ---------            ---------            ---------
                                                            247,477              313,291              316,393              377,235


Expenses:
    Legal and accounting services                             6,902                4,583               17,114               15,424
    Consultant fees                                          11,188               10,747               30,588               31,747
    Geological and engineering fees                           4,315                4,241                6,248                8,661
    Insurance                                                 6,309                5,600               12,594               11,236
    Miscellaneous expenses                                    6,790               11,103               31,659               59,593
                                                          ---------            ---------            ---------            ---------
                                                             35,504               36,274               98,203              126,661
                                                          ---------            ---------            ---------            ---------

Income before income taxes                                  211,973              277,017              218,190              250,574

Income taxes                                                 67,704               80,176               69,528               80,176
                                                          ---------            ---------            ---------            ---------
Net income                                                $ 144,269            $ 196,841            $ 148,662            $ 170,398
                                                          =========            =========            =========            =========



Net income per share                                      $     .17            $     .24             $    .18             $    .21
                                                          =========            =========             ========             ========





See accompanying notes.
</TABLE>

                                       5
<PAGE>
<TABLE>
<CAPTION>



                               Avoca, Incorporated

                 Condensed Statements of Cash Flows (Unaudited)




                                                                                                   Six months ended
                                                                                                        June 30
                                                                                                1999                  1998
                                                                                           -------------------------------
Operating activities
<S>                                                                                        <C>                  <C>
Net income                                                                                 $ 148,662            $  170,398
Adjustments to reconcile net income to net cash
  provided by (used in) operating activities:
      Depreciation expense                                                                     1,880                 1,368
      Deferred taxes                                                                            (253)                 (253)
      Changes in operating assets and liabilities:
        Operating assets                                                                         376                   683
        Operating liabilities                                                                 17,533                59,393
                                                                                           ---------            ----------
Net cash provided by operating activities                                                    168,198               231,589

Investing activities
Maturity of investments                                                                      729,427             1,276,682
Purchase of investments                                                                     (903,453)           (1,160,763)
Purchase of equipment                                                                           (625)                    -
                                                                                           ---------            ----------
Net cash provided by (used in) investing activities                                         (174,651)              115,919

Financing activities
Dividends paid                                                                              (265,760)             (622,875)
                                                                                           ---------            ----------
Net cash used in financing activities                                                       (265,760)             (622,875)
                                                                                           ---------            ----------

Decrease in cash and cash equivalents                                                       (272,213)             (275,367)
Cash and cash equivalents at beginning of period                                             315,376               500,370
                                                                                           ---------            ----------
Cash and cash equivalents at end of period                                                 $  43,163            $  225,003
                                                                                           =========            ==========








See accompanying notes.
</TABLE>

                                       6
<PAGE>



                               Avoca, Incorporated

               Notes to Condensed Financial Statements (Unaudited)

                         Six months ended June 30, 1999


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 six-month  period  ended  June 30, 1999
are not necessarily indicative of the results that may be  expected for the year
ended  December  31,  1999.  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, 1998.

The  Company  considers  its  United  States  Government  securities held with a
maturity  of  three  months  or  less when purchased to be cash equivalents. The
Company's United States Government  obligations  which do not meet this criteria
are  included  in, and represent substantially  all of, the short-term and long-
term investment balances.

                                      7
<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 1999 as compared with the second quarter of 1998 decreased
from $196,841 to $144,269.
         Royalty  income net of severance tax decreased  from $37,528 to $31,312
or  approximately  17%  because of a decrease  in royalty  income from the Delta
Operating  Company Avoca No. 1 well.  Since the second quarter of 1997, the well
has been  responsible  for virtually all of the Company's  royalty  income.  The
decrease  resulted  from a 14% decline in the average  sales price of gas,  from
$2.44 per Mcf for the three  months ended June 30, 1998 to $2.09 per Mcf for the
three months ended June 30, 1999. Gas  production  from the Avoca No. 1 well was
approximately 7% higher than production during the comparable period of 1998.
         The  principal  reason for the  decrease in net income was the $141,573
decrease  in lease  bonuses and delay  rentals in the second  quarter of 1999 as
compared to the second quarter of 1998.  The decline  resulted from the election
by The Meridian  Resource &  Exploration  Company,  Inc. not to pay the $125,420
annual  delay rental due under its May 27, 1998 lease  covering  627.10 acres on
the southwest part of the island.  Meridian  Resource paid a reduced Pugh Clause
rental under its lease,  also dated May 27, 1998,  covering  487.46 acres on the
northeast  part of the island.  The Pugh Clause  rental  (amounting  to $81,345)
resulted  from the recent  completion of a deep gas well  (Meridian  Resources -
Thibodaux  No. 1 well) in the Ramos Field,  across Bayou Chene just north of the
eastern end of Avoca Island.
         The Thibodaux No. 1 well was placed on production on June 15, 1999 from
the  Operc  5  Sand.  Avoca,  Incorporated's  participation in  the unit has not
formally  been  determined.   Meridian  Resource  commenced  drilling  the C. M.
Thibodaux No. 2  well on May 14, 1999 to produce  from  the higher Operc B Sand.
On June 25, while running casing to complete the well, a blowout

                                      8
<PAGE>

occurred. After safely venting natural gas for twelve hours,  lightning  set the
well on fire. The  No. 2  well  continued to  burn  until  July 3, when the well
completely  "bridged  over"  and  the  flame  went  out. The drill site has been
cleared of debris in order to cap the No. 2 well  in  anticipation of resumption
of production from the No. 1 well. Salt  water  flows  from  the No. 2 well have
delayed  production  from  the  No. 1  well.  Meridian Resource has  spudded the
Thibodaux No. 3 well 2,500 feet east of the present location as  a  relief  well
for the No. 2 well. The  drilling  contractor  estimates it will take 45 days to
reach 18,000 feet.
         Lease option payments of $79,938 in the second quarter of 1999 resulted
from  the  granting  of  two  new  oil, gas and mineral lease options. The first
option,  covering  1,459.30  acres on the northwest  part of the island,  allows
McRae Exploration & Production,  Inc. to lease all or part (not less than 729.65
acres) on or before  December 20, 1999. The second option,  covering 2,893 acres
on the southwest part of the island,  allows Kevin Caliva & Associates,  Inc. to
lease all or part (not less than  964.33  acres) on or before  August 26,  1999.
There were no lease option payments received during the second quarter of 1998.
         Interest  income   on  U. S.  Government  and  U. S.  Government agency
securities  decreased  slightly  due  to  lower  interest  rates.
         Rental income increased $2,583 due to a CPI  adjustment  of  the annual
rental in the Company's surface lease to the Avoca Duck Club.
         As compared with the second quarter of 1998,  total  expenses  remained
virtually the same. The $4,313 decrease in miscellaneous  expenses offset slight
increases in legal and  accounting,  consulting,  geological and engineering and
insurance.

                                       9
<PAGE>



         The change in income tax  expense for the three  months  ended June 30,
1999 resulted from a decrease in taxable  income for the second  quarter of 1999
as compared to the second quarter of 1998.
         Total  revenue for the six month period  ended June 30, 1999  decreased
$60,842 or  approximately  16%. The decrease  results from a substantial drop in
lease bonuses and delay  rentals  partially  offset by lease option  payments as
previously discussed above.
         Royalties net of severance  taxes for the first six months of 1999 were
virtually  unchanged from the  comparable  period in 1998.  Average  natural gas
prices were 14% lower, but volume was 15% higher for the six month period.
         Interest  income  on U. S.  Government  and U. S.  Government    agency
securities  decreased $1,396 for the six month  period because of lower interest
rates.
         Rental income for the six months ending June 30, 1999 increased  $2,583
because of a CPI adjustment  under the Avoca Duck Club surface lease.
         Expenses  for the six months ended June 30, 1999  decreased  $28,458 or
approximately 22%. Reduced remedial maintenance  operations on the northern part
of Avoca  Island  resulted  in a  $27,934  decrease  in  miscellaneous  expenses
although legal and accounting services expenses increased by $1,690.  Geological
and engineering  fees were reduced by $2,413 because of a decrease in a need for
engineering  services.  The $1,159  decrease in consultant  fees resulted from a
smaller bonus paid to the Company's  general  manager in  recognition of results
achieved in 1998,  which  partially  offset fees paid to the  Company's new land
manager.
         The change in income  tax  expenses  for the six months  ended June 30,
1999 resulted from a decrease in taxable income for the first six months of 1999
as compared to the like period of 1998.

                                       10
<PAGE>



         The  Company's  continued  liquidity  is  evidenced  by the  fact  that
approximately  95% 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.
         The Company has completed its  assessment of the potential  impact that
the Year 2000 (Y2K) issue may have with respect to its  operations and financial
position.  Due  to the  nature  of  the  Company's  operations,  the  volume  of
accounting  transactions  is limited and the  Company's  accounting  records are
maintained through manual input to a non-complex  financial  accounting software
application  that is Y2K  compliant.  The Company has not  incurred and does not
expect to incur any significant costs with respect to Y2K issues.
         One  independent   oil  and  gas  company   represents  the  source  of
substantially  all  of  the  Company's  royalty  income.  Management  of  Avoca,
Incorporated has been informed by this company that the Y2K issue would not have
a significant impact on its respective oil and gas operations.
         The Company  deals with a limited  number of vendors who are  primarily
geologists,  engineers,  attorneys  and  accountants.  Services  provided by the
Company's primary vendors are not expected to be significantly  disrupted by the
Y2K issue.
         Companies,  including Avoca,  Incorporated,  cannot make Y2K Compliance
certifications  because  the  ability  of any  organization's  systems  (and the
systems of other outside  organizations)  to operate  reliably after midnight on
December 31, 1999 is dependent  upon factors that may be outside

                                       11
<PAGE>

the  control  of,  or  unknown  to,  the   organization.  While  there can be no
assurance that the  Company  will  not be materially  adversely  affected by Y2K
problems,  the  Company  believes  that  it has  adequately  addressed the risks
associated  with the Y2K issue.

                           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



August 5, 1999                         /s/ Robert C. Baird, Jr.
-----------------------------          -----------------------------------------
                                       Robert C. Baird, Jr.
                                       President and Principal Financial Officer



                                       12
<PAGE>



                                  EXHIBIT INDEX


                                                            Sequentially
 Exhibit                                                      Numbered
 Number             Description                                 Page


   27               Financial Data Schedule

                                       13