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, 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 October 31, 2001
                                           -------------------------------------

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


                                                                    Page 1 of 14
<PAGE>



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

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

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

                  Condensed Balance Sheet - September 30, 2001                 4

                  Condensed Statements of Income
                           Three Months Ended September 30, 2001
                           and 2000 and Nine Months Ended
                           September 30, 2001 and 2000                         5

                  Condensed Statements of Cash Flows
                           Nine Months Ended September 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                                        12-13

                  Exhibits and Reports on Form 8-K                            13

                  Signature                                                   14



                                                                    Page 2 of 14
<PAGE>



                               AVOCA, INCORPORATED

                         PART I - FINANCIAL INFORMATION

                           Item 1 Financial Statements

                                                                    Page 3 of 14
<PAGE>
<TABLE>
<CAPTION>
                               Avoca, Incorporated

                       Condensed Balance Sheet (Unaudited)

                               September 30, 2001



Assets
Current assets:
<S>                                                                                                     <C>
     Cash and cash equivalents                                                                          $   37,386
     Short-term investments                                                                              2,304,426
     Accounts receivable                                                                                   280,376
     Accrued interest receivable                                                                            36,444
     Prepaid income taxes                                                                                  114,801
     Prepaid expenses                                                                                       16,102
                                                                                                        ----------
Total current assets                                                                                     2,789,535

Property and equipment, less accumulated depreciation and depletion                                         65,652

Other assets:
     Long-term investments                                                                               1,602,323
     Avoca Drainage Bonds, $415,000, in default -- at nominal amount                                             1
                                                                                                        ----------
Total Assets                                                                                            $4,457,511
                                                                                                        ==========



Liabilities and shareholders' equity
Current liabilities:
     Accounts payable and accrued expenses                                                               $   5,345
                                                                                                         ---------
Total current liabilities                                                                                    5,345

Deferred income taxes                                                                                       11,494

Shareholders' equity:
     Common stock, no par value -- authorized, issued and outstanding
          830,500 shares                                                                                    94,483
     Retained earnings                                                                                   4,346,189
                                                                                                        ----------
Total shareholders' equity                                                                               4,440,672
                                                                                                        ----------
                                                                                                        $4,457,511
                                                                                                        ==========


See accompanying notes

</TABLE>
                                                                    Page 4 of 14

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

                   Condensed Statements of Income (Unaudited)


                                                            Three months ended                   Nine months ended
                                                               September 30                         September 30
                                                          2001               2000              2001               2000
                                                       ---------          ---------        ----------         ----------
Revenue:
<S>                                                    <C>                <C>              <C>                <C>
   Royalties                                           $ 878,130          $ 562,885        $3,785,048         $1,241,028
   Less severance taxes                                   48,798             10,876           114,129             41,293
                                                       ---------          ---------        ----------         ----------
                                                         829,332            552,009         3,670,919          1,199,735

   Lease option payments                                       -                  -           200,000                  -
   Lease bonuses and delay rentals                       328,510            359,110           328,510            440,455
   Interest income                                        42,757             45,711           138,402            116,888
   Rental and other income                                 4,145              7,346            29,940             32,654
                                                       ---------          ---------        ----------         ----------
                                                       1,204,744            964,176         4,367,771          1,789,732

Expenses:
   Legal and accounting services                          12,637              9,331            41,415             57,450
   Consultant fees                                        12,375             12,050            52,887             47,175
   Geological and engineering fees                         6,354              1,046            23,281             13,301
   Insurance                                               7,082              6,792            20,763             19,851
   Miscellaneous expenses                                 10,792             13,198            51,137             51,771
                                                       ---------          ---------        ----------         ----------
                                                          49,240             42,417           189,483            189,548
                                                       ---------          ---------        ----------         ----------

Income before income taxes                             1,155,504            921,759         4,178,288          1,600,184

Income taxes                                             381,797            312,884         1,328,902            523,541
                                                       ---------          ---------        ----------         ----------

Net income                                            $  773,707          $ 608,875        $2,849,386         $1,076,643
                                                      ==========          =========        ==========         ==========



Earnings per share                                    $     0.93          $    0.74        $     3.43         $     1.30
    (basic and diluted)                               ==========          =========        ==========         ==========



See accompanying notes
</TABLE>
                                                                    Page 5 of 14

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

                 Condensed Statements of Cash Flows (Unaudited)


                                                                                                 Nine months ending
                                                                                                    September 30
                                                                                              2001                2000
                                                                                ------------------------------------------
Operating activities
<S>                                                                                       <C>                  <C>
Net income                                                                                $2,849,386           $1,076,643
Adjustments to reconcile net income to net cash
  provided by (used in) operating activities:
     Depreciation expense                                                                      3,291                3,291
     Deferred taxes                                                                             (380)                (380)
     Changes in operating assets and liabilities:
         Operating assets                                                                   (200,958)             (89,213)
         Operating liabilities                                                               (17,236)              84,876
                                                                                          -----------          -----------
Net cash provided by operating activities                                                  2,634,103            1,075,217

Investing activities
     Purchase of investments                                                              (5,144,045)          (1,615,679)
     Maturity of investments                                                               4,304,613              549,124
                                                                                          -----------          -----------
Net cash used in investing activities                                                       (839,432)          (1,066,555)

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                                                       (489,204)            (697,263)

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

Cash and cash equivalents at end of period                                                $   37,386           $   64,310
                                                                                          ===========          ===========



See accompanying notes
</TABLE>

                                                                    Page 6 of 14

<PAGE>
                               Avoca, Incorporated

               Notes to Condensed Financial Statements (Unaudited)

                      Nine months ended September 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 nine-month period ended September 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 14

<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 2001 as compared  with the third quarter of 2000  increased
from $608,875 to $773,707 or approximately 27%.

         Revenue from royalties, net of severance taxes, rose  from  $552,009 to
$829,332 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 Avoca No. 47-1 well (in which the Company has a net revenue  interest
of approximately  12.41%) bottom 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  daily
production is in line with production during earlier periods.

         During  the  third  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 third
quarter of 2000,  but the average sales price of gas from these wells  decreased
21 %.  Both  wells  produce  from the  Operc  sands.  Production  from the three
Meridian wells was responsible  for 97% of the Company's  royalty income for the
third quarter of 2001. All the wells are in the Ramos Field,  across Bayou Chene
just north of the eastern end of Avoca Island.

           Royalty  income  from  the  Delta  Operating   Corporation  (formerly
Alliance Operating Company) Avoca No. 1 well, also in the Ramos Field,  declined
to $25,404 as compared to $47,027 for the third  quarter of 2000.  The  decrease
results  from a 21% drop in the average  sales  price of gas coupled  with a 19%
decline in gas production.

                                                                    Page 8 of 14
<PAGE>
         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 $121,192 in
royalty  income for the Company in the third  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.  Having
drilled to a vertical  depth of 20,323  feet to test the Cris A-2 sand  (located
below the Operc sands  producing from the Meridian  wells),  the well's operator
has advised the Company  that the Cris A-2 sands were  unproductive.  Burlington
plans to pull up the hole,  with the  expectation  of completing the well in the
Kamarana-1  sand  at  an  approximate   depth  of  19,205  feet.  The  Company's
participation in the well is as yet undetermined.

         Lease bonuses and delay rentals for the third quarter decreased $30,600
as  compared  to  the  third  quarter  of  2000  because  McCrae  Exploration  &
Production,  Inc.  elected not to pay the delay rental due on its 158-acre  oil,
gas and mineral lease dated July 3, 2000.  The decline was offset  slightly by a
$1,000 payment received from Meridian for a special  six-month  extension of the
primary term of its lease dated May 27, 1998 on selected acreage.

         Interest  income  on  U.S.   Government  and  U.S.   Government  agency
securities  decreased  $2,954 or  approximately 6% as a result of lower interest
rates.

         As compared with the third quarter of 2000,  total  expenses  increased
$6,823 or approximately  16%, primarily because of a greater need for geological
& engineering services and legal and accounting services.

                                                                    Page 9 of 14

<PAGE>
         The change in income tax expense for the three months  ended  September
30, 2001  resulted  from an increase in taxable  income for the third quarter of
2001 as compared to the third quarter of 2000.

         Total revenue for the nine-month  period ended  September 30, 2001 rose
$2,578,039 or  approximately  144% because of a substantial  increase in royalty
income and income from lease option payments.

         Royalty income,  net  of  severance  taxes for the first nine months of
2001 was approximately  206% higher than the  corresponding  period of 2000. The
increase is  attributable  to  royalties  from the new Avoca No. 47-1 well and a
substantial rise in the average sales price of gas from the C.M. Thibodaux No. 1
and No. 3 wells during the first two quarters of 2001.

         During the  second  quarter of 2001,  the  Company  received a $200,000
lease option payment received from  Burlington.  This oil, gas and mineral lease
option,  which covers  1,873.0147 acres in the center of the island,  is for six
months or sixty days after the  testing of the above  mentioned  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.

         Lease  bonuses  and  delay  rentals  decreased  $111,945  for the first
nine-months  of 2001 as  compared  to the same  period  of 2000  because  of the
absence of delay rentals under Meridian's  lease dated May 27, 1998:  $81,345 in
income  was  generated  from this  source in the second  quarter  of 2000.  Also
contributing to the decrease, as previously discussed,  was McRae's election not
to pay the delay rental due under its lease dated July 3, 2000.

                                                                   Page 10 of 14

<PAGE>
         Interest  income  on  U.S.   Government  and  U.S.   Government  agency
securities for the first  nine-months of 2001 increased $21,514 or approximately
18% as  compared  to the same  period of 2000  because  of the  availability  of
increased funds for investment.

         Total  expenses  for the  nine-month  period ended  September  30, 2001
remained virtually unchanged from the corresponding  period of 2000. A reduction
in the need for legal and accounting  services  (mostly  attributable to reduced
attorney's fees  associated  with the litigation  described under Item 3 of this
report)  offset an  increased  need for  geological  and  engineering  services.
Consultant fees increased  because of added  compensation  paid to the Company's
general manager.

         The change in income tax expense for the nine  months  ended  September
30, 2001 resulted  from an increase in taxable  income for the first nine months
of 2001 as compared to the first nine months of 2000.

         The  Company's  continued  liquidity  is  evidenced  by the  fact  that
approximately  88% 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.

                                                                   Page 11 of 14
<PAGE>



                           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  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


                                                                   Page 12 of 14

<PAGE>

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.

         On  September  13,  2001,  the Company  filed a Motion for  Preliminary
Injunction to prohibit the Singletons,  their invitees,  et al. from trespassing
on or  interfering  with the  Company's  possession  and  enjoyment  of  certain
described portions of Avoca Island in disregard of the court's prior judgments.

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

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

                                                                   Page 13 of 14


<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

November      8    , 2001                      /s/Robert C. Baird Jr.
         ----------                            ---------------------------------
                                               Robert C. Baird, Jr.
                                               President and Principal Financial
                                                 Officer

                                                                   Page 14 of 14