May 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
March 31, 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  March 31, 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 May 1, 1997
                                          --------------------------------------
Transitional Small Business Disclosure Former (check one); Yes       No  X
                                                              -----    -----

An exhibit index is located at page   12   of this report.
                                   --------

                               Page 1 of 11 Pages
<PAGE>



                               AVOCA, INCORPORATED

                                    I N D E X




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

                  Condensed Balance Sheet - March 31, 1997                     4

                  Condensed Statements of Income
                           Three Months Ended March 31, 1997
                           and 1996                                            5

                  Condensed Statements of Cash Flows
                           Three Months Ended March 31, 1997
                           and 1996                                            6

                  Notes to Condensed Financial Statements                      7

                  Management's Discussion and Analysis or
                  Plan of Operation                                          8-9

Part II.          Other Information

                  Submission of Matters to a Vote of
                  Security Holders                                            10

                  Exhibits and Reports on Form 8-K                            10

                  Signature                                                   11



                               Page 2 of 11 Pages

<PAGE>



                               AVOCA, INCORPORATED

                         PART I - FINANCIAL INFORMATION

                           Item 1 Financial Statements























                               Page 3 of 11 Pages

<PAGE>

<TABLE>
<CAPTION>
                               Avoca, Incorporated

                       Condensed Balance Sheet (Unaudited)

                                 March 31, 1997


Assets
<S>                                                                            <C>
Current assets:
      Cash                                                                     $     65,381
      Short-term investments                                                      1,390,175
      Accounts receivable                                                            50,445
      Accrued interest receivable                                                    44,932
      Prepaid expenses                                                               11,602
                                                                               ------------
Total current assets                                                              1,562,535

Property and equipment, less accumulated depreciation and depletion                  74,866

Other assets:
      Long-term investments                                                         639,652
      Avoca Drainage Bonds, $415,000, in default -- at nominal amount                     1
                                                                               ------------
                                                                               $  2,277,054
                                                                               ============


Liabilities and shareholders' equity
Current liabilities:
      Accounts payable                                                         $      7,481
      Income taxes payable                                                           23,130
                                                                               ------------

Total current liabilities                                                            30,611

Deferred income taxes                                                                13,775

Shareholders' equity:
      Common stock, no par value -- authorized, issued and outstanding
           830,500 shares                                                            94,483
      Retained earnings                                                           2,138,185
                                                                               ------------
Total shareholders' equity                                                        2,232,668
                                                                               ------------
                                                                               $  2,277,054
                                                                               ============



See accompanying notes
</TABLE>

                               Page 4 of 11 Pages

<PAGE>

<TABLE>
<CAPTION>


                               Avoca, Incorporated

                   Condensed Statements of Income (Unaudited)




                                                            Three months ended
                                                                  March 31
                                                           1997                  1996
                                                     --------------------------------
Revenue:
<S>                                                  <C>                   <C>       
      Royalties                                      $  111,718            $   35,196
      Less severance taxes                                1,951                 1,264
                                                     ----------            ----------
                                                        109,767                33,932
      Lease bonuses and delay rentals                         -                37,875
      Interest income                                    28,724                28,310
                                                     ----------            ----------
                                                        138,491               100,117


Expenses:
      Legal and accounting services                       3,411                 9,564
      Consultant fees                                    19,000                14,000
      Geological and engineering fees                     2,586                 2,762
      Insurance                                           5,772                 5,983
      Miscellaneous expenses                             22,783                20,464
                                                      ---------            ----------
                                                         53,552                52,773
                                                      ---------            ----------

Income before income taxes                               84,939                47,344

Income taxes                                             22,827                 2,117
                                                      ---------            ----------

Net income                                            $  62,112            $   45,227
                                                      =========            ==========



Net income per share                                  $     .07            $      .05
                                                      =========            ==========


See accompanying notes.
</TABLE>

                               Page 5 of 11 Pages

<PAGE>

<TABLE>
<CAPTION>


                               Avoca, Incorporated

                 Condensed Statements of Cash Flows (Unaudited)




                                                                Three months ended
                                                                     March 31
                                                              1997                  1996
                                                         -------------------------------
Operating activities
<S>                                                      <C>                   <C>      
Net income                                               $  62,112             $  45,227
Adjustments to reconcile net income to net cash
  provided by (used in) operating activities:
      Depreciation expense                                     684                   684
      Deferred taxes                                      (    127)             (    127)
      Changes in operating assets and liabilities:
        Operating assets                                  ( 32,944)             ( 12,489)
        Operating liabilities                                4,284              ( 41,311)
                                                         ---------             ---------
Net cash provided by (used in) operating activities         34,009              (  8,016)

Investing activities
Purchase of short-term investments                        ( 97,372)                    -
Maturity of short-term investments                         722,531                     -
Purchase of long-term investments                         (285,189)                    -
                                                         ---------             ---------
Net cash provided by investing activities                  339,970                     -

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

Increase (decrease) in cash and cash equivalents               254              (132,591)
Cash and cash equivalents at beginning of period            65,127               204,748
                                                         ---------             ---------
Cash and cash equivalents at end of period               $  65,381             $  72,157
                                                         =========             =========



See accompanying notes.
</TABLE>

                               Page 6 of 11 Pages

<PAGE>


                               Avoca, Incorporated

               Notes to Condensed Financial Statements (Unaudited)

                        Three months ended March 31, 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 included 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 three-month period ended March 31, 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  Goverment  securities  held with a
maturity of three months or less when purchased to be cash equivalents.







                               Page 7 of 11 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 first  quarter of 1997,  as  compared  with the first  quarter of
1996, increased from $45,227 to $62,112.
                  Royalty income net of severance taxes for the first quarter of
1997 increased  $75,835 or  approximately  223%. The increase is attributable to
the  successful  workover of the  Intercoastal  Shipyard No. 2 well in the Ramos
Field. This well was restored to production during the second quarter of 1996 by
its operator,  Black Gold Production Company, Inc., and produces from the B Sand
Unit B under the Capital Energy, Inc. lease signed in the first quarter of 1996.
Production from this unit is responsible for approximately $47,524 or 43% of the
Company's royalty income for the first quarter of 1997. Review of the operator's
production  records since year-end shows that daily gas production from the well
as of March 31, 1997 has  declined  to  approximately  50% of the 1996  year-end
production rate, and the future of the well is in doubt.
                  The  increase in net royalty  income is also  attributable  to
significantly  higher  prices  received  by Delta  Operating  Company  (formerly
Alliance  Operating  Corporation) for higher gas production from the Avoca No. 1
well during the first  quarter of 1997.  First quarter gas  production  from the
Avoca No. 1 well was approximately 39% higher than production for the comparable
period of 1996,  and the average  sales price of gas rose from $2.64 per MCF for
the three  months  ended  March 31,  1996 to $3.55 per MCF for the three  months
ended  March  31,  1997.  The well was off  production  March 2 and 3 for a time
release chemical  treatment to prevent scaling in the formation.  It returned to
successful  production  until  March 11 when it was  shut-in  for repairs to the
purchaser's gas pipeline which should be completed by the middle of April.
                  No income was  received  from lease  bonuses or delay  rentals
during the first  quarter of 1997 as  compared  to $37,875  received  during the
first quarter of 1996. In the first quarter of







                               Page 8 of 11 Pages

<PAGE>



1996,  the Company  received a  quarterly  rental  payment of $32,250  from I.P.
Petroleum,  but that lease was terminated for  non-payment of rentals during the
second quarter of 1996. Also in the first quarter of 1996, the Company  received
a $5,625 bonus on a mineral  lease to Capital  Energy,  Inc.  Acreage under that
lease is now held by production from the above-mentioned  Intercoastal  Shipyard
No. 2 well.
                  As compared with the first quarter of 1996, expenses increased
$779 or approximately 1%. The decrease in legal and accounting  services,  which
reflects a reduction in attorneys' fees, was offset by an increase in consultant
fees and  miscellaneous  expenses.  Most of the increase is  attributable  to an
exceptional  bonus paid to the Company's  manager in  recognition of commendable
results achieved in 1996.
                  The change in income tax  expense for the three  months  ended
March 31, 1997 resulted from an increase in taxable income for the first quarter
of 1997 as compared to the first quarter of 1996.
                  The  Company's  continued  liquidity  is evidenced by the fact
that  approximately  92% of its assets,  as measured by book value, are cash and
U.S. Government and U.S. Government agency securities.  In addition to interest,
the Company  customarily  derives  essentially  all of its other income from the
granting of oil and gas leases,  the  collection  of bonuses,  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 9 of 11 Pages

<PAGE>



                           Part II - OTHER INFORMATION

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

                  The Company's Annual Meeting of Shareholders was held on March
18,  1997.  Management's  proposal to fix at five the number of  directors to be
elected for the ensuing year was approved by the following vote:
                  For          Against          Abstain          Broker Nonvotes
                  ---          -------          -------          ---------------
                663,878          -0-             22,790                -0-
                  Messrs. Fox, Grimball, Guarisco, Lyman and Powell were elected
directors for the ensuing year by the following vote:
<TABLE>
<CAPTION>

                                                                      Withhold
                                                    For                 Vote           Broker Nonvotes

                  <S>                             <C>                  <C>                    <C>
                  Richard W. Fox                  680,212               6,475                 -0-
                  Edward B. Grimball              680,212               6,475                 -0-
                  Peter V. Guarisco               680,212               6,475                 -0-
                  Guy C. Lyman, Jr.               669,070              17,538                 -0-
                  M. Cleland Powell, III          680,196               6,475                 -0-
</TABLE>


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.








                               Page 10 of 11 Pages

<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


 May 2, 1997                           /s/ Edward B. Grimball
 --------------------------------      -----------------------------------------
                                       Edward B. Grimball
                                       President and Principal Financial Officer













                               Page 11 of 11 Pages

<PAGE>
                                 EXHIBIT INDEX

              Exhibit Number                  Description
              --------------             -----------------------

                   27                    Financial Data Schedule