November 12, 1996







Securities and Exchange Commission
450 Fifth St., N.W.
Judiciary Plaza
Washington, D.C.  20549-1004

Via Edgar Electronic Filing System

                                                      In Re:  File Number 0-9219
                                                              ------------------

Gentlemen:

                Pursuant  to   regulations   of  the   Securities  and  Exchange
Commission, submitted herewith for filing on behalf  of AVOCA  INCORPORATED (the
"Company")  is  the  Company's  Report  on  Form  10-QSB  for  the  period ended
September 30, 1996.

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

                                                      Sincerely,

 
                                                      /s/ Edward B. Grimball
                                                      --------------------------
                                                      Edward B. Grimball
                                                      Executive Vice President &
                                                      Chief Financial Officer
                                                      (504) 586-7570

EBG/drm

<PAGE>

                   U.S. Securities and Exchange Commission

                             Washington, D.C. 20549

                                   FORM 10-QSB

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

For the quarterly period ended  September 30, 1996
                               -------------------------------------------------
[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

For the transition period from                       to
                               ----------------------   ------------------------

Commission file number 0-9219
                       ---------------------------------------------------------

                               AVOCA, INCORPORATED
--------------------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)

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

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

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


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

Check whether the issuer (1) filed all  reports  required to be filed by Section
13 or 15(d) of the Exchange Act during  the past  12 months (or for such shorter
period that the registrant was required to file  such reports), and (2) has been
subject to such filing requirements for the past 90 days.  Yes  X    No
                                                              -----    -----

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:   830,500 shares on October 31, 1996
                                          --------------------------------------

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

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

                               Page 1 of 12 Pages
<PAGE>



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

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



                                                                        Page No.
                                                                        --------

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

                  Condensed Balance Sheet - September 30, 1996                 4

                  Condensed Statements of Income
                           Three Months Ended September 30, 1996
                           and 1995 and Nine Months Ended
                           September 30, 1996 and 1995                         5

                  Condensed Statements of Cash Flows
                           Nine Months Ended September 30, 1996
                           and 1995                                            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

                  Exhibits and Reports on Form 8-K                            12

                  Signature                                                   12



                               Page 2 of 12 Pages
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                               AVOCA, INCORPORATED

                         PART I - FINANCIAL INFORMATION

                           Item 1 Financial Statements























                               Page 3 of 12 Pages

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<TABLE>
<CAPTION>
                               Avoca, Incorporated

                       Condensed Balance Sheet (Unaudited)

                               September 30, 1996




Assets
<S>                                                                                                             <C>
Current assets:
      Cash                                                                                                      $    68,157
      Short-term investments                                                                                      1,746,125
      Accounts receivable                                                                                            29,117
      Accrued interest receivable                                                                                    44,205
      Prepaid expenses                                                                                               10,454
                                                                                                                -----------
Total current assets                                                                                              1,898,058

Property and equipment, less accumulated depreciation and depletion                                                  76,233

Other assets:
      Long-term investment                                                                                          639,169
      Avoca Drainage Bonds, $415,000, in default -- at nominal amount                                                     1
                                                                                                                -----------
                                                                                                                $ 2,613,461
                                                                                                                ===========



Liabilities and shareholders' equity
Current liabilities:
      Accounts payable                                                                                          $    12,239
      Income taxes payable                                                                                           99,927
                                                                                                                -----------
Total current liabilities                                                                                           112,166

Deferred income taxes                                                                                                14,029

Shareholders' equity:
      Common stock, no par value -- authorized, issued and outstanding
           830,500 shares                                                                                            94,483
      Retained earnings                                                                                           2,392,783
                                                                                                                -----------
Total shareholders' equity                                                                                        2,487,266
                                                                                                                -----------
                                                                                                                $ 2,613,461
                                                                                                                ===========
See accompanying notes
</TABLE>

                               Page 4 of 12 Pages

<PAGE>
<TABLE>
<CAPTION>



                               Avoca, Incorporated

                   Condensed Statements of Income (Unaudited)




                                                                Three months ended                        Nine months ended
                                                                    September 30                             September 30
                                                               1996                 1995                 1996                1995
                                                          ---------            ---------            ---------           ---------
Revenue:
<S>                                                       <C>                  <C>                  <C>                 <C>       
    Royalties                                             $  70,443            $  25,606            $ 166,063            $  84,432
    Less severance taxes                                      1,203                1,490                3,474                5,189
                                                          ---------            ---------            ---------            ---------
                                                             69,240               24,116              162,589               79,243

    Lease bonuses and delay rentals                          46,200               32,250               84,075               32,250
    Interest income                                          32,092               27,423               88,168               81,915
    Rental and other income                                 269,217                8,122              290,217               31,522
                                                          ---------            ---------            ---------            ---------
                                                            416,749               91,911              625,049              224,930


Expenses:
    Legal and accounting services                             6,513               21,616               20,285               45,524
    Consultant fees                                           9,000                8,750               32,000               31,250
    Geological and engineering fees                           6,428                3,262               11,152                5,867
    Insurance                                                 5,747                6,003               17,600               18,014
    Miscellaneous expenses                                    2,779                7,233               28,820               40,795
                                                          ---------            ---------            ---------            ---------
                                                             30,467               46,864              109,857              141,450
                                                          ---------            ---------            ---------            ---------

Income before income taxes                                  386,282               45,047              515,192               83,480

Income taxes                                                119,257               14,683              148,556               16,704
                                                          ---------            ---------            ---------            ---------
Net income                                                $ 267,025            $  30,364            $ 366,636            $  66,776
                                                          =========            =========            =========            =========





Net income per share                                      $    .32             $     .04            $     .44            $    .08
                                                          =========            =========            =========            ========







See accompanying notes.
</TABLE>

                               Page 5 of 12 Pages

<PAGE>

<TABLE>
<CAPTION>


                               Avoca, Incorporated

                 Condensed Statements of Cash Flows (Unaudited)




                                                                                                 Nine months ended
                                                                                                    September 30
                                                                                                1996                  1995
                                                                                          --------------------------------
Operating activities
<S>                                                                                      <C>                    <C>      
Net income                                                                               $   366,636            $   66,776
Adjustments to reconcile net income to net cash
  provided by operating activities:
      Depreciation expense                                                                     2,052                 1,989
      Deferred taxes                                                                       (     380)            (   7,263)
      Loss on sale of asset                                                                                          7,153
      Changes in operating assets and liabilities:
        Operating assets                                                                   (  35,624)            (   6,262)
        Operating liabilities                                                                 49,834             (   4,068)
                                                                                         -----------            ----------
Net cash provided by operating activities                                                    382,518                58,325

Investing activities
Maturity of short-term investments                                                           583,987             1,932,310
Proceeds from the sale of short-term investments                                                                   172,785
Purchase of short-term investments                                                         ( 339,352)           (1,251,006)
Purchase of long-term investments                                                          ( 639,169)           (  722,531)
Proceeds from sale of asset                                                                                         15,750
Purchase of property, plant & equipment                                                                         (   31,200)
                                                                                         -----------            ----------
Net cash provided by (used in) investing activities                                         (394,534)              116,108

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

Increase (decrease) in cash and cash equivalents                                          (  136,591)               49,858
Cash and cash equivalents at beginning of period                                             204,748                15,025
                                                                                         -----------            ----------
Cash and cash equivalents at end of period                                               $    68,157            $   64,883
                                                                                         ===========            ==========








See accompanying notes.
</TABLE>

                               Page 6 of 12 Pages

<PAGE>


                               Avoca, Incorporated

               Notes to Condensed Financial Statements (Unaudited)

                      Nine months ended September 30, 1996




1.  Basis of Accounting

The accompanying  unaudited condensed financial statements have been prepared in
accordance with generally accepted  accounting  principles for interim financial
information  and  with the  instructions  of Form  10-QSB  and  Item  310(b)  of
Regulation  S-B.  Accordingly,  they do not include all of the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements. In the opinion of management,  all adjustments (consisting
of normal recurring accruals)  considered necessary for a fair presentation have
been included.  Operating  results for the nine-month period ended September 30,
1996 are not necessarily  indicative of the results that may be expected for the
year ended  December 31, 1996. 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, 1995.

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 12 Pages

<PAGE>




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

         The  Company  enjoyed an  exceptional  third  quarter.  As shown by the
unaudited  condensed  statements of income, net income increased from $30,364 to
$267,025 compared with the third quarter of 1995.
         Virtually  all of the increase,  reflected in the income  statements as
rental and other income, comes from the granting of two new 3-D seismic permits,
totaling $265,205. The first permit was granted to Geco-Prakla,  Inc. and covers
3073 acres on the western part of Avoca Island.  The second  permit,  granted to
Texas Meridian  Resources  Exploration,  Inc., covers 7535 acres on the southern
part of the island and includes an option until January 10, 1998 to lease all or
part (not less than 753 acres) of the permitted acreage for mineral development.
         Royalty income,  net of severance  taxes, for the third quarter of 1996
increased by $45,124 or approximately 187% as compared with the third quarter of
1995.  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 by its  operator,  Black Gold  Production  Company,  Inc.  during the
second  quarter of 1996.  It  produces  from the B Sand Unit B under the Capital
Energy,  Inc. lease signed in the first quarter of 1996 and originally  produced
under a lease to Cabot Carbon  Corporation  dated  January 19, 1960.  Production
from this unit is responsible for approximately  $41,542 or 60% of the Company's
royalty income for the third quarter of 1996. The increase is also  attributable
to  significantly  higher prices received by Delta Operating  Company  (formerly
Alliance  Operating  Corporation)  for gas production  from the Avoca No. 1 well
during the third quarter of 1996. Although third quarter gas production from the
Avoca No. 1 well was  approximately 27% lower than production for the comparable
period of 1995, the average sales price of gas rose from $1.50 per

                               Page 8 of 12 Pages

<PAGE>



MCF for the three months ended September 30, 1995 to $2.41 per MCF for the three
months ended  September 30, 1996. The well was off production  September 1st and
2nd for a chemical treatment to clean the producing  formation near the wellbore
in order to improve the well's performance. The operator has advised the Company
that the treatment appears to have been successful.
         Lease  bonuses and delay  rentals for the three month period  increased
$13,950  or  approximately  43% as  compared  to the third  quarter of 1995 as a
result of a new oil,  gas and  mineral  lease  that was  granted  to  Burlington
Resources  Oil & Gas Co. on August 12, 1996  covering  420 acres on the northern
part of Avoca  Island.  The lease  includes a 90 day  option  for a 3-D  seismic
permit on approximately  7,300 acres of Company property on the northern part of
Avoca Island.
         Interest  income  on  U.S.   Government  and  U.S.   Government  agency
securities  increased  $4,669 or 17% because of higher  interest  rates and more
available funds for investment.
         As compared with the third quarter of 1995,  expenses decreased $16,397
or  approximately  35% during the third  quarter  of 1996  primarily  because of
reduced legal fees,  specifically those related to the Company's litigation with
Gibson Roofers,  Inc. The increase in geological and engineering fees was offset
by lower miscellaneous expenses.
         The change in income tax expense for the three months  ended  September
30, 1996  resulted  from an increase in taxable  income for the third quarter of
1996 as compared to the third quarter of 1995.
         Total  revenue  for the nine month  period  ended  September  30,  1996
increased  $400,119 or  approximately  178%. The increase is  attributable  to a
substantial  increase in rental and other income,  as well as increased  royalty
income, lease bonuses and delay rentals and interest income.

                               Page 9 of 12 Pages

<PAGE>



         Rental and other income for the nine month period ended  September  30,
1996  increased  $258,695 or  approximately  821%  primarily  as a result of the
signing of two new 3-D seismic permits on Company lands as discussed above.
         Revenues from royalties,  net of severance taxes, during the first nine
months of 1996 increased  $83,346 or approximately  105%,  primarily  because of
income received from the successful workover of the Intercoastal  Shipyard No. 2
well in the Ramos Field.  The Company began to receive royalty income during the
second quarter of 1996 from the B Sand Unit B under its 45.029 acre oil, gas and
mineral lease signed in the first quarter of 1996 with Capital Energy, Inc.
         Significantly  higher prices received from Delta Operating  Company for
gas  production  from the Avoca No. 1 well  during the first nine months of 1996
also  contributed  to higher royalty income as compared to the first nine months
of 1995. The average sales price per MCF was $2.54 and $1.52, respectively,  for
the nine months ended  September 30, 1996 and 1995. Gas production from the well
in 1996 was approximately 26% lower than production for the first nine months of
1995.  During 1995, the Delta  Operating  Company No. 1 well was responsible for
almost all of the Company's  royalty income.  For the first nine months of 1996,
it has been responsible for 56% of the Company's royalty income.
         Lease  bonuses  and delay  rentals  for the first  nine  months of 1996
increased  by $51,825,  of which  $46,200  was  received as a lease bonus in the
third quarter from Burlington  Resources Oil & Gas Co. The remaining increase of
$5,625 is  attributable  to a lease bonus received during the first quarter from
Capital Energy, Inc. No drilling operations were commenced during the first nine
months of 1996.

                               Page 10 of 12 Pages

<PAGE>



         Interest  income  on  U.S.   Government  and  U.S.   Government  agency
securities for the nine month period ended  September 30, 1996 increased  $6,253
or 8% because of higher  interest rates and the  availability  of more funds for
investment.
         Expenses for the nine month period ended  September 30, 1996  decreased
$31,593 or approximately 22% because of a substantial decrease in legal fees and
miscellaneous expenses offset by an increase in geological and engineering fees.
Expenses for the  corresponding  period of 1995  included  $21,642 of legal fees
pertaining to the Company's  litigation with Gibson Roofers,  Inc. and a loss of
$7,153 recorded as a miscellaneous expense on the sale of a mobile home formerly
occupied by the Company's  caretaker.  Geological and engineering fees increased
by $5,285 because of more need for these professional services.
         The change in income tax expense for the nine  months  ended  September
30, 1996 resulted  from an increase in taxable  income for the first nine months
of 1996 as compared to the first nine months of 1995.
         The  Company's  continued  liquidity  is  evidenced  by the  fact  that
approximately  94% of its assets,  as measured by book value,  are cash and U.S.
Government  and U.S.  Government  agency  securities.  In  addition  to interest
income, the Company customarily derives essentially all of its other income from
the granting of oil and gas leases, 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 11 of 12 Pages

<PAGE>


                           Part II - OTHER INFORMATION

Item 1 - Legal Proceedings

         As noted in previous  reports,  an  historic  home owned by the Company
burned to the  ground  during the course of  roofing  work  performed  by Gibson
Roofers,  Inc.  The  Company  sued  Gibson and its insurer for total loss of the
building. Gibson counterclaimed for recovery under its roofing contract.
         Having settled its claims against Gibson, the Company moved for summary
judgment  on  Gibson's  counterclaim.  The trial  court  granted  the motion and
dismissed  the  counterclaim.  Gibson's  appeal was  dismissed  during the third
quarter of 1996, thus finally bringing the litigation to an end.
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


November 6, 1996                        /s/ Edward B. Grimball
--------------------------------       -----------------------------------------
Date                                   Edward B. Grimball
                                       President and Principal Financial Officer


/121260

                               Page 12 of 12 Pages

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