August 11, 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
June 30, 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     June 30, 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 July 31, 1997
                                           -------------------------------------

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

An exhibit index is located at page  13  of this report.
                                   ------

                               Page 1 of 13 Pages
<PAGE>



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

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



                                                                        Page No.
                                                                        --------

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

                  Condensed Balance Sheet - June 30, 1997                      4

                  Condensed Statements of Income
                           Three Months Ended June 30, 1997 and
                           1996 and Six Months Ended June 30, 1997
                           and 1996                                            5

                  Condensed Statements of Cash Flows
                           Six Months Ended June 30, 1997
                           and 1996                                            6

                  Notes to Condensed Financial Statements                      7

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

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

                  Exhibits and Reports on Form 8-K                            12

                  Signature                                                   12


                               Page 2 of 13 Pages

<PAGE>



                               AVOCA, INCORPORATED

                         PART I - FINANCIAL INFORMATION

                           Item 1 Financial Statements




                               Page 3 of 13 Pages

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

                       Condensed Balance Sheet (Unaudited)

                                  June 30, 1997


Assets
Current assets:
<S>                                                                                                             <C>        
      Cash and cash equivalents                                                                                 $    36,464
      Short-term investments                                                                                      1,455,398
      Accounts receivable                                                                                            12,237
      Accrued interest receivable                                                                                    40,629
      Prepaid expenses                                                                                               17,165
                                                                                                                -----------
Total current assets                                                                                              1,561,893

Property and equipment, less accumulated depreciation and depletion                                                  74,182

Other assets:
      Long-term investments                                                                                         829,224
      Avoca Drainage Bonds, $415,000, in default -- at nominal amount                                                     1
                                                                                                                -----------
                                                                                                                $ 2,465,300
                                                                                                                ===========


Liabilities and shareholders' equity Current liabilities:
      Accounts payable                                                                                          $     2,092
      Income taxes payable                                                                                           20,317
                                                                                                                -----------
Total current liabilities                                                                                            22,409

Deferred income taxes                                                                                                13,649

Shareholders' equity:
      Common stock, no par value -- authorized, issued and outstanding
           830,500 shares                                                                                            94,483
      Retained earnings                                                                                           2,334,759
                                                                                                                -----------
Total shareholders' equity                                                                                        2,429,242
                                                                                                                -----------
                                                                                                                $ 2,465,300
                                                                                                                ===========



See accompanying notes

</TABLE>
                               Page 4 of 13 Pages

<PAGE>
<TABLE>
<CAPTION>




                               Avoca, Incorporated

                   Condensed Statements of Income (Unaudited)




                                                                 Three months ended                       Six months ended
                                                                      June 30                                  June 30
                                                              1997                 1996                 1997                 1996
                                                          ---------            ---------           ----------            ---------
Revenue:
<S>                                                       <C>                  <C>                 <C>                   <C>      
    Royalties                                             $  18,935            $  60,424           $  130,653            $  95,620
    Less severance taxes                                        416                1,007                2,367                2,271
                                                          ---------            ---------           ----------            ---------
                                                             18,519               59,417              128,286               93,349
    Lease bonuses and delay rentals                              -                    -                    -                37,875
    Seismic permits                                         211,241                   -               211,241                   -
    Interest income                                          29,287               27,766               58,011               56,076
    Rental and other income                                  21,000               21,000               21,000               21,000
                                                          ---------            ---------           ----------            ---------
                                                            280,047              108,183              418,538              208,300


Expenses:
    Legal and accounting services                             8,613                4,208               12,024               13,772
    Consultant fees                                           9,000                9,000               28,000               23,000
    Geological and engineering fees                           1,289                1,962                3,875                4,724
    Insurance                                                 5,720                5,870               11,492               11,853
    Miscellaneous expenses                                    7,790                5,577               30,573               26,041
                                                          ---------            ---------           ----------            ---------
                                                             32,412               26,617               85,964               79,390
                                                          ---------            ---------           ----------            ---------

Income before income taxes                                  247,635               81,566              332,574              128,910

Income taxes                                                 51,061               27,182               73,888               29,299
                                                          ---------            ---------           ----------            ---------
Net income                                                $ 196,574            $  54,384           $  258,686            $  99,611
                                                          =========            =========           ==========            =========





Net income per share                                      $     .24            $    .07            $     .31             $    .12
                                                          =========            ========            =========             ========

See accompanying notes.
</TABLE>

                               Page 5 of 13 Pages

<PAGE>
<TABLE>
<CAPTION>



                               Avoca, Incorporated

                 Condensed Statements of Cash Flows (Unaudited)




                                                                                                    Six months ended
                                                                                                        June 30
                                                                                                1997                 1996
                                                                                           -------------------------------
Operating activities
<S>                                                                                      <C>                   <C>      
Net income                                                                               $   258,686           $    99,611
Adjustments to reconcile net income to net cash
  provided by operating activities:
      Depreciation expense                                                                     1,368                 1,368
      Deferred taxes                                                                      (      253)           (      254)
      Changes in operating assets and liabilities:
        Operating assets                                                                       4,004            (   44,383)
        Operating liabilities                                                             (    3,918)           (   36,514)
                                                                                         -----------           -----------
Net cash provided by operating activities                                                    259,887                19,828

Investing activities
Maturity of short-term investments                                                         1,236,947               583,987
Purchase of short-term investments                                                        (  322,548)           (  179,895)
Purchase of long-term investments                                                         (  829,224)           (  399,187)
                                                                                         -----------           -----------
Net cash provided by investing activities                                                     85,175                 4,905

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

Decrease in cash and cash equivalents                                                     (   28,663)           (   99,842)
Cash and cash equivalents at beginning of period                                              65,127               204,748
                                                                                         -----------           -----------
Cash and cash equivalents at end of period                                               $    36,464           $   104,906
                                                                                         ===========           ===========








See accompanying notes.
</TABLE>

                               Page 6 of 13 Pages

<PAGE>


                               Avoca, Incorporated

               Notes to Condensed Financial Statements (Unaudited)

                         Six months ended June 30, 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 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, 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  Government  securities  held with a
maturity of three months or less when purchased to be cash equivalents.






                               Page 7 of 13 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 second  quarter of 1997 as  compared  with the second  quarter of
1996 increased from $54,384 to $196,574.
                  Seismic  permits for the second  quarter of 1997  increased by
$211,241  from the granting of two new 3-D seismic  permits and the amendment of
an existing 3-D seismic  permit.  The first  permit was granted to  Geco-Prakla,
Inc. and covers 318.64 acres held by production  from the Bateman Lake Field and
the Ramos Field.  The second permit,  granted to Burlington  Resources Oil & Gas
Co.,  covers 596 acres on the  southwestern  part of the island and  includes an
option  until  April 11,  1998 to lease all or part (not less than 298 acres) of
the permitted acreage for mineral  development.  The amendment extended the term
of the 3-D  seismic  permit  granted  last  year  to  Texas  Meridian  Resources
Exploration,  Inc. covering 7,535 acres on the southern part of the island.  The
permit  includes an option,  extended  until May 31, 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 second quarter
of 1997  decreased  $40,898 or  approximately  69% as  compared  with the second
quarter of 1996.  The  decrease is  attributable  to the  continuing  decline in
production  from the  Intercoastal  Shipyard No. 2 well under the Capital Energy
Inc. lease in the Ramos Field. The well, which was responsible for approximately
50% of the Company's  royalty  income for the second  quarter of 1996,  went off
production on April 8, 1997.  Following an unsuccessful  workover  attempt,  the
operator is considering additional measures to restore production. The future of
the well is uncertain.
                  The decrease is also  attributable to the shut in of the Delta
Operating Company (formerly  Alliance  Operating  Corporation)  Avoca No. 1 well
from March 11, 1997 to April 29, 1997 because of repairs to the  purchaser's gas
pipeline. The well returned to successful production on


                               Page 8 of 13 Pages

<PAGE>



April 30, 1997. Production was 48% lower than the comparable period of 1996, but
the sales price of gas was 13% higher.
                  Interest income on U.S.  Government and U.S. Government agency
securities  increased  $1,521  or 5%  because  of higher  interest  rates and an
increase in funds available for investment.
                  As  compared  with  the  second  quarter  of  1996,   expenses
increased  $5,795  or  approximately  22%.  Increases  in legal  and  accounting
services and miscellaneous expenses were partially offset by slight decreases in
geological and engineering fees and insurance expenses.
                  The change in income tax  expense for the three  months  ended
June 30,  1997  resulted  from an  increase  in taxable  income  from the second
quarter of 1997 as compared to the second quarter of 1996.
                  Total  revenue  for the six month  period  ended June 30, 1997
increased $210,238 or approximately  101%. The increase results from substantial
seismic  permit  income and  increases  in royalty  income and  interest  income
partially offset by a lack of lease bonus and delay rental income.
                  Seismic  permit  income of $211,241  for the six month  period
ended June 30, 1997 as compared  with no such income in the same period of 1996,
was realized from the granting of two new 3-D seismic  permits and the extension
of an existing 3-D permit on Company lands as discussed above.
                  Revenues  from  royalties  net of  severance  taxes during the
first six months of 1997  increased  $34,937  or  approximately  37%,  primarily
because of income  received  from the  Intercoastal  Shipyard  No. 2 well in the
Ramos Field.  Gas production  from the well as of March 31, 1997 had declined to
approximately  50% of the 1996  year-end  production  rate  and the well  ceased
production



                               Page 9 of 13 Pages

<PAGE>



on April 8,  1997.  As  discussed  above,  the  operator  after an  unsuccessful
workover  is  considering  additional  measures to restore  production,  but the
future of the well is uncertain.
                  Gas production from Delta  Operating  Company Avoca No. 1 well
for the first six months of 1997 was 4% less than production for the same period
of 1996  because the well was off  production  for 49 days because of repairs to
the  purchaser's gas pipeline.  The well returned to production  April 30, 1997.
The average  sales  price per MCF of gas from the Avoca No. 1 well was  slightly
higher for the first six  months of 1997 than the first six months of 1996.  For
the first six months of 1997, it has been  responsible  for 58% of the Company's
royalty income.
                  No income was received  from lease  bonuses and delay  rentals
for the first six months of 1997 as compared with $37,875 received for the first
six months of 1996. In the first quarter of 1996, $32,250 was received from I.P.
Petroleum  Co.,  Inc. as a quarterly  delay  rental  payment  under its 860 acre
mineral lease.  The lease was terminated for non-payment of the quarterly rental
payment due in the second quarter of 1996. The remaining $5,625 was attributable
to a lease bonus  received  by the  Company on its new mineral  lease to Capital
Energy,  Inc. No drilling  operations were commenced during the first six months
of 1997, but 3-D seismic operations are currently taking place on the island.
                  Interest income on U.S.  Government and U.S. Government agency
securities for the six month period ended June 30, 1997  increased  $1,935 or 3%
because  of  higher  interest  rates  and an  increase  in funds  available  for
investments.
                  Expenses  for  the  six  month  period  ended  June  30,  1997
increased  $6,574 or 8%. The decrease in  geological  and  engineering  fees and
legal and accounting  services,  which reflects a reduction in attorney's  fees,
was offset by an increase in consultant fees and miscellaneous expenses.



                               Page 10 of 13 Pages

<PAGE>



Most  of the  increase  is  attributable  to an  exceptional  bonus  paid to the
Company's  manager in recognition of commendable  operating  results achieved in
1996.
                  The change in income tax expense for the six months ended June
30, 1997 resulted from an increase in taxable income for the first six months of
1997 as compared to the first six months of 1996.
                  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 the
interest,  the Company  customarily  derives essentially all of its other income
from the granting of oil and gas leases,  seismic  permits,  the  collection  of
bonus and 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 13 Pages

<PAGE>



                           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 6, 1997                                           /s/ Edward B. Grimball
-------------------                                      -----------------------
                                                         Edward B. Grimball
                                                         President and Principal
                                                         Financial Officer






                               Page 12 of 13 Pages

<PAGE>


                                  EXHIBIT INDEX


                                                  Sequentially
 Exhibit                                            Numbered
 Number       Description                             Page


   27         Financial Data Schedule




                               Page 13 of 13 Pages