United States
                     SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549


                                 FORM 10-QSB


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

              For the quarterly period ended September 30, 1996

                                     OR

           [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
                       SECURITIES EXCHANGE ACT OF 1934

       For the transition period from...............to...............

                     Commission file number 33-34348-02

              ENEX OIL & GAS INCOME PROGRAM V - SERIES 3, L.P.
      (Exact name of small business issuer as specified in its charter)

           New Jersey                                           76-0303876
 (State or other jurisdiction of                             (I.R.S. Employer
 incorporation or organization)                             Identification No.)

                       Suite 200, Three Kingwood Place
                            Kingwood, Texas 77339
                  (Address of principal executive offices)

                       Registrant's telephone number:
                               (713) 358-8401


         Check whether the issuer (1) has 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

Transitional Small Business Disclosure Format (Check one):

                                                 Yes        No x


<PAGE>


                                PART I. FINANCIAL INFORMATION

Item 1. Financial Statements
<TABLE>
<CAPTION>
ENEX OIL & GAS INCOME PROGRAM V - SERIES 3, L.P.
BALANCE SHEET
--------------------------------------------------------------------------------

                                                               September 30,
ASSETS                                                              1996
                                                           ---------------------
                                                                (Unaudited)
CURRENT ASSETS:
<S>                                                        <C>                 
  Cash                                                     $              1,990
  Accounts receivable - oil & gas sales                                  18,927
  Other current assets                                                    1,679
                                                           ---------------------

Total current assets                                                     22,596
                                                           ---------------------

OIL & GAS PROPERTIES
  (Successful efforts accounting method) - Proved
   mineral interests and related equipment & facilities                 953,091
  Less  accumulated depreciation and depletion                          712,456
                                                           ---------------------

Property, net                                                           240,635
                                                           ---------------------

TOTAL                                                      $            263,231
                                                           =====================

LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
   Accounts payable                                        $              3,985
   Payable to general partner                                            20,038
                                                           ---------------------

Total current liabilities                                                24,023
                                                           ---------------------

NONCURRENT PAYABLE TO GENERAL PARTNER                                    20,039
                                                           ---------------------

PARTNERS' CAPITAL:
   Limited partners                                                     213,226
   General partner                                                        5,943
                                                           ---------------------

Total partners' capital                                                 219,169
                                                           ---------------------

TOTAL                                                      $            263,231
                                                           =====================
</TABLE>


Number of $500 Limited Partner units outstanding                          2,020

See accompanying notes to financial statements.
--------------------------------------------------------------------------------

                                       I-1
<PAGE>
<TABLE>
<CAPTION>
ENEX OIL & GAS INCOME PROGRAM V - SERIES 3, L.P.
STATEMENTS OF OPERATIONS
--------------------------------------------------------------------

(UNAUDITED)                                       QUARTER ENDED                         NINE MONTHS ENDED
                                           ---------------------------------------    ----------------------------------------

                                              September 30,        September 30,        September 30,         September 30,
                                                  1996                 1995                 1996                  1995
                                           ------------------   ------------------    -----------------    -------------------

REVENUES:
<S>                                        <C>                  <C>                    <C>                  <C>                
  Oil and gas sales                        $          38,324    $          28,094      $       121,546      $          98,726  
                                           ------------------   ------------------    -----------------    -------------------

EXPENSES:
  Depreciation, depletion and amortization            12,432               18,116               41,575                 57,529
  Impairment of property                                   -                    -               64,028                      -
  Lease operating expenses                            10,324               11,986               44,321                 38,655
  Production taxes                                     2,041                1,532                6,662                  5,710
  General and administrative                           5,852                6,161               20,075                 21,717
                                           ------------------   ------------------    -----------------    -------------------

Total expenses                                        30,649               37,795              176,661                123,611
                                           ------------------   ------------------    -----------------    -------------------


NET (LOSS)                                 $           7,675    $          (9,701)     $       (55,115)      $        (24,885) 
                                           ==================   ==================    =================    ===================
</TABLE>



See accompanying notes to financial statements.
------------------------------------------------------------------------------

                                       I-2

<PAGE>
<TABLE>
<CAPTION>
ENEX OIL AND GAS INCOME PROGRAM V - SERIES 3, L.P.
STATEMENTS OF CASH FLOWS
-------------------------------------------------------------------------------------------------

(UNAUDITED)
                                                         NINE MONTHS ENDED
                                                     --------------------------------------------

                                                        September 30,            September 30,
                                                             1996                    1995
                                                     -------------------      -------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                  <C>                         <C>              
Net (loss)                                           $          (55,115)         $       (24,885) 
                                                     -------------------      -------------------

Adjustments to reconcile net (loss) to net cash
   provided by operating activities
  Depreciation, depletion and amortization                       41,575                   57,529
  Impairment of property                                         64,028                        -
(Increase) decrease in:
  Accounts receivable - oil & gas sales                          (1,421)                   1,445
  Other current assets                                               14                       18
(Decrease) in:
   Accounts payable                                              (6,301)                  (2,427)
   Payable to general partner                                   (13,993)                 (15,890)
                                                     -------------------      -------------------

Total adjustments                                                83,902                   40,675
                                                     -------------------      -------------------

Net cash provided by operating activities                        28,787                   15,790
                                                     -------------------      -------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Property additions - development costs                       (9,976)                 (11,568)
                                                     -------------------      -------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Cash distributions                                           (19,789)                 (13,381)
                                                     -------------------      -------------------

NET (DECREASE) IN CASH                                             (978)                  (9,159)

CASH AT BEGINNING OF YEAR                                         2,968                   12,272
                                                     -------------------      -------------------

CASH AT END OF PERIOD                                $            1,990          $         3,113  
                                                     ===================      ===================

</TABLE>



See accompanying notes to financial statements.
-----------------------------------------------------------------------------

                                       I-3

<PAGE>


ENEX OIL & GAS INCOME PROGRAM V - SERIES 3, L.P.

NOTES TO UNAUDITED FINANCIAL STATEMENTS

1.       The  interim  financial   information  included  herein  is  unaudited;
         however,  such information reflects all adjustments  (consisting solely
         of  normal  recurring   adjustments)  which  are,  in  the  opinion  of
         management,  necessary  for a fair  presentation  of  results  for  the
         interim periods.

2.       A cash  distribution was made to the limited partners of the Company in
         the amount of $4,6141  representing  net revenues  from the sale of oil
         and  gas  produced  from   properties   owned  by  the  Company.   This
         distribution was made on July 31, 1996.

3.       On August 9, 1996, the Company's General Partner submitted  preliminary
         proxy material to the Securities  Exchange Commission with respect to a
         proposed  consolidation  of the Company with 33 other  managed  limited
         partnerships.  On November  13,  1996,  the Company  submitted  amended
         preliminary   proxy   material   to  the  SEC  with   respect  to  this
         consolidation.  The terms and conditions of the proposed  consolidation
         are set forth in such preliminary proxy material.

4.   The Financial  Accounting Standards Board has issued Statement of Financial
     Accounting  Standard  ("SFAS") No. 121,  "Accounting  for the Impairment of
     Long-Lived  Assets  and for  Long-Lived  Assets to be  Disposed  Of," which
     requires  certain assets to be reviewed for impairment  whenever  events or
     circumstances indicate the carrying amount may not be recoverable. Prior to
     this pronouncement,  the Company assessed properties on an aggregate basis.
     Upon  adoption of SFAS 121, the Company  began  assessing  properties on an
     individual  basis,  wherein  total  capitalized  costs may not  exceed  the
     property's  fair market  value.  The fair market value of each property was
     determined by H. J. Gruy and  Associates,  ("Gruy").  To determine the fair
     market value, Gruy estimated each property's oil and gas reserves,  applied
     certain  assumptions  regarding price and cost  escalations,  applied a 10%
     discount factor for time and certain discount  factors for risk,  location,
     type   of   ownership   interest,   category   of   reserves,   operational
     characteristics,  and other  factors.  In the first  quarter  of 1996,  the
     Company recognized a non-cash impairment of $64,028 for certain oil and gas
     properties  due to market  indications  that the carrying  amounts were not
     fully recoverable.

                                       I-4

<PAGE>



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

Third Quarter 1995 Compared to the Third Quarter of 1996

Oil and gas  sales for the  third  quarter  increased  to  $38,324  in 1996 from
$28,094  in 1995.  This  represents  an  increase  of $10,230  (36%).  Oil sales
increased  by $6,149  (32%).  A 30%  increase  in the  average  oil sales  price
increased sales by $5,884. A 2% increase in oil production increased sales by an
additional  $305.  Gas sales  increased by $4,081  (47%).  A 37% increase in the
average  gas sales  price  increased  sales by  $3,147.  An 8%  increase  in gas
production  increased sales by an additional  $934. The increases in oil and gas
production were a result of higher production from the FEC acquisition, in which
the Company  obtained  additional  interests  from farmouts which reached payout
during 1995.  The  increases in the average oil and gas sales prices  correspond
with higher prices in the overall market for the sale of oil and gas.

Lease operating  expenses decreased to $10,324 in the third quarter of 1996 from
$11,986  in the third  quarter of 1995.  This  represents  a decrease  of $1,662
(13%). The decrease is parimrily the result of the changes in production,  noted
above.

Depreciation and depletion  expense decreased to $12,432 in the third quarter of
1996 from $16,096 in the third  quarter of 1995.  This  represents a decrease of
$3,664 (25%).  A 34% decrease in the  depletion  rate reduced  depreciation  and
depletion  expense by $4,357.  This decrease was partially offset by the changes
in  productions,  noted above.  The rate decrease was primarily due to the lower
property basis  resulting  from the  recognition of an impairment of property of
$64,028 in the first quarter of 1996.

General and administrative  expenses decreased to $5,852 in the third quarter of
1996 from  $6,161 in the third  quarter of 1995.  This  decrease of $309 (5%) is
primarily  due to less  staff  time  being  required  to  manage  the  Company's
operations.

First Nine Months in 1995 Compared to First Nine Months in 1996

Oil and gas sales for the first nine months  increased  to $121,546 in 1996 from
$98,726  in 1995.  This  represents  an  increase  of $22,820  (23%).  Oil sales
increased  by $12,689  (19%).  A 16%  increase  in the  average  oil sales price
increased sales by $10,784.  A 3% increase in oil production  increased sales by
an additional  $1,905.  Gas sales  increased by $10,131 (35%). A 41% increase in
the average gas sales  price  increased  sales by  $11,987.  This  increase  was
partially  offset  by a 4%  decrease  in gas  production.  The  increase  in oil
production is a result of higher  production from the FEC acquisition,  in which
the Company  obtained  additional  interests  from farmouts which reached payout
during  1995.  The  decrease  in gas  production  was  primarily  due to natural
production   declines  partially  offset  by  higher  production  from  the  FEC
acquisition. The increase in the average oil sales price corresponds with higher
prices in the overall  market for the sale of oil.  The  increase in the average
gas sales price was due to higher  expenses  incurred on the FEC  acquisition on
which the Company pays a net profits royalty,  coupled with higher prices in the
overall market for the sale of gas.

Lease operating  expenses  increased to $44,321 in the first nine months of 1996
from  $38,655 in the first nine months of 1995.  The increase of $5,666 (15%) is
primarily due to ad valorem taxes

                                       I-5

<PAGE>



paid by the operator of the FEC  acquisition  in the second  quarter of 1996 for
the 1995 and 1996 tax years.

Depreciation and depletion expense decreased to $38,881 in the first nine months
of 1996  from  $51,469  in the first  nine  months of 1995.  This  represents  a
decrease  of $12,588  (24%).  The changes in  production,  noted  above,  caused
depreciation and depletion  expense to decrease by $732, while a 23% decrease in
the depletion rate reduced  depreciation and depletion  expense by an additional
$11,856.  The rate  decrease  was  primarily  due to the  lower  property  basis
resulting  from the  recognition  of an impairment of property of $64,028 in the
first quarter of 1996.

The  Financial  Accounting  Standards  Board has issued  Statement  of Financial
Accounting  Standard  ("SFAS")  No.  121,  "Accounting  for  the  Impairment  of
Long-Lived  Assets and for Long- Lived Assets to be Disposed Of," which requires
certain assets to be reviewed for impairment  whenever  events or  circumstances
indicate  the   carrying   amount  may  not  be   recoverable.   Prior  to  this
pronouncement,  the Company  assessed  properties  on an aggregate  basis.  Upon
adoption of SFAS 121, the Company  began  assessing  properties on an individual
basis, wherein total capitalized costs may not exceed the property's fair market
value.  The fair market value of each property was  determined by H. J. Gruy and
Associates,  ("Gruy").  To determine the fair market value,  Gruy estimated each
property's oil and gas reserves, applied certain assumptions regarding price and
cost  escalations,  applied a 10% discount factor for time and certain  discount
factors for risk,  location,  type of ownership interest,  category of reserves,
operational  characteristics,  and other factors.  In the first quarter of 1996,
the Company recognized a non-cash  impairment of $64,028 for certain oil and gas
properties due to market  indications  that the carrying  amounts were not fully
recoverable.

General  and  administrative  expenses  decreased  to  $20,075 in the first nine
months of 1996 from $21,717 in the first nine months of 1995.  This  decrease of
$1,642  (8%) is  primarily  due to less staff time being  required to manage the
Company's operations.


CAPITAL RESOURCES AND LIQUIDITY

The Company's cash flow from  operations is a direct result of the amount of net
proceeds  realized  from the sale of oil and gas  production.  Accordingly,  the
changes in cash flow from 1995 to 1996 are  primarily  due to the changes in oil
and  gas  sales  described  above.  It is the  general  partner's  intention  to
distribute  substantially  all of  the  Company's  available  cash  flow  to the
Company's partners.  The Company's "available cash flow" is essentially equal to
the net amount of cash provided by operating activities.

The Company will continue to recover its reserves and  distribute to the limited
partners  the net  proceeds  realized  from the sale of oil and gas  production.
Distribution  amounts are subject to change if net  revenues are greater or less
than  expected.  Nonetheless,  the general  partner  believes  the Company  will
continue  to have  sufficient  cash flow to fund  operations  and to  maintain a
regular pattern of distributions.

On August 9, 1996, the Company's  General Partner  submitted  preliminary  proxy
material  to the  Securities  Exchange  Commission  with  respect  to a proposed
consolidation of the Company with

                                       I-6

<PAGE>



33 other  managed  limited  partnerships.  On  November  13,  1996,  the Company
submitted  amended  preliminary  proxy  material to the SEC with respect to this
consolidation.  The terms and conditions of the proposed  consolidation  are set
forth in such preliminary proxy material.

As of September 30, 1996,  the Company had no material  commitments  for capital
expenditures.  The  Company  does  not  intend  to  engage  in  any  significant
developmental drilling activity.

                                                      I-7

<PAGE>




                           PART II. OTHER INFORMATION


         Item 1.   Legal Proceedings.

                   None

         Item 2.   Changes in Securities.

                   None

         Item 3.   Defaults Upon Senior Securities.

                   Not Applicable

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

                   Not Applicable

         Item 5.   Other Information.

                   Not Applicable

         Item 6.   Exhibits and Reports on Form 8-K.

                   (a)  There are no exhibits to this report.

                   (b)   The  Company  filed no  reports  on Form 8-K during the
                         quarter ended September 30, 1996.


                                      II-1

<PAGE>



                                   SIGNATURES


         In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned  thereunto duly
authorized.


                                                ENEX OIL & GAS INCOME
                                            PROGRAM V - SERIES 3, L.P.
                                                    (Registrant)



                                            By:ENEX RESOURCES CORPORATION
                                                   General Partner



                                            By: /s/ R. E. Densford
                                                    R. E. Densford
                                              Vice President, Secretary
                                            Treasurer and Chief Financial
                                                       Officer




November 13, 1996                           By: /s/ James A. Klein
                                               -------------------
                                                     James A. Klein
                                                 Controller and Chief
                                                  Accounting Officer



<PAGE>