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                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-KSB

     (Mark One)
               [X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE
                 SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]

                   For the fiscal year ended December 31, 1996

             [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
                SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

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

                         Commission file number 0-17560

                              ENEX OIL & GAS INCOME
                           PROGRAM IV - Series 2, L.P.
                 (Name of small business issuer in its charter)

                New Jersey                             76-0251420
      (State or other jurisdiction of               (I.R.S. Employer
      incorporation or organization)               Identification No.)

            800 Rockmead Drive
           Three Kingwood Place
              Kingwood, Texas                             77339
 (Address of principal executive offices)              (Zip Code)

         Issuer's telephone number, including area code: (713) 358-8401

       Securities registered under Section 12(b) of the Exchange Act: None

         Securities registered under Section 12(g) of the Exchange Act:

                          Limited Partnership Interest

         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

         Check if there is no  disclosure  of  delinquent  filers in response to
Item 405 of Regulation S-B is not contained in this form, and no disclosure will
be contained,  to the best of the registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB.[x]

       State issuer's revenues for its most recent fiscal year. $ 127,862

         State  the  aggregate   market  value  of  the  voting  stock  held  by
non-affiliates  computed by  reference to the price at which the stock was sold,
or the average bid and asked prices of such stock as of a specified  date within
the past 60 days (See  definition  of  affiliate  in Rule 12b-2 of the  Exchange
Act):

                                 Not Applicable

                      Documents Incorporated By Reference:

                                      None

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<PAGE>
                                TABLE OF CONTENTS

                            FORM 10-KSB ANNUAL REPORT
                      FOR THE YEAR ENDED DECEMBER 31, 1996
                ENEX OIL & GAS INCOME PROGRAM IV - SERIES 2, L.P.

Item No.                            Part I                              Page
--------                           --------                            ------



       1      Description of Business                                  I-1

       2      Description of Property                                  I-3

       3      Legal Proceedings                                        I-5

       4      Submission of Matters to a Vote
              of Security Holders                                      I-5


                                    Part II
                                   ---------


       5      Market for Common Equity and
              Related Security Holder Matters                         II-1

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

       7      Financial Statements and Supplementary
              Data                                                    II-4

       8      Changes In and Disagreements With Accountants
              on Accounting and Financial Disclosure                  II-14


                                   Part III
                                  -----------


       9      Directors, Executive Officers, Promoters and
              Control Persons; Compliance with Section 16(a)
              of the Exchange Act                                     III-1

      10      Executive Compensation                                  III-3

      11      Security Ownership of Certain
              Beneficial Owners and Management                        III-4

      12      Certain Relationships and Related
              Transactions                                            III-4

      13      Exhibits and Reports on Form 8-K                        III-4

              Signatures                                               S-1


<PAGE>



                                     PART I


Item 1.      Description of Business


General

             Enex Oil & Gas Income Program IV-Series 2, L.P. (the "Company") was
formed under the New Jersey Uniform Limited  Partnership Act (1976) on March 15,
1988 and commenced operations on December 28, 1988 with aggregate  subscriptions
of  $2,468,972,  $2,444,282 of which was received  from 2,041 limited  partners,
including investors whose distributions from earlier  partnerships  sponsored by
the  Company's  general  partner,  Enex  Resources  Corporation  ("Enex"),  were
automatically invested in the Company.

             The  Company  is engaged in the oil and gas  business  through  the
ownership of various interests in producing oil and gas properties,  as detailed
in Item 2, below. If warranted,  the Company may further develop its oil and gas
properties.  However,  the  Company  does not  intend to  engage in  significant
drilling activities. Such activities may be conducted, however, as an incidental
part of the management of producing  properties or with a view toward  enhancing
the  value of  producing  properties.  In no event  will the  Company  engage in
exploratory  drilling,  or use any of the limited partners' net revenues to fund
exploratory  drilling  activities.  Any developmental  drilling will be financed
primarily  through third party borrowing or with funds provided from operations.
The expenses of drilling,  completing  and equipping  and operating  development
wells are allocated 90% to the limited  partners and 10% to the general partner.
See  Note  1 to  the  Financial  Statements  for  information  relating  to  the
allocation  of costs and revenues  between the limited  partners and the general
partner. The Company's operations are concentrated in a single industry segment.

             The  Company  owns  royalty   interests  in  certain  oil  and  gas
properties.  A "royalty  interest" is an interest  retained by the lessor in the
lease and payable out of 100% of proceeds before  deducting any other interests.
The Company also owns working  interests  in certain oil and gas  properties.  A
"working  interest" is a portion of the operating  interest  which is subject to
most of the costs associated with a well.

             The  principal  executive  office of the Company is  maintained  at
Suite 200, Three Kingwood Place, Kingwood,  Texas 77339. The telephone number at
this office is (713) 358-8401. The Company has no regional offices.

     The Company has no employees.  On March 1, 1997, Enex and its  subsidiaries
employed 23 persons.

Marketing

             The marketing of oil and gas produced by the Company is affected by
a number of factors which are beyond the Company's control,  the exact nature of
which cannot be accurately  predicted.  These  factors  include the quantity and
price of crude oil imports,  fluctuating  supply and demand,  pipeline and other
transportation facilities, the marketing of competitive fuels, state and federal
regulation of oil and gas

                                       I-1

<PAGE>



     production and distribution and other matters affecting the availability of
     a ready market. All of these factors are extremely volatile.

             Valero  Industrial Gas L.P.,  Terra Pipeline  Company,  and Michael
Petroleum Company accounted for 35%, 29%, and 18%, respectively of the Company's
total sales in 1996. Valero Industrial Gas L.P., Terra Pipeline Company, GPM Gas
Corporation, Fina Oil Company and Pride Pipeline Company accounted for 25%, 19%,
13%, 13% and 11%,  respectively  of the Company's  total sales in 1995. No other
purchaser  individually  accounted for more than 10% of such sales. Although the
Company  marketed  a  significant  portion  of  its  sales  to the  above  noted
companies,  such a  concentration  does not pose a  significant  risk due to the
commodity nature of the Company's products.

             The  operators  of the  Company's  properties  are  noted in Item 2
below.  Although a significant portion of the Company's properties were operated
by a limited number of operators, this concentration does not pose a significant
risk since the Company's rights are secured by joint operating agreements.

Environmental and Conservation Regulation

             State  regulatory  authorities  in the states in which the  Company
owns  producing  properties  are  empowered to make and enforce  regulations  to
prevent waste of oil and gas and to protect correlative rights and opportunities
to produce oil and gas for owners of a common reservoir. Each of such regulatory
authorities  also  regulates  the amount of oil and gas  produced  by  assigning
allowable rates of production, which may be increased or decreased in accordance
with supply and demand.  Requirements  regarding the  prevention and clean-up of
pollution and similar environmental  matters are also generally applicable.  The
costs, if any, the Company may incur in this regard cannot be predicted.

             The  existence  of such  regulations  has had no  material  adverse
effects on the Company's  operations to date, and the cost of compliance has not
yet been material.  There are no material administrative or judicial proceedings
arising under such laws or regulations pending against the Company.  The Company
is unable to assess or predict the impact that compliance with environmental and
pollution  control  laws  and  regulations  may have on its  future  operations,
capital expenditures, earnings or competitive position.

Tax Laws

             The  operations  of the Company are affected by the federal  income
tax laws  contained  in the  Internal  Revenue  Code of 1986,  as  amended  (the
"Code"). Under the Code, generally, the Company will report income from the sale
of oil and gas,  against  which it may deduct its  ordinary  business  expenses,
depletion, depreciation and intangible drilling and development costs.

             It is anticipated that most of the Company's  income,  if any, will
be from a  "passive  activity"  for  purposes  of the Code.  A passive  activity
includes an  activity in which the  taxpayer  does not  materially  participate,
including the ownership of a limited partnership  interest,  such as an interest
in the Company.  "Passive  income,"  however,  does not include portfolio income
(i.e. dividends,  interest,  royalties,  etc.). Although taxpayers generally may
not deduct losses or use tax credits derived from passive activities in an

                                       I-2

<PAGE>



amount  greater than their income  derived from such  activities,  if and to the
extent that the Company generates passive income, it will be available to offset
the limited partners' passive losses from other sources.

             Partnerships with interests that are "publicly traded" are taxed as
corporations unless at least 90% of their income is "qualifying income." Passive
income  or  loss  from  publicly  traded  partnerships  that  are not  taxed  as
corporations  generally  cannot be applied  against  passive income or loss from
other  sources.  As  stated  in  Item  5 of  this  Annual  Report,  there  is no
established  public  trading  market  for  the  Company's  limited   partnership
interests.  In addition,  the Company derives more than 90% of its income within
the meaning of section 7704(d) of the Code. Therefore, the Company should not be
affected by the publicly traded partnership rules.

             In order to prevent the adverse tax consequences  that would affect
the limited  partners if the Company's  limited  partnership  interests  were to
become  publicly  traded in the future,  the general  partner  may,  after final
regulations have been issued by the Internal  Revenue Service,  submit to a vote
of limited  partners  a proposal  to amend the  Company's  agreement  of limited
partnership to provide,  among other things,  (a) that Enex shall have the right
to refuse to  recognize  any  transfer of limited  partnership  interests  if it
believes that such transfer  occurred on a secondary  market or the  substantial
equivalent  thereof;  and (b) that all  assignors  and  assignees of the limited
partnership  interests  shall be required to represent to Enex that any transfer
of limited partnership interests did not, to the best of their knowledge,  occur
on a secondary market or the substantial equivalent thereof.

Item 2.      Description of Property

             Presented   below  is  a   summary   of  the   Company's   property
acquisitions.

             CREDO acquisition. Working interests and royalty interests in 4 oil
wells located in Credo Field,  Sterling County, Texas were acquired from Freedom
Energy,  Inc. et al.,  for a purchase  price of $896,400  effective  February 1,
1989. Enex has assumed  operation of these wells.  The Company  acquired working
interests in two  additional  wells from Enex at cost for an aggregate  purchase
price of $176,751  effective May 1, 1989 and August 1, 1989.  Effective February
1, 1996, the Company sold its interests in the Credo acquisition.

             BARNES  ESTATE  acquisition.  Effective  February 1, 1989,  working
interests in 5 oil and gas wells in Brettchance  Field, Webb County,  Texas were
purchased  from Otis Crandell  Addington et al., for $465,855.  Enex has assumed
operation of these wells. The Company owns working  interests ranging from 2.50%
to 20.0% and a 2.5% override  royalty interest in the wells in the Barnes Estate
acquisition at December 31, 1996.

             BAGLEY  acquisition.  Working  interests in 7 oil wells  located in
Bagley Field, Otsego County, Michigan were acquired effective May and June 1989,
for  $475,555.  The Bagley  acquisition  is operated by Terra  Energy,  Ltd. The
Company owns working  interests  ranging from 2.98% to 3.00% in the wells in the
Bagley acquisition at December 31, 1996.

             BRIGHTON  acquisition.  Working interests in 2 oil wells located in
Brighton  Field,  Livingston  County,  Michigan were purchased for $145,800 from
Pasadena Oil & Gas Corp., effective from date of first

                                       I-3

<PAGE>



production  (November 1988 and July 1989). The Brighton  acquisition is operated
by Global Natural  Resources.  The Company owns working  interests  ranging from
2.70% to 3.20% in the wells in the Brighton acquisition at December 31, 1996.

             Purchase  price as used above is  defined  as the  actual  contract
price plus finders' fees, if  applicable.  Miscellaneous  acquisition  expenses,
subsequent capital items, etc. are not included.

Oil and Gas Reserves

             For  quantitative  information  regarding the Company's oil and gas
reserves,  please see  Supplementary  Oil and Gas Information and related tables
which follow the Notes to  Financial  Statements  in Item 7 of this report.  The
Company has not filed any current oil and gas reserve  estimates or included any
such  estimates in reports to any federal or foreign  governmental  authority or
agency, including the Securities and Exchange Commission.

             Proved  oil  and  gas  reserves   reported   herein  are  based  on
engineering reports prepared by the petroleum engineering  consulting firm of H.
J. Gruy and Associates,  Inc. The reserves included in this report are estimates
only and should not be  construed as exact  quantities.  Future  conditions  may
affect  recovery of  estimated  reserves  and  revenue,  and all reserves may be
subject to  revision  as more  performance  data  become  available.  The proved
reserves used in this report conform to the applicable  definitions  promulgated
by the Securities and Exchange Commission. No major discovery or other favorable
or adverse  event  that  could  potentially  cause a  significant  change in the
estimated proved reserves has occurred since December 31, 1996.


Net Oil and Gas Production

             The following table shows for the years ended December 31, 1996 and
1995,  the  approximate  production  attributable  to the  Company's oil and gas
interests. The figures in the table represent "net production"; i.e., production
owned by the Company and produced to its interest  after  deducting  royalty and
other similar interests. All production occurred in the United States.


                                                 1996                 1995
                                                 ----                 ----
Crude oil and condensate (Bbls) . . .. . .      2,112                3,927
Natural gas (Mcf) . . . . . . . . . .. . .     39,172               44,640










                                       I-4

<PAGE>



             The following  table sets forth the  Company's  average sales price
per barrel of oil, per Mcf of gas, and average production cost per unit produced
for the years ended December 31, 1996 and 1995.


                                                      1996         1995
                                                      ----         ----
Average sales price per barrel of oil              $ 19.98      $ 16.99
Average sales price per Mcf of gas                    2.19         1.66
Average production cost per equivalent                5.71         7.42
     barrel of production . . . . . . . . . . .

Drilling Activities

             The  Company  did  not  participate  in  any  significant  drilling
activity in 1996 or 1995.

Current Activities

             The Company  completed its  acquisition  phase in 1989.  Additional
interests in oil and gas properties may be acquired,  however; the primary focus
of present  activities  is on the efficient  management of properties  currently
owned.



Item 3.  Legal Proceedings

             There  are no  material  pending  legal  proceedings  to which  the
Company is a party.



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

             No matter was  submitted to a vote of security  holders  during the
fourth quarter of the fiscal year covered by this report.

                                       I-5

<PAGE>



                                     PART II


Item 5.      Market for Common Equity and Related Security Holder Matters

Market Information

             There is no  established  public  trading  market for the Company's
outstanding limited partnership interests.



Number of Equity Security Holders

                                              Number of Record Holders
               Title of Class                   (as of March 1, 1997)
              -----------------               --------------------------


          General Partner's Interests                     1

          Limited Partnership Interests                 1,307



Dividends

          The Company made cash  distributions to partners of $1 and $2 per $500
investment in 1996 and 1995, respectively. The Company temporarily suspended the
payment of  distributions in the second quarter of 1995. A distribution was made
in the third quarter of 1996. The payment of future distributions will depend on
the Company's earnings,  financial  condition,  working capital requirements and
other factors. It is anticipated that periodic distributions will be made by the
Company as cash becomes available.



                                      II-1

<PAGE>



Item 6.     Management's Discussion and Analysis or Plan of Operation


Results of Operations

            This  discussion  should be read in  conjunction  with the financial
statements of the Company and the notes thereto included in this Form 10-KSB.

            Oil and gas sales  decreased  to $127,862  in 1996 from  $140,712 in
1995.  This  represents  a decrease  of $12,850  or 9%. Oil sales  decreased  by
$24,523 or 37%. A 46%  decline in oil  production  caused  sales to  decrease by
$30,837.  This decrease was  partially  offset by an 18% increase in the average
oil sales  price.  Gas sales  increased by $11,673 or 16%. A 32% increase in the
average gas sales price increased sales by $20,750.  This increase was partially
offset by a 12%  decrease in gas  production.  The changes in the average  sales
prices  correspond  with  changes in the overall  market for the sale of oil and
gas. The decreases in oil and gas  production  were primarily due to the sale of
the Credo  acquisition  in the  first  quarter  of 1996,  coupled  with  natural
production  declines  which were  especially  pronounced  on the  Barnes  Estate
acquisition.

            Lease operating  expenses  decreased to $41,923 in 1996 from $75,920
in 1995.  The decrease of $33,997 or 45% was primarily a result of the decreases
in oil and gas production, noted above, including the lower production resulting
from the sale of Credo  acquisition  which had relatively higher lease operating
costs.

            Depreciation and depletion  expense decreased to $7,682 in 1996 from
$94,417 in 1995.  This  represents  a decrease of $86,735 or 92%. The changes in
production,  noted above,  caused depreciation and depletion expense to decrease
by $22,634.  An 89% decrease in the depletion rate caused an additional  $64,101
decrease.  This rate  decrease  is  primarily  due to the lower  property  basis
resulting from the recognition of an impairment of $142,465 in the first quarter
of 1996,  as noted  below,  coupled  with  upward  revisions  of the oil and gas
reserves during December 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  provision of $142,465 for certain
oil and gas  properties due to changes in the overall market for the sale of oil
and gas and  significant  decreases in the projected  production from certain of
the Company's oil and gas properties.

            Effective  February 1, 1996,  the Company  sold its  interest in the
Credo  acquisition for $29,925.  The Company  recognized a gain of $1,868 on the
sale. The impact of this sale on current and future net revenues is not expected
to be material, as such interests represented approximately 7% of historical and
future net revenues.


                                      II-2

<PAGE>



            General and  administrative  expenses  decreased  to $26,774 in 1996
from $35,448 in 1995 in 1993. The decrease of $8,674 or 24% was primarily due to
a $8,108 decrease in direct expenses resulting from legal fees associated with a
property interest dispute on the Barnes Estate acquisition. The case was settled
in the second quarter of 1996, as noted below.

            On April 2, 1996, the Company settled a property interest dispute on
the Barnes Estate  acquisition.  In the  settlement,  the Company  agreed to pay
$5,000 to the  plaintiff  and convey 0.20%  overriding  royalty  interest in the
Barnes Estate #1 and #2 wells. Such conveyance should not have a material impact
on the current or future net revenues of the Company and, as such, should not
have a material  impact on the  current  or future  results  of  operations,
financial condition or liquidity of the Company.

Capital Resources and Liquidity

            The  Company's  cash flow from  operations is a direct result of the
amount of net proceeds from the sale of oil and gas production  after payment of
its debt  obligations.  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 net cash flow to the Company's partners.

            The Company  discontinued the payment of distributions in the second
quarter of 1995. A  distribution  was made in the third quarter of 1996.  Future
distributions  are dependent upon among other things,  an increase in the prices
received for oil and gas. The Company will  continue to recover its reserves and
reduce  its  obligations  in 1997.  The  Company  does not  intend  to  purchase
additional  properties  or fund  extensive  development  of existing oil and gas
properties,  and as  such;  has no  long-term  liquidity  needs.  The  Company's
projected cash flows from operations will provide  sufficient funding to pay its
operating expenses and debt obligations.  The general partner does not intend to
accelerate the repayment of the debt beyond the cash flow provided by operating,
financing   and  investing   activities.   It  is   anticipated   that  periodic
distributions will be made by the Company as cash becomes available. The Company
plans to repay the amount owed to the general partner in 1997.

            At December 31, 1996,  the Company had no material  commitments  for
capital  expenditures.  The Company does not intend to engage in any significant
developmental drilling activity.

                                      II-3

<PAGE>



Item 7.      Financial Statements and Supplementary Data


INDEPENDENT AUDITORS' REPORT

The Partners
Enex Oil & Gas Income
  Program IV - Series 2, L.P.


We have audited the accompanying  balance sheet of Enex Oil & Gas Income Program
IV-Series 2, L.P. (a New Jersey limited partnership) as of December 31, 1996 and
the related  statements of operations,  changes in partners'  capital,  and cash
flows for each of the two years in the period ended  December  31,  1996.  These
financial statements are the responsibility of the general partner of Enex Oil &
Gas  Income  Program  IV-  Series 2, L.P.  Our  responsibility  is to express an
opinion on the financial statements based on our audits.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our  opinion,  such  financial  statements  present  fairly,  in all material
respects,  the financial  position of Enex Oil & Gas Income Program IV-Series 2,
L.P. at December 31, 1996 and the results of its  operations  and its cash flows
for each of the two years in the period ended  December  31, 1996 in  conformity
with generally accepted accounting principles.


DELOITTE & TOUCHE  LLP





Houston, Texas
March 18, 1997

                                      II-4

<PAGE>
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 2, L.P.

BALANCE SHEET, DECEMBER 31, 1996
-----------------------------------------------------------------------
<TABLE>
<CAPTION>

ASSETS
                                                                   1996
                                                          ---------------------
CURRENT ASSETS:
<S>                                                       <C>
  Cash                                                    $             12,521
  Accounts receivable - oil & gas sales                                 20,780
  Other current assets                                                     529
                                                          ---------------------

Total current assets                                                    33,830
                                                          ---------------------

OIL & GAS PROPERTIES
  (Successful efforts accounting method) - Proved
   mineral interests and related equipment & facilities              1,118,176
  Less  accumulated depreciation and depletion                       1,099,932
                                                          ---------------------

Property, net                                                           18,244
                                                          ---------------------


TOTAL                                                     $             52,074
                                                          =====================

LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)

CURRENT LIABILITIES:
   Accounts payable                                       $              9,753
   Payable to general partner                                            8,416
                                                          ---------------------

Total current liabilities                                               18,169
                                                          ---------------------

PARTNERS' CAPITAL (DEFICIT):
   Limited partners                                                     (4,727)
   General partner                                                      38,632
                                                          ---------------------

Total partners' capital                                                 33,905
                                                          ---------------------

TOTAL                                                     $             52,074
                                                          =====================
</TABLE>


Number of $500 Limited Partner units outstanding                         4,938



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

                                      II-5

<PAGE>
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 2, L.P.

STATEMENTS OF OPERATIONS
FOR THE TWO YEARS ENDED DECEMBER 31, 1996
----------------------------------------------------------------------------
<TABLE>
<CAPTION>


                                                  1996                  1995
                                          -------------------    -------------------

REVENUES:
<S>                                       <C>                         <C>
  Oil and gas sales                       $          127,862          $      140,712
                                          -------------------    -------------------

EXPENSES:
  Depreciation and depletion                           7,682                 94,417
  Impairment of property                             142,465                      -
  Lease operating expenses                            41,923                 75,920
  Production taxes                                     7,409                  8,470
  General and administrative:
    Allocated from general partner                    18,945                 19,511
    Direct expense                                     7,829                 15,937
                                          -------------------    -------------------

Total expenses                                       226,253                214,255
                                          -------------------    -------------------

OTHER INCOME:
  Gain from sale of property                           1,868                      -
                                          -------------------    -------------------

NET LOSS                                  $          (96,523)         $     (73,543)
                                          ===================    ===================

</TABLE>


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

                                      II-6

<PAGE>
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 2, L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
FOR THE TWO YEARS ENDED DECEMBER 31, 1996
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                                PER $500
                                                                                                 LIMITED
                                                                                                 PARTNER
                                                       GENERAL              LIMITED             UNIT OUT-
                                   TOTAL               PARTNER              PARTNERS             STANDING
                             -----------------    -----------------    -----------------    -----------------

<S>                             <C>                  <C>               <C>                  <C>
BALANCE, JANUARY 1, 1995        $     220,544        $      32,839     $        187,705     $             38

CASH DISTRIBUTIONS                     (9,435)                (944)              (8,491)                  (2)

NET INCOME (LOSS)                     (73,543)               2,088              (75,631)                 (15)
                             -----------------    -----------------    -----------------    -----------------

BALANCE, DECEMBER 31, 1995            137,566               33,983              103,583                   21

CASH DISTRIBUTIONS                     (7,138)                (713)              (6,425)                  (1)

NET INCOME (LOSS)                     (96,523)               5,362             (101,885)                 (21)
                             -----------------    -----------------    -----------------    -----------------

BALANCE, DECEMBER 31, 1996    $        33,905         $     38,632     $         (4,727)(1) $             (1)
                             =================    =================    =================    =================
</TABLE>



(1)  Includes 751 units purchased by the general partner as a limited partner.



See accompanying notes to financial statements.
--------------------------------------------------------------------------
                                      II-7

<PAGE>
ENEX OIL AND GAS INCOME PROGRAM IV - SERIES 2, L.P.

STATEMENTS OF CASH FLOWS
FOR THE TWO YEARS ENDED DECEMBER 31, 1996
-----------------------------------------------------------------------------
<TABLE>
<CAPTION>

                                                                  1996                    1995
                                                          -------------------      -------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                       <C>                        <C>
Net loss                                                  $          (96,523)        $        (73,543)
                                                          -------------------      -------------------

Adjustments to reconcile net loss to net cash
   provided by operating activities
  Depreciation and depletion                                           7,682                   94,417
  Impairment of property                                             142,465                        -
  Gain from sale of property                                          (1,868)                       -
(Increase) decrease in:
  Accounts receivable - oil & gas sales                               (4,774)                   4,839
  Other current assets                                                     -                     (529)
Increase (decrease) in:
   Accounts payable                                                    3,171                   (6,166)
   Payable to general partner                                        (61,128)                 (10,976)
                                                          -------------------      -------------------

Total adjustments                                                     85,548                   81,585
                                                          -------------------      -------------------

Net cash provided (used) by operating activities                     (10,975)                   8,042
                                                          -------------------      -------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Proceeds from sale of property                                     29,925                        -
   Property additions - development costs                               (921)                  (3,736)
                                                          -------------------      -------------------

Net cash provided (used) by investing activities                      29,004                   (3,736)
                                                          -------------------      -------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Cash distributions                                                 (7,138)                  (9,435)
                                                          -------------------      -------------------

NET INCREASE (DECREASE) IN CASH                                       10,891                   (5,129)

CASH AT BEGINNING OF YEAR                                              1,630                    6,759
                                                          -------------------      -------------------

CASH AT END OF YEAR                                       $           12,521          $         1,630
                                                          ===================      ===================

</TABLE>




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

                                      II-8


<PAGE>


ENEX OIL & GAS INCOME PROGRAM IV - SERIES 2, L.P.


NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1996
-----------------------------------------------------------------------------


1.       PARTNERSHIP ORGANIZATION

         Enex Oil & Gas Income Program IV-Series 2, L.P. (the "Company"),  a New
         Jersey limited partnership,  commenced operations on December 28, 1988,
         for the  purpose  of  acquiring  proved oil and gas  properties.  Total
         limited partner  contributions  were  $2,468,972,  of which $24,690 was
         contributed  by  Enex  Resources  Corporation  ("Enex"),   the  general
         partner.

         In  accordance  with  the  partnership  agreement,   the  Company  paid
         commissions of $237,565 for solicited  subscriptions to Enex Securities
         Corporation, a subsidiary of Enex, and reimbursed Enex for organization
         expenses of approximately $74,000.

         Information  relating to the  allocation of costs and revenues  between
         Enex, as general partner, and the limited partners is as follows:

                                                                    Limited
                                                          Enex      Partners

             Commissions and selling expenses                         100%
             Company reimbursement of organization
               expense                                                100%
             Company property acquisition                             100%
             General and administrative costs              10%         90%
             Costs of drilling and completing
               development wells                           10%         90%
             Revenues from temporary investment of
               partnership capital                                    100%
             Revenues from producing properties            10%         90%
             Operating costs (including general and
               administrative costs associated with
               operating producing properties)             10%         90%

             At the point in time  when the cash  distributions  to the  limited
             partners  equal  their  subscriptions  ("payout"),   the  costs  of
             drilling and completing  development wells, revenues from producing
             properties,  general and  administrative  costs and operating costs
             will be allocated 15% to the general partner and 85% to the limited
             partners.

2.           SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

             Oil and Gas  Properties - The Company uses the  successful  efforts
             method of  accounting  for its oil and gas  operations.  Under this
             method,  the  costs  of  all  development  wells  are  capitalized.
             Capitalized costs are amortized on the  units-of-production  method
             based on estimated total

                                      II-9

<PAGE>



             proved reserves.  The acquisition costs of improved oil and gas
            properties are capitalized and periodically assessed for impairment.

             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 provision of $142,465 for certain oil and gas
             properties due to changes in the overall market for the sale of oil
             and gas and significant  decreases in the projected production from
             certain of the Company's oil and gas properties.

             The Company's  operating  interests in oil and gas  properties  are
             recorded  using  the pro  rata  consolidation  method  pursuant  to
             Interpretation 2 of Accounting Principles Board Opinion 18.

             Cash Flows - The  Company  has  presented  its cash flows using the
             indirect method and considers all highly liquid investments with an
             original maturity of three months or less to be cash equivalents.

             General and  Administrative  Expenses - The Company  reimburses the
             General Partner for direct costs and administrative  costs incurred
             on its behalf.  Administrative  costs  allocated to the Company are
             computed  on a cost  basis in  accordance  with  standard  industry
             practices  by  allocating  the time spent by the General  Partner's
             personnel  among  all  projects  and by  allocating  rent and other
             overhead on the basis of the relative direct time charges.

             Uses of Estimates - The preparation of the financial  statements in
             conformity with generally accepted  accounting  principles requires
             management  to make  estimates  and  assumptions  that  affect  the
             reported  amounts  of assets  and  liabilities  and  disclosure  of
             contingent  assets  and  liabilities  at the date of the  financial
             statements and the reported  amounts of revenue and expenses during
             the  reporting  periods.  Actual  results  could  differ from these
             estimates.

3.           FEDERAL INCOME TAXES

             General - The Company is not a taxable  entity for  federal  income
             tax purposes. Such taxes are liabilities of the individual partners
             and the  amounts  thereof  will vary  depending  on the  individual
             situation of each partner.  Accordingly,  there is no provision for
             income taxes in the accompanying financial statements.



                                      II-10

<PAGE>
     Set forth below is a  reconciliation  of net income  (loss) as reflected in
     the  accompanying  financial  statements  and net income (loss) for federal
     income tax purposes for the year ended December 31, 1996:
<TABLE>
<CAPTION>

                                                                                   Allocable to               Per $500 Limited
                                                                    -------------------------------------
                                                                          General            Limited              Partner Unit
                                                      TOTAL               Partner           Partners              Outstanding
                                               ------------------   ------------------  -----------------    ----------------------
Net income (loss) as reflected in the
<S>                                            <C>                  <C>                    <C>                       <C>
     accompanying financial statements         $         (96,523)   $           5,362      $    (101,885)            $         (21)
Reconciling items:




  Difference in depreciation, depletion
     and amortization computed for
     federal income tax purposes and the
     amount computed for financial
     reporting purposes                                   93,182                    -             93,182                        19
Difference in gain on property sales
     for federal income tax purposes and
     the amount computed for financial
     reporting purposes                                 (133,167)                (187)          (132,980)                      (27)
                                               ------------------   ------------------  -----------------    ----------------------

Net income (loss) for federal
   income tax purposes                         $        (136,508)   $           5,175      $    (141,683)             $        (29)
                                               ==================   ==================  =================    ======================
</TABLE>

     Net income  (loss)  for  federal  income tax  purposes  is a  summation  of
     ordinary  income  (loss),  portfolio  income  (loss),  cost  depletion  and
     intangible  drilling costs as presented in the Company's federal income tax
     return.

     Set forth below is a reconciliation  between partners' capital (deficit) as
     reflected in the accompanying  financial  statements and partners'  capital
     for federal income tax purposes as of December 31, 1996:
<TABLE>
<CAPTION>

                                                                                   Allocable to               Per $500 Limited
                                                                    -------------------------------------
                                                                          General            Limited              Partner Unit
                                                      TOTAL               Partner           Partners              Outstanding
                                               ------------------   ------------------  -----------------    ----------------------
Partners' capital (deficit) as
     reflected in the accompanying
<S>                                            <C>                  <C>                     <C>                      <C>
     financial statements                      $          33,905    $          38,632       $     (4,727)            $          (1)
Reconciling items:
  Intangible drilling costs
     capitalized for financial
     reporting purposes which
     were charged-off for federal
     income tax purposes                                (326,440)             (32,644)          (293,796)                      (59)
  Difference in accumulated
     depreciation, depletion and
     amortization for financial
     reporting and federal income
     tax purposes                                        349,846                    -            349,846                        71
  Commissions and syndication
     fees capitalized for federal
     income tax purposes                                 237,565                    -            237,565                        48
                                               ------------------   ------------------  -----------------    ----------------------

Partners' capital for federal
     income tax purposes                       $         294,876    $           5,988       $    288,888             $          58
                                               ==================   ==================  =================    ======================
</TABLE>


                                      II-11






<PAGE>


4.           PAYABLE TO GENERAL PARTNER

             The payable to general  partner  primarily  consists of general and
             administrative expenses allocated to the Company by Enex during the
             Company's  start-up  phase  and for  its  ongoing  operations.  The
             Company  plans to repay the amount owed to the  general  partner in
             1997.

5.           REPURCHASE OF LIMITED PARTNER INTERESTS

             In accordance with the partnership  agreement,  the general partner
             is required to purchase limited partner interests (at the option of
             the  limited  partners)  at annual  intervals  beginning  after the
             second year  following the  formation of the Company.  The purchase
             price,  as  specified  in  the  partnership  agreement,   is  based
             primarily  on reserve  reports  prepared by  independent  petroleum
             engineers as reduced by a specified risk factor.

6.           SIGNIFICANT PURCHASERS

             Valero  Industrial Gas L.P.,  Terra Pipeline  Company,  and Michael
             Petroleum Company accounted for 35%, 29%, and 18%,  respectively of
             the  Company's  total sales in 1996.  Valero  Industrial  Gas L.P.,
             Terra Pipeline Company,  GPM Gas Corporation,  Fina Oil Company and
             Pride  Pipeline  Company  accounted for 25%, 19%, 13%, 13% and 11%,
             respectively  of the  Company's  total  sales  in  1995.  No  other
             purchaser individually accounted for more than 10% of such sales.

7.           SALE OF PROPERTY

             Effective  February 1, 1996,  the Company  sold its interest in the
             Credo  acquisition  for $29,925.  The Company  recognized a gain of
             $1,868 on the sale.

                                      II-12

<PAGE>
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 2, L.P.

SUPPLEMENTARY OIL AND GAS INFORMATION
FOR THE TWO YEARS ENDED DECEMBER 31, 1996
--------------------------------------------------------------------------
Proved Oil and Gas Reserve Quantities (Unaudited)

     The  following  presents an estimate  of the  Company's  proved oil and gas
     reserve  quantities  and  changes  therein for each of the two years in the
     period ended December 31, 1996. Oil reserves are stated in barrels ("BBLS")
     and  natural  gas in  thousand  cubic feet  ("MCF").  The  amounts per $500
     limited  partner unit do not include a potential 5% reduction after payout.
     All of the Company's reserves are located within the United States.
<TABLE>
<CAPTION>

                                                                 Per $500                                  Per $500
                                                                  Limited              Natural              Limited
                                               Oil             Partner Unit              Gas             Partner Unit
                                             (BBLS)             Outstanding             (MCF)             Outstanding
                                          ----------------   ------------------   ------------------   ------------------

PROVED DEVELOPED AND
    UNDEVELOPED RESERVES:

<S>                                                <C>                       <C>            <C>                       <C>
January 1, 1995                                    14,210                    3              156,062                   28

    Revisions of previous estimates                (2,197)                   -               53,151                   10
    Production                                     (3,927)                  (1)             (44,640)                  (8)
                                          ----------------   ------------------   ------------------   ------------------

December 31, 1995                                   8,086                    2              164,573                   30

    Revisions of previous estimates                 1,536                    -               42,032                    7
    Sales of minerals in place                     (3,103)                  (1)             (18,870)                  (3)
    Production                                     (2,112)                   -              (39,172)                  (7)
                                          ----------------   ------------------   ------------------   ------------------

December 31, 1996                                   4,407                    1              148,563                   27
                                          ================   ==================   ==================   ==================


PROVED DEVELOPED RESERVES:

January 1, 1995                                    14,210                    3              156,062                   28
                                          ================   ==================   ==================   ==================

December 31, 1995                                   8,086                    2              164,573                   30
                                          ================   ==================   ==================   ==================

December 31, 1996                                   4,407                    1              148,563                   27
                                          ================   ==================   ==================   ==================

</TABLE>




                                      II-13




<PAGE>



Item 8.      Changes In and Disagreements With Accountants on Accounting and
             Financial Disclosure

             Not Applicable


                                      II-14

<PAGE>



                                    PART III

------------------------------------------------------------------------------
Item 9.       Directors, Executive Officers, Promoters and Control Persons;
              Compliance with Section 16(a) of the Exchange Act

              The Company's sole General Partner is Enex Resources  Corporation,
a Delaware corporation.  The Company has no Directors or executive officers. The
Directors and executive officers of Enex are:

              Gerald B. Eckley.  Mr.  Eckley,  age 70, has served as a Director,
President and Chief Executive Officer of the General Partner since its formation
in 1979.  He was  employed by Shell Oil Company  from 1951 to 1967 and served in
managerial  capacities  from 1959 to 1967. From 1967 to 1969, he was Director of
Fund  Raising at the  University  of  Oklahoma  and from 1969 to 1971,  was Vice
President of Land and Operations for Imperial American  Management  Company.  In
1971, Mr. Eckley was a petroleum consultant and in 1972-1973 was General Counsel
and Executive  Director of the Oil Investment  Institute.  From 1973 to 1974, he
was Manager of Oil  Properties,  Inc. and from 1974 to 1976, was Vice President,
Land and Joint Ventures for Petro-Lewis  Corporation.  From 1977 to August 1979,
Mr. Eckley was President of Eckley Energy, Inc., a company engaged in purchasing
and selling oil and gas properties.  Mr. Eckley  received an L.L.B.  degree from
the University of Oklahoma in 1951 and a Juris Doctor degree from the University
of Oklahoma in 1970.

              William C. Hooper,  Jr. Mr. Hooper, age 59, has been a Director of
the General  Partner  since its formation in 1979 and is a member of the General
Partner's Audit and Compensation and Options Committees.  In 1960 he was a staff
engineer in the Natural Gas Department of the Railroad Commission of Texas, with
principal  duties  involving  reservoir units and gas proration.  In 1961 he was
employed by the California  Company as a Drilling  Engineer and  Supervisor.  In
1963 he was employed as a Staff Engineer by California Research  Corporation and
in 1964 rejoined the  California  Company as a project  manager  having  various
duties involving  drilling and reservoir  evaluations.  In 1966 he was Executive
Vice  President  for Moran Bros.  Inc.,  coordinating  and  managing all company
activities,  drilling operations,  bidding and engineering.  From 1970 until the
present, he has been self-employed as a consulting  petroleum engineer providing
services to industry and  government  and engaged in business as an  independent
oil and gas operator and investor.  From 1975 to 1987 he was also a Director and
President of Verna Corporation,  a drilling contractor and service organization.
He received a B.S.  degree in Petroleum  Engineering in 1960 from the University
of Texas and an M.S. degree in Petroleum  Engineering  from that same University
in 1961.

              Stuart  Strasner.  Mr.  Strasner,  age 67, was a  Director  of the
General  Partner from its formation until October of 1986. He was reappointed to
the  Board on April  19,  1990 to fill a  vacancy.  He is a member  of the Audit
Committee. He is a professor of business law at Oklahoma City University and was
Dean of the law school at  Oklahoma  City  University  from July 1984 until June
1991.  Prior to July 1984, Mr. Strasner was an attorney in private practice with
McCollister,  McCleary, Fazio and Holliday in Oklahoma City, Oklahoma. From 1959
to 1974,  he was  employed  by various  banks,  bank  holding  companies  and an
insurance  company  in  executive  capacities.  From  1974  to  1978,  he  was a
consultant to various  corporations  such as insurance  companies,  bank holding
companies and small business investment companies. From 1978 until late 1981, he
was Executive  Director of the Oklahoma Bar  Association,  and from 1981 to 1983
was  a  Director  and  President  of  PRST  Enterprises,  Inc.,  a  real  estate
development  company.  Mr.  Strasner  holds an A.B.  degree from  Panhandle  A&M
College,  Oklahoma,  and a J.D. degree from the University of Oklahoma.  He is a
member  of the  Fellows  of the  American  Bar  Association  and a member of the
Oklahoma  Bar  Association.  Mr.  Strasner is also a director of Health  Images,
Inc., a public  company which  provides  fixed site magnetic  resonance  imaging
("MRI") services.


                                      III-1

<PAGE>



     Martin J. Freedman.  Mr. Freedman, age 72, was one of the General Partner's
founders  and a member of its Board of  Directors  as well as a board  member of
Enex Securities  Corporation until June of 1986. He was reappointed to the Board
on April 19,  1990 to fill a  vacancy.  He is a member of the  Compensation  and
Options  Committee.  He is  currently  President  of Freedman Oil & Gas Company,
engaged primarily in the management of its exploration and producing properties,
and the managing  partner  Martin J. Freedman & Company which has an interest in
approximately  one hundred  producing  oil and/or gas wells.  Mr.  Freedman is a
lifetime member of the Denver  Petroleum Club as well as being a lifetime member
of the Denver Association of Petroleum  Landmen.  He was an officer and Director
and/or  founder of several  former private and public  companies.  Mr.  Freedman
entered the oil and gas business in 1954 when he joined Mr.  Marvin Davis of the
Davis Oil Company.  In 1956, he became President of Central Oil  Corporation,  a
company engaged in oil and gas exploration.  From 1958 on, Mr. Freedman operated
as Martin J. Freedman Oil Properties and was President of Oil Properties,  Inc.,
a private corporation. Mr. Freedman attended Long Island University and New York
University.  He received a bachelor's degree in Psychology and also attended New
York University's graduate school.

              James Thomas Shorney.  Mr. Shorney, age 71, has been a Director of
the General Partner since April of 1990 and is a member of the  Compensation and
Options Committee. He has been a petroleum consultant and Secretary/Treasurer of
the Shorney Company, a privately held oil and gas exploration company, from 1970
to date. From 1970 to 1976, he also served as a petroleum consultant in Land and
Lease Research Analysis Studies for the GHK Company. He was an oil and gas lease
broker  from  1962 to 1970  and  employed  by  Shell  Oil  Company  in the  Land
Department  from 1954 to 1962.  Before  joining Shell Oil Company,  he served as
Public  Information  Officer  in the  U.S.  Army  Air  Force  from  1950 to 1953
including attending  Georgetown  University Graduate School in 1952. Mr. Shorney
graduated  from the  University of Oklahoma with a B.A.  degree in Journalism in
1950.  From 1943 to 1945,  he  served in the U.S.  Army Air Force as an air crew
member  on a  B-24  Bomber.  Mr.  Shorney  is a  member  of  the  Oklahoma  City
Association  of  Petroleum  Landmen  on  which he has  served  as  Director  and
Secretary/Treasurer.  He is an active  member  of the  American  Association  of
Petroleum Landmen. In 1975, Mr. Shorney was first listed in the London Financial
Times' Who's Who in World Oil and Gas.

     Robert D. Carl,  III.  Mr.  Carl,  age 43, was  appointed a Director of the
General Partner on July 30, 1991 and is a member of the Audit  Committee.  He is
President,  Chief Executive  Officer and Chairman of the Board of Health Images,
Inc., a public company whose securities are traded on NYSE, which provides fixed
site magnetic  resonance imaging ("MRI")  services.  From 1978 to 1981, Mr. Carl
also  served as  President  of Carl  Investment  Associates,  Inc. a  registered
investment  advisor.  In 1981,  Mr. Carl joined  Cardio-Tech,  Inc.,  as general
counsel  and as an officer and  Director.  Upon the sale and  reorganization  of
Cardio-Tech,  Inc.  into  Cardiopul  Technologies  in  1982,  he  served  as its
Executive  Vice  President  and as a  Director.  In March,  1985 he was  elected
President,  Chief Executive Officer and Chairman of Cardiopul Technologies which
spun off its  non-imaging  medical  services  business  and  changed its name to
Health  Images,  Inc.  Mr. Carl  received a B.A. in History  from  Franklin  and
Marshall  College,  Lancaster,  Pennsylvania  in  1975  and a  J.D.  from  Emory
University  School of Law,  Atlanta,  Georgia in 1978.  Mr. Carl is a trustee of
Franklin & Marshall College and is a member of the State Bar of Georgia.

              On January 4, 1996, the SEC filed a complaint in the United States
District  Court for the District of Columbia  against Mr. Carl alleging that Mr.
Carl violated  Section 16(a) of the Securities  Exchange Act of 1934  ("Exchange
Act"), and Rule 16a-2 and 16a-3 (and former Rule 16a-1)  thereunder,  by failing
to timely file reports concerning  thirty-eight  securities  transactions in his
mother's brokerage  accounts involving shares of Health Images,  Inc. stock. The
SEC took the position that because Mr. Carl (1) provided substantial

                                      III-2

<PAGE>



financial  support to his mother,  (2) commingled  his mother's  assets with his
own, (3) provided a substantial portion of the funds used to purchase the shares
in question, and (4) received from his mother a substantial portion of the sales
proceeds, he, therefore, had a pecuniary interest in, and was a beneficial owner
of, the shares in question.

              In response to the SEC's  action,  Mr.  Carl  disgorged  to Health
Images,  Inc.  approximately  $92,400 in short-swing profits from the trading in
his mother's account,  plus interest thereon of approximately  $52,600.  The SEC
further  requested the court to impose a $10,000 civil penalty  against Mr. Carl
pursuant to Section 21(d)(3) of the Exchange Act.  Without  admitting or denying
the  allegations  in the  complaint,  Mr. Carl consented to the entry of a final
judgement  imposing the $10,000  penalty.  On January 12, 1996, a federal  judge
entered the final judgement in this matter, and Mr. Carl has since filed amended
reports on Forms 4 and 5 reflecting these transactions in his mother's accounts.

              In   relation  to  the  same   matter,   the  SEC  has  issued  an
administrative  Order  pursuant to Section 21C of the  Exchange  Act against Mr.
Carl,  finding  that he  violated  Section  16(a) and the rules  thereunder  and
requiring  him to cease and desist from  committing  or causing any violation or
future violation of those provisions.  Without admitting or denying  allegations
in the SEC's Order, Mr. Carl consented to the entry of the Order.

     Robert E. Densford.  Mr. Densford,  age 39, was appointed a Director of the
General  Partner  on  September  11,  1991.  He joined  the  General  Partner as
Controller  on May 1, 1985 and became Vice  President-  Finance,  Secretary  and
Treasurer  on March 1, 1989.  From  January  1983 to April  1985,  he was Senior
Accountant for Deloitte Haskins & Sells in Houston, Texas, auditing both closely
held and publicly owned oil and gas  companies.  From September 1981 to December
1982, he was a staff  accountant for Coopers & Lybrand in Houston.  Mr. Densford
is a C.P.A.  and holds a B.B.A.  degree in Accounting and an M.S.  degree in Oil
and Gas  Accounting  from Texas Tech  University and is a member of the American
Institute of Certified  Public  Accountants  and the Texas  Society of Certified
Public Accountants.

     James A. Klein. Mr. Klein, age 33, joined the General Partner as Controller
in February 1991. In June 1993, he was appointed President and Principal of Enex
Securities  Corporation.  From June 1988 to February  1991,  he was  employed by
Positron Corporation in Houston.  From July 1987 to May 1988, he was employed by
Transworld  Oil Company in Houston and from  September  1985 until July 1987, he
was an accountant with Deloitte Haskins & Sells in Houston,  Texas, auditing oil
and gas and oil service  companies.  Mr. Klein is a Certified Public  Accountant
and holds a B.A. in  Accounting  (1985)  from the  University  of Iowa.  He is a
member of the American  Institute of Certified  Public  Accountants and the Iowa
Society of Certified Public Accountants.

Item 10.      Executive Compensation

              The Company has no Directors or executive officers.

              The  Company  does not pay a  proportional  or fixed  share of the
compensation paid to the officers of the General Partner.

              The Company  reimburses  the General  Partner for direct costs and
administrative  costs incurred on its behalf.  Administrative costs allocated to
the Company are computed on a cost basis in accordance  with  standard  industry
practices by allocating the time spent by the General Partner's  personnel among
all  projects  and by  allocating  rent and other  overhead  on the basis of the
relative direct time charges. The Company

                                      III-3

<PAGE>



incurred $18,945 and $19,511 of such administrative costs payable to the General
Partner in 1996 and 1995, respectively.

Item 11.      Security Ownership of Certain Beneficial Owners and Management

                                                                 $500 Limited
                         Name of           Partner Units             Percent
 Title of Class     Beneficial Owner      Owned Directly            of Class

 Limited Partner     Enex Resources               751               15.2052%


Item 12.     Certain Relationships and Related Transactions

             See  the  Statements  of  Operations   included  in  the  Financial
Statements  in Item 7 of this  report for  information  concerning  general  and
administrative  costs incurred by Enex and allocated to the Company,  and Note 1
to  such  Financial  Statements  for  information  concerning  payments  to Enex
Securities  Corporation,  a  wholly  owned  subsidiary  of Enex  and to Enex for
certain offering and organization expenses incurred by the Company.

             See Item Number 2 - "Description  of Property" in this report for a
description of the properties  operated by Enex.  Enex operates such  properties
under the terms of a Joint Operating Agreement ("JOA"). Overhead charges allowed
to third  parties  under the JOA in  accordance  with the  Council of  Petroleum
Accountants  Societies are not charged to the Company. Such costs are considered
to be within the general and  administrative  overhead charges  allocated to the
Company.

Item 13.     Exhibits and Reports on Form 8-K

                                                                      Sequential
                                                                        Page No.

                                                                  --------------


             (a)    Exhibits

                    (3)      a.   Certificate of Limited Partnership, as
                                  amended. Incorporated by reference
                                  to Exhibit 3(a) to the Company's Annual Report
                                  on Form 10-K for the year
                                  ended December 31, 1988.

                             b.   Amended Agreement of Limited Partnership.
                                  Incorporated by reference to
                                  Exhibit 3(a) to the Registration Statement on
                                  Form S-1 (No. 33-20897) of
                                  Enex Oil and Gas Income Program IV filed with
                                  the Securities and Exchange Commission on
                                  April 1, 1988.

                    (4)      Not Applicable

                    (10)     Not Applicable

                    (11)     Not Applicable


                                      III-4

<PAGE>



                    (12)     Not Applicable

                    (13)     Not Applicable

                    (18)     Not Applicable

                    (19)     Not Applicable

                    (22)     Not Applicable

                    (23)     Not Applicable

                    (24)     Not Applicable

                    (25)     Not Applicable

                    (28)     Not Applicable

             (b)    Reports on Form 8-K

                    No reports on Form 8-K were filed during the last quarter of
                    the period covered by this report.


                                      III-5

<PAGE>

                                   SIGNATURES


                  In  accordance  with Section 13 or 15 (d) of the Exchange Act,
the registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

                                    ENEX OIL AND GAS INCOME PROGRAM IV -
                                         SERIES 2, L.P.

                                      By:    ENEX RESOURCES CORPORATION
                                              the General Partner




March 18, 1997                          By:     /s/   G. B. Eckley
                                              -------------------
                                                      G. B. Eckley, President


                  In  accordance  with the  Exchange  Act,  this report has been
signed below on March 18, 1997,  by the following  persons in the  capacities
indicated.


ENEX RESOURCES CORPORATION             General Partner


By:  /s/      G. B. Eckley

             ------------------------
              G. B. Eckley, President


     /s/      G. B. Eckley
                                        President, Chief Executive
              ------------------        Officer and Director


              G. B. Eckley


     /s/      R. E. Densford            Vice President, Secretary, Treasurer,
                                        Chief Financial Officer and Director
             -------------------

              R. E. Densford


     /s/      James A. Klein            Controller and Chief Accounting Officer

             -----------------

              James A. Klein



                                       S-1

<PAGE>

                                   /s/ Robert D. Carl, III

                                   --------------------------

                                       Robert D. Carl, III       Director



                                   /s/ Martin J. Freedman

                                   --------------------------

                                       Martin J. Freedman        Director


                                   /s/ William C. Hooper, Jr.

                                   --------------------------

                                       William C. Hooper, Jr.    Director


                                   /s/ Tom Shorney

                                   --------------------------

                                       Tom Shorney               Director


                                   /s/ Stuart Strasner

                                   --------------------------

                                       Stuart Strasner           Director



                                       S-2
<PAGE>