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 0-18322

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

            New Jersey                                    76-0251421
  (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)


                          Issuer'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 IV - SERIES 3, L.P.
BALANCE SHEET
------------------------------------------------------------------------------

                                                               September 30,
ASSETS                                                             1996
                                                              ----------------
                                                               (Unaudited)
CURRENT ASSETS:
<S>                                                           <C>          
  Cash                                                        $      18,044
  Accounts receivable - oil & gas sales                              31,869
  Other current assets                                                  981
                                                              --------------

Total current assets                                                 50,894
                                                              --------------

OIL & GAS PROPERTIES
  (Successful efforts accounting method) - Proved
   mineral interests and related equipment & facilities           2,880,016
  Less  accumulated depreciation and depletion                    2,816,792
                                                              --------------

Property, net                                                        63,224
                                                              --------------


TOTAL                                                         $     114,118
                                                              ==============

LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)

CURRENT LIABILITIES:
   Accounts payable                                           $      18,254
   Payable to general partner                                        25,796
                                                              --------------

Total current liabilities                                            44,050
                                                              --------------

NONCURRENT PAYABLE TO GENERAL PARTNER                                51,592
                                                              --------------

PARTNERS' CAPITAL (DEFICIT):
   Limited partners                                                  (7,604)
   General partner                                                   26,080
                                                              --------------

Total partners' capital                                              18,476
                                                              --------------

TOTAL                                                         $     114,118
                                                              ==============

Number of $500 Limited Partner units outstanding                      6,080
</TABLE>

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

                                       I-1

<PAGE>
<TABLE>
<CAPTION>
ENEX OIL & GAS INCOME PROGRAM IV - 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              $      52,768     $         32,703     $        135,343     $          101,128
                                ---------------    -----------------    -----------------    -------------------

EXPENSES:
  Depreciation and depletion             9,353               10,022               24,748                 32,946
  Impairment of property                     -                    -              538,207                      -
  Lease operating expenses              23,033               13,542               55,281                 47,885
  Production taxes                       3,901                3,704               11,927                 10,936
  General and administrative             3,985                4,257               13,265                 14,181
                                ---------------    -----------------    -----------------    -------------------

Total expenses                          40,272               31,525              643,428                105,948
                                ---------------    -----------------    -----------------    -------------------

NET INCOME (LOSS)                $      12,496     $          1,178     $       (508,085)    $           (4,820)
                                ===============    =================    =================    ===================

</TABLE>



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

                                       I-2

<PAGE>
<TABLE>
<CAPTION>
ENEX OIL AND GAS INCOME PROGRAM IV - 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)                                               $         (508,085)          $       (4,820) 
                                                         -------------------      -------------------

Adjustments to reconcile net (loss) to net cash
   provided by operating activities:
  Depreciation and depletion                                         24,748                   32,946
  Impairment of property                                            538,207                        -
(Increase) decrease in:
  Accounts receivable - oil & gas sales                             (14,366)                  15,086
  Other current assets                                                    -                        -
(Decrease) in:
   Accounts payable                                                 (10,115)                 (19,752)
   Payable to general partner                                        (8,412)                 (10,657)
                                                         -------------------      -------------------

Total adjustments                                                   530,062                   17,623
                                                         -------------------      -------------------

Net cash provided by operating activities                            21,977                   12,803
                                                         -------------------      -------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Property (additions) credits - development costs                  (3,977)                   2,373
                                                         -------------------      -------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Cash distributions                                                     -                  (24,755)
                                                         -------------------      -------------------

NET INCREASE (DECREASE) IN CASH                                      18,000                   (9,579)

CASH AT BEGINNING OF YEAR                                                44                   17,235
                                                         -------------------      -------------------

CASH AT END OF PERIOD                                    $           18,044            $       7,656  
                                                         ===================      ===================

</TABLE>



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

                                       I-3


<PAGE>

ENEX OIL & GAS INCOME PROGRAM IV - 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.   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 $538,207 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 Operations.


Third Quarter 1995 Compared to Third Quarter 1996

Oil and gas  sales for the  third  quarter  increased  to  $52,768  in 1996 from
$32,703  in 1995.  This  represents  an  increase  of $20,065  (61%).  Oil sales
increased  by $1,852  (8%).  A 37%  increase  in the  average  oil  sales  price
increased sales by $7,021.  This increase was partially offset by a 21% decrease
in oil production.  Gas sales increased by $18,213 (219%). A 36% increase in the
average  gas sales  price  increased  sales by  $12,492.  A 68%  increase in gas
production increased sales by an additional $5,721. The increases in average oil
and gas sales price  correspond with higher prices in the overall market for the
sale of oil and gas. The decrease in oil  production was primarily the result of
natural production  declines,  which were especially  pronounced on the Brighton
acquisition.  The increase in gas  production  was primarily due to a successful
workover on the Lake Decade acquisition in the third quarter of 1996.

Lease operating  expenses increased to $23,033 in 1996 from $13,542 in 1995. The
increase of $9,491 (70%) is primarily due to workover costs incurred on the Lake
Decade acquisition in 1996.

Depreciation and depletion  expense  decreased to $9,353 in the third quarter of
1996 from $10,022 in the third  quarter of 1995.  This  represents a decrease of
$669  (7%).  A 9%  decrease  in the  depletion  rate  reduced  depreciation  and
depletion  expense by $964. This decrease was partially offset by the changes in
production,  noted  above.  The rate  decrease  was  primarily  due to the lower
property  basis  resulting  from the  recognition  of a $538,207  impairment  of
property in the first quarter of 1996.

General and administrative  expenses decreased to $3,985 in the third quarter of
1996 from  $4,257 in the third  quarter of 1995.  This  decrease of $272 (6%) 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 $135,343 in 1996 from
$101,128  in 1995.  This  represents  an increase  of $34,215  (34%).  Oil sales
decreased  by $3,582 (5%). A 22%  decrease in oil  production  reduced  sales by
$15,824. This decrease was partially offset by a 22% increase in the average oil
sales price.  Gas sales  increased  by $37,797  (127%).  A 134%  increase in the
average gas sales price increased sales by $38,639.  This increase was partially
offset by a 3% decrease  in gas  production.  The  increase in average oil sales
price  corresponds with higher prices in the overall market for the sale of oil.
The decrease in oil  production  was primarily the result of natural  production
declines,  which were  especially  pronounced on the Brighton  acquisition.  The
decrease in gas  production  was primarily due to natural  production  declines,
partially offset by higher production from the Lake Decade acquisition which was
successfully

                                       I-5

<PAGE>



reworked in 1996.  The  increase in the average gas sales price was  primarily a
result of higher  prices in the overall  market for the sale of gas coupled with
relatively lower net profits royalty paid on the Lake Decade acquisition,  which
incurred higher lease operating expenses in 1996.

Lease operating  expenses  increased to $55,281 in the first nine months of 1996
from  $47,885 in the first nine months of 1995.  The decrease of $7,396 (15%) is
primarily due to the changes in production, noted above.

Depreciation and depletion expense decreased to $24,748 in the first nine months
of 1996  from  $32,946  in the first  nine  months of 1995.  This  represents  a
decrease  of $8,198  (25%).  The changes in  production,  noted  above,  reduced
depreciation and depletion  expense by $5,088.  An 11% decrease in the depletion
rate reduced  depreciation and depletion  expense by an additional  $3,110.  The
rate decrease was primarily due to the lower property  basis  resulting from the
recognition of a $538,207 impairment of property 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  provision of $538,207 for certain
oil and gas  properties due to market  conditions  and reserve  revisions on the
Lake Decade  acquisition,  which  indicated  that the carrying  amounts were not
fully recoverable.

General  and  administrative  expenses  decreased  to  $13,265 in the first nine
months of 1996 from $14,181 in the first nine months of 1995.  This  decrease of
$916 (6%) 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  after the 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
remaining  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.

                                       I-6

<PAGE>




The  Company  discontinued  the payment of  distributions  during  1995.  Future
distributions  are dependent  upon,  among other  things,  an increase in prices
received for oil and gas. The Company will  continue to recover its reserves and
distribute  to the limited  partners the net proceeds  realized form the sale of
oil and gas  production.  Distribution  amounts  are  subject  to  change if net
revenues are greater or less than expected.  Future periodic  distributions will
be made once sufficient net revenues are accumulated.

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 IV - 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>