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 March 31, 1997

                                       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) 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
<PAGE>
                              PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

ENEX OIL & GAS INCOME PROGRAM IV - SERIES 3, L.P.
BALANCE SHEET
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>

                                                                MARCH 31,
ASSETS                                                             1997
                                                          ---------------------
                                                               (Unaudited)
CURRENT ASSETS:
<S>                                                       <C>                 
  Cash                                                    $              9,596
  Accounts receivable - oil & gas sales                                 24,305
  Other current assets                                                     981
                                                          ---------------------

Total current assets                                                    34,882
                                                          ---------------------

OIL & GAS PROPERTIES
  (Successful efforts accounting method) - Proved
   mineral interests and related equipment & facilities              2,880,339
  Less  accumulated depreciation and depletion                       2,822,342
                                                          ---------------------

Property, net                                                           57,997
                                                          ---------------------

TOTAL                                                     $             92,879
                                                          =====================

LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
   Accounts payable                                       $             29,337
   Payable to general partner                                           47,334
                                                          ---------------------

Total current liabilities                                               76,671
                                                          ---------------------

PARTNERS' CAPITAL:
   Limited partners                                                    (10,202)
   General partner                                                      26,410
                                                          ---------------------

Total partners' capital                                                 16,208
                                                          ---------------------

TOTAL                                                     $             92,879
                                                          =====================

Number of $500 Limited Partner units outstanding                         6,079
</TABLE>





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

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

 
(UNAUDITED)                                 THREE MONTHS ENDED
                                      ----------------------------------------

                                         MARCH 31,              MARCH 31,
                                            1997                  1996
                                    -------------------    -------------------

REVENUES:
<S>                                 <C>                          <C>          
  Oil and gas sales                 $           30,489           $     38,629 
                                    -------------------    -------------------

EXPENSES:
  Depreciation and depletion                     4,161                  2,845
  Impairment of property                             -                538,207
  Lease operating expenses                      15,651                 14,219
  Production taxes                               2,753                  4,106
  General and administrative                     3,854                  4,826
                                    -------------------    -------------------

Total expenses                                  26,419                564,203
                                    -------------------    -------------------

NET INCOME (LOSS)                   $            4,070         $     (525,574)
                                    ===================    ===================

</TABLE>


See accompanying notes to financial statements.
------------------------------------------------------------------------------
                                       I-2

<PAGE>
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 3, L.P.

STATEMENT OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
FOR THE YEAR ENDED DECEMBER 31, 1996 AND
FOR THE THREE MONTHS ENDED MARCH 31, 1997
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                                 PER $500
                                                                                                  LIMITED
                                                                                                  PARTNER
                                                        GENERAL              LIMITED             UNIT OUT-
                                   TOTAL                PARTNER             PARTNERS             STANDING
                             -----------------    ------------------   ------------------   ------------------

<S>              <C>         <C>                  <C>                  <C>                  <C>              
BALANCE, JANUARY 1, 1996     $        526,561     $          20,593    $         505,968    $              83

NET INCOME (LOSS)                    (514,423)                4,992             (519,415)                 (85)
                             -----------------    ------------------   ------------------   ------------------

BALANCE, DECEMBER 31, 1996             12,138                25,585              (13,447)                  (2)

NET INCOME                              4,070                   825                3,245                    -
                             -----------------    ------------------   ------------------   ------------------

BALANCE, MARCH 31, 1997      $         16,208     $          26,410    $         (10,202)(1)$              (2)
                             =================    ==================   ==================   ==================
</TABLE>


(1)  Includes 1,156 units purchased by the general partner as a limited partner.




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

                                       I-3

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

(UNAUDITED)
                                                                   THREE MONTHS ENDED
                                                             ------------------------------------------

                                                                MARCH 31,                MARCH 31,
                                                                   1997                    1996
                                                           -------------------      -------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                        <C>                          <C>              
Net income (loss)                                          $            4,070           $     (525,574)  
                                                           -------------------      -------------------

Adjustments to reconcile net income (loss) to net cash
   provided by operating activities:
  Depreciation and depletion                                            4,161                    2,845
  Impairment of property                                                    -                  538,207
(Increase) decrease in:
  Accounts receivable - oil & gas sales                                 5,301                  (14,159)
Increase (decrease) in:
   Accounts payable                                                    (2,676)                   2,788
   Payable to general partner                                          (7,846)                   2,229
                                                           -------------------      -------------------

Total adjustments                                                      (1,060)                 531,910
                                                           -------------------      -------------------

Net cash provided by operating activities                               3,010                    6,336
                                                           -------------------      -------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Property additions - development costs                                 (49)                    (514)
                                                           -------------------      -------------------

NET INCREASE IN CASH                                                    2,961                    5,822

CASH AT BEGINNING OF YEAR                                               6,635                       44
                                                           -------------------      -------------------

CASH AT END OF PERIOD                                      $            9,596          $         5,866   
                                                           ===================      ===================
</TABLE>

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

                                       I-4

<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 $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.

3.   On April 24, 1997,  the Company's  General  Partner  submitted  preliminary
     proxy  material to the  Securities  Exchange  Commission  with respect to a
     proposed liquidation of the Company.



                                       I-5

<PAGE>



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

First Quarter 1997 Compared to First Quarter 1995

Oil and gas  sales for the  first  quarter  decreased  from  $38,629  in 1996 to
$30,489 in 1997. This represents a decrease of $8,140 (21%). Oil sales decreased
by $6,815 or 35%. A 48% decrease in oil production reduced sales by $9,316. This
decrease was partially  offset by a 24% increase in the average oil sales price.
Gas sales  decreased by $1,325 or 7%. A 24% decrease in gas  production  reduced
sales by $4,648.  This  decrease was  partially  offset by a 23% increase in the
average gas sales price.  The decreases in oil and gas production were primarily
the result of a shut in of production  from the Bagley  acquisition to perform a
workover, coupled with natural production declines. The increases in average oil
and gas sales prices correspond with higher prices in the overall market for the
sale of oil and gas.

Lease operating  expenses increased from $14,219 in the first quarter of 1996 to
$15,651 in the first  quarter  of 1997.  The  increase  of  $1,432,  or 10%,  is
primarily due to workover  expenses  incurred on the Bagley  acquisition  in the
first quarter of 1997.

Depreciation and depletion expense increased from $2,845 in the first quarter of
1996 to $4,161 in the first  quarter of 1997.  This  represents  an  increase of
$1,316 (46%). A 142% increase in the depletion rate increased  depreciation  and
depletion  expense by $2,444.  This increase was partially offset by the changes
in  production,  noted above.  The rate increase was primarily due to a downward
revision 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.

General and  administrative  expenses decreased from $4,826 in the first quarter
of 1996 to $3,854 in the first  quarter of 1997.  This decrease of $972 (20%) 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 1996 to 1997
are primarily due to the changes in oil and gas sales

                                       I-6

<PAGE>



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  discontinued  the payment of  distributions in the third quarter of
1995.  Future  distributions  are dependent upon among other things,  the prices
received for oil and gas. The Company will  continue to recover its reserves and
reduce  its  obligations  in  1997.  The  general  partner  does not  intend  to
accelerate  the repayment of the debt beyond the cash flow provided by operating
activities.  Based upon current projected cash flows from its property,  it does
not appear  that the  Company  will have  sufficient  cash to pay its  operating
expenses, repay its debt obligations and pay distributions in the near future.

On April 24, 1997, the Company's  General Partner  submitted  preliminary  proxy
material  to the  Securities  Exchange  Commission  with  respect  to a proposed
liquidation of the Company.

As of March 31,  1997,  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 March 31, 1997.


                                      II-1

<PAGE>

                                  SIGNATURES


      Pursuant to the  requirements of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  Report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.


                                                     ENEX OIL & GAS INCOME
                                                     PROGRAM IV - 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




May 11, 1997                                      By: /s/ James A. Klein
                                                     -------------------
                                                          James A. Klein
                                                       Controller and Chief
                                                        Accounting Officer