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 June 30, 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:
                                 (281) 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

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

                                                                   JUNE 30,
ASSETS                                                              1997
                                                               ---------------
                                                                 (Unaudited)
CURRENT ASSETS:
<S>                                                            <C>           
  Cash                                                         $       14,497
  Accounts receivable - oil & gas sales                                27,208
                                                               ---------------

Total current assets                                                   41,705
                                                               ---------------

OIL & GAS PROPERTIES
  (Successful efforts accounting method) - Proved
   mineral interests and related equipment & facilities             2,880,544
  Less  accumulated depreciation and depletion                      2,827,600
                                                               ---------------

Property, net                                                          52,944
                                                               ---------------

TOTAL                                                          $       94,649
                                                               ===============

LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
   Accounts payable                                            $       22,493
   Payable to general partner                                          54,999
                                                               ---------------

Total current liabilities                                              77,492
                                                               ---------------

PARTNERS' CAPITAL:
   Limited partners                                                    (9,870)
   General partner                                                     27,027
                                                               ---------------

Total partners' capital                                                17,157
                                                               ---------------

TOTAL                                                          $       94,649
                                                               ===============

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)                            QUARTER ENDED                      SIX MONTHS ENDED
                                  --------------------------    ----------------------------
                                    JUNE 30,        JUNE 30,        JUNE 30,       JUNE 30,
                                      1997            1996            1997           1996
                                  -----------    -----------    ------------   ------------
REVENUES:
<S>                                 <C>          <C>            <C>            <C>        
  Oil and gas sales                 $ 19,995     $   43,946     $    58,624    $    82,575
                                  -----------    -----------    ------------   ------------

EXPENSES:
  Depreciation and depletion             948          6,924           9,419         15,395
  Impairment of property                   -              -               -        538,207
  Lease operating expenses            16,218         18,029          30,437         32,248
  Production taxes                     1,840          3,920           5,946          8,026
  General and administrative           2,977          4,454           7,803          9,280
                                  -----------    -----------    ------------   ------------

Total expenses                        21,983         33,327          53,605        603,156
                                  -----------    -----------    ------------   ------------

NET INCOME (LOSS)                   $ (1,988)    $   10,619     $     5,019    $  (520,581)
                                  ===========    ===========    ============   ============
</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 SIX MONTHS ENDED JUNE 30, 1997
----------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                   PER $500
                                                                                    LIMITED
                                                                                    PARTNER
                                                        GENERAL        LIMITED      UNIT OUT-
                                        TOTAL           PARTNER       PARTNERS      STANDING
                                ---------------     ------------    -----------    ----------

<S>                               <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                               5,019            1,442          3,577             1
                                ---------------     ------------    -----------    ----------

BALANCE, JUNE 30, 1997            $     17,157      $    27,027      $  (9,870)(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
-------------------------------------------------------------------------------

(UNAUDITED)
<TABLE>
<CAPTION>
                                                            SIX MONTHS ENDED
                                                   -----------------------------

                                                       JUNE 30,        JUNE 30,
                                                        1997            1996
                                                   ------------      -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                <C>               <C>                  
Net income (loss)                                  $     5,019       $ (520,581)          
                                                   ------------      -----------

Adjustments to  reconcile  net income 
 (loss) to net cash  provided by operating
   activities:
  Depreciation and depletion                             9,419           15,395
  Impairment of property                                     -          538,207
(Increase) decrease in:
  Accounts receivable - oil & gas sales                  2,398          (11,891)
  Other current assets                                     981                -
Increase (decrease) in:
   Accounts payable                                     (9,520)          (9,320)
   Payable to general partner                             (181)           1,635
                                                   ------------      -----------

Total adjustments                                        3,097          534,026
                                                   ------------      -----------

Net cash provided by operating activities                8,116           13,445
                                                   ------------      -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Property additions - development costs                 (254)          (1,034)
                                                   ------------      -----------

NET INCREASE IN CASH                                     7,862           12,411

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

CASH AT END OF PERIOD                              $    14,497        $  12,455         
                                                   ============      ===========
</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 $538,207  for certain oil and gas  properties
          primarily  due  to  downward  reserve  revisions  on the  Lake  Decade
          acquisition. The Lake Decade acquisition included significant reserves
          that  were   considered   "proved"  but  not  yet  developed.   Proved
          undeveloped  reserves  were  assigned to these  leases based on offset
          production in existing  wells and on geologic  mapping of the existing
          wells north of the producing wells.  Enex and its affiliated  entities
          owned less than 10% of this  acquisition.  The other working  interest
          owners which held the remaining interest in the acquisition, including
          the  operator of the field,  also  carried  these  reserves as "proved
          undeveloped"   reserves   prior  to  1996.   Wells  drilled  near  the
          acquisition in an attempt to increase  production  from the field were
          dry holes. Revised geologic mapping, based on production from existing
          wells and the  unsuccessful  wells  driled  offsetting  the  property,
          indicated  a much  smaller  productive  area than had been  originally
          calculated.  It was determined by the operator of the acquisition that
          future  drillings  could not be justified.  The well which was holding
          the  lease,  which  had  undeveloped  reserves  assigned  to  it,  was
          recompleted by the operator in 1996 to a zone in which the Company did
          not  own  an  interest.  As  a  result,  the  lease  expired  and  the
          undeveloped  reserves associated with the lease had to be written off.
          This was the cause of both the downward reserve  revisions in 1996 and
          the  reserve  valuation  writedowns  taken by the Company in the first
          quarter of 1996.

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.  The terms and conditions of the
         proposed liquidation are set forth in such proxy material.

                                       I-4

<PAGE>



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


Second Quarter 1996 Compared to Second Quarter 1997

Oil and gas sales for the  second  quarter  decreased  from  $43,946  in 1996 to
$19,995  in 1997.  This  represents  a  decrease  of  $23,951  (55%).  Oil sales
decreased by $10,820 (6%). A 51% decrease in the average oil sales price reduced
sales by $11,303.  This  decrease was  partially  offset by a 5% increase in oil
production.  Gas sales decreased by $13,131 (60%). A 35% decrease in the average
gas sales  price  reduced  sales by $9,638.  A 16%  decrease  in gas  production
reduced sales by an additional  $3,493.  The decrease in average oil sales price
was a result of lower lease  operating  expenses on the Bagley  acquisition,  on
which the Company pays a net profits royalty. The increase in oil production was
primarily the result of higher production from the Bagley acquisition, which was
shut-in for workovers  during the second  quarter of 1996,  partially  offset by
lower  production  from the Lake Decade  acquisition  due to natural  production
declines. The decrease in gas production was primarily due to natural production
declines.  The decrease in the average gas sales price was primarily a result of
higher net profits royalty paid on the Bagley acquisition, which incurred higher
lease operating expenses in 1996.

Lease operating  expenses decreased from $18,029 in 1996 to $16,218 in 1997. The
decrease of $1,811 (10%) is primarily due to the workover  expenses  incurred on
the Bagley acquisition during the second quarter of 1996.

Depreciation and depletion  expense  decreased from $6,924 in the second quarter
of 1996 to $948 in the second  quarter of 1997.  This  represents  a decrease of
$5,976 (86%). The changes in production,  noted above,  reduced depreciation and
depletion  expense  by $295.  An 86%  decrease  in the  depletion  rate  reduced
depreciation and depletion  expense by an additional  $5,681.  The rate decrease
was primarily due to relatively  higher  production from the Bagley  acquisition
which has a relatively lower depletion rate.

General and administrative  expenses decreased from $4,454 in the second quarter
of 1996 to $2,977 in the second  quarter of 1997.  This decrease of $1,477 (33%)
is  primarily  due to less  staff time being  required  to manage the  Company's
operations.

First Six Months in 1997 Compared to First Six Months in 1996

Oil and gas sales for the first six  months  decreased  from  $82,575 in 1996 to
$58,624  in 1997.  This  represents  a  decrease  of  $23,951  (29%).  Oil sales
decreased by $10,820 (26%).  A 26% decrease in oil  production  reduced sales by
$10,852.  This decrease was partially offset by a 1% increase in the average oil
sales price. Gas sales decreased by $13,131 (32%). A 28% decrease in the average
gas sales price  decreased  sales by $4,879.  A 20%  decrease in gas  production
reduced sales by an additional  $8,252.  The increase in average oil sales price
corresponds  with  higher  prices  in the  overall  market  for the  sale of oil
partially  offset by higher net profits  payments on the Bagley  acquisition  in
1997.  The  decrease  in oil  production  was  primarily  the  result of natural
production

                                       I-5

<PAGE>



declines,  which were especially pronounced on the Lake Decade acquisition.  The
decrease in gas  production  was primarily due to natural  production  declines,
which were especially pronounced on the Lake Decade acquisition. The decrease in
the  average gas sales price was  primarily  a result of  relatively  higher net
profits  royalty paid on the Bagley  acquisition,  which  incurred  higher lease
operating expenses in 1996.

Lease operating  expenses decreased from $32,248 in the first six months of 1996
to $30,436  in the first six  months of 1997.  The  decrease  of $1,812  (6%) is
primarily  due to workover  charges  incurred on the Bagley  acquisition  in the
second quarter of 1996.

Depreciation  and  depletion  expense  decreased  from  $15,395 in the first six
months of 1996 to $9,419 in the first  six  months of 1997.  This  represents  a
decrease  of $5,976  (39%).  The changes in  production,  noted  above,  reduced
depreciation  and depletion  expense by $3,669.  A 20% decrease in the depletion
rate reduced  depreciation and depletion  expense by an additional  $2,307.  The
rate decrease was primarily due to relatively  higher production from the Bagley
acquisition which has a relatively lower depletion rate.

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  primarily due to downward reserve  revisions on the Lake
Decade acquisition.  The Lake Decade acquisition  included  significant reserves
that  were  considered  <0-  32>proved<0-  31>  but not  yet  developed.  Proved
undeveloped reserves were assigned to these leases based on offset production in
existing  wells and on  geologic  mapping  of the  existing  wells  north of the
producing  wells.  Enex and its affiliated  entities owned less than 10% of this
acquisition. The other working interest owners which held the remaining interest
in the  acquisition,  including  the operator of the field,  also carried  these
reserves as <0-  32>proved  undeveloped<0-  31>  reserves  prior to 1996.  Wells
drilled near the acquisition in an attempt to increase production from the field
were dry holes.  Revised  geologic  mapping,  based on production  from existing
wells and the  unsuccessful  wells driled  offsetting the property,  indicated a
much  smaller  productive  area  than had  been  originally  calculated.  It was
determined by the operator of the acquisition that future drillings could not be
justified.  The well which was holding the lease, which had undeveloped reserves
assigned to it, was  recompleted  by the operator in 1996 to a zone in which the
Company  did not  own an  interest.  As a  result,  the  lease  expired  and the
undeveloped reserves associated with the lease had to be written

                                       I-6

<PAGE>



off. This was the cause of both the downward  reserve  revisions in 1996 and the
reserve valuation writedowns taken by the Company in the first quarter of 1996.

General  and  administrative  expenses  decreased  from  $9,280 in the first six
months  of 1996 to $7,803 in the first  six  months of 1997.  This  decrease  of
$1,477  (16%) 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 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. The terms and conditions of the proposed liquidation
are set forth in such proxy material.

As of June 30,  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 June 30, 1997.


                                      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




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