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

                                                                  September 30,
ASSETS                                                                  1997
                                                               ----------------
                                                                    (Unaudited)
CURRENT ASSETS:
<S>                                                            <C>           
  Cash                                                         $       16,970
  Accounts receivable - oil & gas sales                                24,380

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

Total current assets                                                   41,350
                                                               ---------------

OIL & GAS PROPERTIES
  (Successful efforts accounting method) - Proved
   mineral interests and related equipment & facilities             2,880,645
  Less  accumulated depreciation and depletion                      2,833,625
                                                               ---------------

Property, net                                                          47,020
                                                               ---------------


TOTAL                                                          $       88,370
                                                               ===============

LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)

CURRENT LIABILITIES:
   Accounts payable                                            $       20,927
   Payable to general partner                                          53,084
                                                               ---------------

Total current liabilities                                              74,011
                                                               ---------------

PARTNERS' CAPITAL (DEFICIT):
   Limited partners                                                   (12,994)
   General partner                                                     27,353
                                                               ---------------

Total partners' capital                                                14,359
                                                               ---------------

TOTAL                                                          $       88,370
                                                               ===============

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,
                                        1997           1996             1997          1996
                                  ------------    -------------    ------------- --------------

REVENUES:
<S>                                 <C>           <C>              <C>           <C>          
  Oil and gas sales                 $  22,136     $     52,768     $     80,760  $     135,343
                                  ------------    -------------    ------------- --------------
                                                    
EXPENSES:                                           
  Depreciation and depletion            6,025            9,353           15,444         24,748
  Impairment of property                    -                -                -        538,207
  Lease operating expenses             10,736           23,033           41,173         55,281
  Production taxes                      2,147            3,901            8,093         11,927
  General and administrative            6,026            3,985           13,829         13,265
                                  ------------    -------------    ------------- --------------
                                                    
Total expenses                         24,934           40,272           78,539        643,428
                                  ------------    -------------    ------------- --------------
                                                    
NET INCOME (LOSS)                   $  (2,798)    $     12,496     $      2,221  $    (508,085)
                                  ============    =============    ============= ==============
</TABLE>



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

                                       I-2

<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
FOR THE YEAR ENDED DECEMBER 31, 1996
AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997
---------------------------------------------------------------------------
                                                                             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                         2,221           1,768             453            -
                               ----------    ------------    ------------   ----------

BALANCE, SEPTEMBER 30, 1997    $  14,359      $   27,353      $  (12,994)(1)  $    (2)
                               ==========    ============    ============   ==========
</TABLE>

(1)  Includes 1,166 units purchased by the general partner as a limited partner.




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

                                       I-3

<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,
                                                             1997              1996
                                                        --------------      -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                     <C>                  <C>             
Net income (loss)                                       $       2,221        $  (508,085)    
                                                        --------------      -------------

Adjustments to reconcile net income (loss) to net cash
   provided by operating activities:
  Depreciation and depletion                                   15,444             24,748
  Impairment of property                                            -            538,207
(Increase) decrease in:
  Accounts receivable - oil & gas sales                         5,226            (14,366)
  Other current assets                                            981                  -
(Decrease) in:
   Accounts payable                                           (11,086)           (10,115)
   Payable to general partner                                  (2,096)            (8,412)
                                                        --------------      -------------

Total adjustments                                               8,469            530,062
                                                        --------------      -------------

Net cash provided by operating activities                      10,690             21,977
                                                        --------------      -------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Property additions  - development costs                       (355)            (3,977)
                                                        --------------      -------------

                                                                            


NET INCREASE IN CASH                                           10,335             18,000

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

CASH AT END OF PERIOD                                   $      16,970        $    18,044     
                                                        ==============      =============
</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  drilled
     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.

                                       I-5

<PAGE>



3.       A Special  Meeting of the  Limited  Partners of the Company was held on
         October 28, 1997,  during which votes were cast by the Limited Partners
         regarding the proposed dissolution and liquidation of this partnership.
         A majority vote to liquidate and dissolve the  partnership was received
         as follows:

                   Enex Oil & Gas Income Program IV, Series 3

     For                              Against
     Liquidation                    Liquidation                Abstain
     -------------------        -------------------       ------------------
          55.43%                            7.08%                    3.88%

The properties owned by the partnership will be sold and any proceeds  remaining
after the  payment  of all the  partnership's  debt will be  distributed  to the
limited partners. This partnership should be dissolved during the fourth quarter
of 1997.

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

Third Quarter 1997 Compared to Third Quarter 1996

Oil and gas  sales for the  third  quarter  decreased  from  $52,768  in 1996 to
$22,136  in 1997.  This  represents  a  decrease  of  $30,632  (58%).  Oil sales
decreased  by $13,146 or (50%).  A 32%  decrease  in the average oil sales price
reduced sales by $6,989.  A 27% decrease in oil production  reduced oil sales by
an additional  $6,157.  Gas sales  decreased by $17,486 (66%). A 41% decrease in
the average  gas sales  price  reduced  sales by $6,320.  A 42%  decrease in gas
production reduced sales by an additional  $11,166.  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 decrease in
oil and gas  production was due primarily 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 higher net profits  royalty
paid on the Bagley  acquisition,  which incurred higher lease operating expenses
in 1996.

Lease operating  expenses decreased from $23,033 in 1996 to $10,736 in 1997. The
decrease of $12,297 (53%) is primarily due to the workover  expenses incurred on
the Bagley acquisition during the third quarter of 1996.

Depreciation and depletion expense decreased from $9,353 in the third quarter of
1996 to $6,025 in the third  quarter of 1997.  This  represents  a  decrease  of
$3,328 (36%). The changes in production,  noted above,  reduced depreciation and
depletion  expense  by $3,126.  A 3%  decrease  in the  depletion  rate  reduced
depreciation and depletion  expense by an additional $202. 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 increased from $3,985 in the third quarter
of 1996 to $6,026 in the third quarter of 1997. This increase of $2,041 (51%) is
primarily  due to more  staff  time  being  required  to  manage  the  Company's
operations.

                                       I-6

<PAGE>



First Nine Months in 1997 Compared to First Nine Months in 1996

Oil and gas sales for the first nine months  decreased  from $135,343 in 1996 to
$80,760  in 1997.  This  represents  a  decrease  of  $54,583  (40%).  Oil sales
decreased by $23,966 (35%).  A 26% decrease in oil  production  reduced sales by
$17,831.  A 12% decrease in the average net oil sales price reduced oil sales an
additional  $6,135.  Gas sales decreased by $30,617 (45%). A 23% decrease in the
average  gas sales  price  decreased  sales by  $10,991.  A 29%  decrease in gas
production reduced sales by an additional  $19,626.  The decrease in average oil
and gas sales prices were  primarily a result of  relatively  higher net profits
royalty paid on the Bagley  acquisition,  which incurred  higher lease operating
expenses in 1996.  The decreases in oil and gas  production  were  primarily the
result of natural production declines,  which were especially  pronounced on the
Lake Decade acquisition.

Lease operating expenses decreased from $55,281 in the first nine months of 1996
to $41,173 in the first nine months of 1997.  The  decrease of $14,108  (26%) is
primarily  due to workover  charges  incurred on the Bagley  acquisition  in the
third  quarter of 1996  coupled with the  decreases  in oil and gas  production,
noted above.

Depreciation  and  depletion  expense  decreased  from $24,748 in the first nine
months of 1996 to $15,444 in the first nine months of 1997.  This  represents  a
decrease  of $9,304  (38%).  The changes in  production,  noted  above,  reduced
depreciation  and depletion  expense by $6,785.  A 14% decrease in the depletion
rate reduced  depreciation and depletion  expense by an additional  $2,519.  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 "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.

                                       I-7

<PAGE>



Revised  geologic  mapping,  based on  production  from  existing  wells and the
unsuccessful  wells drilled  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.

General and  administrative  expenses  increased  from $13,265 in the first nine
months of 1996 to $13,829 in the first nine  months of 1997.  This  increase  of
$564 (4%) is  primarily  due to more  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.

A Special Meeting of the Limited Partners of the Company was held on October 28,
1997,  during  which  votes  were cast by the  Limited  Partners  regarding  the
proposed  dissolution  and liquidation of this  partnership.  A majority vote to
liquidate and dissolve the partnership was received as follows:

                   Enex Oil & Gas Income Program IV, Series 3

     For                              Against
     Liquidation                    Liquidation                Abstain
     -------------------        -------------------       ------------------
     55.43%                            7.08%                    3.88%

The properties owned by the partnership will be sold and any proceeds  remaining
after the  payment  of all the  partnership's  debt will be  distributed  to the
limited partners. This partnership should be dissolved during the fourth quarter
of 1997.

As of September 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-8

<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, 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/ James A. Klein
                                                              ------------------
                                                                  James A. Klein
                                                        Secretary, Treasurer and
                                                        Chief Financial Officer




November 11, 1997                                        By: /s/ Larry W. Morris
                                                             -------------------
                                                                 Larry W. Morris
                                                            Controller and Chief
                                                              Accounting Officer