United States
                       Securities and Exchange Commission
                             Washington, D.C. 20549

   
                                   FORM 10-QSB/A
    


              [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 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 0-16551

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

                   New Jersey                       76-0179823
         (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

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 III - SERIES 3, L.P.
BALANCE SHEET
-------------------------------------------------------------------------------

                                                                 JUNE 30,
ASSETS                                                             1996
                                                          ---------------------
                                                               (Unaudited)
CURRENT ASSETS:
<S>                                                       <C>                 
  Cash                                                    $             21,311
  Accounts receivable - oil & gas sales                                 34,021
  Other current assets                                                   2,562
                                                          ---------------------

Total current assets                                                    57,894
                                                          ---------------------

OIL & GAS PROPERTIES
  (Successful efforts accounting method) - Proved
   mineral interests and related equipment & facilities              2,631,948
  Less  accumulated depreciation and depletion                       2,109,000
                                                          ---------------------

Property, net                                                          522,948
                                                          ---------------------

TOTAL                                                     $            580,842
                                                          =====================

LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
   Accounts payable                                       $             13,688
   Payable to general partner                                           31,553
                                                          ---------------------

Total current liabilities                                               45,241
                                                          ---------------------

NONCURRENT PAYABLE TO GENERAL PARTNER                                   94,659
                                                          ---------------------

PARTNERS' CAPITAL:
   Limited partners                                                    404,778
   General partner                                                      36,164
                                                          ---------------------

Total partners' capital                                                440,942
                                                          ---------------------

TOTAL                                                     $            580,842
                                                          =====================

   
Number of $500 Limited Paartner units outstanding                        6,410
    

</TABLE>

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

                                       I-1



<PAGE>


Depreciation and depletion  expense decreased to $46,529 in the first six months
of 1996 from $63,686 in the first six months of 1995. This represents a decrease
of $17,157 (27%). A 20% decrease in the depletion rate reduced  depreciation and
depletion expense by $11,807.  The changes in production,  noted above,  reduced
depreciation and depletion expense by an additional  $5,350. The decrease in the
depletion rate is primarily the result of an upward  revision of the oil and gas
reserves during December 1995.

General  and  administrative  expenses  incurred  during  the first  six  months
decreased to $18,394 in 1996 from $19,999 in 1995.  This decrease of $1,605 (8%)
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.  Accordingly,  the
changes in cash flow from 1995 to 1996 are  primarily  due to the changes in oil
and  gas  sales  described  above.  It is the  general  partner's  intention  to
distribute  substantially  all of  the  Company's  available  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.
    

The Company will continue to recover its reserves and  distribute to the limited
partners  the net  proceeds  realized  from the sale of oil and gas  production.
Distribution  amounts are subject to change if net  revenues are greater or less
than  expected.  Nonetheless,  the general  partner  believes  the Company  will
continue  to have  sufficient  cash flow to fund  operations  and to  maintain a
regular pattern of distributions.

On August 9, 1996, the Company's  General Partner  submitted  preliminary  proxy
material  to the  Securities  Exchange  Commission  with  respect  to a proposed
consolidation  of the Company with 33 other managed  limited  partnerships.  The
terms  and  conditions  of the  proposed  consolidation  are set  forth  in such
preliminary proxy material.

As of June 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-6

<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 III - 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 7, 1996                            By: /s/ James A. Klein
                                               -------------------
                                                     James A. Klein
                                                 Controller and Chief
                                                  Accounting Officer