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 0-16552

               ENEX OIL & GAS INCOME PROGRAM III - SERIES 4, L.P.
        (Exact name of small business issuer as specified in its charter)

                     New Jersey                             76-0179822
          (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 4, L.P.
BALANCE SHEET
-------------------------------------------------------------------------------

                                                                 JUNE 30,
ASSETS                                                             1996
                                                          ---------------------
                                                               (Unaudited)
CURRENT ASSETS:
<S>                                                       <C>
  Cash                                                    $              4,016
  Accounts receivable - oil & gas sales                                 18,899
  Other current assets                                                   4,344
                                                          ---------------------

Total current assets                                                    27,259
                                                          ---------------------

OIL & GAS PROPERTIES
  (Successful efforts accounting method) - Proved
   mineral interests and related equipment & facilities              1,696,670
  Less  accumulated depreciation and depletion                       1,334,760
                                                          ---------------------

Property, net                                                          361,910
                                                          ---------------------

TOTAL                                                     $            389,169
                                                          =====================

LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
   Accounts payable                                       $             15,383
   Payable to general partner                                           33,317
                                                          ---------------------

Total current liabilities                                               48,700
                                                          ---------------------

NONCURRENT PAYABLE TO GENERAL PARTNER                                  133,270
                                                          ---------------------

PARTNERS' CAPITAL:
   Limited partners                                                    194,283
   General partner                                                      12,916
                                                          ---------------------

Total partners' capital                                                207,199
                                                          ---------------------


TOTAL                                                     $            389,169
                                                          =====================

   
Number of $500 Limited Partner units outstanding                         5,410
    

</TABLE>

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

                                       I-1

<PAGE>


ENEX OIL & GAS INCOME PROGRAM III - SERIES 4, 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.       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.

   
3.   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  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 $88,363 for certain
     oil and gas properties due to market  indications that the carrying amounts
     were not fully recoverable.
    


                                       I-4

<PAGE>

primarily  the result of higher net profits  payments  on the Shana  acquisition
which had a pump  replaced  on the  Dorothy  Stevens #4 well in 1995,  partially
offset by higher prices in the overall  market for the sale of oil. The increase
in the average gas sales price was  primarily the result of higher prices in the
overall  market  for  the  sale  of gas  coupled  with  higher  production  from
properties  with a relatively  higher gas price.  The lower oil  production  was
primarily the result of natural  production  declines.  The lower gas production
was  primarily  the  result of the  shut-in of  non-economic  wells in the Pecan
Island acquisition, coupled with natural production declines.

Lease operating  expenses decreased to $43,579 in 1996 from $45,860 in 1995. The
decrease of $2,281 (5%) is primarily  due to charges  incurred to replace a pump
on the Shana acquisition in the second quarter of 1996,  partially offset by the
changes in production, noted above.

Depreciation and depletion  expense  decreased to $8,168 in the first six months
of 1996 from $25,523 in the first six months of 1995. This represents a decrease
of $17,355 (68%). The changes in production,  noted above,  reduced depreciation
and depletion  expense by $4,000.  A 62% decrease in the depletion  rate reduced
depreciation and depletion expense by an additional $13,355. The decrease in the
depletion rate was primarily due to the lower property basis  resulting from the
recognition  of an $88,363  property  impairment  in the first  quarter of 1996,
partially  offset by a  downward  revision  of the oil and gas  reserves  during
December 1995.

   
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 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 $88,363 for certain
oil and gas properties due to market  indications that the carrying amounts were
not fully recoverable.
    


General and administrative expenses decreased to $13,177 in 1996 from $14,739 in
1995.  This  decrease of $1,562 (11%) is primarily  due to less staff time being
required to manage the Company's operations in 1996.

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

                                      I-6
  
<PAGE>

general  partner's  intention  to  distribute  the  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  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.  Based on the  December  31, 1995
reserve  report  prepared by Gruy,  there  appears to be  sufficient  future net
revenues to pay all  obligations  and  expenses.  The General  Partner  does not
intend to accelerate  the  repayment of the debt beyond the Company's  cash flow
provided by operating  activities.  Future periodic  distributions  will be made
once sufficient net revenues are accumulated.
    

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-7


<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 4, 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