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 0-18328

             ENEX 88-89 INCOME AND RETIREMENT FUND - SERIES 4, L.P.
        (Exact name of small business issuer as specified in its charter)

                    New Jersey                          76-0251418
          (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) 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 88-89 INCOME AND RETIREMENT FUND - SERIES 4, L.P.
BALANCE SHEET
-------------------------------------------------------------------------------

                                                              September 30,
ASSETS                                                             1997
                                                          ---------------------

CURRENT ASSETS:
<S>                                                       <C>                 
  Cash                                                    $              7,279
  Accounts receivable - oil & gas sales                                 11,391
                                                          ---------------------

Total current assets                                                    18,670
                                                          ---------------------

OIL & GAS PROPERTIES
  (Successful efforts accounting method) - Proved
   mineral interests                                                 1,614,435
  Less  accumulated depletion                                        1,558,370
                                                          ---------------------

Property, net                                                           56,065
                                                          ---------------------


TOTAL                                                     $             74,735
                                                          =====================

LIABILITIES AND PARTNERS' CAPITAL 

CURRENT LIABILITIES:

   Payable to general partner                             $             58,803
                                                          ---------------------
PARTNERS' CAPITAL :
   Limited partners                                                      5,470
   General partner                                                      10,462
                                                          ---------------------

Total partners' capital                                                 15,932
                                                          ---------------------

TOTAL                                                     $             74,735
                                                          =====================

Number of $500 Limited Partner units outstanding                         3,645
</TABLE>


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

                                       I-1

<PAGE>
<TABLE>
<CAPTION>
ENEX 88-89 INCOME AND RETIREMENT FUND - SERIES 4, 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            $  6,764     $   12,061     $   31,563     $    37,446
                              ----------    -----------    -----------    ------------
                                     
EXPENSES:                                     
  Depletion                       2,837          7,843         10,463          21,295
  Impairment of property              -              -              -         240,044
  Production taxes                    -             98             23             279
  General and administrative      6,834          2,283         11,983           8,565
                              ----------    -----------    -----------    ------------
                                              
Total expenses                    9,671         10,224         22,469         270,183
                              ----------    -----------    -----------    ------------
                                             
                                              
NET INCOME (LOSS)              $  (2,907)    $    1,837     $    9,094     $  (232,737)
                              ==========    ===========    ===========    ============
                                                      
</TABLE>
                       



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

<PAGE>
<TABLE>
<CAPTION>
ENEX 88-89 INCOME AND RETIREMENT FUND-SERIES 4, L.P.

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>     
BALANCE, JANUARY 1, 1996      $     225,171    $       4,724    $     220,447      $     61

NET INCOME (LOSS)                  (218,333)           3,782         (222,115)          (61)
                             --------------- ----------------  ---------------   -----------

BALANCE, DECEMBER 31, 1996            6,838            8,506           (1,668)            0

NET INCOME                            9,094            1,956            7,138             2
                             --------------- ----------------  ---------------   -----------

BALANCE, SEPTEMBER 30, 1997   $      15,932    $      10,462    $       5,470 (1)  $      2
                             =============== ================  ===============   ===========
</TABLE>

(1)  Includes 240 units purchased by the general partner as a limited partner.




See accompanying notes to financial statements.
--------------------------------------------------------------------------
                                       I-3
<PAGE>
<TABLE>
<CAPTION>
ENEX 88-89 INCOME AND RETIREMENT FUND - SERIES 4, 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)                                        $      9,094        $  (232,737)    
                                                         -------------      -------------

Adjustments to reconcile net income (loss) to net cash
   provided by operating activities:
  Depletion                                                    10,463             21,295
  Impairment of property                                            -            240,044
(Increase) decrease in:
  Accounts receivable - oil & gas sales                         5,832               (902)
(Decrease) in:
   Accounts payable                                            (2,329)            (2,356)
   Payable to general partner                                 (22,658)           (22,440)
                                                         -------------      -------------

Total adjustments                                              (8,692)           235,641
                                                         -------------      -------------

NET INCREASE IN CASH                                              402                127

CASH AT BEGINNING OF YEAR                                       6,877              3,031
                                                         -------------      -------------

CASH AT END OF PERIOD                                    $      7,279         $      234     
                                                         =============      =============

</TABLE>

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

                                       I-4


<PAGE>

ENEX 88-89 INCOME AND RETIREMENT FUND - 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.   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 $240,044 for certain
     oil and gas properties due primarily to downward  reserve  revisions on the
     Lake Decade  acquisition and lower prices in the market for the sale of oil
     and gas. The Lake Decade  acquisition  included  significant  reserves that
     were considered "proved" but not yet developed. Due to depressed gas prices
     and the unsuccessful efforts of wells drilled near the acquisition,  it was
     determined by the operator of the  acquisition  that future  drilling 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  write  downs  taken by the
     Company in the first quarter of 1996.

3.       A Special  Meeting,  whose  purpose was to vote on the proposal to sell
         Partnership's  assets  and,  thereafter,  dissolve  and  liquidate  the
         partnership in accordance with the applicable provisions of the limited
         partnership agreements, commenced at 2:00 P.M. on October 28, 1997.

           The proxy votes received prior to the meeting were voted as follows.

                  Enex 88-89 Income & Retirement Fund, Series 4

          For                     Against
       Liquidation           Liquidation                Abstain
      --------------    -------------------       ------------------
         45.21%                   4.11%                    3.85%

                                      I-5

<PAGE>

As indicated in the table above, while a large majority of the votes cast by the
limited partners of the Partnership  were in favor of the proposed  liquidation,
over 40% of the limited  partnership  interests  failed to vote on the proposal.
This resulted in an inability to approve the proposal by a majority of the total
outstanding limited partnerships  interests.  As such, the meeting was adjourned
until  December 1, 1997,  to allow time for a  sufficient  number of votes to be
received to attain a majority-in-interest vote on the liquidation.

Subsequent  to the Special  Meeting,  proxy votes were  received in favor of the
proposed  liquidation,  which  together with the above noted votes,  represent a
majority-in-interest vote for the liquidation.  As such, the Partnership will be
dissolved at the Special  Meeting on December 1, 1997. The  properties  owned by
the partnership will be sold and any proceeds remaining after payment of all the
partnership's debt, will be distributed to the limited partners.


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

Third Quarter 1997 Compared to Third Quarter 1996

Oil and gas sales for the third quarter decreased from $12,061 in 1996 to $6,764
in 1997.  This  represents a decrease of $5,297  (44%).  Oil sales  decreased by
$2,121 or 31%. A 5% decrease in the average net oil sales price  decreased sales
by $268. A 27% decrease in production  decreased sales by an additional  $1,853.
Gas sales  decreased by $3,176 or 62%. A 52% decrease in gas production  reduced
sales by $2,622. A 22% decrease in the average net gas sales price reduced sales
an additional  $554. The decreases in oil and gas production  were primarily due
to natural  production  declines which were especially  pronounced on the Speary
acquisition.  The  decreases  in  average  net  oil and gas  sales  prices  were
primarily  the result of higher  expenses  incurred on the  Company's net profit
interests,  including higher expenses incurred on the Speary  acquisition in the
third quarter of 1997.

Depletion  expense  decreased from $7,843 in the third quarter of 1996 to $2,837
in the third quarter of 1997.  This  represents a decrease of $5,006 (64%).  The
declines in production,  noted above, reduced depletion expense by $3,243. A 38%
decrease  in the  depletion  rate  reduced  depletion  expense by an  additional
$1,763.  The decrease in the depletion  rate was due to higher  production  from
properties with a relatively lower depletion rate.

General and  administrative  expenses increased from $2,283 in 1996 to $6,834 in
1997.  This  increase of $4,551 (199%) 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  $37,446 in 1996 to
$31,563 in 1997. This represents a decrease of $5,883 (16%). Oil sales decreased
by $1,458 or 7%. A 20% decrease in oil production reduced sales by $4,382.  This
decrease  was  partially  offset by a 17%  increase in the average net oil sales
price.  Gas sales  decreased by $4,425 or 28%. A 21% decrease in gas  production
reduced  sales by $3,263.  A 9%  decrease  in the  average  net gas sales  price
reduced sales by an additional  $1,162.  The decreases in oil and gas production
were primarily due to natural production  declines.  The increase in average net
oil sales price was  primarily due to lower  operating  costs being charged Lake
Decade net profits acquisition, coupled with higher prices in the overall market
for the sale of oil. The  decrease in average net gas sales price was  primarily
the result of higher  expenses  incurred on the Speary  acquisition in the third
quarter of 1997.

Depletion  expense  decreased  from  $21,295 in the first nine months of 1996 to
$10,463 in the first nine months of 1997.  This represents a decrease of $10,832
(51%).  The changes in production,  noted above,  reduced  depletion  expense by
$4,398.  A 38% decrease in the depletion  rate reduced  depletion  expense by an
additional  $6,434.  The  decrease  in the  depletion  rate  was  due to  higher
production from properties with 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 $240,044 for certain
oil and gas properties due primarily to downward  reserve  revisions on the Lake
Decade  acquisition  and lower prices in the market for the sale of oil and gas.
The Lake Decade acquisition  included  significant reserves that were considered
"proved" but not yet developed. Due to depressed gas prices and the unsuccessful
efforts of wells drilled near the acquisition, it was determined by the operator
of the acquisition  that future drilling 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 write downs taken
by the Company in the first quarter of 1996.

General and administrative  expenses increased from $8,565 in 1996 to $11,983 in
1997.  This  increase of $3,418 (40%) is primarily  due to more staff time being
required to manage the Company's operations.


                                       I-7
<PAGE>


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 1996 to 1997 are  primarily  due to the changes in oil
and gas sales described above.

A  Special  Meeting,  whose  purpose  was  to  vote  on  the  proposal  to  sell
Partnership's assets and, thereafter,  dissolve and liquidate the partnership in
accordance with the applicable provisions of the limited partnership agreements,
commenced at 2:00 P.M. on October 28, 1997.

           The proxy votes received prior to the meeting were voted as follows.

                  Enex 88-89 Income & Retirement Fund, Series 4

                 For                Against
            Liquidation          Liquidation         Abstain
           -----------------    ----------------   ------------------
                 45.21%             4.11%             3.85%


As indicated in the table above, while a large majority of the votes cast by the
limited partners of the Partnership  were in favor of the proposed  liquidation,
over 40% of the limited  partnership  interests  failed to vote on the proposal.
This resulted in an inability to approve the proposal by a majority of the total
outstanding limited partnerships  interests.  As such, the meeting was adjourned
until  December 1, 1997,  to allow time for a  sufficient  number of votes to be
received to attain a majority-in-interest vote on the liquidation.

Subsequent  to the Special  Meeting,  proxy votes were  received in favor of the
proposed  liquidation,  which  together with the above noted votes,  represent a
majority-in-interest vote for the liquidation.  As such, the Partnership will be
dissolved at the Special  Meeting on December 1, 1997. The  properties  owned by
the partnership will be sold and any proceeds remaining after payment of all the
partnership's debt, will be distributed to the limited partners.

                                       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 88-89 INCOME AND RETIREMENT
                                                  FUND - SERIES 4, 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