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 0-18328

             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

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

                                                           JUNE 30,
ASSETS                                                       1997
                                                    ---------------------
                                                         (Unaudited)
CURRENT ASSETS:
<S>                                                 <C>                 
  Cash                                              $             13,574
  Accounts receivable - oil & gas sales                           15,091
                                                    ---------------------

Total current assets                                              28,665
                                                    ---------------------

OIL & GAS PROPERTIES
  (Successful efforts accounting method) - Proved
   mineral interests                                           1,614,435
  Less  accumulated depletion                                  1,555,533
                                                    ---------------------

Property, net                                                     58,902
                                                    ---------------------

TOTAL                                               $             87,567
                                                    =====================

LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
   Payable to general partner                       $             68,728
                                                      -------------------

PARTNERS' CAPITAL:
   Limited partners                                                8,371
   General partner                                                10,468
                                                    ---------------------

Total partners' capital                                           18,839
                                                    ---------------------

TOTAL                                               $             87,567
                                                    =====================

Number of $500 Limited Partner units outstanding                   3,644
</TABLE>



See accompanying notes to financial statements.
-----------------------------------------------------------------------------
                                       I-1
<PAGE>
ENEX 88-89 INCOME AND RETIREMENT FUND - SERIES 4, 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               $    11,976     $     13,481     $      24,799   $     25,385
                               ---------------    -------------    --------------  -------------
                                                   
EXPENSES:                                          
  Depletion                             3,960           12,209             7,626         13,452
  Impairment of property                    -                -                 -        240,044
  Production taxes                         24               82                24            181
  General and administrative            2,461            2,743             5,148          6,282
                               ---------------    -------------    --------------  -------------
                                                   
Total expenses                          6,445           15,034            12,798        259,959
                               ---------------    -------------    --------------  -------------
                                                   
                                                   
NET INCOME (LOSS)                   $   5,531     $     (1,553)    $      12,001   $   (234,574)
                               ===============    =============    ==============    =============
</TABLE>
                               


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

                                       I-2
<PAGE>
ENEX 88-89 INCOME AND RETIREMENT FUND - SERIES 4, 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        $  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)             -

NET INCOME                          12,001          1,962        10,039              3
                                -----------   ------------   -----------   ------------

BALANCE, JUNE 30, 1997          $   18,839    $    10,468    $    8,371 (1)$         3
                                ===========   ============   ===========   ============
</TABLE>



(1)  Includes 238 units purchased by the general partner as a limited partner.



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

                                       I-3

<PAGE>
ENEX 88-89 INCOME AND RETIREMENT FUND - SERIES 4, 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)                                 $   12,001      $    (234,574)  
                                                  -----------     --------------

Adjustments to reconcile net income (loss)
 to net cash provided by operating activities:
  Depletion                                            7,626             13,452
  Impairment of property                                   -            240,044
(Increase) decrease in:
  Accounts receivable - oil & gas sales                2,132               (698)
(Decrease) in:
   Accounts payable                                   (2,329)            (2,223)
   Payable to general partner                        (12,733)           (12,855)
                                                  -----------     --------------

Total adjustments                                     (5,304)           237,720
                                                  -----------     --------------

NET INCREASE IN CASH                                   6,697              3,146

CASH AT BEGINNING OF YEAR                              6,877                127
                                                  -----------     --------------

CASH AT END OF PERIOD                             $   13,574       $      3,273   
                                                  ===========     ==============
</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.       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.



                                       I-4

<PAGE>



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

Second Quarter 1997 Compared to Second Quarter 1996

Oil and gas sales for the  second  quarter  decreased  from  $13,481  in 1996 to
$11,976 in 1997. This represents a decrease of $1,505 (11%). Oil sales increased
by $74 or 1%. A 16% increase in the average net oil sales price  increased sales
by  $1,089.  This  increase  was  partially  offset  by a 13%  decrease  in  oil
production.  Gas  sales  decreased  by  $1,579 or 27%.  An 11%  decrease  in gas
production  reduced  sales by $652. An 18% decrease in the average net gas sales
price  reduced  sales  by an  additional  $927.  The  decreases  in oil  and gas
production were primarily due to natural  production  declines.  The increase in
average net oil sales price was primarily the result of lower expenses  incurred
on the Company's net profit interests, including on the El Mac acquisition which
incurred workover charges in the second quarter of 1996. The decrease in average
net gas sales price was primarily the result of higher expenses  incurred on the
Speary acquisition in the second quarter of 1997.

Depletion expense decreased from $12,209 in the second quarter of 1996 to $3,960
in the second quarter of 1997. This  represents a decrease of $8,249 (68%).  The
declines in production,  noted above, reduced depletion expense by $1,459. A 63%
decrease  in the  depletion  rate  reduced  depletion  expense by an  additional
$6,790.  The decrease in the depletion  rate was due to higher  production  from
properties with a relatively lower depletion rate.

General and  administrative  expenses decreased from $2,743 in 1996 to $2,461 in
1997.  This  decrease  of $282 (10%) 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  $25,385 in 1996 to
$24,799 in 1997. This represents a decrease of $586 (2%). Oil sales decreased by
$1,249 or 12%. A 16% decrease in oil  production  reduced sales by $1,707.  This
decrease  was  partially  offset by a 5%  increase  in the average net oil sales
price.  Gas sales  decreased  by $1,249 or 12%. A 4% decrease in gas  production
reduced sales by $394. An 8% decrease in the average net gas sales price reduced
sales by an  additional  $855.  The  decreases  in oil and gas  production  were
primarily due to natural  production  declines.  The increase in average net oil
sales price was primarily the result of lower expenses incurred on the Company's
net  profit  interests,  including  on  the El Mac  acquisition  which  incurred
workover  charges in the second quarter of 1996. The decrease in average net gas
sales price was primarily the result of higher  expenses  incurred on the Speary
acquisition in the second quarter of 1997.

Depletion  expense  decreased  from  $13,452  in the first six months of 1996 to
$7,626 in the first six months of 1997.  This  represents  a decrease  of $5,826
(43%).  The changes in production,  noted above,  reduced  depletion  expense by
$1,174. A 38% decrease in the depletion rate reduced depletion

                                       I-5

<PAGE>



expense by an additional  $4,652.  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 decreased from $6,282 in 1996 to $5,148 in
1997.  This  decrease of $1,134 (18%) 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 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  available  cash  flow  to the
Company's partners.

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 after
payment of its debt obligations.  Distribution  amounts are subject to change if
net revenues are greater or less than expected. Based

                                       I-6

<PAGE>



upon current  projected cash flows from the properties,  it does not appear that
the Company will have sufficient cash to pay its operating  expenses,  repay its
debt obligations and pay distributions.

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.





                                       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 88-89 INCOME AND RETIREMENT
                                                  FUND - 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




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