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, 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 0-18328

          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                                                            1996
                                                         ---------------------

CURRENT ASSETS:
<S>                                                      <C>                 
  Cash                                                   $              3,031
  Accounts receivable - oil & gas sales                                13,663
                                                         ---------------------

Total current assets                                                   16,694
                                                         ---------------------

OIL & GAS PROPERTIES
  (Successful efforts accounting method) - Proved
   mineral interests                                                1,614,435
  Less  accumulated depletion                                       1,553,087
                                                         ---------------------

Property, net                                                          61,348
                                                         ---------------------


TOTAL                                                    $             78,042
                                                         =====================

LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)

CURRENT LIABILITIES:

   Payable to general partner                            $             14,270
                                                         ---------------------

Total current liabilities                                              14,270

NONCURRENT PAYABLE TO GENERAL PARTNER                                  71,338
                                                         ---------------------

PARTNERS' CAPITAL (DEFICIT):
   Limited partners                                                   (15,149)
   General partner                                                      7,583
                                                         ---------------------

Total partners' capital                                                (7,566)
                                                         ---------------------

TOTAL                                                    $             78,042
                                                         =====================

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,
                                    1996                  1995                 1996                   1995
                                ---------------    -----------------    -----------------    ---------------------

REVENUES:
<S>                              <C>               <C>                  <C>                  <C>                 
  Oil and gas sales              $      12,061     $         12,249     $         37,446     $             32,878
                                ---------------    -----------------    -----------------    ---------------------

EXPENSES:
  Depletion and amortization             7,843                9,208               21,295                   30,745
  Impairment of property                     -                    -              240,044                        -
  Production taxes                          98                  107                  279                      328
  General and administrative             2,283                2,522                8,565                    7,386
                                ---------------    -----------------    -----------------    ---------------------

Total expenses                          10,224               11,837              270,183                   38,459
                                ---------------    -----------------    -----------------    ---------------------


NET INCOME (LOSS)                $       1,837     $            412     $       (232,737)    $             (5,581)
                                ===============    =================    =================    =====================
</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 CASH FLOWS
------------------------------------------------------------------------

(UNAUDITED)
                                                            NINE MONTHS ENDED
                                                      --------------------------------------------

                                                         September 30,            September 30,
                                                              1996                    1995
                                                      -------------------      -------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                   <C>                         <C>                
Net (loss)                                            $         (232,737)         $        (5,581)   
                                                      -------------------      -------------------

Adjustments to reconcile net (loss) to net cash
   provided by operating activities:
  Depletion and amortization                                      21,295                   30,745
  Impairment of property                                         240,044                        -
(Increase) decrease in:
  Accounts receivable - oil & gas sales                             (902)                   5,530
(Decrease) in:
   Accounts payable                                               (2,356)                  (3,327)
   Payable to general partner                                    (22,440)                 (27,801)
                                                      -------------------      -------------------

Total adjustments                                                235,641                    5,147
                                                      -------------------      -------------------

Net cash provided (used) by operating activities                   2,904                     (434)
                                                      -------------------      -------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Cash distributions                                                 -                   (5,822)
                                                      -------------------      -------------------

NET INCREASE (DECREASE) IN CASH                                    2,904                   (6,256)

CASH AT BEGINNING OF YEAR                                            127                    6,490
                                                      -------------------      -------------------

CASH AT END OF PERIOD                                 $            3,031          $           234    
                                                      ===================      ===================
</TABLE>



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

                                       I-3
<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 $50,639 for certain
     oil and gas properties  due market  indications  that the carrying  amounts
     were not fully recoverable.



                                       I-4

<PAGE>



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

Third Quarter 1995 Compared to Third Quarter 1996

Oil and gas  sales for the  third  quarter  decreased  to  $12,061  in 1996 from
$12,249 in 1995. This represents a decrease of $188 (2%). Oil sales decreased by
$6.  This  decrease  was due mainly to a 8%  decrease  in oil  production  which
decreased  sales by $540,  offset by an 8% increase in the average net oil sales
price.  Gas sales decreased by $182. A 19% decrease in the average net gas sales
price  decreased  sales by $1,257.  This decrease was partially  offset by a 20%
increase in gas production.  The decrease in oil production was primarily due to
natural production declines. The increase in gas production was primarily due to
increased  production  from the Speary  acquisition  on which a  compressor  was
successfully  reworked. The increases in average net oil sale prices corresponds
with higher  prices in the overall  market for the sale of oil.  The decrease in
average net gas sales price was primarily  due to lower net profits  received on
the Speary acquisition  which,  incurred workover costs during the third quarter
of 1996.

Depletion  expense  decreased to $7,843 in the third quarter of 1996 from $9,208
in the third quarter of 1995.  This represents a decrease of $1,365 (15%). A 19%
increase in the  depletion  rate  increased  depletion  expense by $1,855.  This
increase was partially  offset by the changes in  production,  noted above.  The
decrease in the depletion  rate was due to the lower  property  basis  resulting
from the recognition of a $240,044  property  impairment in the first quarter of
1996.

General and  administrative  expenses decreased to $2,283 in 1996 from $2,522 in
1995.  This  decrease  of $239 (9%) is  primarily  due to less  staff time being
required to manage the Company's operations.

First Nine Months in 1995 Compared to First Nine Months in 1996

Oil and gas sales for the first nine  months  increased  to $37,446 in 1996 from
$32,878  in 1995.  This  represents  an  increase  of  $4,568  (14%).  Oil sales
increased  by $2,232 or 11%. A 26%  increase  in the average net oil sales price
increased sales by $4,513.  This increase was partially offset by a 12% decrease
in oil production.  Gas sales increased by $2,336 or 18%. An 18% increase in the
average  net gas sales  price  increased  sales by  $4,513.  This  increase  was
partially  offset by a 1% decrease in gas  production.  The decreases in oil and
gas production  were  primarily due to natural  production  declines,  partially
offset  by  higher  gas  production  from  the  Speary  acquisition  on  which a
compressor was successfully  reworked. The increases in average net sales prices
correspond with higher prices in the overall market for the sale of oil and gas.

Depletion  expense  decreased  to $21,295 in the first nine  months of 1996 from
$30,745 in the first nine months of 1995.  This  represents a decrease of $9,450
(31%).  The changes in production,  noted above,  reduced  depletion  expense by
$1,663.  A 24% decrease in the depletion  rate reduced  depletion  expense by an
additional  $7,787.  The decrease in the depletion rate was primarily due to the
lower property  basis  resulting  from the  recognition  of a $240,044  property
impairment in the first quarter of 1996.

                                       I-5

<PAGE>




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 to market  conditions  and reserve  revisions on the
Lake Decade  acquisition,  which  indicated  that the carrying  amounts were not
fully recoverable.

General and  administrative  expenses increased to $8,565 in 1996 from $7,386 in
1995.  This  increase of $1,179 (16%) 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.  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  discontinued the payment of distributions  during 1995. 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 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.





                                       I-6

<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, 1996.


                                      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




November 13, 1996                              By: /s/ James A. Klein
                                                  -------------------
                                                        James A. Klein
                                                    Controller and Chief
                                                     Accounting Officer


<PAGE>