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

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

For the transition period from...............to...............

Commission file number 33-34348-01

ENEX OIL & GAS INCOME PROGRAM V - SERIES 2, L.P.
(Exact name of small business issuer as specified in its charter)

New Jersey 76-0303857
(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

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

ENEX OIL & GAS INCOME PROGRAM V - SERIES 2, L.P.
BALANCE SHEET
- --------------------------------------------------------------------------------

September 30,
ASSETS 1996
---------------------
(Unaudited)
CURRENT ASSETS:

Cash $ 1,597
Accounts receivable - oil & gas sales 20,043
Other current assets 1,777
--------------

Total current assets 23,417
--------------

OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 1,009,154
Less accumulated depreciation and depletion 754,365
--------------

Property, net 254,789
--------------

TOTAL $ 278,206
==============

LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
Accounts payable $ 4,216
Payable to general partner 20,849
--------------

Total current liabilities 25,065
--------------

NONCURRENT PAYABLE TO GENERAL PARTNER 62,550
--------------

PARTNERS' CAPITAL:
Limited partners 184,683
General partner 5,908
--------------

Total partners' capital 190,591
--------------

TOTAL $ 278,206
==============

Number of $500 Limited Partner units outstanding 2,972

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

I-1

ENEX OIL & GAS INCOME PROGRAM V - SERIES 2, L.P.
STATEMENTS OF OPERATIONS
- ------------------------------------------------------------------

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

September 30, September 30, September 30, September 30,
1996 1995 1996 1995
----------------- ------------------ ------------------ -------------------

REVENUES:

Oil and gas sales $ 40,577 $ 31,370 $ 128,837 $ 115,018
----------------- ------------------ ------------------ -------------------

EXPENSES:
Depreciation, depletion and amortization 13,163 21,585 41,168 73,040
Impairment of property - - 43,262 -
Lease operating expenses 10,930 15,307 47,037 47,071
Production taxes 2,163 1,697 7,059 6,706
General and administrative 6,142 6,481 21,174 22,849
----------------- ------------------ ------------------ -------------------

Total expenses 32,398 45,070 159,700 149,666
----------------- ------------------ ------------------ -------------------

INCOME (LOSS) FROM OPERATIONS 8,179 (13,700) (30,863) (34,648)
----------------- ------------------ ------------------ -------------------

OTHER INCOME:
Gain from sale of property - - 607 -
----------------- ------------------ ------------------ -------------------

NET INCOME (LOSS) $ 8,179 $ (13,700) $ (30,256) $ (34,648)
================= ================== ================== ===================

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

I-2

ENEX OIL AND GAS INCOME PROGRAM V - SERIES 2, L.P.
STATEMENTS OF CASH FLOWS
- --------------------------------------------------------------------------

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

September 30, September 30,
1996 1995
------------------- --------------------
CASH FLOWS FROM OPERATING ACTIVITIES:

Net (loss) $ (30,863) $ (34,648)
------------------- --------------------

Adjustments to reconcile net (loss) to net cash provided by operating
activities:
Depreciation, depletion and amortization 41,168 73,040
Impairment of property 43,262 -
Gain from sale of property (607) -
(Increase) decrease in:
Accounts receivable - oil & gas sales (981) 2,063
Other current assets 16 19
Increase (decrease) in:
Accounts payable (6,960) (33)
Payable to general partner (15,400) (20,444)
------------------- --------------------

Total adjustments 60,498 54,645
------------------- --------------------

Net cash provided by operating activities 29,635 19,997
------------------- --------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of property 598 -
Property additions - development costs (9,946) (13,976)
------------------- --------------------

Net cash used by investing activities (9,348) (13,976)
------------------- --------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions (24,507) (17,033)
------------------- --------------------

NET (DECREASE) IN CASH (4,220) (11,012)

CASH AT BEGINNING OF YEAR 5,817 14,237
------------------- --------------------

CASH AT END OF PERIOD $ 1,597 $ 3,225
=================== --==================

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

I-3

ENEX OIL & GAS INCOME PROGRAM V - SERIES 2, 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. A cash distribution was made to the limited partners of the Company in
the amount of $7,022, representing net revenues from the sale of oil
and gas produced from properties owned by the Company. This
distribution was made on July 31, 1996.

3. 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. On November 13, 1996, the Company submitted amended
preliminary proxy material to the SEC with respect to this
consolidation. The terms and conditions of the proposed consolidation
are set forth in such preliminary proxy material.

4. 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 $43,262 for certain
oil and gas properties due to market indications that the carrying amounts
were not fully recoverable.

5. Effective January 1, 1996, the Company sold its interest in the Nunley
Ranch acquisition for $607. The Company recognized a gain of $607 on the
sale.

I-4

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 increased to $40,577 in 1996 from
$31,370 in 1995. This represents an increase of $9,207 (29%). Oil sales
increased by $6,348 (31%). A 30% increase in the average oil sales price
increased sales by $6,247. A 1% increase in oil production increased sales by an
additional $101. Gas sales increased by $2,859 (27%). A 35% increase in the
average gas sales price increased sales by $3,465. This increase was partially
offset by a 6% decrease in gas production. The increase in oil production was
primarily the result of increased production from the FEC acquisition in which
the Company obtained interest from farmouts in 1995. The increase in the average
oil sales price corresponds with higher prices in the overall market for the
sale of oil. The decrease in gas production was primarily due to natural
production declines. The increase in the average gas sales price was due to
higher prices in the overall market for the sale of gas coupled with relatively
higher production from properties with a higher gas sales price.

Lease operating expenses decreased to $10,930 in the third quarter of 1996 from
$15,307 in the third quarter of 1995. The decrease of $4,377 (29%) is primarily
due to ad valorem taxes paid by the operator of the FEC acquisition in the third
quarter for the 1995 and 1996 tax years.

Depreciation and depletion expense decreased to $13,163 in the third quarter of
1996 from $18,613 in the third quarter of 1995. This represents a decrease of
$5,450 (29%). The changes in production, noted above, caused depreciation and
depletion expense to decrease by $526. A 37% decrease in the depletion rate
reduced depletion expense by an additional $4,924. The rate decrease was
primarily due to the lower property basis resulting from the recognition of an
impairment of property of $43,262 in the first quarter of 1996.

General and administrative expenses decreased to $6,142 in the third quarter of
1996 from $6,481 in 1995. This decrease of $339 (5%) is primarily due to less
staff time being required to manage the Company's operations in 1996.

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

Oil and gas sales for the first nine months increased to $128,837 in 1996 from
$115,018 in 1995. This represents an increase of $13,819 (12%). Oil sales
increased by $12,503 (18%). A 16% increase in the average oil prices increased
sales by $10,864. A 2% increase in oil production increased sales by an
additional $1,639. Gas sales increased by $1,316 or 3%. A 38% increase in the
average gas sales price increased sales by $12,036. This increase was partially
offset by 25% decrease in gas production. The increase in oil production was
primarily the result of increased production from the FEC acquisition in which
the Company obtained additional interests from farmouts during 1995, partially
offset by natural production declines. The decrease in gas production was
primarily due to the sale of the Nunley Ranch acquisition, effective

I-5

January 1, 1996, coupled with natural production declines. The increase in the
average gas sales price was due to higher prices in the overall gas market
coupled with relatively higher production from properties with a higher gas
sales price.

Lease operating expenses remained relatively unchanged at $47,037 in the first
nine months of 1996 as compared to $47,071 in the first nine months of 1995.

Depreciation and depletion expense decreased to $41,168 in the first nine months
of 1996 from $64,123 in the first nine months of 1995. This represents a
decrease of $22,955 (36%). The changes in production, noted above, caused
depreciation and depletion expense to decrease by $8,498. A 26% decrease in the
depletion rate reduced depreciation and depletion expense by an additional
$14,457. The rate decrease was primarily due to the lower property basis
resulting from the recognition of an impairment of property of $43,262 in the
first quarter of 1996.

Effective January 1, 1996, the Company sold its interest in the Nunley Ranch
acquisition for $607. The Company recognized a gain of $607 on the sale.

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 $43,262 for certain
oil and gas properties due to market indications that the carrying amounts were
not fully recoverable.

General and administrative expenses decreased to $21,174 in the first nine
months of 1996 from $22,849 in 1995. This decrease of $1,675 (7%) 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.

I-6

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. On
November 13, 1996, the Company submitted amended preliminary proxy material to
the SEC with respect to this consolidation. The terms and conditions of the
proposed consolidation are set forth in such preliminary proxy material.

As of September 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

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

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 V - SERIES 2, 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