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First just build your application against .net framework 4 It can use Oracle.DataAccess.dll v. 2, and test connection then just replace reference with Oracle.DataAccess.dll v. 4 and then check connection
You need to upgrade the project itself from .net 2 to 4, which depending on what it is may or may not be a straightforward process (ASP.net in particular has some breaking changes).
Once you do that, all you need to do for ODP is remove the reference to the old version, and readd it with the .net 4 version. With a recent client both are already installed, so it's pretty straightforward.