1990 B2600i 120K miles

I just bought this project truck. The trucks has been sitting for 3 years and the previous owner only remembers that it stated loosing power and he parked it.

I pulled the plugs and cranked it over and oil spewed out of cylinder #3. It didn't appear to have any water. I also drained the pan and no water. I get 150 psi in cylinder 1,2 and 4 and 220 in #3.

Does anyone have any ideas? Could it be a stuck fuel injector? I didn't notice any gasoline smell just oil. Could it be a valve? How could I determine this? Could it be a cracked block? Is so, how could I check this?

Thanks for the help

 

Glad to hear its a project.
Since you've got compression on all cylinders, and on slow cranking you got 150's, it sounds like the engine still has some life. The reason you got such a high compression on #3 is because a) the cylinder is flooded with oil, hence has a good seal, and b) oil lying on top of the piston effectively raises the compression ratio. The source of the oil is most likely either a broken valve guide, a defective head gasket, or a defective cylinder head. Since you stated no water was involved, that pretty much excludes a cracked engine block.
My guess is it's time to lift the head off, but you should get an expert on the spot second opinion first. Good luck.