So far, no resolution, but I'll post it once I do. Let me know if anyone has encountered it and resolved it.
I had a similar issue. In my case, the plastic line that runs from the engine to the oil gauge was leaking. I replaced it with a copper line (fairly common item at the parts store) and no more oil spray.
You may want to do a compression test across the cylinders just so you have an idea on the engine condition. Someone earlier in the post mentioned bad rings pressurizing the crank case. I had the same problem back in the 70's. I did a compression test and had some low numbers. When I did the engine tear down, the pistons fell out....haha. Funny thing was the engine didn't smoke noticeably....Had LOTS of power after the rebuild tho!
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