Oil on cylinder #7

[65svt]

Im running a 96 cobra engine on a 65 mustang with all the emissions off ofcourse the computer is reprogrammed its a stock engine that was from my wrecked 96 cobra. I recentlly got the engine running again, was running good for 100 miles since it was put on classic but it started to smoke at iddle and the higher the rpms the more it smokes. Checked spark plugs all were normal except #5 was dark #7 was dark and wet with oil i believe, i looked insde cylinders #7 had some oil inside i would say like half a teaspoon i cleaned it #5 also looked wet but not as bad as #7 did a compression check. Compression was #1=200, #2=200, #3=200, #4=200, #5=195, #6=190, #7=195, #8=195, i also did a cylinder leakage test all cylinders had no more than 10% leakage. I was reading on here that it could be the valve stem seals but i was also told by friend that it can also be HG, anyone can help me out with this.

THANX

 

[4valved]

How bad is it smoking those compression numbers are outstanding

 

[UncleSAm]

valve cover gasket

 

[65svt]

Thanx guys for ur input.
4valved- well the smoke is really notisable even at iddle the more gas i give it the more smoke there is, every time i run it and then remove plugs theres always oil in #7 cylinder and plugs #5 #7 are black/wet i believe with oil.
Unclesam- if it was the valve cover gasket wouldn't the plug wire be wet with oil on the tip and also the spark plugs will be wet with oil on outside?

I also have noticed that after it started smoking it doesnt iddle right.

PS. thanx again for all replies.

 

[Jonesy98]

i think he meant the spark plug hole seals, not necessarily the valve cover gasket. but also sounds like weak valve seals?

 

[65svt]

Thanx jones, i thought thats what he meant but i did check the spark plug hole seals and i see no trace of oil anywhere specially in #7 and #5. Does anyone know if theres a way to know for sure if its valve seals or HG.