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Oil injection in service ? ----Tested ?----Bypassed and mixing oil and gas at 50:1 in the tank?----Or no idea.-----Overheat horn tested ?

The fitting where water tube enters the powerhead has a grommet.----Checked that ?----These motors run fairly cool.----Tell tale should never be hot.----Are you testing with boat launched or a test bucket ??

Take head off and inspect.

Magneto plate rotates.----May be a broken wire that you can not see.---May be a bare wire going to ground.------Do some testing or hurry to a repair shop !

I am not sure there is an upper and lower shift rod on these.------Just one rod that moves up and down ?

It is very clear to me that it is suffering from ignition issues !

The cylinder with 90 PSI ?-----Pull the head off and inspect cylinder.

Some simple testing to be done to find the issue.----Or bring it to a shop.-----There may be a kit available to solve issues with UFI module under flywheel.

Need to explain in more detail I guess.-----If driveshaft spline is rusted into the crank you may need a small atomic bomb to remove power head.-----So if lower unit comes off , that possibility is eliminated.-----Good luck with your project.

Check plug wires.------Test run with cowling off.-----Test run with timing light to see which cylinder cuts in and out.

I have used an adapter and hydraulic puller to remove lower unit.-----But are you sure all the bolts are out ?

This concept is just ready , ready for electric conversion.-----I am sure they are working on a battery / marine electronics package to switch and offer an electric model.-----Perhaps next year.

Later 2 cylinder 35 and 40 hp did have a thermostat added.-----The 7.5 / 9.8 had a thermostat for a few production years.

Agreed-----Many Mercury outboards never had a thermostat------The 4 cylinder 2 stroke from 1954 to the mid 1990's never had a thermostat as far as I know.

Agreed-----Take the motor apart for repair.

Good luck with it.

If you are mixing gas and oil in your tank there is no reason for an oil alarm at all.------Stop the guess work and visit your friendly repair shop

If you are mixing gas and oil at 50:1 in your tank there is no reason for an oil warning light to come on.-----Time to consult a boat shop !

On a Johnson 130 HP carburetors on the left feed cylinders on the right side.-----Post actual compression values here.-----May have issues with crankcase sealing ring.-----Checked oil filter in bottom of oil tank ?

Timing normally does not go out of adjustment.---What is the motor doing / not doing?