1971 Johnson 2 stroke 4hp leaking lower unit oil out above gear case?

[Black Rat]

Got a super deal from a widow but she knew nothing about the history. The engine fired right up and ran strong in a water tank. Seems to have a good water pump (compared to others I viewed on YouTube). I changed out the lower unit oil and it leaked out a small amount of the the old lube on a paper towel the next few days. It seemed to be coming out of a port above the lower unit. Is that an exhaust port and do I have a seal leaking lower unit oil up and out of case?

 

[racerone]

You mix oil with the gas.-----Some of that oil does not get burned.-----It leaks out of the exhaust.------Keep an eye on the lower unit.-----If water get in replace the seals.-----Or pressure test the lower unit.

 

[Black Rat]

I was hoping that was the case. I think this motor is ready for a test run on the river!!

 

[F_R]

Sounds great.