I have a 1960 Johnson 18hp Seahorse and have replaced the lower unit with one I took off of a 1959 model. I also rebuilt the carb and while I was trying to get it running, which I did but was running rough and kept on dying on me, I noticed a bunch of oil in the tank of water I had the motor sitting in. Looked like an oil slick on top of the water. I pulled the motor out and noticed that I had oil leaking from the waterpump weep hole. Any idea where this oil is coming from? The attached pic shows the location where the oil is coming from, the pic is from the lower unit I pulled off the 1960.

Yellow arrow is location of leak.

Yellow arrow is location of leak.