Brass plug?

If it's actually spitting as opposed to being slung. The first two things' that come to mind is the oil pressure sender unit or the Remote oil filter lines/hose's as those are pressurized when the engine is running.
Well the oil sender is up back by the distributor and it was dry. What’s these remote oil l filter lines you speak of? I’ll take a closer look tomorrow but are these known to leak?
 
Maybe time for a new set of eyes to look at it.
 
Maybe time for a new set of eyes to look at it.
^^^ I agree.

You're missing something pretty obvious. Are there any oil cooler lines running through the area?

Clean everything off good, pack the area with paper towels or those white oil absorbent pads, then run it for a SHORT time and pull the pads off to see where it's starting to collect oil.

Also, in this pic, what is this arrow pointing to? Is that an oil hose, maybe to an oil cooler? Is the pic oriented so that "up" in the pic is "up" in real life?

oil_hose_pic.jpg
 
You have a leaking oil sensor or a fitting or line leaking to your oil filter
 
You need to clean everything up 100% spotless use brake cleaner or something that will evaporate get everything clean wiped 100% clean than put some paper towels down and let the boat idle for 10 to 15 minutes and you'll find your leak
 
If he is that's a nice catch man
 
It possible could spill out it's not under any pressure at all
 
It possible could spill out it's not under any pressure at all
Yes, oil splashes around inside the engine pretty furiously and will find any opening to escape. If the dipstick tube is missing then yes, oil WILL come out that hole.

Put a plug / cork in the hole and see if your leak stops.

Out of curiosity, if dipstick is missing, how have you been checking oil level all this time?
 
Obviously, it looks to be a replacement engine. They just missed installing a couple of parts.....
 
Yes, oil splashes around inside the engine pretty furiously and will find any opening to escape. If the dipstick tube is missing then yes, oil WILL come out that hole.

Put a plug / cork in the hole and see if your leak stops.

Out of curiosity, if dipstick is missing, how have you been checking oil level all this time?

I think most newer engines have dipstick holes on both sides. That way, on twin engine applications you can access both dipsticks from the centre line of the ER. One would assume that the unused dipstick hole would have been sealed off. Maybe not?
 
I think most newer engines have dipstick holes on both sides. That way, on twin engine applications you can access both dipsticks from the centre line of the ER. One would assume that the unused dipstick hole would have been sealed off. Maybe not?
Actually, Mercruiser used several configurations for the oil level measurement. One of the most common is to have it interface with the oil pan drain plug. Probably because it was better for routing around the manifolds and one of the most common way to drain oil is from the dip stick tube. Chevy aftermarket blocks come with dip stick tube holes on both sides of the engine block. I had thought the engine blocks for Mercury had them on only one side - but I'm old and wrong a lot.
Regardless, this that I posted earlier is definitely a dip stick hole that if not plugged will spray oil all over where the OP is seeing the oil.
You can get a Welsh plug specifically for that application. Summit Racing would have the correct GM part.
 

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