The engine is original as far as I can tell, but it is supposed to only have 134k on it. The valve seals could easily be old and leaky being an 87 (it leaks oil from other places as well, main seal, and valve covers) but i really hope its not the valve guides. I already plan to pull the engine in the coming weeks and replace all the seals and gaskets, clean it up, add a new cam as well as headers, replace the timing set, oil pump, lower end bearings (plus turn the crank), and water pump.
It does have a lower end knock at startup and oil pressure issues with thin oil. but i think the new oil pump and bearings will solve that. As long as the pistons and rings are still good that will save me some time and money (neither of which I have very much of at the moment).
It runs pretty good and doesnt smoke any that I ever see. Which is why I am not totally rebuilding the engine. If it smoked or had lower compression which would indicate worn rings, id rebuild it, but as of now I am just fixing whats wrong with it and doing some minor upgrades.