Always use valve seals. ALWAYS. I've never heard of not using them. The cylinders are splashed from underneath with oil and there are special rings to keep oil OUT of the combustion area for a reason. Letting oil in the top end causes detonation, fouled plugs, carboned-up chambers and pistons, pollutes the atmosphere, and doesn't do a darn thing to help lubricate the cylinders.
Whoever told you that should be shot, stoned, and otherwise slapped with a wet noodle until dead.
Secondly, for the sake of clarification, there is no BB or SB pontiac engine. They are all the same basic family; same deck height, same basic geometry, most parts interchange, physically same size on the outside, same weight, etc.
Pontiacs respond well to compression and high octane fuel that goes with it, but no need to go nuts. A nice 9:1 on 6X heads, headers, a 220 or so degree cam, and a Performer intake will do very well. Should get you close to 400 hp.