Yes, oil soaked seems to match the cylinder. The only time I have any issues is when the plug is so fouled it won't consistently fire. This engine sat for probably 20 years before I put it in. I did not tear it down completely, just new external stuff. I ordered a catch can from LMR as a quick fix for now, lets see what happens.
Has anyone tried Lucas Oil Stabilizer? It says it helps with blowby, but could be snake oil, not sure.