I have no idea. I'm up for any suggestions. Does oil go through the timing cover? I don't remember any oil ports, just coolant passages. To me it looks like it coming out of that suspect bolt.
you are right, oil does not go THROUGH the cover, but it is on the inside of the cover for the timing chain, etc - as mentioned above. The timing cover - by far - I think is most responsible for this, but you'll have to investigate to make sure. I don't know of any way to tell except to look for an oily place on the gasket or a break in the gasket where the cover/block meet.
I don't see how oil would get that far up in the distributer hole, but I suppose that is a possibility as well as the lower intake and the valve covers I mentioned earlier.
The heads and the front seal under lower intake are clean, and I put a new dizzy o-ring in when I did HCI about a two months ago, but I'll look closer. It could be the front cover since I replaced the water pump about a month ago. Would a leak just develop all of a sudden like that?