Then it happened. Started up to check the leak was fixed and a great jet of very black oily, watery looking stuff spat out of the (new) exhaust. The oil light, which was fine when I'd run the engine before now won’t go out. The oil in the sump is new and clear and the sump is full, very different from what shot across the floor and up the wall of my garage. However the engine sounds ok and after the initial blast the exhaust gas looks pale white like it is running on a bit of choke. Haven’t run it for long though due to no oil pressure.
The plugs (all brand new) from 1&2 cylinders are very oily, from 3&4 not so black but still not clean. There seemed to be a small amount of water bubbling from the side of the plug in No. 2 cylinder although the plug was tight.
Did a couple of compression tests on each cylinder, first without oil. All psi. Engine warm.
1 – 143 – 147
2 – 140 – 142
3 – 142 – 135
4 – 130 – 138
Then with a drop of oil in each bore.
1 – 155 – 152
2 – 180 – 185 (Bit too much oil !!)

3 – 160 – 155
4 – 150 – 150
Thinking back, when I took the head off to decoke and fit valves, the waterways in the block were very silted up. No water came out of the tap on the block when I firs opening it and I spent a lot of time when the engine was out unblocking the waterways, mainly poking with a coathanger wire, nothing corrosive, and then flushing and reverse flushing using clean water from a pressure washer when the head was back on. Compression before fitting the new valves was also way down, in the 110-120 range.
Could it be that the higher compression and unblocking the waterways has uncovered a weakness that wasn’t evident before. Or is it something worse? Where do I look next please?