evinrude 40hp four stroke 2000 mod

[arwild]

I have a problem I get water in the oil on my evinrude. I have tested the compression,
On cyl 1 and 2 from top down I got the same reading around 88 psi on the lowest cyl I got around 60 psi. I read something about you were allowed to have not lower then 80% of the
Highest peek on the 3 and lowest cyl. Is this right?
Is this normal compression on this motor?

My engine runs like it was new consider all the water in the oil.

Is there any particular place accept the head gasket that water can penetrate and mix with the oil on this motor?

What is most likely to be the problem?

[boats.net]

That is low compression readings, the compression should be within 15% or less between cylinders. Need to check head gasket and inspect piston and cylinders.