I went out to spin my engine over today after I pulled all of the plugs to insure it was still spinning over freely, I notice that a lil bit of oil shot out of cylinder 2 spark plug hole. There is not any oil in the motor, so I was wondering if it was valve seals or rings but I doubt if it is the rings cause I spent it over by hand and this is what happened. Can anyone give me some info on what the problem could be?

 

Henry, I'm wondering what made you pull the plugs, and why you were checking to verify that it spun freely?
While you could do compression on number 2, it is probably just as easy to pull the valve cover and examine the seal.

 

Stock, non-CNC'd heads? I'd put my money on money on valve seals or if CNC'd rocker bolt hole. Rings don't pool oil in the cylinder