So just before we get too excited, the oil would have bumped up the compression as it made a better seal. I'd say run it for 10mins and test again. If the oil goes away and compression drops back to where it was......well you are still up for rings!
Actually i remember my 4age now. I tested the compression straight after picking it up from littleredspirits garage, terrible results, worse than yours I reckon.
I then put it on an old tyre, used some PVC piping as an exhaust, connected up an ECU and a fuel pump and started it, thats when the compression came good. Put the engine in the car, stated it again and blew the headgasket, and it was the worst condition headgasket i have ever seen, changed the gasket and happy days for 4yrs.