BTW...an easy, yet effective, compression test...
Crank the engine slowly by hand, via the kickstarter. You should feel sharp resistance on the compression stroke; if it's enough to stop the crank rotation, compression is likely healthy. At the other extreme, if it's hard to know when the compression stroke has been reached, compression is really low...too low. This is shadetree mechanic tech at its most basic but, it's simple, reliable and, with enough experience, quite accurate...as a first-step, diagnostic, tool. Not everyone has a compression tester and knows how to use it with small displacement; I've seen Z50 motors with an actual 150psi cranking pressure register 120-130psi on a different gauge, largely due to the volume in the hose (and, presumably, the gauge itself). There's also no way to adjust cranking compression pressure. OTOH, a healthy top end delivers a consistent feedback "feel" through the kickstarter.
Check the sparkplug. Do the center insulator & electrodes have normal appearance? If they're black, with fluffy/sooty deposits, there's an oil control problem. If the plug threads are oily, it's almost certain. Then, it's only a question of where the oil is coming from...valve seal, valve guide, headgasket, or rings. The head has to be pulled to verify any of those causes.
Look inside the intake port. It should be clean, gray, aluminum. If it's blackened, the intake valve has been leaking for some time. If the discoloration extends inside the intake manifold, the valve been leaking, badly, for a long time.