That is an extra unneeded plugged up hole for an oil dipstick tube that wasn't used for your particular engine application.
While this guy in the video just installed a plug, yours appears to be well plugged with some sort JB Weld added on.
http://www.ehow.com/video_2327501_plug-unused-dipstick-holes-engine.html
Your dipstick tube should (or may) be running down to the oil pan vs the engine block.
PS, We'll be moving your engine topic on down to the
Non-Repair I/O and Inboards[/URL] Discussions not involving troubles or repair. Sponsored by
Bel-Ray Sub-forum for you.