Model 110 9.8 hp oily leakage in lower unit

I have a 1966 Mercury 9.8 hp outboard that runs great. It had fuel pump troubles but that is now solved. There is a small hole on the left side of the lower unit right above and in front of the gearcase bulge. After running the motor in a tank, there is a kinda foamy oily substance that comes out of there. The same foamy oil comes out through the prop exhaust. It is not a large amount of oil and it stops leaking rather quickly. Is this just unburnt/excess fuel/oil mix?

Also, sometimes the carb leaks fuel before and during running. I'm not really sure where the fuel comes out, but it is a considerable amount. When it is leaking, the engine dies. Other times it does not leak and it runs fine. Is this some sort of relief "vent" or is it a seal problem?

Thanks in advance for any help.

Re: Model 110 9.8 hp oily leakage in lower unit

As long as were on the same subject kinda. On my 110 9.8 1969 merc I notice a helluva lot of oil/gas floating in the water that looks like its coming out the water output. Been doing it for at least the last 3 years since I've had it.

Re: Model 110 9.8 hp oily leakage in lower unit

I have the same problem with a 1997 9.9

No water from the pee-hole, but I can feel it pumping air. I read somewhere that some Mercs have thermostats that only open when the engine reaches a pre-set temp, and then the motor will pee, but not sure if the 9.9 has one.

Also, if the engine isn't peeing, because of a thermostat, where does the water that is getting sucked in by the intake go?

Re: Model 110 9.8 hp oily leakage in lower unit

Just unburned fuel/oil mix. The little hole is a vent so the water drains out to prevent freezing. My 67 will dump gas when tilted up..haven't been able to stop it. Mine also leaves a slick.