Some issues :
Compression is measured with warm engine, in your case engine is cold dead, if you squirt oil into cylinders wlll increase PSI, is not the same pulling rope by hand than having a driller move the engine with lots of turns as opposed doing it manually. How can you possibly have 140 PSI when service manual calls for 57 PSI achieved through at least 4 compression strokes.
You can only light a plug if engine is severely fuel overfloaded which is not your case, when starting there's a minuscular amount of air/fuel inside cylinders, enough to turn engine on. So lighting a plug is not a concluding test. If water enters combustion chamber will oxide plug tip.
Was that engine used severely through those 11 years, probably impossible to tell, you could even have a low compression issue associated to a blown head gasket which lets water inside combustion chamber and shuts engine down as when you were left stranded.
It's not a matter on how old an engine is, it's a matter on how well the engine was serviced and looked after during its entire life. 75 bucks will be the best invested money ever, keep that portable engine it's one of a kind, outperforms any 8 HP any time, any day.
Happy Boating