Check your Gear oil condition. If it is not milky, and I suspect not, leave the hole alone.
When I serviced the engine lower end the gear oil was very milky. However the fill and drain plugs were loose and had not had new washers in some time. I got the motor from my father and it had not been run in several years. I serviced the gear oil, installed a new impeller and installed a tell-tail. The motor starts and runs well in a barrel. It was after running in a barrel that I noticed the oily water running out of the weep hole.
It is likely the water drain to reduce the chance of freeze damage. The oil would be unspent oil from the fuel mix collecting in the exhaust cavity area..........where the hole is.