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97 DR 350: oil out the exhaust

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So I just got a "free" DR 350. 7,400 showing on the odometer. Starts and revs. Slight ticking in engine, no knocking. It's got oil out the tail pipe, the right side of the rear tire looks armor-alled, but there's no smoke.

I've never had a DR. I'm wondering if there's maybe a chronic problem with valve seals or head gaskets or something. I admit I haven't even checked compression... I'm looking for some of your experience to help me narrow down the diagnostics if possible.

Thanks!

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