What year 261?
There were different styles of "oiling tubes" between 1954 and 1963.
"Do I need to find a replacement tube / repair it or will it be ok as is?"
Run your engine with the valve cover off. If oil comes out of the rocker arms, you are OK.
If no oil comes out of the rocker arms, buy a replacement tube (eBay - make sure it looks like your tube).
