Is this engine in a drivable vehicle? If so, I’d drive it a while before jumping to any conclusions about that compression test.
And if it’s not in a drivable vehicle, I’d try to rig up a way to run it for some extended periods and retest compression and/or leak down.
You might just have some sticky rings that need to be loosened up. Heat and pressure under running conditions is a great way to do that. There’s also a procedure I’ve used with a crankcase filled with oil and then overfilled with a quart or so of diesel. Running 20 minutes of thereabouts at a high idle and no load.
