Originally Posted by glennj3
I’m pretty sure it’s bluish burnt oil coming out of the exhaust, only when I let off the gas after revving it up.
That's an indication of bad valve seals. When you let off the gas, vacuum in the intake goes up (sucks harder) and draws oil thru the valve seals. You may benefit from doing a valve job on the engine, since your compression readings are good at 120-122 psi. Like Jerry said, being within a few percentage points of the reading between highest and lowest cylinders is a good thing.

Kevin
1951 Chevy 3100 work truck
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1929 Ford pickup restored from the ground up. | 1929 Ford Special Coupe (First car)
Busting rust since the mid-60's
If you're smart enough to take it apart, you darn well better be smart enough to put it back together.