Oil rings can be shot & an engine can still have good compression. Check the simple things like a bad fuel pump or PCV system sucking oil out. How about blowby? Run the engine with the PCV valve out & see if there is smoke comeing out the hole. If so the rings are surely shot. If you have oil in the PCV hose it would indicate oil being sucked through it. A broken shield inside the valve cover can cause this. If you determine the engine is shot another 250 is easy to put in. The 292 fits but takes some modifications.
