Engine Issues NA 1.6 - Low Compression Cyl 2 and Knocking Noise

Hi guys, I was recently driving and when I put the car into 3rd gear, it felt as if I’d put it into 5th. Realised I was in fact in 3rd, engine lost all power and was stuttering, so I pulled over and then the engine died on its own. When I tried starting the car again it started making a horrible knocking noise from I think the top end. After calling breakdown and being towed home, I’ve run a compression test and cylinder 2 is returning only 25psi so obviously an issue there - all other cylinders were returning expected results. Another thing worth noting was when I looked at the top of the cylinders through the spark plug holes, they all looked fine apart from cylinder 4 which was caked in oil - a separate issue or linked with this one?
I’ve taken the rocker cover off and nothing looks immediately wrong. So I’m wondering if anyone knows what will most likely be my issue, before I start taking the head apart and blindly looking for a problem.
Any help would be very appreciated!

I think once you remove the head, which you are going to have to do anyway, the problem will become apparent. If the top of the piston is very oily it can only come from 2 direction, down through a valve or up via the piston / bore.
If you can beg borrow or steal a borescope you may be able to see something without removing the head which will at least prepare you for what is inevitably going to be bad news…

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Unfortunately it seems there has been a catastrophic failure that will require a strip down and rebuild.
What you have mentioned in your post would be enough for me to be 100% certain that the engine will not be saveable without a lot of cost. I guess its the 115bhp long nose crank engine, not short nose crank or detuned UK spec with factory immobiliser?
I would bite the bullet and fit a known good replacement - 115bhp with long nose crank. Preferably see it running in donor car, Check for smoke and do a compression test.

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Yeah I had the feeling it may be a new engine job. Will still try to find the problem and weigh up the costs of a new engine vs repairing this one. Also FYI it is the short nose crank 1.6, 1989 Eunos import. Would ideally like to keep this engine as the car is number 1292 built and would seem a shame in replacing the original engine. In saying that, I wouldn’t mind whacking in a 1.8 VVT :shushing_face: :smirk:

Oh that is a shame.
A rebuild will likely cost at least £1000, probably £1400 and then you would have messed with that crank bolt that causes all the issues.
Going from sublime to ridiculous with VVT whilst pondering purism, I like it :slightly_smiling_face:
A good(proven good) long nose crank 115bhp will drop straight in; problem and inherent crank worry dealt with.

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