Exact cause unknown. Problems I see....
Is 87/88 engine....
1. The lifter cover is installed wrong and nuts and washers isn't OE.
"bolts" have a rubber part goes on them then cover then washer nuts.
Need cover gaskets Example: MAHLE PS39841 and Permatex High Tack sealer to "glue" the big gasket to the cover.
Might use same nuts but need smaller washers.
2. some intake man bolts go into oil drains and push rod holes on the head. Has no pressure and unlikely will leak.
Worse... If you delete the engine hanger for 2 bolts on #4 cyl you will "Crush" 1 push rod because I-manifold is made to have extra metal from that hanger.
If the hanger is Missing... the manifold is weak w/o it and gasket may fail leaking coolant to outside, internal to #4 cyl, or both.
Use Only FEL-PRO MS93688 I-manifold gasket
and Install Dry without any sealer.3. If Valve Cover is leaking...
Replace the cover using Dorman 264-905 cover w/ new style cap.
Use FEL-PRO VS50179
T w/ new bolts etc costing way more then other gaskets.
4. O-rings for TBI is wrong type. Green Is for AC and may fail. Correct type is Viton in tan or black.
DORMAN 800013 has 2 of each size but cost.... other Viton "kits" often do not have right sizes. I have HF kit but but not sure if that has right sizes...
The Nuts on these joints only hold the parts in place. The o-rings do all sealing with no pressure from the nuts.
If the TBI has iffy seals, regulator, etc... buy a "Rebuild Kit" that has most seals gaskets and regulator "rubber."
5. 87 engine because see old type oil pressure sender plug... Get 88 sender and plug.
See my Cave,
Oil SensorWhy? when bad old style like to drain the oil pan and fast when engine runs even tho works electronically. That is often shows are plug full of oil but can be other ways to "leak" pressured oil when engine runs there.
6. Pull Oil Filter and look that flange and filter face. Bad seal or other problems can to same as 5.
Over or under tighten the filter is a problem too. Example: Many use a wrench to install and way over torque then wreck the filter face...
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Dr. Ian Malcolm: Yeah, but your scientists were so preoccupied with whether or not they could, they didn't stop to think if they should.
(Jurassic Park)
The Ogre's Fiero Cave