Simpson,
My k4 has got the same leak exact same area.Before I noticed this leak I re pulled the motor because it leaked at the side of the head.The reason for this some bozo had helicoiled the cam cap bolt hole and had drilled in to the cavity above the plug.Oil some how came down the thread and trickled by the plug and spread across the fins.Sealing the thread cured that but I suspect on mine that is on one of the middle cam cap bolts there is another helicoil doing the same.Because of the first leak which is all I could see like a jerk I did not check all of them.So later I have to pull it yet again.Pour oil down the cam bolt holes and watch for the trickles.
hope this helps.
Yesteryear
Yes, other than pucks, this is a viable place for an oil leak. The 4 studs across the front of the cam caps are often removed to clean the head. The holes they screw into are all drilled and tapped thru the head and open into each of the 4 spark plug cavities. Your PO did not do this. What he probably did do was remove the studs, pulling out the threads on one or more of them. Then he helicoiled the hole. Making for an almost for sure leak as you describe. The oil wicks its way down the threads and drips onto the fins at about the 3rd fin level. Then it flows and drips of the front of the engine.
The OP may have this problem as well.
Moral: Do not disturb those 4 studs. If you do, replace them with studs and seal the threads. If the studs are gone and bolts are being used instead, seal the threads but be prepared for future leaks. Only the studs should be used in my experience.
By threading the stud in, with sealer and allowing it to set up, you'll have the best seal. Then a nut is used to hold the front of the cam bearing cap on, without disturbing the threads in the head.
The rear of the bearing caps do use bolts, but the holes are not open to the atmosphere so oil wicking down their threads has no where to go.