In my experience, cold compression readings are lower than when the engine is hot because piston, ring and cylinder tolerances are greatest when cold.
Added oil will still seal off worn rings, etc. during the compression check, recovering most, if not all, of the piston-ring-cylinder seal. The differentials between wet and dry readings are usually less with a hot engine, provided ring wear is is the problem.
Aslo, the combustion chamber is about 20CCs, And, a teaspoon of oil is about 5CCs. Oil is not compressible. So, it can have a substantial impact on compression when used to excess. There is also the volume of the tester to consider, and if it is storing oil or not.
All this information doesn't change the fact that along with your oil smoke, you're probably going to have to do a ring job. The extent of which will be determined after physically measuring the dismantled components for wear factors.
By the way, what happens when I run resistor plugs with the caps?
Assuming a points ignition, misfires when the plug nears end of life. And, a shortened plug lifespan with this ignition system. (interactive)
Cheers,