Could also be a real bad exhaust valve guide, lots of clearance. The K1 has no valve seals on the guides, which are made from Stellite: if the engine sat a LONG time with that exhaust valve open, it may have rusted enough on the stem to make it slow to close. Then, when the engine is forcibly reawakened, the piston hits the valve and cracks or chips the glass-hard Stellite. Then a nasty oil leak can ensure
(Seen this quite a few times since the 2000 era of reawakenings began!).