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It can be. Also check the tighness on the turbo feed line out of the block for the oil. If that is leaking it will drip down the block roll down the oil pan to the lowest part which is the oil drain plug. That left me saying WTF many times at first.
What you should do to determin whether the motor is beat:
Pull the valve cover. Check for scar marks on the cams.
Look for sludgy oil.
Pull the rocker arms side to side. (check for excessive play)
Then pull the oil pan, hammer out any dents for clearance of oil pickup, then feel the #1 rod side to side for any excessive play.
Good luck with the swap.
Patience is better than blowing stuff up.
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