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What were the #'s from the compression test? If the mech said it was a piston ring from the compression test, then I'm guessing you're numbers were off. If it was a valve seal, your compression numbers would be fine (unless you ALSO had a bad valve seat). In fact, oil leaking into the combustion chamber from a bad valve seal might raise your compression test numbers. IMO it's something below the head (assuming the compression test showed a failing number on it) like a headgasket or piston ring.
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