1999 traxter oil leak. HELP!!!
 

I have bought a 1999 traxter 500 4x4. It was bought thinking the engine was siezed from the guys father inlaw running it out of oil, and the mpem was shot due to the fact it had no power to anything, upon stripping it down to get ready to pull the motor i found out that the power wire was broke and when replaced it powered up the dash and the engine turned over quite easily but when i turn it over there is oil coming out of the bottom of the rope start cover from a small hole in the bottom which is factory made i am assuming because it is perfectly square. any ideas if this is worth persuing or where the oil may be coming from. i will be pulling the cover off tomorrow regardless and will repost my findings.