so you think that oil is going into the exhaust system,
Its quite possible that the ex system has oil still in it .
BUT the next step is to disconnect the X pipe and then run the engine,
and see if oil is dripping from the manifolds

 

Excellent idea! .. That will be my next task in the next weekend..

 

NOTE make sure to disconnect the O2 sensor wires at the Ce panel,
then push them through the chassis so you dont shear them off when you lower the exhaust.