A small block GM marine engine that is raw water cooled should be good for 1000-1500 hours, however I’ve seen them die at 500 hours and go to 2000+ hours. Really depends on how they were cared for and used. The rings may have frozen from sitting and or the seller knew the engine was worn. I would soak with marvel oil as your friend said and after a few days get the engine running. Once running repeat the compression test but dry, adding oil will only give a false health of the engine. If the compression numbers are still down I would perform a leak down test to determine if the issue is a valve vs rings.
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1997 Silverton 362, 7.4 Crusaders
1997 2400 SCR, 5.7 Vortec / Bravo 2
Mike
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