I would do a compression test on the engine, you can rent a tester from Advanced Auto or some place like that. It's free. As for the oil leak, it could be as simple as a bad o-ring on the drain plug. Check to make sure the oil is not coming from where the transmission and engine meet, this can be an indication of a rear main seal leak. Also look higher on the motor make sure the oil isn't running down from the valve covers.
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2011 Ranger XLT 4x4 3.73 8.8" Trac-lok #1 T-bars, K -springs, LineX bedliner, General Grabber AT2's, Tonnopro tri-fold, CoverKing Realtree AP seat covers, OEM pre-keys, axle spacers, Bilstein 4600's, Hellwig AAL. Ziebart Undercoat
'98 Ranger XLT 2WD (sold)
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