check the end play...
First off, if it were me,I would NOT swap in a motor with oil pressure problems,if your sure the gauges are accurate,the bearings,oil pump or crank need work...and you'll be yanking it right out again!
The compression test is a good guide to the condition of the rings,valves,and cylinder walls,but little else...I've had motors with only 90-100 lbs of compression that ran decent,but used oil rapidly,like 500 miles or less to a quart..
Check for excessive end play in the crank by pulling in and out on the flexplate or harmonic balancer--if it moves more than .020 or,so,the thrust surfaces on the rear main bearing are worn--and that means new bearings and maybe crank work need to be done--
An old motor might need head gaskets too--if it sat with no antifreeze a long time,the steel OEM head gaskets often rust thru and leak when the engine gets "woken up" after a long nap..
I was shocked to see my 400 small block I pulled out of my 74 K20 had almost an 1/8 of an inch of end play--I noticed it while removing the tranny torque converter bolts!--and the motor ran decent,and never made any noises!!--the oil pressure was always on the low side at idle for the 10 years I drove it,but it never knocked or anything..

--I'm selling it as a rebuildable core....I'd keep it but I need money more than another motor gathering dust...
