How did the oil get here?

[TONY!]

Originally Posted by SKILMATIC

Wait, you took off the valve cover with 2 fingers, or the head caps for the cams? If it was the head caps they should have been on there so tight you would need a breaker bar. The valve cover is fairly easy to take off with little torque...

I'm pretty sure he means the valve covers (he calls them camshaft covers--which is what they are called sometimes).

The cam caps aka cam cap bearings are only torqued down to 14 lbs. It does not take that much effort at all to get them to come out at all.

Now the head bolts would be called just that, head bolts--unless someone once changed them over for studs.
You may need a breaker bar for that. But the thread starter has not mentioned that.

...
First reason could be that the spark plug could be cause of poor starting or misfiring...

Poor starting or misfiring would not put a puddle of oil in the spark plug holes.

...Second it could be oil leaking due to a piston ring...

If rings had a very poor sealing with cylinders, there would be loss of power due to bad compression, loss of oil due to oil consumptions, and the oil sealing/or lack of would go from the lower part of the pistons to the cylinders and be burned. The oil will not go up the spark plug threads to form a puddle of oil.

...Third it could be cause of cylinder or valve guide wear.

Cylinder wear would be just like worn rings and give off the same signs.
Worn valve guides is not that common on 7M heads.
If it is the vavle stem seals you mean, the oil would go from the head and into the cylinders to be burned off.
With poor valve stem seals, you would have oil come out of the tail pipes upon start up.