Mercury Repair Questions? Ask a Mechanic for Answers ASAP
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the first thing I would do is check the actual oil pressure. remove the oil sender unit and insert a manual gauge. that will tell us if the pump is supplying oil throughout the motor. it may be a clogged pick up screen for the pump or the pump itself.
regardless of the issue, the damage is done. running without oil back there has caused damage to the head.
if you remove the cam, you cannot check oil pressure as the engine has to run.
the damage is far beyond just the head.