JUSTINTHECOASTIE

Not sure if that discolor due to the paper towel or whatever but your water sample looks as if it has oil in it

Chance S2K

You might be right, it's hard to tell. That's one reason why I'm suggesting he clean the front of his block so he can see if it continues to leak. OP mentioned it seemed fresh/wet, so that could indicate a head gasket leak.

If you end up having to replace the head gasket, make sure you get the valves properly adjusted as well and make sure everything is seated/sealing properly. May as well knock out all potential areas of problem at once. Put in new seals as they're pretty cheap minus the cost/effort of labor which you'll need to do regardless.

Soviet

Good suggestion as far as cleaning the front of the block.

Wojofoo

Car is just about to turn 70k actually.

In regards to the valve adjustment. I had the valves adjusted around 66k. It was just a precaution as I bought the car with 62K miles. The valve adjustment was done by Elevated Automotive in Bel Air, which is pretty reputable.

Jeremey (owner) even said it was one of the best condition S2000s he has seen. I feel if the head gasket was leaking, he would have caught it then?
Furthermore, the valves were still in spec.

I will clean the block and keep an eye on it. Hopefully its not serious.

Chance S2K

Well, it seems like whatever it is you've caught the issue pretty early on so hopefully it all gets sorted out without a hitch. If you trust that shop you took it to it may be worthwhile to take it back there so they can look at it in person and see what their opinion is.

windhund116

May want to try one of these kits, to test if the head gasket is blown out.

https://www.youtube.com/watch?v=QA7K...&nohtml5=False

Wojofoo

Well I just had the free oil kit from Blackstone labs sent. I will send my oil to them for analysis (see if there is coolant mixed).

I will also pick up a compression test kit and get the compression numbers. I think these two things should suffice.

Anyone have a compression kit they recommend?