Mike, squirt about a teaspoon full of oil down EACH cylinder and with ALL of the spark plugs removed, redo your compression test. Give the oil 2 or 3 minutes to works its way down around the rings. Any motor oil is fine. If the numbers increase, you have faulty rings. If the numbers stay the same, you either have a valve seating issue (burned vale(s)) or worn seats or perhaps...and this is rarely the case, head bolts that need retorqued. As was mentioned, if the numbers don't come up at least by 15-20 lbs, retorque the head bolts, run the engine to operating temp and rerun the compression test.
My 54 blew the head gasket between 3 and 4 while driving thru Chicago traffic. I drove all the way into Wisconsin and back to the Ohio/Indiana line before it finally let go and the car quit. Quite a testament to the ruggedness of the KF engine!