[Spridgets] Oil leak from dip stick?

[derf]

First, make sure you have a good PCV situation.  You need some
evacuation of the crankcase to the intake vacuum.  Without this, you
will have oil coming out from all over.
After, that, look at more extreme possibilities.
The good news is that the Spridget motors are little advanced from
tractor motors and are generally easy, inexpensive and rewarding to
rebuild.