I don't think it's an oil bath air filter, I think it's a normal air filter that you clean using the K&N cleaning oil. This keeps the filter element sticky so air pollutants will stick to the filter element better. This is needed because it's a high flow filter, which means it lets more air through, which means it lets more dirt through.
Can you refer us to the web page at K&N which describes your specific filter?
Rodd
Powell, Ohio, USA
1966 230SL, Euro, Auto, Leather, both tops
1994 E420