I am not a mechanic, so I will throw in a word like amateur to amateur: the compression may escape from cylinder via bottom of it (piston/cylinder walls) or top of it (valves, spark plug opening, head gasket).
ja17 advises to check the valve timing and camshaft alignment - to confirm or eliminate some of the possible issues on the top.
What you were advised about pouring a bit of oil down the cylinder and check compression was to confirm/eliminate bottom - oil would seal the piston for a moment of measurement, so if the compression appears, it means the leak is through the bottom most likely (it will not help if there is a hole in the piston).
Follow the advise you are receiving here, it will be professional and systematic.