Checked the reeds, they are ok, not broken and sealing pretty good.
Called a boat mechanic and booked it in. I have to bite the bullet and leave it to the experts. Some things although seem simple enough to do myself, really need the expertise of mechs that have experienced the same problems with this model of engine. He said it is a common problem with this motor apparently. So if a new set of original factory gaskets fail ($$$) they will have to replace them at their cost not mine I would imagine.
Can't say I didn't try. And at least all the bolts are free and easy to remove, no bolts to snap on them.
Will post back with another compression test in about a week or two when they ring me and tell me it's ready to go. I don't trust the readings I'm getting at the moment. With a Skimmed head and block it should be around 130 psi I rekon.
Thanks to all for your help and advice.