My guesses would start with a worn-out valve guide.
A close second guess would be a crack encompassing both the exhaust port area and the inside of the rocker box.
Either of these issues would invite rocker box oil into the exhaust port of the cylinder. Plenty of Lycoming cylinders get some rework in the guide and exhaust port areas during cylinder overhauls, as Matt alluded to.
makes the pipe wet about 2 inches down
What exactly do you mean? On the inside of the "pipe" exhaust stack? On the outside of the stack?
I'm guessing you're talking the outside.
I guess a little clarification would help here also:
putting oil out of the exhaust port
Again I'm a bit confused that you know it's out of the exhaust port unless you've got the stack off and are looking inside.
Sorry that I don't get your whole drift, so to speak.
To really find the source of this leak, you oughtta thoroughly clean the area of oil and then run the engine for a short time, maybe a minute, then look for the leak. If it hasn't shown up in a minute, try for another couple of minutes, then maybe 5 more. Heck, maybe you'll have to fly it or run it up til it's hot before the oil shows. This is, of course, assuming that you're seeing the oil on the outside of the stack.
Sorry to sound like a jerk asking such specific questions. I swear I'm just trying to help.
Whatever you think, prepare yourself. You're likely to be looking for a new cylinder.
Hopefully you've got a super-leaky-cub rocker cover gasket. If you do, buy those new orange silicone gaskets next time. I love 'em. A 'real' time saver, and they work with beat-up old covers, too.
Good Luck. DAVE PS let us know what you find.