Oil from exhaust

Ok first off there is a tiny hole in my exhaust and yesterday after starting the bike. There was a tiny bit of oil coming out of that hole...whats the issue? Piston rings? Head gasket? 

At this point it could be a million things.  You haven't given much of a description here.  First off, what condition is the bike in?  Miles? Any recent work?  How does it run otherwise?  Where exactly is this "pinhole" in the exhaust?  Could it be water/condensation mixed with carbon from the exhaust making you think it's oil?  Is your motor actually using any amount of oil?  If in fact it is oil, it could be due to a plethora of issues including, but not limited to rings, valve guides, etc.  Does the engine smoke at all on startup or when running?  Certainly this issue could be related to a bad head gasket/rings but some further diagnosis is required here.

Rick H.

I'll get some pictures of it later on today. The bike has 8000 miles on it. I've been working on restoring it over the past few months. It starts but idles at like 3000 rpm. Smokes a little out of the exhaust on initial start then quits after a few seconds. Looking at the consistency of the liquid from the exhaust it almost has to be water and carbon. Its very very runny. 

Water is one byproduct of combustion & the exhaust pipes get coated in carbon.