No, it is not leaking out of that small hole, the oil is comming from the hose above the water pump that comes out of the head, but i also do need to buy new coolant hosing as well, didnt know if there is a place to pick up oem replacment hoses or if anybody knows what the best option is, i know samco makes some but there pricey, but if they last and work well im all for spending the extra $!