Andrew, I had one of these engines in a 90 wagon - went well over 200K. I liked the response when I put my foot in it.
A common problem with this engine is oil leaking form the valve covers. The spark plugs sit in a well between the cams, and leaking gaskets allow oil to pool in the spark plug holes, and a bit can seep down the threads and into the combustion chambers. That could be the cause of your puffs of oil smoke.
Easy diagnosis and fix - pull the center cover from the head and look for oil. As always, if you replace the gasket, go easy on tightening the valve cover nuts - over-tightening can lead to warping and more leaks.
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