Car was at a reputable Porsche mechanic last Friday for some suspension work. He confirmed it was oil leaking from cylinder 2. Not sure if I mentioned that I have taken the lower covers off and checked the head studs. None broken.
From what the mechanic is saying its unlikely to be the upper head studs as they do not get as hot.
He also said there wasnt much you can do, you can check the torque of the studs but you cant increase it. Only way to resolve is to remachine the head, but obviously thats an engine out / rebuild job.
Bit disappointed as from my understanding there is not much I can do apart from live with it. Its not the end of the world and I guess all part of the ownership of 30 year old air cooled car.
However things like this annoy me.

Ah well.
Ed