There is a gasket that fits in the cylinder where the exhaust mates with the cylinder/exhaust port. With all that oil spooge built up it may now look like part of the cylinder !
Here's a pic of the gasket in the exhaust port
The excessive " black spooge " may very well be a result of your engine running poorly as described, so its not burning the oil as it should be. Regardless you should seal it up as advised by blaaster.
The copper gasket is the choice of most people but I have used "high temp" rtv silicone on my exhaust with great results ... Just make sure what ever you use is rated for high temps or it will not stand up to the extreme heat !