1998 Mercruiser/5.0 Litre Leaking Drive Oil

[BonesNTX]

Hello and thanks for reading my questions...Hopefully someone can put me onto what is wron a maybe how I can repair.

I recently got thie 21 Sea Ray Cuddy "Express Cruiser" from a good, old Friend.

It uses a lot of the Drive Reserve Oil...About 1 (Mounted to engine)Reserve container / 2 hours.

There is no oil in the bilge and no oil sheen on the River water. Dang hard to figure where it is going!

Engine Oil level looks high?

The previous owner had it serviced approximately 30 hours previous and all was good except something happened to the supply hose connection at the Reservoir and it came loose. I would have to think the alarm would have gone off and he discovered the loose hose.

Anyway, of course now the hose is tight and appears to not be leaking.

1) Is there a good test for me to determine what is going on?

2) Ideas?

Here is pic with the Reservoir laying on top of the engine for clarity of connections:

[redtech]

check the o-ring on the outside connection to the drive