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Considering the age of the machine I'd be looking at basic maintenance first. Things like air filter, fuel filter, carb condition, spark plugs, oil and oil filter change. Then start thinking about valve condition and clearances.
That's sounds strange?
Oil can only leak out or the engine is burning it.?
If its burning your oil valve stem seals are worn it lets oil into your combustion chamber and burn it.
Maybe get a local mechanic to take a look.
You most likely have a wet clutch. Do an oil change! Is it all murky and grey? You need to flush system thoroughly. Buy atleast 3 or 4 oil filters and grab some oil. Get it warm and change oil. Rinse and repeat 3 times. Take for short ride rinse and repeat till oil is clean. Most filters are washable so can be reused. Hope for the best. Mine has been swamped 4 times so far but runs like a champ. Either buy or make a snorkel kit and have fun