yeah. wow, that's a bad value. #3 is not great either. Readjust the valves just to be sure that's not part of he problem.

Here's a dumb thought based on my B20E experience. I blew my headgasket after installing the motor in my 122. Afterwards, I got 0 compression on my #4 cylinder. I thought I had a hole in the piston or a completely burned up valve, but it turned out that there was some crud on the spark plug hole and the compression tester was not seating correctly. I checked it again a few days ago and came out with over 170 psi... I doubt that this is your problem, but I'd recommend doing the test a couple more times along with the oil squirt test. Be sure the values do not change appreciably

The easiest check for valve recession is to remove the rocker arm and lay a long straight-edge across the tops of the valves. If you see a lot of deviation, especially on the exhaust valves (they will be higher) you've got some valve recession.

There's a few dissenting opinions on the cause of valve recession. A couple of the Gurus will tell you it's inadequate valve springs, while the prevailing opinion is unleaded gas.

You can expect to break a couple head studs so it would be a good idea to pick up a couple spares or replace all of them if/when you remove the head.