Motorcycle Repair: 1985 Virago 1000cc, chain tensioners, cam chains

Question
My bike will start on one cylinder then fire on both and start backfiring exhaust valve has been changed and compression seems low in same cylinder according to previous owner but I have not found that yet but oil will slowly leak out exhaust opened timing chain covers and on top dead center on 1 #2 seems to be about 1 inch off bottom would this be a timing issue or is there another possibility thank you for your time

Answer
I have had that same bike plus several other Virago's.
I rebuild Virago carburetors for a living...www.viragocarb.com
Now to your issue. The timing should be checked, and the 2 cam chains should be checked.
The chain tensioners can cause an issue if they get worn and loose.
The Virago's have to have the oil changed often so they don't wear out the plastic pads
on the tensioners. It sounds like a cam chain is slightly off and both valves are not closed completely on compression stroke. Could be a slightly bent valve.
I would get a gasket kit and open her up  and assure all timing and cam positions are exactly correct. I would also inspect the piston rings as it also sounds like there may be an oil ring broken. I would check the timing and cam positions first and see if she will run.
Youtube is a great resource for seeing how to check timing and cam positioning.