Subaru Repair: Oil Leak, head gaskets, oil area

Question
Hello Frank:
I have Saburu outback 2.5L year 1996 with 87,000 miles.   I discovered a major oil leak in the area where you add oil (Under the stem where oil is added, but hard to tell the exact location).   I was told by phone and without examination that this could be an O-Ring in this area.    Is there an 0-ring in the oil area and what do you think the cost would be for repair?

Could this be related to the head casket? If it is a head casket what would that cost be?
I appreciate any advice for this problem.
Thanks
Bill  

Answer
Hello Bill,

    Subaru's have a tendency to leak everywhere, unfortuantly. There is an o-ring on the filler neck where it mounts to the valve cover. This usually doesn't leak very often, but we usually replace it when we do valve cover gaskets. The most common leaks are the:  
1) Oil Pump (est. $45.00 parts, $256.00 labor)
2) Cam Seals (est. $36.00 Parts, $128.00 Labor w/ oil pump reseal.
3)Valve Cover Gaskets (est. $100.00 Parts, $128.00 Labor)
4)Oil Seperator Cover (est. $25-$50.00 Parts, $256.00 Labor)

Note. These prices are only estimates. Prices and labor rates very between dealers. If a complete reseal is need, you will save on some labor. Also the timing belt isn't due until 105k, but if the cam seals or the oil pump need to be done, then I recommend doing the timing belt at the same time, to save on labor down the road. Timing belt runs about $100.00 for the part. If it's head gaskets, I am unsure as to the cost, but it is a pretty penny :) I hope this helps you.

                                       Thanks,
                                          Frank