Does the stator sit in oil?
Yes there is supposed to be oil in the stator.
How do you get oil out of a stator?
pour some mineral spirits in there and slosh it around, it will dissolve the oil.
Is there supposed to be oil in the magneto?
No it’s not, and it’s motor oil coming out. The stator is attached to your crankshaft, and there is a seal that is suppose to keep the engine oil inside the crankcase, and keep the stator or magneto housing dry.
How do you clean a greasy stator?
Clean the stator by spraying or brushing on with mineral spirits and follow with wiping and blowing out with compressed air. Let it dry over night before applying your sealant. Mineral spirits will not damage your paint nor the winding coatings and is just a very good cleaning and degreasing product.