318 compression test results

If it doesn't burn oil, and the oil pressure is good, I wouldn't have a problem with pulling the heads, doing a good 3 angle valve job, and installing a relatively mild cam (like the old purple 340 cam or a bit less) if you're keeping everything else stock. If you up grade the intake and exhaust and maybe rear axle ratio, you might consider something a bit more high performance. You don't want to get carried away with the cam unless you're going to pull the engine down further and checking piston to valve clearance and getting some new valve springs.