Engine leak from engine

on my 2002 x type developing an oil leak right above the exhaust joint.
could it be valve covers, tranfer case or some othe place???

Any ideas are much appreciated.

A common leak is from the THERMOSTAT housing at the front of the car.
The housing is a RESIN casting and is prone to failure.


Walt, I had the same problem with one of my X-types. It turned out to be the sump gasket. Autozone carries them, BUT you need to be sure to get the O-ring that goes on the oil pick-up tube too (I got mine from one of the ‘usuals’) when you change the sump gasket. Check the Youtube video on how to change the gasket, or email me for some details. There is also a seal on the right lower side of the transfer case that can leak. It is a “stat-o-seal” washer that goes under the staked large nut. Less likely is the driveshaft seal, even though they can weep a little on a car with higher mileage.

Thanks, I’ll have to steam clean the area under the car then investigae.