I agree. It's probably shooting out of that area and hitting the back flywheel cover

When you pull it, check the oil galley threaded plugs on the back of the motor by cam tunnel. I know at least the Gen 6 blocks used ones with tiny holes drilled for oil squirters that go in the front under timing cover by cam tunnel. Could have easily got one of the drilled ones mixed up and installed in the rear.

I definitely will check that but I have to say I had a marina years ago start a big block Chevy with no timing chain cover on and the amount of oil at idle that came out of those 2 little holes was a huge amount compared to the amount of oil that I'm losing.
1/ 2 quart in 1 hr

Update
 

Took the engine out last weekend. We pressurized it with air from a shop vac.. Found 2 small leaks. I guess when the engine and oil is nice and hot it would leak worse. We mounted the engine on a stand and flipped it over (pan up). Back of flywheel was dry so we ruled out rear main seal. We did find a tiny pin hole in the sealer outside of pan by the part that goes around the rear main cap. We decided to change the pan gasket anyway because it showed dye on the back bolt area. After removing the pan we found a leak on the welded dipstick adapter on side of pan. Repair that and put a Moroso one piece gasket on., put silicone at the corners and on the head of the bolts just in case the oil was getting under the gasket somehow. Well I hope this corrected the problem. a bit cold for a ride now.
Thanks for all the input from everyone:nicethread: