I just picked up a clean 88 Extracab with a 3.0 with a 5 speed and 214k miles . The previous owner was selling it because it would no longer pass emissions and had low compression in two cylinders. My plan is to do a 3.4 swap and eventually a SAS. However, I'm wondering if it is worth trying to adjust the valves on the 3.0 to see if that will fix the problem and let me drive it as-is for awhile.

The engine has no compression in cylinders #1 and #3 according to a compression test the previous owner had a mechanic do. The truck starts up and idles normal, but driving the truck it certainly feels like it is only running on 4 cylinders. I'm assuming it is the exhaust valves being out of adjustment as there is no signs of the head gasket being bad. Is it possible that the valves are just out of adjustment or are they likely already burnt? Anyone had any luck with adjusting valves to fix compression on the 3.0?

I should also add that the existing engine looks to be in good condition with a recently replaced timing belt, alternator, power steering pump, etc.