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It's possible to run on three cylinders, however obviously not advisable.
If it's covered in oil, my first guess would be that the piston rings are shot. You should do (or have done) a compression test to see if the piston rings are properly sealed. If not, this would also cause the car to feel as if it were running on three cylinders- extremely sluggish.
I'd start with the compression test and see where that leaves you.
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