The most common oil leak on the L67 are the valve covers. I would just re do the 2 covers and that will probably take care of 80% of your leak. Maybe the oil pan if that looks like a leak source as well. That won't get anywhere near halfway to 1500.00.
Replace the engine? Why? For oil leaks? NOTHING will bolt in easily, and that will likely cost you much more. The L67 has been known to go over 300,000 miles. I currently have nearly 186,000 on mine with no sign of it getting tired.
RWD conversion, that's gonna cost you bigtime. Not really a realistic idea IMHO.
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98 Riviera SC3800 All stock except gutted air box.
1970 Buick GS455 Stage1, TSP built 470BBB, 602HP/589TQ
Best MPH, 116.06 MPH, Best ET, 11.54
https://www.youtube.com/watch?v=UHCda-t_Jls
https://www.youtube.com/watch?v=sfT2tEO4XcU