Is this even possible???

The head bolts on most SB's are dead ended. Some 318's (I have) are open to the coolant. NONE go into any oil passages.

Is it possible the head bolts were oiled during install, and that "a little too much" was used, causing a hydraulic lock in the bottom of the threads, and now that the engine has been heated, it's being forced out the threads?

Bolts were installed with a little bit of antisieze.

Looks like just 2 bolts? They look easily accessible, is this a new problem on an old engine?

The center bolts look to be wet as well. The engine is about 5 years old. The current heads have been on for 3 years but it hasn't been ran allot since then, I did have a leaky intake that i thought was the cause of the bolts being wet. With the original heads on there were no leaks.

I'd clean it all off again real good as stated above. Then Monitor the situation. It's not normal but anything is possible. In Theory, a cracked Head or Blown Gasket could possibly push oil through a Head Bolt. Kind of like the Perfect storm Scenario. Chances are there would be other symptoms. Just keep a close eye on it. and Check for any related symptoms. Such as Oil/Water mixing or Blow by or oil on spark plugs. Don't ever underestimate the ability of oil to blow backwards from somewhere "Up Front" on the engine. Timing cover Bolts could leak for instance and oil could Migrate back there. I'm not trying to freak you out I'm just saying to check everything. If you prove 100% that the head bolts are leaking then it would have to be a crack or Bad gasket.

They have been cleaned off a few times. I was thinking earlier today, the cracked head idea isn't really that far fetched. I just wanted to talk my self out of it.

Maybe this will lead to a good excuse to pull the engine.:violent1: