your taking a lo compression 318 with small ports and valves,adding a 340 style cam and 4 bbl and making more power than a hi compression 340!
340 cam is about the same size as a comp xe250h so a xe262h is 2 sizes up.
340 is only 1 point of CR (5% hp) more (its really 9.5:1) x heads obviously have advantage over 318. But the 318 has headers. So all in all why wouldn't equal out.
Plus a lot of peeps think the 340 is under rated.