Engine oil leaks are common from the valve cover gasket and camshaft & crankshaft seals. Replacement of leaking seals and gaskets is recommended.
Resources for the Repair and Maintenance of your 1994 Subaru Loyale
1994 Subaru Loyale
1994 Subaru Loyale Problems
A hydraulic lifter type noise may be noted, often worse at idle. This can be caused by air being drawn past the oil pump seal allowing aerated oil to reach the valve lifters. Replacing the oil pump seals generally will correct this issue.
Premature timing belt failure is not uncommon. The recommended service interval is 60K, but belt failures before that mileage have been noted. This 1.8L engine is considered "free-wheeling", therefore the chances of valve damage if the timing belt fails is minimal.