Hi team,
I noticed what looks like gas dripping from the exhaust header connection to the cylinder. While its idling after a quick run around the yard, I noticed some smoke from the front of the cylinder and saw what looked like gas dripping from the connection. I don't think its oil but hard to tell. Cant really smell it. Could engine oil leak out there?
Hoping it is just some extra fuel in the bottom end from sitting awhile with gas in the carb(?) I didn't run it very long so think it just did not get burned up or something(?) Seems to run and start very well. 
Thanks
 

That exhaust joint does tend to leak oil.  Nothing to really worry about except it's messy. 

Many autolube pumps let a little oil past the check valve when parked a while.  Excess oil will eventually clear out on a good long ride.  So it seems to be worse in my experience if bike isn't ridden much.

Apart from putting up with it & hoping it'll burn off clean in time-- you could try a new gasket ring that sits into the cylinder behing the flange then also replace or pack up the string that sits where the pipe engages to the flange. The pipe needs to be pulled back hard by springs into the flange & absorbent string. Often the pipe doesn't sit square on in there so not easy to  seal. I think on mine I've welded the pipe onto the flange so only the sealing ring to worry about in the step in the cylinder. Of course the oil will still be there but working its way through the pipe & should dry up eventualy but will take a very long ride at road speed for that to happen. Or get the complete pipe burnt out. Love CT1's.

Hi and thanks. I also thought about the flange gasket and string and ordered immediately after posting. Yes I need to take'er our out and run the poor thing. I need to retire so I have more time for the important things..
Thanks all.

I’m well retired & seem to have less time haha.

Yep I can see that happening too..