There IS oil within the case, but THEORETICALLY, the case is half dry and half "wet" and the oil is kept/stays in the inner half (where the starter clutch is)......
Because the outer "half" contains the points, that drain is there to prevent the oil or moisture from building up deep enough to affect them......
KEEP THE DRAIN OPEN.....
IF you are getting a lot of oil drops out, it is likely your oil level in the engine is too high to begin with......
This can be from overfilling (while the bike is on the side-stand instead of the main stand), or from the oil being thinned and increased by fuel getting into it....
Neither circumstance is desirable, but the latter can destroy the engine rather quickly.....
Because the outer "half" contains the points, that drain is there to prevent the oil or moisture from building up deep enough to affect them......
KEEP THE DRAIN OPEN.....
IF you are getting a lot of oil drops out, it is likely your oil level in the engine is too high to begin with......
This can be from overfilling (while the bike is on the side-stand instead of the main stand), or from the oil being thinned and increased by fuel getting into it....
Neither circumstance is desirable, but the latter can destroy the engine rather quickly.....