Re: 1999 40 johnson seized?
I would have thought that there would be water in your lower unit and not just black oil. In the case of no water, the lower unit must have been drained on purpose and doesn't leak. Of course, your lower unit is probably damaged due to lack of oil. I suggest going ahead and taking your lower unit apart and assessing the damage. If you can't do that, try finding a used lower unit (which will probably be difficult). There's a good chance your bearings and gears are bad.
Sadly, checking the lower unit oil is the second thing I would have done after checking compression on a used motor. The third would have been a new water pump impeller whether it needed it or not.
I hope the damage is at least fixable.

Was this motor shipped to you? Lots of people drain the lower unit oil when shipping them, sometimes forgetting to tell the new owner to check the lower unit oil before testing the motor out.
JBJ