On further inspection of the cylinder walls after dingleberry honing (which worked really great by the way) I saw one cylinder wall has some distress most likely caused by water sitting in the cylinder of a year or more. It was difficult to see withou tmagnification but it was there and it was significant. So I will receive one .020" oversize piston tomorrow then run the new piston and block up to Millenium Technologies in Plymouth, WI to overbore the bad cylinder. I'm sure this is where the oil burning was coming from.
Regarding the 295psi compression test the only area of heavy carbon deposits or any deposits in the cylinder for that matter was in the dimples of the exhaust valves. They were complete filled in. Now that they are cleaned out and I am anxious to take another reading.
I used this down time to clean and coat the inside of the gas tank, bleed brakes, install new tires and repaint. Looks like the engine will go back together the first week of Sep and I should be back on the road by mid Sep. Will install a windshield and roof top too.
Thanks for the follow up. Mike