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Before you replace the engine, do a few tests to determine exactly what is going on. Is the compression loss due to a valve problem? If so then you might consider a valve job.
In many cases the lost compression types of failures are due to blocked EGR passages, leaky intake manifold gaskets, or other vacuum leaks that make one cylinder run a lot hotter than others and cause a burned valve.
If you have tested this then ignore my advice, but a squirt of oil in the suspect cylinder and a re test of compression could tell you if the valve is your problem or the pistons-rings.
It's just cheap insurance to try to really pinpoint the problem, as well as understand the other potential causes of what has happened.
Follow a good overall diagnostic procedure, and avoid the possibility of an engine replacement that does not fix the original problem that caused the low compression on one cylinder.
Then you eliminate the risk of damage to the new engine, or damage to the same engine that has been repaired. In either case the bottom line is lower overall cost.
Welcome to the forum.
regards
Mech
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