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9 yrs ago a hairline crack and a fouled auto bilge pump caused my Morgan 34 to "sink" about half way completely submerging the engine - similar to your problem. I got a gas pump on board and refloated the boat then but a small electric sump pump into the bilge to allow me to now work on the engine.
- pumped out a couple of gallons of water out of engine and added 4qts oil and added oil to all cylinders and manually turned over.
- pulled distributor, thoroughly dried and sprayed oil internally throughout
- drained the carb
- started engine and ran for a few minutes, alternator tested "0" output and I hooked up a small battery charger to one battery
- changed the oil [cheap oil] and ran a few minutes and changed again two more times. Changed again for the fifth time with good oil.
-had alternator rebuilt
-Put new plugs in and all was well for rest of the season
Problem developed after winter layup at spring launch. Starter "holds" some water and caused corrosion and needed to be rebuilt [bendix drive was sticking and not advancing]. Multi-Battery switch also corroded and needed replacement. Suggestion is to address these two issues immediately and not wait. All is still well.
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