I had a Sami just like that. Murph Blue with white top and smoke out the pipe. Nicknamed it Smokey. Drove fine, just smoked the oil and leaked just like yours. As a matter of fact, it was an 87 also. I had it roughly for over 1.5 yrs in northern VA. Emissions require every 2 yrs. There is a minimal you have to spend to 'try' to pass the emissions portion. IIRC VA had it at $75 or $100. Just get yourself the necessities of filters (air, fuel, oil), change the timing belt, get a new cover for it, get new seals for the crank and camshaft, get new o-ring seal for the distributor, get tune-up parts (plugs, cap, rotor, wires), get new o-sensor, may even check into a replacement cat from JC Whippy, power spray clean the engine bay, make everything look new and you should at least pass the minimal effort. Check to see if there is such a cost for you to attempt to get your vehicle to pass emissions. The state really can't make you stop driving the car without showing you are trying.
If that doesn't work, I'd be interested in buying it. I'm looking for a running Sami now (one located in KC for $1300 at a dealership looking at tomorrow), others on Izook (missed out on a 88 for $1000 in St. Louis).