From your description, it is unclear where the water is coming out the Sea King. Little hole??? If you mean that little pipe, water is NOT supposed to come out there, There sure better not be, anyway. That is a crankcase puddle drain to drain off any excess fuel that accumulates in the crankcase. You will see a few drops of fuel dribble out there.
The spent cooling water blows out of the slots about halfway down the backside.
