First, B&S do not specify a compression pressure, and recommend a compression test that does not involve a pressure gauge because of their EzySpin feature which keeps one of the valves off its seat during the first half of the compression stroke. The correct procedure is to disconnect the spark plug and turn the blade plate backwards until you find compression, then flip the plate backwards to see if it bounces off the back side of the compression. If it does, you are good to go. It does not sound as if you have a compression problem, but you should check it by their method. Just be careful that the plug lead does not fall back onto the plug - it needs to be secured to keep this from happening.
If the spark plug is wet with petrol (not oil) it sounds as if you have an ignition problem, but that does not match your report of a good spark. One possibility is that when you are trying to start it, the ignition kill device is operating - it is connected to the speed control.
