It is hard to tell without seeing exactly where the oil is coming from, but I suspectthe oil might be coming out of the clutch housing. There is a curved metal plate on the bottom of the clutch housing that is held in place with two bolts. Loosen the two bolts with a 9/16" wrench and remove the plate. There is a drilled hole with a cotter pin in front of the plate and oil may be coming from there. If you look up in the housing with a light while the pto is turned on, I believe you will see the leak. There are two small hydraulic "pistons" that push out under pressure when the pto is engaged.(#21 in diagram) The orings that seal them are probably worn out and leaking. The pistons push out against #24 bearing support to engage the pto. The bad news is you need to split the tractor to repair it. There is an oring and a back-up ring in housing #19 to seal the pistons. I usually replace the pistons and the seals. Instead of using oring and back-up ring, I try to squeeze two orings in each side for a better seal. While the tractor is split, it would be a good idea to disassemble clutch to check it also. It will probably be oil soaked and need to be replaced. If oil is coming from somewhere else, let me know where exactly and I will try to help. A picture would be helpful.