There is a really good chance that the oil pan rusted through. I've seen this on other cars before, but not on a '98.
The oil leak is defnatly from the pan and not above. You will have to change the pan. You can just get a good used one and a new gasket.
'98 Contour 2.5L, 5-Speed, 100% stock
'85 Porsche 928 5-speed,
Supercharged & Intercooled
12.87sec @ 109mph
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