LT95 oil between front output and prop

Hi all, quick question,

When I did my front prop UJs I found the space between transfer box output flange and front prop flange was full of oil.
I didn't think much of it at the time but after thinking about it could that mean the front transfer output flange nut is loose? surely the oil couldn't get up the shaft otherwise?!?

strange one , it has been known for oil to travel along output shaft threads hence fibre washers ,though silicone sealant is very effective

Hello Again James. I must admit it doesn't leak out when the props bolted to it. It only occurred to me that the nut might be lose because I'm still trying to sort out this front axle droning noise I have going on in another thread. I'll see if I can move it back and forth when I'm next under there.
This weekend I'm gonna throw a bunch of parts at the front axle to try to resolve this droning noise i have.
I'm gonna pull the half shafts. Check the cvs. Replace the bronze bushes. Make sure the half shafts aren't bent and maybe stick another second hand diff in. I'm still convinced it's one of the carrier bearings.