98 SL2 oil light

I have a 98 SL2 with 97,000 miles on it. The oil light has been flickering at stop lights for the past couple of weeks. I took it to my mechanic today and he did a manual oil pressure test. At start up it was at 30, but within 5 minutes it dropped down to 7. Apparently this is very bad. He's thinking bearings. The options he gave me are 1) overhaul the engine 2) put in a new engine 3) trade it in. Has anyone seen this before? Are there any other options? Any input would be appreciated. Thank you.

7 PSI is not good.

post on saturnfans.com for options.