No Compression on #2 clyinder

My 1992 Jeep Cherokee Laredo is running rough. All 6 cylinders are firing and getting fuel however, the #2 cylinder has no compression. You can place your finger over the spark plug hole and all cylinders feels the same however, when testing the compression with a gauge the #2 cylinder reads 0. You can put a small amount of oil into the cylinder and the compression rises to about 3 pounds. All the other cylinders read between 140 and 152. You can also remove the #2 spark plug wire with the engine running and it has no effect on the way the engine runs. All spark plugs looks new with just a light brown film on each plug which seems normal. The only thing I know to cause this is the valves. Do I need to rework the head or is there something else that could be causing this problem? Thanks Randall