People are way too caught up on his mention of the number "40PSI" in the first post, and not using their thinking caps. 40PSI is irrelevent... he had sufficient pressure, then low/no pressure [gauge reading] and a leak. He never even said it was cold at 40PSI, so it could have been at 40PSI after being warmed up. You're letting this cloud your troubleshooting skills.
First, the OP still needs to clean it off and look. Everything else is just theorycrafting.
Next, it seems unrealistic to think the engine actually has no oil pressure. It would die a VERY quick death (minutes, or less) if it had no oil pressure. So let's assume it does have pressure, and some number that is enough to spray oil around. It's also unlikely that he either blew a hole/line/etc. big enough to drop to zero pressure, or that he pumped out enough oil to not be able to pick any up out of the pan (you'd know if you lost several gallons of oil). Oil pumps are intentionally fairly simple and incredibly robust - usually little more than a couple gears in a housing that act as a positive-displacement pump. While they do wear, and can fail, they rarely fail catastrophically without warning or some other obvious cause (e.g. something else breaking that runs metal chunks through the pump, shearing off a drive gear, etc.).
So next thought, is the oil sender on the driver's side of the block? I can't recall. But if that came loose, or broke, that would cause the likely erroneous pressure reading and leak oil. Or are the low pressure reading and the leak happening at the same time just a coincidence?
Also, make sure you've followed the "Low Engine Oil Pressure" troubleshooting flowchart in TM 9-2320-365-34-1. It's going to have you pulling the valve covers, oil pan, etc. to look for actual serious causes of low oil pressure, so it's in your best interest to be very sure it's not something far more benign first (e.g. oil pressure sender).
EDIT: TM 9-2320-365-34-2, page 3-21, steps 45-46 & 49. On the 3116 engine at least, the oil pressure switch and oil pressure transmitter (manual's terminology) are on the driver's side of the engine. I don't know about the C7.