two thoughts come to mind here..one..perhaps the bike got/was floaded (with gas), thats why it did`nt start in the first place..
Two...the gas "washed out" the rings, which caused the very low comp readings..

I`ve dealt with this twice in the last year..once on a bro`s sportster..he floaded the hell out of it, called me up cause it would`nt start..so I took my comp testor over there (did`nt know he floaded it, just that it would`nt start)..anyway, I came up with less then 60lbs comp!!!..long story short...all that excess gas washed out the rings..once we manually poured a bit of oil into the cylinder,, she fired up, smoked for a minute, and ran fine (comp returned to normal)..the problem ended up being a jet that came loose, and fell out..LOL (single CV carb)

the other case, was a cb750 that javahut brung over to be worked on, that belonged to someone else...the guy had bought the bike from someone who said it had bad compresion on cylinder 4..a compresion test confirmed..
I then pulled the carbs, and found the number 4 float needle to be shot (rubber tip needle, rubber was lose, and sideways..), which caused gas to freely run past, and dump off into the cylinder..after fixing that, and an oil change..the comp returned to normal, and the bike ran GREAT!

needless to say...
you may be dealing with a loss of compression due to excess fuel washing out your pistons..

74rat

when in doubt..knock`um out...(or wish ya had later!!)...H.C.C.M.F LOCAL 6978

Flint Michigan..most dangerous city in the USA..come back and visit us..sorry we "missed" you the first time..LOL
"Flint 'Vehicle City' Now America's Murder City"

Officially #1..
http://finance.yahoo.com/family-home/article/112804/most-dangerous-cities-247