I know some 1150 start to mess with oil light wierdly flashing when the engine gets wet (i.e. riding in rainy day or after washing the bike) - it's the bad connection then. Check all the wiring coming from the oil pressure sensor. Just in case check the oil pressure in the engine too - some car services have the special equipment available to measure the oil pressure in the crankcase. If the oil pressure is too low then the oil-pump may be on its way out.
The sound can be whether camchain tensioner is geting weak (it's relatively normal on 60K+ miler bike, around 100USD is the new one - hydraulic version that never gets tired like the old spring version) or valves need adjustment on that cylinder.
Post the question to UKGSer.com forums. Loads of GS tech-gurus there who can help you out
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