That model is basicaly the same as 235 with small oil gallery.
Even a "235 conversion" like the one in the picture must use the small oil lines. It will work but you restrict the oil flow right out of the pump.
Its a 'whole lot of work' & puts oil lines right next to the exhaust system creating fuel for a massave fire/explosion.
The later 261s had filters on the firewall. That's dificult to do in a 'street rod'. It can be done using a spin on adapter like the one shown IF your NOT using that part of the block for a mount etc.
It's really just better and a lot safer to use commercial oil & change regular.
The 'later' Chevy 6 has the filter on the right side (away from exhaust)and a 2 Qt. unit fits most.
John M., #3370....
PS: Oil filters were a option even on the 261s until around 1960 on the big trucks and busses.