We had it's little brother, I believe it was either a 3 or 4-53 almost that bad, but at least the oil was cleaner when it happened. Instead of being black it was just a dark brown!
It was actually NOT an engine problem, this engine ran a water pump and it turned out the seal on the pump had failed.
The pump ran unattended to control flooding in a quarry pit so no one was around when the seal failed. If memory is right the engine actually survived the mess. Seems I recall cleaning all the gunk out we could and then just doing a couple oil changes till the oil looked like oil again.