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Yes it is very possible to leak oil from the sending unit. there is several locations depending on the engine size. Leaking as much as you are it should not be hard to find it.
The warning unit may not be working, therefore it won't errase the light. You may be able to reset it by taking the hot side post off for a minute or two.
after draining oil from engine,,,,,get under car ..locate oil filter and turn counter clockwise....get new filter rub a lil oil on the gasket of new filter and screw on....you can buy oil filter wrench at wal mart
Fuel level sending unit is the problem could be bad connection to it, could be its broke inside the tank. probably have to drop the tank and take it out
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