What was found
ENGINE START WAS NORMAL BROUGHT THE AIRCRAFT TO A 3 FT HOVER ALL ENGINE INDICATIONS NORMAL, AT THIS TIME THE PILOT HEARD A SLIGHT BANG FROM THE REAR OF THE AIRCRAFT FOLLOWED BY A LOUD GRINDING WHINE AND A HIGH FREQUENCY VIBRATION IN AIRFRAME. AC BEGAN A SLIGHT YAW AND NOTED N2 DECREASING. THE PILOT SET THE AIRCRAFT DOWN ON THE HELIDECK AND SHUT THE ENGINE DOWN. HE ALSO NOTED OIL COMING OUT OF ENGINE DECK DRAIN, HE ALSO OPENED THE ENGINE COWLING AND OBSERVED AN OIL PUDDLE IN THE ENGINE PAN. NOTIFIED MAINTENANCE. THE MECHANIC SUBSEQUENTLY REMOVED AND REPLACED ENGINE. (SW03200405257)