Yea siphon the gas is the only way. I'd remove as much of the old oil as possible, but its not as critical as the gas. Not a bad idea to run premium for the first tank, and put some SeaFoam in it, that will help clear the fuel system.
Probably a better idea than dropping oil in there is to spray some fogging oil down the spark plug holes. Another option is to use some penetrating oil, and spray it in there and let it sit for a few minutes before you try to turn the engine over. You just want a little lubrication when you start moving the pistons, since they have been sitting so long without any lube.
On these skis having an oil line come loose, or break is a big reason for engine failures, so really check out the oil lines and clamps if it hasn't been converted to premix.
Those 700 engines were good ones.
Good Luck!
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2008 Yamaha FX HO Cruiser
2010 Hurricane Sundeck 2100
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