Yes, you may have oil in the barrel.
When I got mine, first thing I did was break the breach open and look down the barrel. It looked clean so I didn't clean it. First pellet went off as loud as a 22 rimfire and almost as much smoke as a flintlock !!! I recommend you clean and patch the barrel very dry before shooting.
There may be a bit of smoke with the first few shots, but that should clear up soon, if it's still showing smoke in the barrel after about 50 shots you may have to replace the seal.
Check that all fasteners are tight.
The trigger will not be good - no matter how you adjust it. I also recommend ordering a Tuna trigger as soon as you can.
Paul