On August 7, 2012, about 0830 mountain daylight time a kit-built Glasair III airplane, N71AJ, was substantially damaged during a forced landing near Westcliffe, Colorado. The private pilot was seriously injured. The airplane was registered to and operated by a private individual under the provisions of 14 Code of Federal Regulations Part 91, as a personal flight. Visual meteorological conditions prevailed for the local flight, which operated without a flight plan. The local test flight originated from the Silver West Airport (C08), Westcliffe, Colorado, about 0810. According to the owner, the accident flight was the airplane's first flight of a 40-hour test flight program. The pilot departed C08 and climbed to 12,000 feet. The pilot noticed that the oil temperature began to increase and then noted a loss of oil pressure. The engine stopped producing power and the pilot performed a forced landing to a field. The airplane sustained substantial damage to its fuselage. An examination of the engine revealed that a gasket between the remote oil filter adapter and the "spin-on" filter mounting pad had failed which resulted in a loss of oil. The owner reported that the gasket was lubricated with a compound upon installation. It could not be determined if the compound degraded the gasket.