Hi,
I would be careful of using ptfe tape on any form of oil,in 50 yrs. in engineering, I have seen many instances of ptfe breaking down when used on hydraulic and lube oil systems, its really best to find the root cause and try to cure that. It would be handy if you or someone you know can grind up a drill with a sharp angle to match the original seat angle and try to clean the seat, then try with a new bleed nipple with some copperslip on the threads to help re-seating,