First, you have to remember that those engines are RATED originally at their advertised horsepower in a test cell, on a dyno, WITH NO ACCESSORIES, NO EXHAUST SYSTEM, etc. No alternator (which requires power to turn), no vacuum pump (ditto), no exhaust system, just straight stacks, no air filter, etc, etc.
Sooooooo, your "150" hp engine, installed in an airplane MAY have actually made 135 hp, at sea level, on a good day, assuming it was in the top 50 % of its class.
I once asked an engine company rep how these modifiers could get away with increasing horsepower in an engine without more stringent (or in some cases, any) FAA certification. His response, with a chuckle, was that these mods MAY just be recovering that power lost to accessories.
SO, start adding/modifying, etc. and you will probably come up with something resembling 150 or 160 hp.
Pull that engine out, and replace it with an O-360 and you'll probably still see a significant improvement in performance, not all of which, by the way, is related to horsepower. Torque is a big player as well.
I've flown at least one engine that was ported and polished, etc, etc, and really couldn't tell any difference in performance. No scientific measurements, and it probably did help some, but not huge.
The exhaust systems are often a great mod, not so much for any hp gain, but better reliability and often better cabin heat, tec.
In any case, the only way you will actually KNOW what you've got, horsepower-wise is to put the engine on a dyno. BUT, what really matters is how it performs in the airplane, which is a VERY different story, and largely a function of engine AND PROPELLER.
Horsepower isn't what we're concerned with, primarily--THRUST is what equates to performance, and horsepower is just one factor that goes into that equation.
So, the question back to you is this: How does it perform?
MTV