Well ! after looking at the Z8 for weeks trying to gain the enthusiasm to investigate the fluctuating oil pressure problem, I thought I've tried different oils but they've all been 10w40 or 20w50 mineral, part or full synthetic, so I had an idea of trying something different, tonight I warmed her up (still with 20w 50 in her) at full temp on idle and oil light was still flashing.
Drained the oil and refilled with Castrol Power 1, 4T Motorcycle 4 Stroke, Semi-Synthetic Engine Oil 10W/30, warmed her up again to full temp, and then 3 minutes on idle and no flashing oil light.
I haven't yet put the gauge on to see if the problem has completely gone, but feeling much happier