as I said the part with the water bypass that the filter attaches to rotates!
So basically this sucker is two metal pieces with an O ring from the factory, if your leak is coming from in there I would look into taking it off the block (drain coolant and oil) and fixing it
If you have a hole in the metal itself yes I would think it can be repaired, again off the truck.
If yuo think you can live without the water cooled oil filter yuo can get a simple 5.0L oil filter re-location kit, attach it to the 5.0L block, and re-locate your filter. The nice part about this is you can run a real filter, like the FL-1A which is about double the size of the Explorer 5.0L unit.
You will need a new lower rad hose too.
Similar to what I did on my Bronco when I shoved the 5.0L under the hood.
If you go this route I suggest a Canton billet 90 degree/360 degree oil filter adapter.
I actually have this assembly, an extra if you would like to buy it from me PM me..
I used a 97 mercury 5.0L in my BII and I have the oil cooler manifold in storage.