The hose from the top of the water pump, the 1/2" hose goes to the heater matrix normally, via a stainless steel tube that runs along the head above the exhaust manifold, from memory the outlet from the heater matrix then goes to one side of the oil cooler, then out the cooler into the head, but not 100% sure.
If not using the heater though the pump outlet can simply be blocked off, as can the head by the ecu temp sender, if wanting to keep the original oil cooler you can route the water pump outlet into the oil cooler, then out and into the head by the ecu temp sender.
Depending on use a air to oil cooler with a built in thermostat would be a lot better bet, this is a sandwich plate that simply goes in place of the modine(original oil/water cooler), then 2 pipes for in and out are run to a small oil cooler matrix put on the front of the car somewhere.
tabetha