On a 306CID engine the stock E7 heads run out of gas at around 5200RPMS. If you're drag racing, you should pick your can to reach it's peak around here. Also your intake must match well.
The formula to determine the max HP 3.44 x (CFM@10" of water) = Max HP. The formula to determine the RPMs at which this will take place is (16000/CID) x
CFM@10" of water = RPMS. The CFM above refers to the maximum that the head's intake will flow. In the case of the E7 head it's around 168CFM(maybe less!) at 28" of water.
BTW is the max HP for the above numbers predicts that this 306 will make about 347HP at 5200 if there is no loss from anywhere and everything is perfect. Remember, these are theoretical, maximum possible numbers. The real world numbers are usually considerable less.