The mechanic said that there is a high probability that the 4th cylinder failed
They have checked everything including spark plug, etc and didn't find any problems.
Can anybody explain why the 4th cylinder failed and if it is fixable (I mean do I need to start looking for new engine?)
Does this statement below apply for boxster (taken from wikipedia):
During use, the cylinder is subject to wear from the rubbing action of the piston rings and piston skirt. This is minimized by the thin oil film which coats the cylinder walls, but eventually the cylinder becomes worn and slightly oval in shape, usually necessitating a rebore to an oversize diameter and the fitting of new, oversize pistons. The cylinder does not wear above the highest point reached by the top compression ring of the piston, which can result in a detectable ridge.
If an engine is only operated at low rpm for its early life (e.g. in a gently driven automobile) then abruptly used in the higher rpm range (e.g. by a new owner), the slight stretching of the connecting rods at high speed can enable the top compression ring to contact the wear ridge, breaking the ring. For this reason it is important that all engines, once initially run-in, are occasionally "exercised" through their full speed range to develop a tapered wear profile rather than a sharp ridge.