The a/c cooler was in the way and the 90 degree head on the drill in that position there was no way to get sufficent leverage to drill. It would have cost over $250 to get the problem fixed in a shop.
I ended up using a dremel and grinding the bolt down enough in the block so the block can be retapped to the next larger size. I had to drill the clearance hole a little bit larger to accomodate this in the water pump. My other choice was to insert a keensert and use a smaller bolt in the block.
I put anti-seeze compound on all bolts going into the block so this will never happen again.