What sort of drill bit did you use to drill it out as far as you did? I am dealing with a nightmare bolt stuck in the left side of the engine, but all the bits I try seem to just dull.
I just use a good quality=price drill bit. The ones you get from the discount store are usually no good. I picked up some left handed drill bits from one of the chain auto stores around here, made for drilling bolts out, and they were total krap. They would not even nick the surface. I also prefer not using the "split point" type when drilling progressively larger holes, because their design causes them to bind, and break easily in that application.
Also make sure you use some form of fluid to cool, and lubricate as you drill. It also helps to vary your drill speed. Fast is usually not good, as it gets too hot and ruins the drill bit. I would say a medium to slow speed. Good Luck!