Right angle drill can fit in there.
If you use reverse cut drill bits, you might get lucky and unscrew the remaining stub of bolt while you are trying to drill it out.
That worked for me on one bolt.
Also, since the bolts are so hard, it is difficult to keep the drill bits sharp.
Using a drill bit with that is designed for drilling through many types of materials worked for me too. These bits have a hardened part inset at the end of the bit.
Lastly, there is another couple of unused bolt holes on the block near the normal three. I welded together a bracket that is bolted to those, is sandwiched behind the normal bracket and also is bolted to that bracket after I drilled a hole into it. This was my "insurance" as I ended up with less than perfect threads in those holes after extraction and retapping.
Oh yeah... one other bit of insurance that was not ideal is some JB weld in those "less than perfect" bolt holes. This could be an issue during an engine rebuild, but otherwise it has been fine for ~ 3 years.
Bottom line is that it is a pain in the butt to work on it while the engine is in the Jeep, but that is what I had to do... I think I spent a week screwing around with different drill bits etc.