So, I managed to grind the end of the stud flat, centre punch it and get a 1.5mm drill all the way through the stud and the hole is as near central and parallel (surprisingly for me!) as makes no difference. I also have a new left hand drill bit and a new good quality Dormer stud extractor, but I'm not sure whether to use them, as I've had stud extractors break in the past and leave a hardened stub in the hole which really makes life difficult. Admittedly they were not as good a quality as a Dormer one but you get my point.
The alternative is to carefully drill out the stud until I just reach the top of the threads in the head and try and clean them up with a tap or similar. If that doesn't work I can always have the hole drilled out bigger for a helicoil.
My question is: based on your own experience what do you think offers the best chance of success? (I won't hold anyone responsible if it doesn't work!

Dave