Sure, drilling it out and tapping new threads is easily done. If memory serves, the stock bolt is an M10x1.50. You'd want one size up which would be an M12x1.50, and the right size drill bit. Use a bunch of grease, drill very slow, and back out frequently. You don't want to push any shavings up into the case. Ditto when you're tapping. My only concern would be if there's enough material in the wall of the case to support the slightly larger size - if it's flared just enough to provide enough thread for the M10, it may not be thick enough to support the diameter of the M12 without enough thread? But I don't know, I've never seen the inside of your style transfer case. Maybe somebody else can chime in on that one.
Your local parts counter should be able to source you a flanged M12x1.5 drain bolt and crush washer from some other rig. Check the FSM, torque is something like 60-odd inch/pounds - not very damned much at all.