Hi Tykester
I would not try to drill the hole to remove the transponder. Since you have nothing to lose I would clamp the the key into a vice such that the section containing the transponder is clear of the vice jaws and carefully file the area around the hole, stopping regularly to check you are not hitting the glass transponder and see if you can tease the transponder out that way. That said I am sure a locksmith would be able to program a completely new key for you at a price.
Regards Tony
