Merc850 Depending on the year of the motor, and possibly the HP, some of those head water jacket bolts have nuts, or could use nuts, after you drill them out. There are a few on his motor near the bottom that are blind. The rest will need nuts or retap. That job is a real PIA.
Jtexnm, if you do want to remove the exhaust cover bolts, you will need to heat and spray them with penetrating oil as they cool. Using a hand impact driver is a good idea as well. A little prayer never hurts, as they have been in a long time, and will have some/lots of corrosion.
The inner water jacket bolts were epoxied in at the factory. They can be trickier to get out. If you do break some, and you most likely will, they need to be drilled out and retapped in a precision manner or the inner cover will leak. A drill press is a real good idea.
if it were me, I would caulk all the leaks, and run the motor. If you are getting water into the cylinders, that cylinder will not fire and you can detect it. Also, water will show up on the spark plugs as droplets. The spark plugs will also look like brand new ones on those cylinders with water present, as they get steam-cleaned.
I would source all gaskets and the baffle and inner water jacket cover before starting work. They may not be available.