I like Marty's suggestion of removing the screw head and removing the cover. If you don't go that route, then in addition to what Marty suggests, I would also heat the case in the area the screw is threaded into. And, since you've ordered AeroKroil, i would wait until i had the AeroKroil to squirt on the screw where it goes into the case, after you've separated the cover from the case. When i have these stubborn screws, if there is room, i will get on them with a ViseGrip, that way there is no back and forth "slop" one would get using a screw driver. Using a ViseGrip, I can actually feel the screw threads turning in the aluminum, taking care to also watch the entire screw turn, making sure it is not only twisting the exposed area of the screw. Using a Visegrip makes it easier to feel how much torque to apply to avoid twisting off the screw. The screw is not going to be useable after you've removed it anyway. Using a screw driver, it's impossible to feel the screw turn one way or the other. In addition, it could help to to lightly tap the end of the screw, anything to disturb the debris 'cementing' the steel threads to the aluminum threads, especially, at this point, to turn the screw back in. Those threads are about a 90% fit, so there's not a lot of room to move the screw in the threads that are full of debris from rust and oxidation. AeroKroil, heating, tapping and turning the screw back and forth a 16th of a turn with a ViseGrip, repeating the procedure is what would be safest. Since you were able to turn the screw part way out, it's obvious the screw can be loosened. The problem now is, in turning the screw out, the debris of rust and oxidation has piled up in the threads of the hole and the screw CANNOT turn out any further. Attempting to turn the screw out any further, will increase the risk of twisting off. The screw needs to go back in, at least a lttle bit, before it can come out any further.
Brother....... ! Looks like that engine was sitting in a lake.