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You can certainly extend the existing wires by splicing in additional wire to reach the new location. Use 18AWG, that's plenty for the task.
Not sure about your ground wire question. The indicators should be a two wire lead and the factory lead are also two wire, so not sure about your question.
If on the other hand the "drag specialties bullet lights" are a single wire, then the case of the light has to be metal and it in turn has to either mount on a grounded metal surface, or make sure your factory extended ground makes a solid electrical connection to the bullet light.
I hope this helps.
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