Here in Hillsborough county; where I live anyway and for several miles in all directions you hit this hard black sand. It is super fine but it is so compacted that when dug it breaks up into rocks. You can break one with a sledge hammer with one good blow. You will not drive pipe through this stuff without a well drilling rig of some sort. While they were digging a pit behind me, I watched the trackhoes trying to penetrate this stuff. They have to scratch it with the teeth. They can't penetrate it until they have scratched almost all the way to the bottom of it. You may be hitting the same stuff or similar.
The fact that water is in the pipe can mean a lot of things. If you think it may pump, put a hand pump on top of the pipe and give it a try. It will either pump water or kick back at you.
If you want a real well, you will have to call the local Well Driller.