IMHO, that's too close to the sidewall for my comfort of patching. Most tire stores won't even do it (for liability reasons) if the puncture is less than 1" from the sidewall. As "SlickGT1" indicated, it may not even be a puncture...so try to pull it out before driving more on it.

__________________
2004 X5 3.0i
Born 02/04
Delivered 03/04