SYDNEY, AU / ACCESS Newswire / April 7, 2026 / Innovation Beverage Group Ltd ("IBG" or the "Company") (NASDAQ:IBG), an innovative developer, manufacturer, and marketer of a growing beverage portfolio of 60 formulations across 13 alcoholic and non-alcoholic brands, along with its proposed merger partner BlockFuel Energy ("BFE"), a Texas-based energy corporation, today provided an operational update on its ongoing well reactivation program, initial production performance, and development planning activities across its Central Oklahoma asset base.

BFE reports that 15 wells are currently producing and 5 wells are in the process of completing reactivation, with all expected to be online by the end of this week. These efforts are part of BlockFuel's near-term strategy to restore oil production capabilities to existing wellbores through cost-efficient reactivation initiatives.

BlockFuel commenced oil and gas sales during the first quarter, with peak production reaching approximately 100 barrels of oil equivalent per day (boe/d) in that time. Production levels are expected to increase as additional wells return to service and recompletion operations are executed on select wells, targeting behind-pipe intervals.

BlockFuel's operations are supported by assets acquired in the fourth quarter of 2025, including 54 existing production wells and associated infrastructure developed between 2012 and 2018. This infrastructure is expected to support current operations and future development while minimizing incremental capital requirements.

BFE also confirms that all nine saltwater disposal ("SWD") wells are operational, providing sufficient capacity necessary to support current and anticipated production levels. This infrastructure positions BlockFuel to advance recompletion programs and evaluate potential step-out drilling locations.

BlockFuel is currently evaluating a development program focused on vertical well drilling at approximately 40-acre spacing, targeting multiple known hydrocarbon-bearing formations. This strategy is intended to provide a repeatable, lower-risk development pathway across its acreage position.

Based on historical data from this area of Oklahoma, vertical wells are estimated to have an expected ultimate recovery ("EUR") of approximately 65,000 barrels of oil equivalent per well, although actual results may vary. BFE estimates an average drilling and completion cost of approximately $700,000 per well. In addition, recompletion operations targeting behind-pipe reserves are expected to cost up to $250,000 per well, including hydraulic fracture stimulation, subject to operational and market conditions. BlockFuel maintains an average working interest of approximately 86% across its oil and gas assets.

"With favorable commodity pricing and key infrastructure in place, we are advancing our development plans in a disciplined manner," said Daniel Lanskey, President and Chief Executive Officer of BlockFuel Energy. "The reactivation of wells and commencement of production represent critical operational milestones as we evaluate additional opportunities to increase production and enhance asset value."

BlockFuel will continue executing a phased development strategy, with future activities subject to ongoing technical evaluation, capital availability, and market conditions. As previously disclosed, BlockFuel is progressing toward its proposed merger with Innovation Beverage Group Limited (NASDAQ:IBG), which currently owns 51% of BFE. Completion of the transaction remains subject to customary closing conditions.

About Innovation Beverage Group Ltd

Innovation Beverage Group is a developer, manufacturer, marketer, exporter, and retailer of a growing beverage portfolio of 60 formulations across 13 alcoholic and non-alcoholic brands for which it owns exclusive manufacturing rights. Focused on premium and super premium brands and market categories where it can disrupt age old brands, IBG's brands include Australian Bitters, BITTERTALES, Drummerboy Spirits, Twisted Shaker, and more. IBG's most successful brand to date is Australian Bitters, which is a well-established and favored bitters brand in Australia. Established in 2018, IBG's headquarters, manufacturing and flavor innovation center are located in Sydney, Australia with a U.S. sales office located in California. For more information visit: https://www.innovationbev.com/.

About BlockFuel Energy

BlockFuel Energy is involved in the acquisition, exploration and development of proven oil fields onshore in North America. BlockFuel Energy combines state-of-the-art power generation with oil and gas exploration to power high-performance data centers. Our vertically integrated concept allows us to use co-location and modular power generation techniques to optimize efficiency and investment returns. Our cutting-edge solutions for energy optimization and extraction will enable us to transform underdeveloped resources into high-margin, scalable, and sustainable revenue streams. For more information visit: https://blockfuelenergy.com/.

Forward Looking Statement

This press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding the proposed merger between IBG and BlockFuel Energy, anticipated operational milestones, expected production levels, anticipated oil and gas sales, planned financing activities, expected economic benefits of such activities, and the proposed acquisition of additional oil field assets.

Forward-looking statements are typically identified by words such as "expects," "anticipates," "plans," "projects," "intends," "believes," "may," "will," "could," "should," or similar expressions. These statements are based on current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied. These risks include, among others, the ability of the parties to execute definitive transaction documents, satisfy closing conditions, obtain regulatory and stockholder approvals, commodity price volatility, operational risks, financing risks, and other risks described in IBG's filings with the U.S. Securities and Exchange Commission.

Readers are cautioned not to place undue reliance on these forward-looking statements. Neither IBG nor BFE undertakes any obligation to update such statements except as required by law.

Contact:

Innovation Beverage Group Limited
Sahil Beri
CEO
sahil@innovationbev.com
www.innovationbev.com

BlockFuel Energy Inc.
Daniel Lanskey
President and CEO
dan.lanskey@blockfuelenergy.com
www.blockfuelenergy.com

Investor Relations:
KCSA Strategic Communications
Phil Carlson, Managing Director
BlockFuel@KCSA.com

SOURCE: Innovation Beverage Group

View the original press release on ACCESS Newswire

Innovation Beverage Group and BlockFuel Energy Provide Operational Update on Well Reactivation, Initial Production and Development Progress