BlockFuel Energy Sets Drilling Plans for Oklahoma in Early December

STILLWATER, Okla., October 28, 2026 /CourierPR/ -- BlockFuel Energy Inc., a U.S. oil and natural gas company, has announced significant progress in its drilling plans and the commencement of initial gas-to-compute operations in Oklahoma. The company, which is majority-owned by Innovation Beverage Group (IBG) on Nasdaq, is set to advance its operations in the state with the drilling of the Steinman #1-23 well, expected to commence in early December 2026.

The Steinman #1-23 well is a proposed vertical well located in Section 23, Township 20 North, Range 1 East, Oklahoma. The drilling is intended to test the Mississippian formation at approximately 4,700 feet. BlockFuel is also evaluating the potential for a deeper test of the Wilcox formation at approximately 5,100 feet, subject to final technical review, permitting, and budget approval.

BlockFuel has installed and commenced operating its initial natural gas-powered computing and data mining equipment near Stillwater, Oklahoma. This setup involves natural gas being used to fuel onsite generators, which in turn power the computing equipment. The company is using this initial installation to measure generation reliability, fuel consumption, computing performance, maintenance requirements, and overall economics. These results will guide management on the potential for future expansion.

The company's Oklahoma position spans approximately 55 square miles, or roughly 35,000 acres. The portfolio includes producing and temporarily shut-in wells, along with existing oil storage, natural gas gathering facilities, and saltwater disposal infrastructure. BlockFuel has previously identified more than 200 potential drilling locations across its acreage, which represent opportunities for further assessment.

The company is also focused on the proposed merger with IBG, which is subject to required approvals and remaining closing conditions. Following completion, IBG will be renamed BlockFuel Energy Limited and is expected to trade on Nasdaq under the symbol "BFE," with BlockFuel becoming its wholly owned subsidiary. The combined group will focus on expanding its U.S. oil and natural gas operations and developing onsite power generation and computing infrastructure.

BlockFuel's longer-term opportunity is to develop its oilfield and onsite power activities together. Where new drilling, recompletions, or reactivated wells deliver suitable additional gas, the company could evaluate installing further generation and computing equipment. This approach allows expansion to be considered in stages, with future investment decisions based on demonstrated gas availability and operating returns.

The company expects to provide further updates on the progress toward completion of the proposed merger, permitting and site preparations for Steinman #1-23, the expected commencement of drilling in early December 2026, drilling, completion, and testing results as available, and the performance of the initial gas-to-compute installation and potential expansion.