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

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.

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