American Marconi Wireless News - BlockFuel Energy Launches Vertical Drilling Program for Second Half 2026

OKLAHOMA CITY, OK / ACCESS Newswire / June 18, 2026 / BlockFuel Energy Ltd. (NASDAQ:FUEL) ("BlockFuel" or the "Company") today announced plans to commence a multi-well vertical drilling program during the second half of 2026 across its approximately 55-square-mile operated position in Oklahoma, targeting multiple stacked hydrocarbon-bearing formations beneath one of the largest operated acreage positions in the Company's portfolio. BlockFuel Energy Inc. is currently 51% owned by Innovation Beverage Group Limited (NASDAQ:IBG), which has announced a proposed merger of the two companies.

The planned campaign represents the first phase of a long-term development strategy designed to unlock management's identified inventory of low-cost, repeatable drilling opportunities across approximately 35,000 acres of operated leasehold. The acreage position includes extensive existing infrastructure, production facilities, gathering systems, power distribution assets and commercial saltwater disposal capacity, providing a foundation for rapid and capital-efficient development.

Management believes the Company's acreage is underlain by multiple stacked oil and natural gas reservoirs that have historically produced throughout the Mid-Continent region. These stacked pay intervals create the opportunity to develop numerous productive horizons from the same acreage footprint, potentially amplifying recoverable resource opportunities while minimizing infrastructure requirements.

"The upcoming drilling campaign has the potential to be a defining event for BlockFuel," said Daniel Lanskey, President and Chief Executive Officer. "We control approximately 55 square miles of highly prospective acreage with existing infrastructure already in place. Our objective is to demonstrate that these stacked reservoir intervals can be developed using low-cost vertical wells, creating a scalable development platform capable of supporting production growth for many years."

Potential for Large-Scale Development Inventory

Based on current geological mapping, historical production data, reservoir interpretation and development planning, management believes successful results from the initial drilling campaign could support substantial future drilling activity across the Company's acreage position.

Current development models indicate that individual sections may ultimately accommodate up to twelve additional vertical well locations targeting multiple productive horizons. Across the Company's acreage position, this could translate into a development inventory measured in the hundreds of future drilling opportunities, subject to drilling results, reservoir performance, economic conditions and regulatory approvals.

The Company previously identified the potential for more than 400 undeveloped infill drilling locations utilizing 40-acre spacing assumptions. Management believes the existence of multiple stacked pay intervals may further enhance the long-term development potential of the acreage position. While additional technical work and drilling results are required to fully evaluate this opportunity, BlockFuel believes it controls one of the most attractive low-cost vertical development projects in the Mid-Continent region.

Low-Cost Development Model

The Company's planned vertical wells are expected to cost approximately US$650,000 each to drill and complete, significantly below the cost of many contemporary horizontal development programs. Internal economic models indicate that wells producing approximately 40 barrels of oil per day initially could generate attractive project economics, including rapid capital recovery and strong rates of return under current commodity price assumptions.

Unlike many emerging development projects, BlockFuel's acreage position benefits from extensive existing infrastructure, including gathering systems, production hubs, power infrastructure and commercial saltwater disposal facilities. Management believes replacing this infrastructure today would require significant capital investment and multiple years of development time.

Positioned for Multi-Year Growth

The planned drilling campaign forms part of BlockFuel's broader strategy to increase production, reserves and cash flow through a combination of production restoration, recompletions and new drilling activity.

Management believes successful execution of the 2026 drilling program could establish a repeatable blueprint for large-scale field development and support a multi-year growth trajectory across the Company's operated acreage position.

"Few independent companies our size control an operated acreage position of this scale with existing infrastructure, demonstrated production history and significant undeveloped drilling inventory," added Lanskey. "Our goal is to transform BlockFuel from a redevelopment story into a scalable growth-oriented oil and gas producer capable of delivering substantial long-term value for shareholders."

Additional operational details, including well locations, permitting status and drilling schedules, will be announced as development activities progress.

IBG and BFE continue to work together to close the merger transaction in the near term.

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 the mid-continent of the USA. The company holds producing acreage in Oklahoma over a 55 square mile footprint with existing producing horizontal oil and gas wells, temporarily shut in horizontal wells and a substantial vertical well development drilling inventory. The acreage is supported by extensive infrastructure including oil storage facilities, extensive gas gathering systems and sales points, along with power grid and ten (10) Salt Water Disposal wells. 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 [email protected]
www.innovationbev.com

BlockFuel Energy Inc.
Daniel Lanskey
President and CEO
[email protected]
www.blockfuelenergy.com

Investor Relations:
KCSA Strategic Communications
Phil Carlson, Managing Director
[email protected]

SOURCE: Innovation Beverage Group

View the original press release on ACCESS Newswire

P.Mathewson--AMWN