BlockFuel Energy Advances Oklahoma Drilling Plans and Commences Initial Gas-To-Compute Operations
The initial computing installation is operating, while further investment depends on demonstrated gas availability and operating returns.
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Rhea-AI Summary
Innovation Beverage Group (NASDAQ:IBG) reported drilling preparations and the start of gas-powered computing operations at its majority-owned subsidiary, BlockFuel Energy.
BlockFuel expects to begin drilling Steinman #1-23 in early December 2026, subject to regulatory approvals, site preparations and contractor and equipment availability. The proposed well targets the Mississippian formation at approximately 4,700 feet; a potential deeper Wilcox test remains under evaluation.
The initial installation near Stillwater, Oklahoma, uses natural gas to generate electricity for data mining. Operating results will guide potential expansion. IBG owns approximately 51% of BlockFuel. Their proposed merger remains subject to required approvals, including Nasdaq listing approval. After completion, BlockFuel would become wholly owned, IBG would be renamed BlockFuel Energy Limited, and the beverage business would continue in a separate subsidiary.
How this balance works
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Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointBlockFuel's initial gas-powered computing and data mining installation near Stillwater has commenced operations.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Steinman #1-23 drilling is expected in early December 2026, targeting the Mississippian formation at approximately 4,700 feet.
- Moderate point. Forward-looking: it has not happened yet and may not happen.The proposed merger would make BlockFuel wholly owned by IBG, versus approximately 51% currently.
- Minor point. Forward-looking: it has not happened yet and may not happen.BlockFuel is evaluating a potential Wilcox formation test at approximately 5,100 feet.
- Minor point. Forward-looking: it has not happened yet and may not happen.BlockFuel plans staged development through well reactivation, recompletion and new vertical drilling, following technical and economic assessment.
- Minor point. Forward-looking: it has not happened yet and may not happen.Further generation and computing installations could be evaluated where additional gas production and commercial returns support investment.
Negative
- Minor point. Forward-looking: it has not happened yet and may not happen.Steinman drilling depends on regulatory approvals, site preparations, and contractor and equipment availability.
- Minor point. Forward-looking: it has not happened yet and may not happen.The potential Wilcox test requires final technical review, permitting and budget approval.
- Minor point. Forward-looking: it has not happened yet and may not happen.Data mining returns depend on computing output value relative to fuel, equipment, maintenance and other operating costs.
- Minor point. Forward-looking: it has not happened yet and may not happen.Each additional computing installation requires technical and commercial assessment, with investment dependent on demonstrated gas availability and operating returns.
- Minor point. Forward-looking: it has not happened yet and may not happen.Potential AI or high-performance computing applications require separate assessment of connectivity, cooling, power reliability and customer demand.
2 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.More than 200 potential drilling locations require further assessment; commercial potential depends on geology, approvals, funding and economics.
- Minor pointThe proposed merger remains subject to required approvals, including Nasdaq listing approval, and remaining closing conditions.
News Explained
BlockFuel says it has identified more than 200 potential drilling locations across its Oklahoma acreage, but these remain opportunities for assessment, not commitments to drill; their commercial potential depends on geological results, approvals, funding and operating economics.
Details
Market Reaction – IBG
On Oct 28, the day this news came out, the latest delayed price for IBG is 1.83% above the previous close. Argus tracked a trough of -15.9% from its starting point during tracking. Our momentum scanner has recorded 4 alerts for this stock so far that day. The latest delayed price is $0.95.
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Key Figures
- Expected drilling commencement
- Early December 2026
- Steinman #1-23; subject to approvals, site preparations, and contractor and equipment availability
- Mississippian test depth
- Approximately 4,700 feet
- Proposed Steinman #1-23 well
- Potential Wilcox test depth
- Approximately 5,100 feet
- Potential deeper test, subject to technical review, permitting, and budget approval
Historical Context
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The earlier update outlined a multi-well vertical drilling program; this update advances Steinman #1-23 through permitting.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
AI-generated analysis. How Rhea-AI works. Not financial advice.
STILLWATER, OK / ACCESS Newswire / October 28, 2026 / BlockFuel Energy Inc. ("BlockFuel"), a U.S. oil and natural gas company majority owned by Innovation Beverage Group Limited (NASDAQ:IBG) ("IBG"), today announced progress in developing its Central Oklahoma energy assets. BlockFuel is advancing permitting for the proposed Steinman #1-23 well, with drilling expected to commence in early December 2026, and has installed and commenced operating its initial natural gas-powered computing and data mining equipment near Stillwater, Oklahoma.
These developments support BlockFuel's strategy to grow oil and natural gas production from established oilfields while using locally produced gas to generate electricity for onsite computing.
Steinman #1-23: Preparing for Early December Drilling
BlockFuel is advancing the permitting process for Steinman #1-23, a proposed vertical well in Section 23, Township 20 North, Range 1 East, Oklahoma. Drilling is expected to commence in early December 2026, subject to receipt of required regulatory approvals, completion of site preparations and availability of contractors and equipment.
The proposed well is intended to test the Mississippian formation at approximately 4,700 feet. BlockFuel is also evaluating a potential deeper test of the Wilcox formation at approximately 5,100 feet, subject to final technical review, permitting and budget approval.
Steinman #1-23 represents both a potential source of additional production and an opportunity to collect information that can guide future drilling. The results will help BlockFuel assess reservoir quality, completion requirements and the economics of comparable locations. A successful outcome would support further development, although individual well results may vary.
Initial Gas-to-Compute Installation Now Operating
BlockFuel has installed and commenced operating its initial gas-to-power computing and data mining equipment on its acreage near Stillwater. The process begins with natural gas, which fuels onsite generators. The resulting electricity powers computing equipment used for data mining. By locating computing equipment near the energy source, BlockFuel is evaluating an additional way to commercialize its natural gas alongside conventional gas sales.
The initial installation provides an operating platform 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 current operation focuses on data mining, where specialized computing equipment performs calculations supporting digital asset networks. The returns will depend on the value of the computing output relative to fuel, equipment, maintenance and other operating costs.
Potential to Expand Alongside Gas Production
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, BlockFuel 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.
Existing field infrastructure may help support further development, but each additional installation would require its own technical and commercial assessment. Potential future artificial intelligence or high-performance computing applications would require separate evaluation of connectivity, cooling, power reliability and customer demand.
Management Commentary
"BlockFuel brings together an established oilfield asset base and a practical opportunity to use natural gas to power onsite computing," said Daniel Lanskey, President and Chief Executive Officer of BlockFuel Energy.
"Our strategy starts with the resource: restore suitable wells, evaluate additional formations and drill new locations where the technical and economic case supports investment. Alongside that work, we are assessing how gas produced from our acreage can support an additional business through onsite power generation and data mining. We are working toward the completion of our merger with IBG, subject to required approvals, and we expect to commence drilling at Steinman #1-23 in early December. Our initial computing installation is already operating, giving us a platform to measure performance and assess future expansion. Our objective is to use the results from these activities to guide disciplined growth," concluded Lanskey.
An Established Oklahoma Oilfield Platform with Room to Grow
BlockFuel's previously disclosed Oklahoma position spans approximately 55 square miles, or roughly 35,000 acres. The portfolio includes producing and temporarily shut-in wells, together with existing oil storage, natural gas gathering facilities and saltwater disposal infrastructure.
The project area lies in an established oil- and gas-producing region of Central Oklahoma, with operations near Stillwater. Historical well information indicates multiple reservoir formations at different depths, creating opportunities to evaluate more than one target within parts of the acreage.
Existing wells and infrastructure provide a foundation for a staged development strategy:
- Reactivate existing wells: Return suitable shut-in wells to production following technical and economic assessment.
- Recomplete existing wells: Use existing wellbores to access additional formations where technically appropriate.
- Drill new vertical wells: Test and develop selected locations, using results to guide subsequent investment.
- Expand gas-to-compute operations: Evaluate additional onsite generation and computing installations where gas availability and commercial returns support investment.
BlockFuel has previously identified more than 200 potential drilling locations across its acreage. These represent opportunities requiring further assessment, rather than a commitment to drill. Their commercial potential depends on geological results, approvals, funding and operating economics.
Upcoming Milestones
BlockFuel expects to provide further updates on:
- Progress toward completion of the proposed merger and the subsequent renaming of IBG to BlockFuel Energy Limited.
- Permitting and site preparations for Steinman #1-23.
- Expected commencement of drilling in early December 2026.
- Drilling, completion and testing results as available.
- Performance of the initial gas-to-compute installation and potential expansion.
Proposed Merger with IBG
BlockFuel acquires and develops onshore oil and natural gas assets in the United States. Its principal operating platform is in Central Oklahoma, where it is pursuing existing well reactivation, recompletion and new drilling, alongside the development of gas-to-power computing operations.
IBG, an Australian beverage company listed on Nasdaq, owns approximately
BlockFuel and IBG expect to complete the proposed merger as promptly as practicable following receipt of required approvals, including Nasdaq's approval of the combined company's listing application, and satisfaction of the remaining closing conditions.
Following completion, IBG will be renamed BlockFuel Energy Limited and is expected to trade on Nasdaq under the symbol "BFE," and BlockFuel will become 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, with the existing beverage business continuing within a separate subsidiary.
About BlockFuel Energy
BlockFuel Energy Inc. is a U.S. energy company focused on acquiring and developing onshore oil and natural gas assets. Its Central Oklahoma platform combines existing wells and field infrastructure with opportunities for reactivation, recompletion and new drilling. BlockFuel is also developing onsite natural gas generation to support computing and data mining activities.
For more information, visit www.blockfuelenergy.com.
About Innovation Beverage Group
Innovation Beverage Group Limited (NASDAQ:IBG) develops, manufactures and markets alcoholic and non-alcoholic beverages. IBG owns a majority interest in BlockFuel and has entered into a proposed merger with BlockFuel, which is subject to required approvals and remaining closing conditions. Following completion, IBG will be renamed BlockFuel Energy Limited, with the existing beverage operations continuing within a separate subsidiary.
Forward-Looking Statements
This release contains forward-looking statements concerning the proposed merger, the timing of its completion, the proposed company name change, permitting, the anticipated commencement of drilling in early December 2026, target formations and depths, potential drilling locations, production growth, gas-to-compute economics and possible expansion.
These statements are based on current expectations and assumptions and involve risks and uncertainties. Actual results may differ materially because of regulatory approval timing, geological conditions, drilling and completion results, gas availability and quality, equipment and contractor availability, financing, commodity prices, digital asset prices and mining difficulty, equipment performance, operating costs, and the satisfaction of merger closing conditions.
Potential drilling locations do not constitute proved reserves or assure future production. There can be no assurance that the proposed well will be commercially successful, computing operations will generate positive returns, or the merger will be completed within the targeted timeframe or at all. Additional risks are described in IBG's filings with the U.S. Securities and Exchange Commission (the "SEC"), including its annual report on Form 20-F for the fiscal year ended December 31, 2025, which includes a going concern explanatory paragraph and discloses material weaknesses in internal control over financial reporting. Neither company undertakes to update forward-looking statements except as required by law.
Contact:
Daniel Lanskey
President and Chief Executive Officer
BlockFuel Energy Inc.
dan.lanskey@blockfuelenergy.com
www.blockfuelenergy.com
Investor Relations:
KCSA Strategic Communications
Phil Carlson, Managing Director
IBG@KCSA.com
SOURCE: Innovation Beverage Group
View the original press release on ACCESS Newswire
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
When does IBG subsidiary BlockFuel expect to start drilling Steinman #1-23?
BlockFuel expects drilling to commence in early December 2026, subject to required regulatory approvals, completion of site preparations and availability of contractors and equipment. The proposed well is intended to test the Mississippian formation at approximately 4,700 feet.
What gas-to-compute operations has IBG subsidiary BlockFuel started?
BlockFuel has installed and commenced operating its initial natural gas-powered computing and data mining equipment near Stillwater, Oklahoma. Natural gas fuels onsite generators, whose electricity powers the computing equipment. Results from this installation will guide decisions on potential expansion.
What will BlockFuel measure at its initial gas-to-compute installation?
BlockFuel will measure generation reliability, fuel consumption, computing performance, maintenance requirements and overall economics. The installation provides an operating platform for assessing whether further expansion is commercially supported.
What will Steinman #1-23 results tell BlockFuel about future drilling?
Steinman #1-23 results will help BlockFuel assess reservoir quality, completion requirements and the economics of comparable locations. A successful outcome would support further development, although individual well results may vary.
What name and ticker are planned for IBG after the BlockFuel merger?
Following completion of the proposed merger, IBG will be renamed BlockFuel Energy Limited and is expected to trade on Nasdaq under BFE. Completion remains subject to required approvals, including Nasdaq's approval of the combined company's listing application, and satisfaction of remaining closing conditions.