Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
On October 28, 2026, BlockFuel Energy Inc., a company
currently approximately 51% owned by Innovation Beverage Group Limited, issued a press release announcing progress in developing its Central
Oklahoma energy assets, including the advancement of permitting for the proposed Steinman #1-23 well, with drilling expected to commence
in early December 2026, and the installation and commencement of operation of its initial natural gas-powered computing and data mining
equipment near Stillwater, Oklahoma. A copy of the press release is furnished herewith as Exhibit 99.1.
Pursuant to the requirements of
the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
EXHIBIT 99.1
BlockFuel
Energy Advances Oklahoma Drilling Plans and Commences Initial Gas-to-Compute Operations
Proposed merger with Innovation Beverage Group (Nasdaq:
IBG) to be completed following receipt of required approvals, with the combined parent to be renamed BlockFuel Energy Limited
Steinman #1-23 drilling expected to commence in
early December 2026; initial natural gas-powered data mining equipment installed and operating near Stillwater
STILLWATER, Oklahoma — 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 51% of BlockFuel. IBG, BlockFuel and InnoBev Merger Corp., a wholly owned subsidiary of IBG, have entered into an amended
and restated agreement and plan of merger providing for the proposed merger.
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
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