IBG · Innovation Beverage Group Limited

The completion of the independent reserve report effective December 31, 2025, marks a critical milestone for BlockFuel Energy, providing third-party validation of its Central Oklahoma asset base during a period of shut-in operations. Since the report's effective date, BlockFuel has demonstrated operational execution by reactivating 19 wells, which validates field infrastructure and initiates revenue generation essential for funding further development. The outlined multi-phase strategy emphasizes capital efficiency: Phase 1 reactivation is largely complete, Phase 2 recompletions targeting the Mississippi Lime formation in 34 of 55 existing wells at approximately $250,000 each offer a low-risk path to accessing bypassed reserves, and Phase 3 new drilling starts with 8 vertical wells in 2026, scaling to up to 20 more in subsequent years based on performance and capital availability. With over 200 identified locations, extensive infrastructure including 9 saltwater disposal wells, and stacked reservoirs in the Mississippi Lime play, the assets support repeatable development. BlockFuel anticipates funding 2026 activities from oil and gas revenues plus prior IBG capital raises, positioning the joint venture for production growth. For investors in Innovation Beverage Group, this progress reinforces the strategic pivot via the proposed merger with BlockFuel, which owns a majority interest in BFE and remains subject to closing conditions, potentially transforming IBG's beverage-focused portfolio into a diversified energy play.