Innovation Beverage Group Ltd (NASDAQ: IBG) and its proposed merger partner BlockFuel Energy Inc. announced completion of an independent reserve report for Central Oklahoma oil and gas assets, along with a multi-phase development plan.

The reserve report, effective December 31, 2025, was prepared when operations were temporarily shut-in. BlockFuel has since returned 19 wells to production across its approximately 35,000-acre position.

The company outlined a three-phase development strategy. Phase 1, which involved reactivating shut-in wells, has been completed with 19 wells returned to production. Phase 2, beginning May 2026, includes recompletion of existing wells targeting the Mississippi Lime formation at an estimated cost of $250,000 per well. Thirty-four of the company's 55 existing wells have been identified as candidates for this program.

Phase 3 involves drilling eight vertical wells in 2026, with plans for up to 20 additional wells in 2027 and 2028, subject to capital availability and operational performance. BlockFuel identified more than 200 potential drilling locations across its acreage, with estimated ultimate recovery of up to 65,000 barrels of oil equivalent per well.

"Completion of this independent reserve report represents an important milestone for BlockFuel, as it provides third-party validation of the scale and quality of our asset base," said Daniel Lanskey, President and Chief Executive Officer of BlockFuel Energy.

The company's acreage is situated within the Mississippi Lime formation, a carbonate reservoir influenced by regional structural features. Existing infrastructure includes gathering and storage facilities and nine Saltwater Disposal Wells.

IBG is progressing toward its proposed merger with BlockFuel Energy, which currently owns a majority interest in the energy company. The transaction remains subject to customary closing conditions.