IBG Owns 51% of Block Fuels, Runs Gas-Powered Data Mining Equipment in Oklahoma
Key Facts
Block Fuels Energy, approximately 51% owned by Nasdaq-listed Innovation Beverage Group, announced on October 28, 2026, that it had installed and started operating initial computing and data-mining equipment near Stillwater, Oklahoma. The company said the equipment runs on electricity generated by on-site natural gas generators. The announcement comes as the company advances development of its energy assets in central Oklahoma, while Innovation Beverage and Block Fuels work to complete a proposed merger. The merger has not yet closed, as it requires necessary approvals and satisfaction of the remaining closing conditions. Chief Executive Daniel Lansky said the company is working to complete the transaction and that the initial computing equipment is “already operating” to measure its performance.
The operation starts with natural gas feeding on-site generators, with the resulting electricity then used to power the computing and mining equipment, according to the company statement published via Access Newswire. The facility plans to measure generation reliability, fuel consumption, computing performance, maintenance requirements and economics. These measurements, according to the statement, provide a basis for assessing the equipment's performance on site as energy asset development continues. The statement did not report results from these measurements, describing the equipment as initial and recently brought online. The plan thus combines gas-fired power generation with the operation of computing equipment, while operational and economic aspects remain under testing.
On drilling, Block Fuels said it is advancing permitting for the Steinman No. 1-23 well and expects drilling to begin in early December 2026. The timing depends on obtaining required regulatory approvals, completing site preparation and the availability of contractors and equipment. The well is intended to test the Mississippi formation at a depth of about 4,700 feet. The company is also evaluating a deeper test of the Wilcox formation at a depth of about 5,100 feet, though that remains subject to technical review, permits and budget approval. Lansky said the company expects to begin drilling in early December while working to complete the merger, subject to the required approvals.
Block Fuels' announced assets in Oklahoma cover about 55 square miles, or approximately 35,000 acres, according to the company. They include producing wells and others temporarily shut in, as well as infrastructure for gas storage and gathering and saltwater disposal. In June, the company said its operating site included 55 oil and gas production wells and nine saltwater disposal wells across about 55 square miles in Payne, Pawnee and Noble counties. It has also previously identified more than 200 potential drilling locations across its acreage, which are under evaluation and do not constitute a commitment to begin drilling. The company had also planned an eight-well vertical drilling program in the second half of 2026, targeting step-out locations near existing production and making use of existing infrastructure.
The proposed transaction marks a shift in the structure of Innovation Beverage, an Australian beverage company listed on Nasdaq that currently owns about 51% of Block Fuels. If the merger is completed, Innovation Beverage is expected to change its name to Block Fuels Energy Limited, and shares of the combined company are expected to trade under the ticker BFE. The company said its beverage business will continue in a separate subsidiary. An earlier filing in March said Innovation Beverage had provided Block Fuels with a $2.5 million unsecured loan. The filing said Block Fuels shareholders could own about 90% of the combined company, compared with about 10% for current Innovation Beverage shareholders, with the percentages subject to customary dilution adjustments.
Innovation Beverage faces a separate issue involving Nasdaq's continued listing requirements. In a September 2026 filing, the company said Nasdaq had notified it that it did not meet the minimum shareholders' equity requirement of $2,500,000, while its 2025 annual report showed negative shareholders' equity of $1,469,914. The company plans to submit a plan to regain compliance no later than November 6, 2026. If Nasdaq accepts the plan, it may grant an extension of up to 180 days from the date of the shareholders' equity notice to demonstrate compliance. Completion of the merger remains subject to required approvals, including Nasdaq approval of the combined company's listing application, and satisfaction of the remaining closing conditions.
Innovation Beverage shares closed at $0.81 on October 22, then at $0.87 on October 23 and $0.90 on October 26. The stock closed at $0.9329 on October 27, before ending the October 28 session at $1.02. These prices cover the five trading sessions listed in EL7 data, from October 22 to 28, 2026. As for next steps, drilling at the Steinman well remains expected to begin in early December, according to the company. It also plans to submit its compliance plan to Nasdaq by November 6, while completion of the merger depends on the remaining approvals and closing conditions.