Business
Innovation Beverage Group Provides Update on Merger with BlockFuel Energy and Production Restart to Advance Dual Revenue Model Spanning Energy and Digital Asset Mining
Onsite Natural Gas–Powered Digital Mining Strategy Positions Combined Group for Capital-Efficient, Scalable Cash Flow Generation SYDNEY, Feb. 11, 2026 (GLOBE
About this update from Innovation Beverage Group Limited
[{"type":"text","content":"Onsite Natural Gas–Powered Digital Mining Strategy Positions Combined Group for Capital-Efficient, Scalable Cash Flow Generation\nSYDNEY, Feb. 11, 2026 (GLOBE NEWSWIRE) -- Innovation Beverage Group Ltd (“IBG” or the “Company”) (Nasdaq: IBG), an innovative developer, manufacturer, and marketer of a growing beverage portfolio of 60 formulations across 13 alcoholic and non-alcoholic brands, today provided an update regarding its proposed merger with BlockFuel Energy Inc., a Texas corporation (“BFE”), including operational, financial, and strategic milestones that position the combined transaction parties as a capital-efficient energy producer with a differentiated digital infrastructure growth strategy. The companies remain on track to complete the merger in the first quarter of 2026, subject to customary approvals and closing conditions. Integration planning continues, with a clear focus on building a vertically integrated platform that monetizes hydrocarbons through both conventional sales channels and potential digital energy applications. Ten wells are currently back in production, with an additional seven wells expected to be returned to production by month-end, materially increasing active production and available gas volumes across the portfolio. BFE expects to complete its first oil and gas sales in February 2026, with initial revenues anticipated before the end of the first quarter ended March 31, 2026. These initial oil and gas revenues are expected to provide near-term cash-flow visibility following completion of the merger. Digital Energy and Mining Strategy In parallel with production restarts, planning is advancing for the potential deployment of digital mining infrastructure powered directly by natural gas produced onsite. Initial planning takes into consideration modular, wellhead-adjacent generation and mining deployments, allowing capacity to scale in-line with gas availability and capital deployment. Based on preliminary engineering and comparable field deployments, BFE management believes onsite gas-to-power costs may be meaningfully below grid-based power pricing, while avoiding transportation, processing, and third-party power costs. Even modest allocations of produced gas to digital infrastructure may support incremental margins per unit of gas, while preserving flexibility to sell gas into traditional market...