The planned campaign represents the first phase of a long-term development strategy designed to unlock management's identified inventory of low-cost, repeatable drilling opportunities across approximately 35,000 acres of operated leasehold. The acreage position includes extensive existing infrastructure, production facilities, gathering systems, power distribution assets and commercial saltwater disposal capacity, providing a foundation for rapid and capital-efficient development.

Management believes the Company's acreage is underlain by multiple stacked oil and natural gas reservoirs that have historically produced throughout the Mid-Continent region. These stacked pay intervals create the opportunity to develop numerous productive horizons from the same acreage footprint, potentially amplifying recoverable resource opportunities while minimizing infrastructure requirements.

"The upcoming drilling campaign has the potential to be a defining event for BlockFuel," said Daniel Lanskey, President and Chief Executive Officer. "We control approximately 55 square miles of highly prospective acreage with existing infrastructure already in place. Our objective is to demonstrate that these stacked reservoir intervals can be developed using low-cost vertical wells, creating a scalable development platform capable of supporting production growth for many years."

Potential for Large-Scale Development Inventory

Based on current geological mapping, historical production data, reservoir interpretation and development planning, management believes successful results from the initial drilling campaign could support substantial future drilling activity across the Company's acreage position.

Current development models indicate that individual sections may ultimately accommodate up to twelve additional vertical well locations targeting multiple productive horizons. Across the Company's acreage position, this could translate into a development inventory measured in the hundreds of future drilling opportunities, subject to drilling results, reservoir performance, economic conditions and regulatory approvals.

The Company previously identified the potential for more than 400 undeveloped infill drilling locations utilizing 40-acre spacing assumptions. Management believes the existence of multiple stacked pay intervals may further enhance the long-term development potential of the acreage position. While additional technical work and drilling results are required to fully evaluate this opportunity, BlockFuel believes it controls one of the most attractive low-cost vertical development projects in the Mid-Continent region.

Low-Cost Development Model

The Company's planned vertical wells are expected to cost approximately US$650,000 each to drill and complete, significantly below the cost of many contemporary horizontal development programs. Internal economic models indicate that wells producing approximately 40 barrels of oil per day initially could generate attractive project economics, including rapid capital recovery and strong rates of return under current commodity price assumptions.

Unlike many emerging development projects, BlockFuel's acreage position benefits from extensive existing infrastructure, including gathering systems, production hubs, power infrastructure and commercial saltwater disposal facilities. Management believes replacing this infrastructure today would require significant capital investment and multiple years of development time.

Positioned for Multi-Year Growth

The planned drilling campaign forms part of BlockFuel's broader strategy to increase production, reserves and cash flow through a combination of production restoration, recompletions and new drilling activity.

Management believes successful execution of the 2026 drilling program could establish a repeatable blueprint for large-scale field development and support a multi-year growth trajectory across the Company's operated acreage position.

"Few independent companies our size control an operated acreage position of this scale with existing infrastructure, demonstrated production history and significant undeveloped drilling inventory," added Lanskey. "Our goal is to transform BlockFuel from a redevelopment story into a scalable growth-oriented oil and gas producer capable of delivering substantial long-term value for shareholders."

Additional operational details, including well locations, permitting status and drilling schedules, will be announced as development activities progress.

IBG and BFE continue to work together to close the merger transaction in the near term.