Barrel Energy Inc - BRLL stock

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OTC Symbol: BRLL | OTC Tier: Pink Current

Introduction

Barrel Energy, Inc. [OTC Markets: BRLL] is an American-based Oil and Gas industry company involved in the acquisition and exploration of Lithium and battery metals throughout North America and Abroad. The company’s focus circulates several ventures within the green energy and batteries minerals sector. It currently holds joint-venture agreements to develop technologies and processes for recycling EV batteries. So far, the company does not have any commercial products in its pipeline but offers a select team to evaluate and advance projects in the battery metals field. Barrel was formed in January 2014 and is headquartered in Las Vegas, NV.

Corporate Operations

The demand for lithium is continuously surging, propelled by increased demand for battery raw materials such as lithium carbonate or lithium hydroxide for the production of batteries used in electric vehicles. The EVs segment is thus the fastest-growing division of the auto industry with Lithium Ion batteries at the heart of the EV revolution. The company recognizes the raw material supply shortage for battery production and the magnificent potential in the Lithium-ion battery supply chain. It uses a USA-made complete lifecycle approach to satisfy the globally soaring demand for lithium-ion battery technology.

Projects

Lithium Iron Phosphate (LFP) Battery

Barrel owns and operates a 25000 KWh battery pack assembly pilot facility that consumed a $0.68 Million investment in the first phase for UPS, Solar, 2-Wheeler, and 3-Wheeler applications. The investment aimed for a peak business of approximately $3.42 Million by 2023.

Phase 2 of the automation project incorporated a 50000 KWh battery pack assembly with an expansion investment budget of $1.37 Million, with its separate land and building. The second phase aims for $6.85 Million in business by 2025, including MWh Energy Storage Systems and exports.

Phase 3 of the project involves the establishment of 400 MWh Lithium Iron Phosphate cell manufacturing beside the battery pack assembly plant. The project is scheduled to consume $16.44 Million in investment, with a business target of $54.80 Million by 2029. The execution of this phase of the project is expected between 2025 and 2027.

Background

Barrel Energy Inc. was incorporated under Nevada state laws on January 27, 2014. It was initially formed to invest in the oil and gas sector of the energy industry. The company amended its articles of incorporation in April 2019 to increase its number of authorized common shares from 75,000,000 to 450,000,000. The firm entered a 10-year land Lease on a 602 acre of land in Tehama County, California, with Crocker Acana, LLC in May 2019, with the intent of growing hemp. Its efforts to acquire a permit to cultivate hemp on the property from Tehama County hit rock bottom and the firm has not reapplied after a thorough examination of the state and federal regulations.Following COVID-19’s heavy impacts on the oil and gas industry, the company reviewed the changing business landscape and opted for the lithium battery business in April 2020. It adjusted its strategy to target areas with potential economic deposits of Lithium, Cobalt, and Graphite, that would thrive in the growing demand for battery material.

Market and Industry

Lithium-ion batteries have seen an exponential rise in popularity since they are easily rechargeable. They are widely used in cellphones, computers, electric vehicles, and large-scale electric storage. Demand for lithium batteries is forecasted to outpace the current lithium production by 2030. Countries like China have been erecting new battery factories, only propelling increased demand for Lithium. The global demand for lithium is expected to surge by approximately 650% by 2027. Barrel Energy looks to capitalize on the bull market for Lithium by concentrating its strategy around the supply of raw materials for lithium battery production.

Corporate News and Developments

On May 14, 2019, the firm entered a 602-acre land lease at $1,000 per acre in California to cultivate hemp for fiber use. The 10-year lease averages $602,000 in annual costs and is set to terminate in May 2029. As of June 30, 2022, Barrel had accrued $1,655,500 of unpaid lease payments. The firm recorded $2,322,054 in right-of-use assets and $2,547,974 in operating lease liability with $602,000, lease expense as of December 31, 2022.

Barrel Energy entered a partnership with CDSG to co-develop the West End Lithium project owned by CDSG. According to the November 16, 2022 agreement, Barrel was scheduled to lead the exploration and production operations on the property in 2023. The company was developing a highly innovative lithium extraction mechanism for clay-hosted deposits. American Lithium Corp. develops the surrounding border of the TCL project. The asset hosts enormous NI 43-101 compliant resources approximated to be 5.37 million tonnes (Mt) of lithium carbonate equivalent (LCE). Lithium carbonate sold at $27,000 per tonne in November 2021 and sky-rocketed to over $84,000 per tonne in November 2022.

Financials

The company has not generated revenue to date. As of September 30, 2020, its fiscal year-end, the company had negative working capital of $1,762,299. It also had zero off-balance sheet arrangements that could impact its future financial conditions or capital resources that are critical to investors.

Management

The company’s management team members are:

• Craig Alford, CEO. Has worked in more than 30 countries and has massive global business development and operational experience
• Harp Sangha, Chairman. Has over 30 years of experience having served as CEO and Board Member of several publicly-traded companies
• Syed Rahman, Operations Manager, India
• Mr. S.A. Gaffoor, CEO of Rashan Energy
• Prof. Ak. Shukla, Technical Advisor

Sustainability

The company operates an enterprise with a low carbon footprint. Its management carries out regular activity analysis to ensure best business practices, complete compliance, and transparency. The firm is thus committed to integrating all shareholders’ interests to benefit local communities and establish long-term success. Barrel’s environmental stewardship approach includes ensuring reduced operational impact on the environment and enhancing the local environment. The company also fosters growth in North America and sources labor from the region.