History
Barrel Energy shifted from lithium to hemp, went dark for four years after deregistering in 2022, then returned in 2026 with heavy insider dilution and a costly note.
2018-2019: Lithium, then hemp
Barrel Energy was a small company that changed direction more than once. In October 2018 it signed an earn-in agreement with True Grit Resources for lithium brine leases in Stafford County, Arizona. A first $400,000 in staged payments would earn a 49% interest, and up to $2.4 million would earn a full 100%.
The focus did not last. In May 2019 the company announced a complete change of business direction: a 10-year lease of 602 acres in Tehama County, California, from Crocker Acana, LLC, to grow hemp. Rent was $1,000 an acre a year, about $602,000 annually. The county cultivation permit had been applied for but not yet obtained.
The share count rose over this period, from about 12.3 million at the end of 2017 to 37.5 million in 2018 and 52.5 million in 2019. The beats do not explain how those shares were issued.
2022-2026: Dark, then back
In February 2022 Barrel Energy deregistered its securities, ending its duty to file reports with the SEC. The record is then quiet for about four years. The company returned to reporting with a Form 10 registration in February 2026. It engaged India-based Shah Teelani & Associates Chartered Accountants to audit its fiscal 2025 accounts, replacing Fruci & Associates II. Its officers and directors were now James Kaltsas, Alfreddie Johnson and Willis Pumphrey Jr.
In July 2026 those three insiders converted 750,000 Series A Preferred shares into 750,000,000 common shares, at 1,000 to 1. Common shares outstanding rose from about 2.1 million to over 752 million, and the company received no cash.
In August 2026 the company took a $150,000 note from Coventry Enterprises, sold at a 10% discount for $125,000 net cash and repayable over 12 months. The financing was disclosed on 11 August. Terms included 22% default interest, a 150% acceleration penalty, and conversion priced at 102% of the lowest trading price over the prior 20 days. It also issued nearly 45 million commitment shares and a pre-funded warrant for 5.1 million more.
As of 11 August 2026, the company had about 752 million shares outstanding before the note shares, a small cash injection, and a debt carrying harsh terms.
Written from the 6 story beats below (2018 to 11 Aug 2026), which come from the company's own announcements and filings.