Barrel Energy announces cancellation of land lease and elimination of $ 3.9 million of liabilities

Rhea-AI Summary

Barrel Energy Inc. (BRLL) has taken significant financial actions to strengthen its balance sheet, including unwinding a land lease agreement in California and exchanging accrued expenses for preferred stock. The restructuring of convertible notes has reduced liabilities by $3,946,219, providing a positive outlook for the company's exploration and development projects.

Las Vegas, NV., Feb. 20, 2024 (GLOBE NEWSWIRE) -- Barrel Energy Inc., (OTC Markets: BRLL) (the “Company” or “BRLL”) is pleased to update shareholders on financial actions, including:

Unwinding the Land Lease Agreement. These actions will create a cleaner balance sheet for future financings.

On May 14, 2019, the Company signed a land lease in central California for 602 acres at $1,000 per acre to grow hemp for fiber usage. The lease was for 10 years with annual costs of $602,000. On February 19, 2024, the Company and the Landlord have reached a mutual agreement to terminate the agreement and all payments due to the landholder will be forgiven. As of December 31, 2023, the Company had accrued $2,558,500 of unpaid lease payments as accounts payable and this amount will be eliminated and reflected in the next quarterly statement.

Creation of Preferred Stock and elimination of accrued expenses. The Board has approved a proposal from its Chairman to exchange $925,719 in accrued expenses owed to Mr. Sangha in return for the issuance of 5,000,000 shares of Series A Preferred Stock. The 4% Series A Preferred will have voting control but will not be convertible into common stock.

Elimination of variable conversion feature on all remaining Notes. The Board has reached an agreement to restructure $512,000 of Convertible Notes due Mr. Sangha and AT Media. These Notes have been restructured to eliminate the variable priced conversion and will have a fixed conversion price of $0.03. The reduction in $3,946,219 in liabilities is a good step to move our exploration and development forward on our two primary assets which are the two Pl.s in Tanzania.

About the Company: Barrel Energy Inc. (OTC Markets: BRLL), Barrel Energy Inc., (OTC Markets: BRLL) is focused on several ventures within the green energy and batteries minerals sector and the rapid development of valuable production opportunities throughout North America and abroad.

Contact:

Harp Sangha-Chairman

Sanghaharp64@gmail.com                        

+1-702-595-2247

https://barrel.energy

Forward-Looking Statements:

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future development activities and are thus prospective. Forward-looking statements include all statements that are not statements of historical fact regarding intent, belief, or current expectations of the Company, its directors, or its officers.  Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control. Actual results may differ materially from those projected in the forward-looking statements. Among the factors that could cause actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties associated with the Company's business and finances in general, including the ability to continue and manage its growth, competition, global economic conditions and other factors discussed in detail in the Company's periodic filings with the Securities and Exchange Commission.

FAQ

What financial actions has Barrel Energy Inc. taken to strengthen its balance sheet?

Barrel Energy Inc. has unwound a land lease agreement in California, exchanged accrued expenses for preferred stock, and restructured convertible notes to reduce liabilities by $3,946,219.

What was the purpose of the land lease in central California signed by Barrel Energy Inc.?

The land lease in central California was signed by Barrel Energy Inc. to grow hemp for fiber usage on 602 acres at $1,000 per acre for 10 years with annual costs of $602,000.

How much unpaid lease payments did Barrel Energy Inc. have accrued as of December 31, 2023?

As of December 31, 2023, Barrel Energy Inc. had accrued $2,558,500 of unpaid lease payments as accounts payable.

What proposal did the Board of Barrel Energy Inc. approve regarding accrued expenses?

The Board approved a proposal to exchange $925,719 in accrued expenses owed to Mr. Sangha for the issuance of 5,000,000 shares of Series A Preferred Stock.

How have the Convertible Notes due to Mr. Sangha and AT Media been restructured by Barrel Energy Inc.?

The Convertible Notes due to Mr. Sangha and AT Media have been restructured to eliminate the variable priced conversion and will now have a fixed conversion price of $0.03.