If a company provides a new update to its shareholders then it almost always has an impact on its stock and that is what happened with Barrel Energy Inc (OTCMKTS:BRLL) stock, which went down by as much as 6% yesterday.
Trading Data
On Wednesday, BRLL stock fell 5.83% to $0.0291 with more than 1.37 million shares, compared to its average volume of 906.85K shares. The stock moved within a range of $0.0280 – 0.0345 after opening trade at $0.0310.
Barrel Energy Provides Shareholder Update
Although the stock tanked, it should be noted that Barrel Energy made a fairly positive announcement. The company announced that it had been successful in discovering a large Lithium-in-brine field which is consistent with that is found in former oil production formations. Such formations are often found in many counties in the South-central part of the United States.
The company also noted that over the course of the past 12 months it has been working diligently in order to discover new lithium exploration areas with potential. To that end, the company has explored many sites in Nevada, India, and also in Quebec. Eventually, Barrel Energy managed to discover the latest site after having gone through scientific papers, well logs, published data, and through rounds of talks with those who own the project. It is a significant new development, however, it now remains to be seen if the sentiments of investors turn or not.
Key Quote
Chairman Harp Sangha states, “We believe we have discovered a very large lithium deposit within the area of interest and pursuing the acquisition of these resources.”
Technical Data
BRLL stock is trading above the 20-Day and 200-Day Moving averages of $0.0275 and $0.0177 respectively. However, the stock is trading below the 200-Day moving average of $0.0295. The company has a total market capitalization of $9.10 million. The stock is up 26% over the past month.
