10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2016

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

From transition period from __________ to __________

Commission File No.: 333-201740

BARREL ENERGY, INC.

(Exact name of registrant as specified in its charter)

 

Nevada	47-1963189
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
14890 66a Avenue, Surrey, B.C. Canada	V3S 0Y6
(Address of principal executive offices)	(Zip Code)

 

(604) 375-6005

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.:

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

As of May 23, 2016 the registrant had 10,786,000 shares of common stock outstanding.  

TABLE OF CONTENTS

		Page
PART I – FINANCIAL INFORMATION
Item 1:	Financial Statements	4
	Balance Sheets as of March 31, 2016 and September 30, 2015- (Unaudited)	4
	Statements of Operations and Comprehensive loss for the Three and Six Months Ended March 31, 2016 and 2015 (Unaudited )	5
	Statements of Cash Flows for the Six Months Ended March 31, 2016 and 2015 (Unaudited)	6
	Notes to Financial Statements (Unaudited)	7
Item 2:	Management's Discussion and Analysis of Financial Condition and Results of Operations	9
Item 3:	Quantitative and Qualitative Disclosures about Market Risk	10
Item 4T:	Controls and Procedures	10
PART II – OTHER INFORMATION
		11
Item 1:	Legal Proceedings	11
Item 1A:	Risk Factors	11
Item 2:	Unregistered Sales of Securities and Use of Proceeds	11
Item 3:	Default upon Senior Securities	11
Item 4:	Mine Safety Information	11
Item 5:	Other information	11
Item 6:	Exhibits	12
Signatures		13

2

Reference in this report to "BARREL ENERGY" "we," "us," and "our" refer to BARREL ENERGY, Inc.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

The Securities and Exchange Commission ("SEC") encourages companies to disclose forward-looking information so that investors can better understand future prospects and make informed investment decisions. This report contains these types of statements. Words such as "may," "expect," "believe," "anticipate," "estimate," "project," or "continue" or comparable terminology used in connection with any discussion of future operating results or financial performance identify forward-looking statements. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report. All forward-looking statements reflect our present expectation of future events and are subject to a number of important factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

3

 

PART I – FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

The financial information set forth below with respect to our statements of operations for the six months periods ended March 31, 2016 and 2015 is unaudited. This financial information, in the opinion of management, includes all adjustments consisting of normal recurring entries necessary for the fair presentation of such data. The results of operations for the six month periods ended March 31, 2016, are not necessarily indicative of results to be expected for any subsequent period. Our year end is September 30.

BARREL ENERGY INC

BALANCE SHEETS

(Unaudited)

	March 31, 2016			September 30, 2015
ASSETS
Current assets:
Cash and cash equivalents	$	5,897		$	455
Total current assets		5,897			455
Oil lease - unproved		46,063			44,738
Total assets		51,960		$	45,193
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable	$	950		$	-
Accrued interest		11,269			7,762
Advance from shareholder		18,395			15,683
Convertible note – related party		2,088			2,088
Convertible notes		74,818			55,923
Total current liabilities		107,520			81,456
Convertible note payable		-			16,742
Total liabilities		107,520			98,198
Stockholders' deficit:
Preferred stock, $0.001 par value, 5,000,000 authorized, zero issued and outstanding
Common stock, $0.001 par value, 70,000,000 authorized, 10,578,000 and 10,000,000 issued and outstanding, respectively		9,567			8,989
Paid in capital		13,872			-
Accumulated other comprehensive income		3,236			5,500
Accumulated deficit		(82,235	)		(67,494	)
Total stockholders' deficit		(55,560	)		(53,005	)
Total liabilities and stockholders' deficit	$	51,960		$	45,193

The accompanying notes are an integral part of these unaudited financial statements.

 

4

 

BARREL ENERGY INC

STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

	Three Months Ended March 31,						Six Months Ended March 31,
	2016			2015			2016			2015
Operating expenses:
General and administrative expense	$	3,094		$	16,782		$	12,013		$	23,068
Loss from operations		(3,094	)		(16,782	)		(12,013	)		(23,068	)
Other income (expense)
Interest expense		(1,555	)		(1,880	)		(3,158	)		(3,860	)
Currency (gain) loss		430			23			430			(588	)
Total other income (expense)		(1,125	)		(1,857	)		(2,728	)		(4,448	)
Net loss		(4,219	)		(18,639	)		(14,741	)		(27,516	)
Foreign currency translation adjustment		(2,768	)		(2,151	)		(2,264	)		(3,246	)
Comprehensive loss	$	(6,987	)	$	(20,790	)	$	(17,005	)	$	(30,762	)
Net loss per common share, basic and diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
Weighted average number of common shares outstanding, basic and diluted		10,338,440			10,000,000			10,178,732			10,000,000

The accompanying notes are an integral part of these unaudited financial statements.

 

5

BARREL ENGERGY INC

STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Six Months Period Ended March 31,
	2016			2015
Cash flows from operating activities:
Net loss	$	(14,741	)	$	(27,516	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock issued for services		900			-
Comprehensive loss		-			(605	)
Changes in operating assets and liabilities:
Accounts payable		950			1,181
Accrued interest		3,507			3,487
Net cash used in operating activities		(9,384	)		(23,453	)
Cash flows from financing activities:
Proceeds from sale of common stock		13,550			-
Advances from related party		4,731
Repayment of related party advances		(2,019	)
Proceeds from convertible note payable-related party		-			2,408
Proceeds from convertible note payable		-			16,590
Net cash provided by financing activities		16,262			18,998
Effects of currency translation		(1,436	)		3,246
Net increase in cash		5,442			(1,209	)
Cash – beginning of period		455			1,770
Cash – end of period	$	5,897		$	561
SUPPLEMENT DISCLOSURES:
Interest paid	$	-		$	-
Income taxes paid	$	-		$	-

The accompanying notes are an integral part of these unaudited financial statements.

 

6

BARREL ENERGY INC

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

NOTE 1 – NATURE OF BUSINESS

Barrel Energy Inc (Barrel) was incorporated on January 27, 2014 under the laws of the State of Nevada. The Company was formed to invest in producing oil and gas properties. On September 26, 2014 the Company leased a non-producing oil and gas property in the province of Alberta, Canada.

BASIS OF PRESENTATION

The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information required to be included in a complete set of financial statements in accordance with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the six months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2016. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. The accompanying unaudited financial statements should be read in conjunction with the financial statements and related notes included in the Company's form 10-K filed with the SEC on September 30, 2015.

NOTE 2 – GOING CONCERN

The Company's interim financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company, as shown in the accompanying balance sheets, has a working capital deficit of $101,623 and an accumulated deficit of $82,235 as of March 31, 2016. The Company has not established any source of revenue to cover its operating costs. These factors raise substantial doubt about the company's ability to continue as a going concern. The Company will engage in very limited activities that must be satisfied in cash until a source of funding is secured. The Company will offer noncash consideration and seek equity lines as a means of financing its operations. If the Company is unable to obtain revenue producing contracts or financing or if the revenue or financing it does obtain is insufficient to cover any operating losses it may incur, it may substantially curtail or terminate its operations or seek other business opportunities through strategic alliances, acquisitions or other arrangements that may dilute the interests of existing stockholders.

NOTE 3 – COMMON STOCK

During the three months period ended March 31, 2016 the Company sold 542,000 shares of common stock at $0.025 per share with a value of $13,550 to 40 individuals for cash.

During the three months period ended March 31, 2016 the Company issued 36,000 shares of common stock at $0.025 per share with a value of $900 to one entity for service.

7

NOTE 4 – CONVERTIBLE NOTE

On July 1, 2014 the Company issued a USD $57,580 (CAD $75,000) convertible note for cash. The note bears an interest rate of 9.5% and matures on December 31, 2015. The note, plus accrued interest, is convertible by the holder, in part or whole, until the date of maturity into common stock of the Company at CAD one cent ($0.01) per share. The note is in default.

On October 23, 2014, the Company issued a USD $17,238(CAD $22,454) convertible note for cash. The note bears an interest rate of 9.5% and matures on December 31, 2016. The note, plus accrued interest, is convertible by the holder, in part or whole, until the date of maturity into common stock of the Company at CAD one cent ($0.01) per share.

As of March 31, 2016 the convertible debt outstanding was US $74,818 plus accrued interest of US $11,269 for a total liability of $86,087.

NOTE 5 – RELATED PARTY

During the six months period ended March 31, 2016 an officer and director of the Company advances the Company $4,731 and was repaid $2,019 from the Company. The funds are payable on demand and bear no interest. As of March 31, 2016 the total amount due to the officer and director is US$ 18,395.

On December 1, 2014 the Company issued to a related party, who is an officer and director of the Company, a convertible note for US$ 2,088 (CAD $2,800). The note bears an interest rate of 5% per annum and matures on December 31, 2015. The note holder may until the date of maturity convert the principal and accrued interest into common stock of the Company at the rate of $0.025 CAD per share. The note is in default.

NOTE 6 – SUBSEQUENT EVENT

During the period from April 1, 2016 to through the date of the issuance of this report, the Company sold 208,000 shares of common stock at $0.025 per share with a value of $5,200 to 12 individuals for cash.

8

ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Executive Overview

Barrel Energy Inc (Barrel) was incorporated on January 27, 2014 under the laws of the State of Nevada. The Company was formed to invest in producing oil and gas properties. On September 26, 2014 the Company leased an unproven oil and gas property in the province of Alberta, Canada.

As of the date of this filing we have no operations and have recorded no revenues for the past two years. Our focus for the next twelve months will be to obtain additional funding to develop and expand our operations and new projects. Our success will depend on our ability to obtain funding through equity and/or debt transactions. However, with the downturn of the United States and world economies, we will encounter substantial competition for the limited financing that will be available in the market place. If we are unable to obtain financing, then we will likely delay further business development and marketing of our product.

In summary, management continues to position the company in a way to best benefit from worldwide economic conditions, trends, events, and demand for new technologies.

Liquidity and Capital Resources

As of March 31, 2016, we had an accumulated deficit of $82,235. We recorded net losses of $4,219 and $14,741 for the three and six months ending March 31, 2016 and $18,639 and $27,516 for the same periods in 2015, respectively. Based on these numbers there is substantial doubt that we can continue as a going concern unless we obtain external funding. Management plans to continue limited operations until we obtain additional funding to expand our operations.

Working capital was a negative $101,623 as of March 31, 2016 compared to a negative of $81,001 as of September 30, 2015. Cash used in operations totaled $9,384 during the six months ending March 31, 2016 compared cash used in operations of $23,453 during the same period in 2015. Funds provided from financing activities was $16,262 during the six months ending March 31, 2016 compared to $18,998 during the same period in 2015.

Management expects to continue to issue common stock to pay for the marketing of the product once the machine is in production. The purchasers and manner of issuance will be determined according to our financial needs and the available exemptions. We also note that if we issue more shares of our common stock our shareholders may experience dilution in the value per share of their common stock.

We intend to rely on debt and equity financing, capital contributions from management and sales of our common stock to pay for costs, services, operating leases, litigation expense and future development of our business opportunities. Accordingly, our focus for the next twelve months will be to obtain additional funding through debt or equity financing. Our success in obtaining funding will depend upon our ability to sell our common stock or borrow on terms that are financially advantageous to us. If we are unable to obtain financing, then expansion of our operations will be delayed.

9

Results of Operations

The Company recorded no revenue during the three and six months periods ended March 31, 2016 and 2015.

General and administrative expenses for the three and six months ended March 31, 2016 totaled $3,094 and $12,013 compared to $16,782 and $23,068 for the same periods in 2015. The decrease for the three and six month's periods in 2016 compared to 2015 was due to lower accounting, legal and consulting costs.

The Company incurred a net loss of $4,219 and $14,741 in the three and six months period ended March 31, 2016 compared to $18,639 and $27,516 for the same periods in 2015. The lower net loss was due to lower general and administrative cost in the three and six months period ended March 31, 2016 compared to the same period in 2015.

Off-Balance Sheet Arrangements

None

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4: CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Based on their evaluation of our disclosure controls and procedures(as defined in Rule 13a-15e under the Securities Exchange Act of 1934 the "Exchange Act"), our principal executive officer and principal financial officer have concluded that as of the end of the period covered by this quarterly report on Form 10-Q such disclosure controls and procedures were not effective due to the lack of segregation of duties and lack of a formal review process that includes multiple levels of review to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms because of the identification of a material weakness in our internal control over financial reporting which we view as an integral part of our disclosure controls and procedures. The material weakness relates to the lack of segregation of duties in financial reporting, as our financial reporting and all accounting functions are performed by an external consultant with no oversight by a professional with accounting expertise. Our CEO /CFO do not possess accounting expertise and our company does not have an audit committee. This weakness is due to the company's lack of working capital to hire additional staff. To remedy this material weakness, we intend to engage another accountant to assist with financial reporting as soon as our finances will allow.

Changes in Internal Control over Financial Reporting

Except as noted above, there have been no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our first quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

10

 

PART II – OTHER INFORMATION

ITEM 1: LEGAL PROCEEDINGS.

None

ITEM 1A: RISK FACTORS.

None

ITEM 2: SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

During the six months period ended March 31, 2016 the Company sold 542,000 shares of common stock at $0.025 per share with a value of $13,550 to 40 individuals for cash.

During the three months period ended March 31, 2016 the Company issued 36,000 shares of common stock at $0.025 per share with a value of $900 to one entity for service.

During the period from April 1, 2016 to through the date of the issuance of this report, the Company sold 208,000 shares of common stock at $0.025 per share with a value of $5,200 to 12 individuals for cash.

ITEM 3: DEFAULTS UPON SENIOR SECURITIES.

None

ITEM 4: MINE SAFETY INFORMATION.

None

ITEM 5: OTHER INFORMATION.

None

11

ITEM 6. EXHIBITS

No.	Description
31	Chief Executive Officer Certification
32	Section 1350 Certification
101	XBRL Interactive Data Files

12

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	BARREL ENERGY, INC.
Date: May 23, 2016	By:	/s/ Gurm Sangha
		Gurm Sangha
		President
		Chief Executive Officer
		Principal Financial and Accounting Officer

13

EX-31

EXHIBIT 31

FORM OF CERTIFICATION

PURSUANT TO RULE 13a-14 AND 15d-14

UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

CERTIFICATION

I, certify that:

1.	I has reviewed this quarterly report on Form 10-Q of BARREL ENERGY, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements are made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and has:

 

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

(a)	All significant deficiencies and material The weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who has a significant role in the registrant's internal control over financial reporting.

Date: May 23, 2016	/s/ Gurm Sangha
	Gurm Sangha
	Chief Executive Officer
	Chief Financial Officer

EX-32

EXHIBIT 32

CERTIFICATIONS PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

In connection with the Quarter Report of BARREL ENERGY, Inc. on Form 10-Q for the period ended March 31, 2016 as filed with the Securities and Exchange Commission (the "Report") Gurm Sangha, Chief Executive Officer and Chief Financial Officer of the Company, does hereby certify, pursuant to §906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. §1350), that to his knowledge:

1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

Dated: May 23, 2016	/s/ Gurm Sangha
	Gurm Sangha
	Chief Executive Officer
	Chief Financial Officer

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

XML

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2016	May. 23, 2016
Document And Entity Information
Entity Registrant Name	Barrel Energy Inc.
Entity Central Index Key	0001631463
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		10,786,000
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2016

XML

BALANCE SHEETS - USD ($)	Mar. 31, 2016	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 5,897	$ 455
Total current assets	5,897	455
Oil lease - unproved	46,063	44,738
Total assets	51,960	$ 45,193
Current liabilities:
Accounts payable	950
Accrued interest	11,269	$ 7,762
Advance from shareholder	18,395	15,683
Convertible note - related party	2,088	2,088
Convertible notes	74,818	55,923
Total current liabilities	$ 107,520	81,456
Convertible notes payable		16,742
Total liabilities	$ 107,520	$ 98,198
Stockholders" equity (deficit):
Preferred stock, $0.001 par value, 5,000,000 authorized, zero issued and outstanding
Common stock, $0.001 par value, 70,000,000 authorized, 10,578,000 and 10,000,000 issued and outstanding, respectively	$ 9,567	$ 8,989
Paid in capital	13,872
Accumulated other comprehensive income	3,236	$ 5,500
Accumulated deficit	(82,235)	(67,494)
Total stockholders" deficit	(55,560)	(53,005)
Total liabilities and stockholders" equity	$ 51,960	$ 45,193

XML

BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2016	Sep. 30, 2015
Stockholders" equity (deficit):
Preferred Stock, Par value	$ 0.001	$ 0.001
Preferred Stock, Authorized	5,000,000	5,000,000
Preferred Stock, Issued	0	0
Preferred Stock, Outstanding	0	0
Common Stock, Par value	$ 0.001	$ 0.001
Common Stock, Authorized	70,000,000	70,000,000
Common Stock, Issued	10,578,000	10,000,000
Common Stock, Outstanding	10,578,000	10,000,000

XML

STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Operating expenses:
General and administrative expense	$ 3,094	$ 16,782	$ 12,013	$ 23,068
Loss from operations	(3,094)	(16,782)	(12,013)	(23,068)
Other income (expense)
Interest expense	(1,555)	(1,880)	(3,158)	(3,860)
Currency (gain) loss	430	23	430	(588)
Total other income (expense)	(1,125)	(1,857)	(2,728)	(4,448)
Net loss	(4,219)	(18,639)	(14,741)	(27,516)
Foreign currency translation adjustment	(2,768)	(2,151)	(2,264)	(3,246)
Comprehensive (loss)	$ (6,987)	$ (20,790)	$ (17,005)	$ (30,762)
Net loss per common share, basic and diluted	$ 0.00	$ 0.00	$ 0.00	$ 0.00
Weighted average number of common shares outstanding, basic and diluted	10,338,440	10,000,000	10,178,732	10,000,000

XML

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net loss	$ (14,741)	$ (27,516)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock issued for services	$ 900
Comprehensive loss		$ (605)
Changes in operating assets and liabilities:
Accounts payable	$ 950	1,181
Accrued interest	3,507	3,487
Net cash used in operating activities	(9,384)	$ (23,453)
Cash flows from financing activities:
Proceeds from sale of common stock	13,550
Advances from related party	4,731
Repayment of related party advances	$ (2,019)
Proceeds from convertible note payable-related party		$ 2,408
Proceeds from convertible note payable		16,590
Net cash provided by financing activities	$ 16,262	18,998
Effects of currency translation	(1,436)	3,246
Net increase in cash	5,442	(1,209)
Cash - beginning of period	455	1,770
Cash - end of period	$ 5,897	$ 561
SUPPLEMENT DISCLOSURES:
Interest paid
Income taxes paid

XML

NATURE OF BUSINESS

6 Months Ended

Mar. 31, 2016

Notes to Financial Statements

NOTE 1 - NATURE OF BUSINESS

Barrel Energy Inc (Barrel) was incorporated on January 27, 2014 under the laws of the State of Nevada. The Company was formed to invest in producing oil and gas properties. On September 26, 2014 the Company leased a non-producing oil and gas property in the province of Alberta, Canada.

BASIS OF PRESENTATION

The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information required to be included in a complete set of financial statements in accordance with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the six months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2016. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. The accompanying unaudited financial statements should be read in conjunction with the financial statements and related notes included in the Company’s form 10-K filed with the SEC on September 30, 2015.

XML

GOING CONCERN

6 Months Ended

Mar. 31, 2016

Notes to Financial Statements

NOTE 2 - GOING CONCERN

The Company’s interim financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company, as shown in the accompanying balance sheets, has a working capital deficit of $101,623 and an accumulated deficit of $82,235 as of March 31, 2016. The Company has not established any source of revenue to cover its operating costs. These factors raise substantial doubt about the company’s ability to continue as a going concern. The Company will engage in very limited activities that must be satisfied in cash until a source of funding is secured. The Company will offer noncash consideration and seek equity lines as a means of financing its operations. If the Company is unable to obtain revenue producing contracts or financing or if the revenue or financing it does obtain is insufficient to cover any operating losses it may incur, it may substantially curtail or terminate its operations or seek other business opportunities through strategic alliances, acquisitions or other arrangements that may dilute the interests of existing stockholders.

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COMMON STOCK

6 Months Ended

Mar. 31, 2016

Notes to Financial Statements

NOTE 3 - COMMON STOCK

During the three months period ended March 31, 2016 the Company sold 542,000 shares of common stock at $0.025 per share with a value of $13,550 to 40 individuals for cash.

During the three months period ended March 31, 2016 the Company issued 36,000 shares of common stock at $0.025 per share with a value of $900 to one entity for service.

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CONVERTIBLE NOTE

6 Months Ended

Mar. 31, 2016

Notes to Financial Statements

NOTE 4 - CONVERTIBLE NOTE

On July 1, 2014 the Company issued a USD $57,580 (CAD $75,000) convertible note for cash. The note bears an interest rate of 9.5% and matures on December 31, 2015. The note, plus accrued interest, is convertible by the holder, in part or whole, until the date of maturity into common stock of the Company at CAD one cent ($0.01) per share. The note is in default.

On October 23, 2014, the Company issued a USD $17,238(CAD $22,454) convertible note for cash. The note bears an interest rate of 9.5% and matures on December 31, 2016. The note, plus accrued interest, is convertible by the holder, in part or whole, until the date of maturity into common stock of the Company at CAD one cent ($0.01) per share.

As of March 31, 2016 the convertible debt outstanding was US $74,818 plus accrued interest of US $11,269 for a total liability of $86,087.

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RELATED PARTY

6 Months Ended

Mar. 31, 2016

Notes to Financial Statements

NOTE 5 - RELATED PARTY

During the six months period ended March 31, 2016 an officer and director of the Company advances the Company $4,731 and was repaid $2,019 from the Company. The funds are payable on demand and bear no interest. As of March 31, 2016 the total amount due to the officer and director is US$ 18,395.

On December 1, 2014 the Company issued to a related party, who is an officer and director of the Company, a convertible note for US$ 2,088 (CAD $2,800). The note bears an interest rate of 5% per annum and matures on December 31, 2015. The note holder may until the date of maturity convert the principal and accrued interest into common stock of the Company at the rate of $0.025 CAD per share. The note is in default.

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SUBSEQUENT EVENT

6 Months Ended

Mar. 31, 2016

Notes to Financial Statements

NOTE 6 - SUBSEQUENT EVENT

During the period from April 1, 2016 to through the date of the issuance of this report, the Company sold 208,000 shares of common stock at $0.025 per share with a value of $5,200 to 12 individuals for cash.

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GOING CONCERN (Details Narrative) - USD ($)	Mar. 31, 2016	Sep. 30, 2015
Going Concern Details Narrative
Working capital deficit	$ 101,623
Accumulated deficit	$ (82,235)	$ (67,494)

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COMMON STOCK (Details Narrative)	3 Months Ended
	Mar. 31, 2016 USD ($) Number $ / shares shares
Common Stock Details Narrative
Number of common shares sold | shares	542,000
Number of common shares sold, per share | $ / shares	$ 0.025
Number of common shares sold, value | $	$ 13,550
Number of common shares sold, individuals for cash | Number	40
Issuance of common shares | shares	36,000
Issuance of common shares, per share | $ / shares	$ 0.025
Issuance of common shares, value | $	$ 900
Issuance of common shares, entity for service | Number	1

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CONVERTIBLE NOTE (Details Narrative)	Mar. 31, 2016 USD ($)
Convertible Note Details Narrative
Convertible debt outstanding	$ 74,818
Accrued interest	11,269
Total liability	$ 86,087

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RELATED PARTY (Details Narrative) - USD ($)	6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2015
Related Party Details Narrative
Advances from related party	$ 4,731
Repayment of related party debt	2,019
Due to the officer and director	$ 18,395		$ 15,683