Lithium brine fields. (Source: Shutterstock)
Atlanta, Texas-based Barrell Energy Inc. is raising capital for its portfolio company Barrell Lithium LLC to boost its acreage position in the Smackover lithium brine play in East Texas, according to an April 8 press release.
The company launched a Series A funding round for Barrell Lithium following a seed funding round for the lithium company in November 2024, the release stated. Financial details were not disclosed in the release.
The funds are expected to increase Barrell Lithium’s leasehold to approximately 40,000 acres across its key prospect areas in the play, the company said.
"We are strategically using our deep geological understanding of the Smackover and our experienced local land team to efficiently expand our footprint across multiple high-potential prospects,” said Kirk Barrell, president of Barrell Energy.
The company said it has conducted four years of “intensive” geological evaluation of structure, reservoir quality and potential lithium resources within the Smackover formation across fifteen counties.
The Smackover has seen a rise in activity and competition over the past year, with major operators like Exxon Mobil and Equinor entering the lithium fairway, Barrell added.
In November 2023, Exxon purchased 120,000 gross acres in the Smackover Formation in southern Arkansas, with first lithium production targeted for 2027.
And in May 2024 Equinor formed a joint venture with Standard Lithium called Smackover Lithium to develop direct lithium extraction projects in southwest Arkansas and East Texas.
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