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The Penarium Barrel was first seen in the 'Escape Team' DLC (Downloadable Content). When you give this to an inmate or guard it increases opinion by 15. In the Console and Mobile ports, it raises opinion by 50. May be used in favours. It can be found in any prison.
The Penarium Barrel is probably a reference to another game published by Team17, Penarium.
The Warden, dressed as The Ringmaster, can occasionally reference Penarium in one of their quotes.
This item can be found in a inmates cell in any prison.