Fermentation can take place? There are more pepper fiends here so you may soon see some answers..

Here are more threads about pepper sauces..

Here is a link that might be useful: Pepper sauce threads

Ok, so what I got from that search is that it will be okay considering the amount of vinegar. Am I wrong?

Eric, these won't ferment at all since you're using straight vinegar. How big are your oak barrels? Can you fill the things with the smoked mash?

A couple of thoughts- you'd want to seal the air out of the oak barrels, maybe by putting down a couple layers of food grade plastic and something to hold it down. That would be to avoid some passing microbe / yeast / mold / beastie that might enjoy a low-pH environment. And if the barrels are old, then they might have dried out a bit and leak, both juice out or air in.

Depending on the quantities, if it isn't all that much, I'd be tempted to put it in glass jars to age, and get that oak taste by adding a few inch piece of lightly charred wood to the mix inside the jar. They might be easier to manage.

You might look into other kinds of vinegar, cider or white wine would give some more flavor to the mix.

Sounds like fun.