Well, Cactus, it's for drilling bung holes. Those are the tapered holes in barrels and casks that are sealed by driving in a tapered plug. This one is odd in a couple of respects. First, it uses a center bit for the initial hole, which is then tapered by the back end of the bit. Second, it is really small. It looks to be more useful in drilling a hole for an old style wooden tap -- which would make it a tap auger.
It ought to work an any old brace or bit-stock.