According to Variety, just as Paramount Pictures brings out Paranormal Activity into 40 cities this weekend, writer-director Oren Peli has already set up his follow-up film.

Next week production will commence on Area 51. The film will have the "found footage narrative structure of his last film and tell the story of three teens whose curiosity leads them to the notorious Area 51 part of Nellis Air Force Base in the Nevada desert."

Area 51 will have a $5 million dollar budget while Paranormal Activity only cost $11,000 to make.

"I'd rather not say anything about Area 51 except that I am very pleased to be working with the same team who stood by me for the two or three years it took Paranormal Activity to get into theaters," Peli stated.

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Evan Jacobs at Movieweb
Evan Jacobs