Paramount Pictures has picked up U.S. distribution rights for director Oren Peli's Area 51, which is a follow up to Paranormal Activity, which Peli also wrote and directed.

According to Variety, the deal puts the studio back in business with the creative and financing team behind Paranormal Activity the $11,000 film that's grossed more than $106 million. Peli had a much larger budget to work with on this extraterrestrial tale than he did for his ghost story, as sources said he brought the film in at a shade under $5 million.

Area 51, which completed principal photography three weeks ago, was fully financed by Incentive and the Aramid Entertainment Fund.

Related: Oren Peli's Area 51 Sparks a Bidding War

The film employs the "found footage" narrative structure that Peli used in Paranormal Activity to tell the story of three teens whose curiosity leads them to the notorious Area 51 portion of Nellis Air Force Base in the Nevada desert.

The film will hit theaters some time in 2010.