A UK-based company called Velvet Octopus is ready to begin production on a sequel to 2001 cult hit Donnie Darko, of Jake Gyllenhaal fame. Jake will not be returning, but Daviegh Chase, who played Donnie’s younger sister Samantha in the film, will be returning to star in the “sequel.”

The second film picks up seven years after the first film (and the ill-fated jet engine incident), with Samantha Darko and her friend Corey on a road trip to Los Angeles when they start having weird visions.

This seems like a really bad idea. Velvet Octopus would like to make it known that they have “spoken” to Richard Kelly, the director of the first film, but that he is not involved in any official way. That makes us thing: bring on the suck.

Cast, details and when this shit-storm starts to go down, after the jump.

From Screen Daily:

UK-based sales company Velvet Octopus will be launching sales in Cannes for S. Darko, billed as the sequel to the 2001 cult hit Donnie Darko. Fox has already taken North American rights.

Daviegh Chase reprises her role as Donnie’s younger sister. The cast for S. Darko also includes Ed Westwick (Son Of Rambow, Gossip Girl), Briana Evigan (Step Up 2) and Justin Chatwin (Dragon Ball).

Ash Shah’s Silver Nitrate and Newmarket Capital are producing. Los Angeles-based Chris Fisher, who previously made Nightstalker and Rampage: The Hillside Strangler Murders, will direct. The budget is pegged around $10m.

How did Kelly give up his only worth-while property this quickly and NOT get involved in something that is most likely going to include the sub-header of Donnie Darko 2?