MONTREAL — Muse Entertainment has a full autumn production slate, including a low-budget horror copro with Romania, the second season of the award-winning drama Durham County and the company’s first pilot for a U.S. network.

In late October, Muse began principal photography on Night and Day, a pilot for TNT co-created and co-written by Emmy Award winners Joel Surnow (24) and Todd Robinson (White Squall, Lonely Hearts). Filmed in Albuquerque, New Mexico – which offers tax incentives similar to those in Canada – the series stars William Fichtner (Prison Break, Crash) as federal agent Dan Hollister, who heads up a ‘Special Threat’ investigations unit.

‘It’s a novel project for Muse,’ says president and CEO Michael Prupas. ‘There is no Canadian content. And no Canadian tax benefits. We’re banking on success down the road.’

Night and Day is also unique because Muse and its ‘in association with’ partner Tandem Communications – which is also the series’ international distributor – are working directly with the writers, explains Prupas. ‘Normally American TV writers work with the major studios. This allows Joel to be free of the studio system and work with an independent production company.’

Prupas describes the deal as a ‘step forward’ for his company at a time when the future of television in Canada is precarious because of the global recession and the uncertainty around the future of the Canadian Television Fund. ‘The major U.S. networks predict a 20% drop in ad revenues. This will no doubt have an impact,’ says the CEO.

In order to develop new TV financing models, Muse has opened an office in L.A. and hired an American agent to develop presales as well as new projects involving U.S. networks and Canadian writers and directors.

‘We want to create a cross-border production strategy so we have greater access to the U.S. market and a greater presence there,’ explains Prupas. ‘There are limits to what Canadian broadcasters can buy. They are telling us to find other ways to finance.’

Prupas says it’s a ‘tribute to Canadian talent’ that Americans are more willing to use Canadian writers and directors now.

‘It’s still an uphill battle, but it’s starting to get easier.’

Prupas hopes to hear if the pilot gets a green light by Christmas.

As part of a five-film slate of low-budget 35mm horror flicks it’s producing, Muse began shooting the thriller Sand Serpents – billed as a ‘thrilling tale of man-eating serpents’ who go after soldiers in Afghanistan – in Romania on Oct. 14. The productions will have ‘the look of 1950s horror flicks like the Blob,’ says Prupas.

‘You have to suspend disbelief to get into these stories. They are meant to frighten people out of their pants.’

Sand Serpents, which is produced by Ric Nish (Durham County) and Andreea Stanculeanu and Silviu Viju, is set to air in the U.S. on the Sci-Fi Channel in 2009, and on Super Channel in Canada.

Muse is also filming another six hours of the acclaimed series Durham Country in Montreal and Ste-Julie, QC. Michelle Forbes (Lost, Battlestar Galactica) joins the cast, working with returning stars Hugh Dillon, Hélène Joy (Murdoch Mysteries) and Laurence Leboeuf (Human Trafficking). Laurie Finstad Knizhnik picked up a Gemini this month for writing the series.

‘Laurie is a terrific talent. The writing is the heart and soul of the show. We’re thrilled to be doing a second season,’ says Prupas.

Produced by Muse and Back Alley Productions, the new season is due to air next year on The Movie Network and Movie Central.