Japanese zombie film One Cut of the Dead, which screened at the Fantasia Film Festival last month (here’s our review), is making huge waves in Japan. Budgeted at $27,000 (JPY3.0 million), the film’s success is being likened to The Blair Witch Project‘s in 1999.

Shot over eight days on location north of Tokyo, Shinichiro Ueda‘s film also screened at the Yubari International Fantastic Film Festival in March this year, and the following month it had its international premiere at the Udine Far East Film Festival in Italy, where it won the second-place audience award. “Seeing 500 fans at Udine applaud for five minutes gave us confidence,” Koji Ichihashi, Enbu Seminar president and the film’s producer told Variety in a lengthy hype piece.

After more festival screenings, where it received a rapturous reception from audiences and critics, One Cut of the Dead had its commercial release in Japan on June 23 on two screens. Boosted by dozens of favorable comments Ueda and Ichihashi had solicited from actors, directors and entertainment personalities, the film sold out screening after screening.

As the film packed in fans, the media took notice. “It became a news item, with newspapers, magazines and TV shows reporting on it,” says Ichihashi. “That hardly ever happens with an independent film here.”

Enbu Seminiar, which occupies two rooms in a weathered Tokyo office building, acquired a partner in mid-level distributor Asmik Ace and the film began to play in downtown multiplexes of Toho, Japan’s biggest exhibitor and distributor, adds Variety.

As of this week, One Cut was showing on 200 screens, while its admissions had passed the 300,000 mark. Cumulative box office is near to $8 million (JPY1.0 billion).

Meagan reviewed the film out of Fantasia, writing that the film “charms with surprising zombie comedy.”

Watch for U.S. distribution news as it comes in.