BARCELONA — Toon and docus production house Magoproduction is teaming with Italian pubcaster RAI to produce animated series “The Flying Squirrels.”

Budgeted at €2.5 million ($3.4 million), “Squirrels” is also backed by Catalan pubcaster TV3, Colombia’s Jaguar and Andorra Television. RAI will hold all distribution rights for Italy.

The 3D toon series, which is comprised of 26 13-minute episodes, turns on five friends, descendants of pirates, who embark on a quest for a magic chest that will make all their wishes come true.

To succeed, they will have to survive the dangers of an underworld beneath Dragon City.

Targeting 11-14 year olds, the series was short-listed for October’s Mip Junior Kids’ Jury Prize. It will be ready for delivery late 2012.

Magoproduction has also rolled out sales on “Dr. W,” a short toon format about a surgeon working under the nickname of Dr. W on a kids’ TV program.

Arte has acquired “Dr. W” for Germany and France, RTP for Portugal, YLE for Finland and Canal Encuentro for Argentina.

Barcelona-based, Magoproduction is about to close co-production with Latin America on a second “Dr. W” season, its creative director, Muyi Neira, told Variety.

Peter Keydel founded Magoproduction in 2004. Neira joined in 2007.

“We want to make B series super productions,” Neira joked. We don’t want to suffer the pressure of big budgets, although we do aim to endow a TV product with cinematic feel and artistic vision.”