When the development of the “next gen” Turok for Disney Interactive Studios was finished, Propaganda Games started to work on a sequel, but the project was cancelled when most of the team was laid off. As we can read on Kotaku:
Sources tell us that Vancouver based Propaganda Games is in the process of laying off approximately 70 employees. That reduction in workforce is likely closely tied to the cancellation of Turok 2, a title never officially announced by Disney, but one of two projects that Propaganda was working on, we’re told.
Not much is known about Turok 2 and we are not sure how much work went into it before the cancellation, but it seems that it would have been possible to ride dinosaurs in the game, as in the “original” Turok 2 on the Nintendo 64.
The Turok Wiki has a load of concept art and information on the game. Turok 2 was set to have Turok, or possibly a different character, return to the planet from the first game. Several soldiers left behind became “zombies” and would live in swamps. Orks were to be introduced along with several new weapons.
Thanks to Jason for the english corrections!