A method and apparatus are provided for making directional measurements toward a formation of different resistivity that is proximate to the borehole, but which is not penetrated by the borehole. The disclosed methods and apparatus include the use of at least one insulated gap and at least one magnetometer positioned within a non-magnetic housing that is disposed within a non-magnetic tubular. An electric current is applied across the insulated gap, which results in current leaking into the surrounding formations. When a formation of contrasting resistivity is proximate to the logging apparatus, the magnetometer detects a secondary magnetic due to the contrasting formation. The direction of the secondary magnetic field can be used to determine the direction to the contrasting formation. The magnitude of the secondary magnetic field can be used to determine the distance position to the contrasting formation.