A method of fracturing a formation while drilling a wellbore. The method includes providing a bottomhole assembly (“BHA”) having a reamer positioned above a pilot hole assembly, connecting the BHA to a drill string, actuating the BHA to drill a first wellbore section with the reamer and to drill a pilot hole with the pilot hole assembly, hydraulically sealing the pilot hole from the first wellbore section, and fracturing the formation proximate the pilot hole.