A new propagation resistivity tool has been designed and built with a measure point only 15 feet from the bit. Measurements of near-bit inclination and gamma ray are also provided. All of these measurements are in a package that includes a mud motor. The primary purpose of this tool is to provide a means for staying in a target formation during horizontal drilling. The propagation resistivity measurement of this reservoir navigation tool has the ability to see radially much deeper than focused resistivity devices. The radial direction is the direction of interest in horizontal drilling because the distance between adjacent beds is in the radial direction (relative to the tool). Devices which attempt to see beyond the end of the bit have limitations in a horizontal environment because the distance to the adjacent bed is very large in the direction of the borehole. In addition to the standard 2 MHz frequency, this new propagation resistivity tool has a second frequency of 400 kHz which has a much greater depth of investigation than the 2 MHz frequency. Measuring amplitude and phase at both frequencies produces 4 different depths of investigation at the same measure point. Modeling has shown that adjacent conductive beds can be detected as much as 12 feet away with the 2 MHz frequency and about 32 feet away at the lower frequency. These detection distances refer to the true vertical distance from the borehole to the adjacent bed, but the borehole may not intersect this bed for several hundred feet in horizontal drilling because the borehole is nearly parallel to the bed boundary. In addition, new state-of-the-art electronics and the use of a second transmitter have greatly improved the precision of the resistivity measurements. The result of these improvements is better accuracy in highly resistive formations. Therefore, this tool is able to provide both geosteering and a propagation resistivity measurement as accurate as the best wireline induction tools.