A method for forming one or more openings in a hydrocarbon containing formation is described. The method may include forming or providing a first opening in the formation. A plurality of magnets may be provided into the first opening. The plurality of magnets may be positioned along a portion of the first opening. The plurality of magnets may produce a series of magnetic fields along the portion of the first opening. A second opening in the formation may be formed using magnetic tracking of the series of magnetic fields. The second opening may be spaced a desired distance from the first opening. Alternate embodiments include use of an energized conduit to create a magnetic field. Such energized conduit can be used alone or with the plurality of magnets.