An apparatus for detecting a position of a component in an earth formation is disclosed. The apparatus includes: a transmitter configured to emit a first magnetic field into the earth formation and induce an electric current in the component, the transmitter having a first magnetic dipole extending in a first direction; and a receiver for detecting a second magnetic field generated by the component in response to the first magnetic field, the receiver having a second magnetic dipole extending in a second direction orthogonal to the first direction. A method and computer program product for detecting a position of a component in an earth formation is also disclosed. Apparatus and methods are also disclosed for estimating a position of a second borehole being drilled relative to an existing first borehole.