Positioning techniques in multi-well environments

A method is provided to determine a distance, a direction, or both between an existing first wellbore and at least one sensor module of a drill string within a second wellbore being drilled. The method includes using the at least one sensor module to measure a magnetic field and to generate at least one first signal indicative of the measured magnetic field. The method further includes using the at least one sensor module to gyroscopically measure an azimuth, an inclination, or both of the at least one sensor module and to generate at least one second signal indicative of the measured azimuth, inclination, or both. The method further includes using the at least one first signal and the at least one second signal to calculate a distance between the existing first wellbore and the at least one sensor module, a direction between the existing first wellbore and the at least one sensor module, or both a distance and a direction between the existing first wellbore and the at least one sensor module.