We describe the application of Alpak et al.’s (2006) petrophysical inversion algorithm to the interpretation of borehole array induction logs acquired in an active North American gas field. Layer-by-layer values of porosity and permeability were estimated in two closely spaced vertical wells that penetrated the same horizontal rock formation. The wells were drilled with different muds and overbalance pressures, and the corresponding electromagnetic induction logs were acquired with different tools. Rock-core laboratory measurements available in one of the two wells were used to constrain the efficiency of gas displacement by water-based mud during the process of invasion. Estimated values of porosity and permeability agree well with measurements performed on rock-core samples. In addition to estimating porosity and permeability, the petrophysical inversion algorithm provided accurate spatial distributions of gas saturation in the invaded rock formations that were not possible to obtain with conventional procedures based solely on the use of density and resistivity logs.