Early exploration well tests in the Colville River Field (also known as Alpine) drilled with water-based mud systems exhibited unexplainably high near wellbore residual skin damage as documented by pressure build-up testing. Typical formation damage mechanisms including clay reactions, mechanical damage, and gas trapping could not explain the damage. Between March 1998 and July 2001, laboratory testing determined imbibition-induced water trapping to be the primary formation damage mechanism. In situ water saturation is significantly lower than the residual or connate water saturation, a condition rarely encountered in the field. Lab tests quantified impacts and identified methods to minimize or eliminate formation damage. This paper documents how successful identification of a unique damage mechanism improved drilling results in a low permeability sandstone.