1. A method of detecting and locating a microseismic event, comprising: providing an estimate of a velocity model for a formation; estimating a volume of space in which the event will most likely occur; dividing the volume into a plurality of sub-volumes; receiving data of a microseismic event with at least a first and a second seismic sensor located on a tool in a wellbore; approximating a location of the event by coalescing a plurality of seismic signals received with the receivers at selected locations and time in the volume to determine in which sub-volume the event occurred; and determining a more precise location of the event by locating the events within the sub-volume utilizing the signals.