Oil exploration group Petroceltic has begun drilling two new wells in Kurdistan and Romania.

The company has begun work on Shakrok-1, in the Kurdistan region of Iraq, and on Cobalcescu South, off the coast of Romania.

Petroceltic holds a 16% participating interest in the Kurdistan well which is estimated to take 150 days to drill to target.

The Romanian well will take two months to drill, the company added.

"The spudding of our first wells in the Kurdistan region of Iraq and Romania, heralds an exciting period for Petroceltic," Petroceltic chief executive Brian O'Cathain said.

He said that the Shakrok-1 well in Kurdistan is the first well in a multi-well campaign planned for this prolific petroleum province where a number of large exploration targets have been identified.

''Recent regional drilling results also suggest that there could be substantial upside resource potential beyond the currently mapped structural closure,'' Mr O'Cathain said.

''In Romania, the 3D seismic survey acquired in 2012 has confirmed the presence of a significant gas prospect inventory in a number of different hydrocarbon plays. Cobalcescu South is the first well in the campaign and it will be immediately followed by an exploration well on the adjacent Muridava licence,'' the chief executive said.