Ethiopia's ONLF rebels say captured seven towns

* ONLF say seven towns captured

* Government says rebels defeated

* Region with oil and gas potential

By Barry Malone

ADDIS ABABA, Nov 14 (Reuters) - Ethiopian rebels fighting for independence for a region with potentially significant oil and gas reserves said on Saturday they had captured seven towns near the border with neighbouring Somalia.

The Ogaden National Liberation Front (ONLF) wants autonomy for the Ogaden region, whose population is ethnic Somali. The area is drawing interest from foreign oil and gas companies who think its deserts might be rich in mineral deposits.

"The operation ... to capture Obolka, Hamaro, Higlaaley, Yucub, Galadiid, Boodhaano and Gunogabo involved thousands of ONLF troops and resulted in two days of heavy fighting," the rebels said in a statement.

"A significant number of Ethiopian troops have been killed and their military hardware captured or destroyed."