CORRECTED - Ethiopia denies rebels have captured seven towns

* Government says 245 rebels killed

* Ethiopia says oil companies have nothing to fear

(Removes reference to Lundin in 5th paragraph)

By Barry Malone

ADDIS ABABA, Nov 16 (Reuters) - Ethiopia on Monday denied that rebels fighting for independence for a region with potentially lucrative oil and gas reserves had seized seven towns near the border with neighbouring Somalia.

The Ogaden National Liberation Front (ONLF) said on Saturday it had taken the towns after almost a week of fierce fighting with the Ethiopian army. [nLE162745]

"They haven't taken any towns at all," Bereket Simon, Ethiopian government head of information, told Reuters. "Their attacks last week were simply the desperate act of a dying force and about 245 of their fighters were killed."

Bereket said the ONLF were repelled by local militias allied to the government and that no Ethiopian soldiers had been killed.

The ONLF wants autonomy for the Ogaden region, whose population is ethnic Somali. The area is said to contain mineral deposits and international firms including Malaysia's state-owned Petronas [PETR.UL] are exploring for oil.