Rebels Say 300 Army Soldiers Slain in Battle

Rebels in Sudan said they had killed 300 army soldiers in their biggest battle since the government launched an offensive to secure oil-producing areas early this year.

The government denied the claims and said the army had repelled a rebel attack near the strategic southern town of Bentiu, an area containing some of Sudan's choicest oil exploration sites.

Rebels of the Sudan People's Liberation Army said their fighters had inflicted heavy losses in clashes last week with the army.

The rebels say the government is using an increasing flow of oil revenue to buy weapons. The government says it is using the money to tap Sudan's economic potential.