Ethiopian rebels warn Canadian firm exploring oil

"They have completely lost that capacity as most of their fighters have put down their arms. Now the remaining faction's leaders are engaged in a routine propaganda to disturb the ongoing development activities," he said.

Africa Oil Corp. said on its website that it has three projects in Ethiopia including in the Ogaden Basin where ONLF has been fighting the Addis Ababa government.

The rebels want to create an independent state in the Ogaden region, which is inhabited by mostly ethnic Somalis. Peace talks between ONLF and Ethiopians government in neighboring Kenya ended in disagreement in October.