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Spokesman for Khartoum says troops have reached outskirts of Heglig, occupied by South Sudan in cross-border clashes.
Officials from Sudan and South Sudan travel to Addis Ababa, but await arrival of African Union mediator Thabo Mbeki.
Officials from Sudan and South Sudan to meet in Addis Ababa on Thursday with view to ending hostilities along border.
Dispute between former enemies seen as major threat to peace in Africa as both sides are seen acting out of desperation.
Khartoum says it will release detained tankers in goodwill effort to end spat with South Sudan over oil payments.
Juba accuses Khartoum of "stealing" its oil exports as AU sponsored talks are set to open in Addis Ababa.
Heavy fighting over two days in oil-producing states of Unity and Upper Nile said to have left at least 70 people dead.
South Sudan minister accuses officer who lost governorship vote last year of orchestrating carnage in Jonglei region.
Beijing has invested billions in the oil-rich country and may now have to step up to ensure stability prevails.
Donata Hardenberg
Representantives from north and south say referendum will be peaceful and held according to the timetable.
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