Libyan opposition forces reached Ugaylah as they were pushing their advance westwards on Sunday.
The Libyan opposition on Saturday wrested back control of the strategic oil town of Ajdabiya in south of Benghazi following intense battles with forces loyal to Libyan embattled ruler Muammar Gaddafi.
The revolutionaries pushed Gaddafi’s forces out of Ajdabiya, which has been under siege for more than a week, with the opposition forces holding the city center amid shelling from government troops positioned on the outskirts.
Opposition forces say troops loyal to Gaddafi are now on the retreat and moving to the town of al-Bisher.
Regime troops captured Brega and Ajdabiya two weeks ago following fierce fighting.
Clashes are still underway in the western city of Misratah.
This comes as Western forces continue pounding Libyan military installations.
The UK Ministry of Defense earlier said British warplanes have hit several armored vehicles on the outskirts of Ajdabiya and Brega.
French fighter jets have reportedly destroyed several warplanes and helicopters in Misratah.
A Libyan government spokesman says the fresh Western-led airstrikes have left many civilians dead.