A group of disgruntled former government militia raided a remote village and its community elementary school in southern Philippines Thursday, kidnapping at least 125 civilians, police officials said.

So far, 50 hostages had managed to escape as kidnappers dodged police pursuits and negotiations have resulted in the release of 18 others, including 17 school children, police said.

"We have already deployed the provincial mobile group and organized the provincial management committee to pursue the negotiations. As of now, there are no longer children hostages," said regional police director Chief Superintendent Lino Calingasan.

Police said around 15 armed men led by a certain Juan Ondo Perez started to attack the streets of San Martin village in Prosperidad town of Agusan del Sur province as early as 6:45 a.m. (2245 GMT). A police official told local media that the gunmen, armed with M16 rifles and shotguns, "took everyone they could get their hands on."

The Perez group is a criminal gang organized by a handful of former para-military soldiers, senior superintendent Nestor Fajura said, adding that the group might be using the hostages to protest the arrest warrants issued against them.

Fajura told local television ANC that the hostages were kept in a hilly site about two kilometers north of the Sitio Maitum village.

He said the hostages are in good condition and the Perez group demanded the authorities drop murder charges against them and call off military and police operations.

The Muslims-dominating Mindanao region is awash with loose arms and plagued with poverty, insurgency, and clan wars for decades.

The Agusan del Sur abduction occurred barely 20 days after a group of armed men kidnapped and killed 57 civilians on an election convoy in Maguindanao province. Martial law was imposed in the province as troops were called in to quell rebellion threats posed by thousands of militia loyal to a political family accused of ordering the massacre.