March 10 (Reuters) - Canadian oil producer Frontera Energy FEC.TO said on Monday that it believes its license to explore the Corentyne block off the coast of Guyana remains valid and it is assessing all legal options to assert its rights.

The Guyanese government gave Frontera and CGX Energy OYL.V, the joint operators that hold the license, a 30-day cancellation notice over unmet contract obligations.

The Corentyne block was seen as a key effort to diversify Guyana's oil industry, currently dominated by a consortium led by Exxon Mobil XOM.N.

It is also the only area Frontera and CGX Energy OYL.V - the joint operators that hold the license - have left in Guyana after they returned two other blocks in recent years over budget constraints.

The Guyanese government had given the joint venture until February 22 to submit arguments for reconsideration. The license is set to expire on March 10 unless their representations are favorably reviewed.

Frontera Energy reported its quarterly and yearly earnings on Monday, showing a nearly 8% increase in fourth-quarter production compared to the same quarter last year, reaching 42,406 barrels of oil equivalent per day (boed).

However, shares fell 4.1% in afternoon trade as the company posted a net loss of $29.4 million, or 36 cents per share, compared to a net income of $92.0 million, or $1.08 per share, in the fourth quarter of 202

The Calgary, Canada-based company expects to produce 40,400 boed in the first quarter of this year to due to unexpected well failures within its light and medium assets, which the company says it was addressing.

(Reporting by Seher Dareen in Bengaluru; Editing by Tasim Zahid)

((Seher.Dareen@thomsonreuters.com; If in India call +91 74832 70128;))