March 10 (Reuters) - Canadian oil producer Frontera

Energy ( FECCF ) 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 ( CGXEF )

, 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 ).

It is also the only area Frontera and CGX Energy ( CGXEF ) -

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 ( FECCF ) 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.