The entire Shoalwater area (not just Penguin Island) is ace... Seal island just next to Penguin Island always have a sea lion crew just chilling on the beach, they often hop up for a show which is always fun... The rocks and reef around those islands are a lot of fun to explore. For those keen, if the swell is right there is a bit of surf just behind seal island and a couple of breaks also behind Penguin Island.
I'm out there almost every weekend, love it :)
Also the North-facing palm beach (rockingham) is super flat, all the way up to the Point Peron headland, past mangles bay, under the Garden Island traffic bridge. I'll go here instead of shoalwater if the wind is too southerly.
Here's a video I put together of shoal water (Penguin Island and Seal Island mostly)
I'd love to start up a 'shoalwater paddle crew' :)
