The event launched a month of celebrations.
Club president Garry Hansen said while the club had been a venue for entertainers for quarter of a century, it was still better known outside Oamaru than in town.
''We thought we'd just bring it outside and show the public who we are,'' Mr Hansen said.
''To showcase the entertainment; the bands that have come through the Penguin Club.
''We're loaded with top entertainment in Oamaru. It's great.''
A band called Rags first started the club, he said.
Rags drummer and Penguin Club founding member Bill Blakey was at Friendly Bay on Sunday.
He said the club started off as a rehearsal room.
''I don't know the date of it, but some time this month, 25 years ago, we played a gig at the Five Forks Hall, raised $300, built the club,'' he said.
''That's the foundation of it. We put bands together, stuck them out there and we went for it.''
Mr Blakey was now the secretary of the club.
''It just grew,'' he said.
''Twenty-five years on, we're running 10 bands out of there.''
''We covered the whole nine yards, anyone that's prepared to get up and entertain someone - do your thing.''
With 240 members and a historic precinct venue that can legally hold 100 people, there was a lot of pride in the club.
