The Penguins won three national second division titles between 1997 and 2000 before quietly disappearing into the wilderness, until basketball enthusiast Brian de Geest decided the time was right to get the team up and running again.
"There are a lot of young fellas who have come out of the Waitaki Boys programme... hanging around who are keen hoopsters," he said.
"So it is really an outlet for them to play at a higher level. And it allows us to create some interest here [in Oamaru]."
De Geest will coach the side, which includes some promising young talent and the odd veteran.
Former Otago Nugget Markham Brown, who played for the Penguins when they were last operating, returns, along with stalwart Ian Cathcart.
Otago Nuggets bench player Mitch McRae joins the roster, which also includes promising centre Gary Dawson and shooting guard Riki Buckrell.
No squad would be complete without an American import and the Penguins have point guard Dalun Smith.
The 26-year-old has been playing basketball in Germany but is in New Zealand for the next four months, where he will work as a basketball development officer in Oamaru.
The Penguins will play in the inaugural Southern Inter-Association tournament, which Basketball Otago chief executive Mark Rogers has been instrumental in getting off the ground.
The competition will feature teams from South Canterbury, Southland, Central Otago and an Otago A and B side.
The teams will play each other in a home-and-away, round-robin series beginning in June, and is designed to prepare the teams for the Conference Basketball League qualifying tournament which begins in August.
