By popular demand, here's some more penguin games – and this is one pretty darn odd one. Mutant Penguins was made by Sunrise Games and published by GameTek 1996 for PC and the ill-fated Atari Jaguar.
This game is so bizarre I won't even try to explain it. Instead, I recommend you to check out the description given by Angry Video Game Nerd in his Atari Jaguar feature. The video is about Jaguar in general, but the Mutant Penguins section starts at 2:33.