It's got a ludicrous setup, but Penumbra Ep. 1 succeeds despite its many shortcomings.
I would have liked a few more answers to this story. Naturally it all ends on a cliffhanger and an absolutely amazing concluding visual, and in that regard the game is very effective. But most of the time the narrator talks about the doom he's facing and how much he regrets coming to the facility, but I haven't seen much to back that up. Oh, I'm still interested, but I wanted to be let in on the secret a little earlier. Just a hint, y'know?
Much of the items are a little superfluous. I only ever used the glowstick to light my way; the flashlight was pathetic and provided worse light, and I never touched the flares. Dynamite was unrealistically small in scale and likewise rarely used, and combat was a real chore. It's not meant to be a focus, but overall the controls feel too sluggish, almost like you're moving underwater. It feels like the game is drugged at times with its languorous physics. If you don't get an early knockdown in the fights, you're basically finished with your slow turning speed.
I'd still recommend it as one of the more effective horror games to hit the PC, regardless of these faults. I've paid more for fewer hours' entertainment.