Hi, I was in Panama for about a month from mid may to mid june 2014. There are 2 hostels in Venao, Venao Cove
http://playa-venao-panama.com/ and Eco Venao, we stayed in Venao Cove for just over a couple of weeks. As far as the hostel goes it was one of the best we stayed in during our 5 months in central america, its run by an aussie dude called Leaf (top guy) and his Wife. Eco venao looked good too, we ate in there quite a few times (really good burgers and $5 local style lunch of the day) and made good friends with a few of the staff. If I was going again I'd go back to Venao cove hostel. Board wise I'd bring your own, as far as I remember the only rentals in Venao were soft tops, there might be a surf shop or 2 in Panama city. The surf was really consistant while we were there, in the region of 3-8ft. The best areas on the cove to surf while we were there was the far end - 10 min walk or next to the rivermouth - 2 min but I expect it changes a lot. Feel free to quiz me with any questions.