This is the instanced zone involving the first group mission for Blacksail Folly, Buried Treasure, in which you're sent to search the pirate stronghold of Blacksail Folly for a valuable sapphire.
Objective: - Buy ticket to Blacksail Folly - Kill Fruitless Finstraw and search his hut - Kill Ferdinade Jellybones and search his camp - Kill Bob Bloodbucket and search his guard tower - Kill Jean Jailbird and search her guard tower - Kill Musketball Wallace and search his hut - Kill Saggin' Jowelsbailey and search his hut
Have to find the key before you can enter the stronghold as stated by the quest lore.
Reward is 50 doubloons or faction Mobs con yellow and red to my 71 necro and a 75 SK.