Frog shammies need to kill this fellow for part of one of their newbie quests. Seems to me this is a nice bonus while trying to get the quest drop, that's all.
He does indeed spawn near the Upper Guk entrance, somewhere between there and the PoK book. Wanders around some, but generally not far from there.
If you're a shaman or cleric with no track and hoping to find the guy who drops this, I ran into him near the ent of Upper Guk. I don't know if he wanders the whole zone, but that's where I encountered him.
I made a frog myself and I've killed him many times but have yet to find anything else or a quest that would go along with this item... Seems as if it's just newbie loot heh
I dunno, I was passing through Inno one night, and I ran into this guy... I smacked em, for reason of nothing better to do, and he dropped this, so I'm guessing it's for something bigger, maybe?