If you head towards bloodfields, the northern path near nobles, and head through the two towers, he is one of the mobs in the back of the tower on your right.
Dropped Dargorn Hide Cape and a Fire Opal for me. Cape is: Magic/Lore, Slot:Back, Ac:9, Sta +6, Wis +6, Agi +5, HP +15, Mana +20, Magic +7, Poison +7, Recommended lvl 40, WT 1.0, Class: CLR, DRU, SHM, Race: All, Slot1/type7