Level 29 pally and wiz walking through and he aggroed on us near the gnolls just over the zone from SK. He was medium or light blue to us. Got nearly 3pp combined off him.
1st off, the levels of these things are way off, at level 20 my friend's necro was conning these bad boys...hehehe...they were yellow....EVERY single one of them! They seem to spawn in the gnoll camp at the entrance to South Karana, a greater skeleton or some kind of bag o bones shown up in the area as well with these guys.
If you are hunting the gnolls, watch for the sunset, and keep hitting /time...my bud fergot and almost died!
One of these taught my 14 druid a helpful leason... Undead see invisible... I got jumped by one once and zoned. a 23 cleric I knew took him out no prob. but he didn't loot, so when i came back I looted 3pp!! If you can take him this is great money.