Whilst wandering around the Hills I noticed that the lurker was up so I ran to Fripp and got the quest, then went back to the lurker and killed it. Satchel dropped first time.
I was using a 75 Ranger and healer merc. I just pulled the lurker up to the wall next to Blackburrow entrance and just kept him rooted and took him down with my bow. Was not a quick fight, but was easily done. Took at least 5 mins to kill him but he only hit me when I got too close running back and forth keeping him rooted.
I killed two of these suckers. One gave me a "Fine Steel Two Handed Sword" and the other gave me "Vial of Gnoll Blood". Heh, nice to know you can still get level 30 drops from Level 75 mobs. LMAO!