18: Infiltration

The Elder Scrolls IV: Oblivion Guide - Fighter's Guild

Infiltration

Speak to Modryn Oreyn and select the 'Duties' dialogue option. Your next task is to infiltrate the Blackwood Company. Make your way to Leyawiin, enter the Blackwood Company, which is right across from the Fighters Guild hall. Inside, locate and speak to Jeetum-Ze about joining the Blackwood Company ranks.

Once you're a member, Jeetum-Ze will lead you down to the training hall. Your first contract as a Blackwood Company member entails traveling to the Water's Edge and clearing the settlement of goblins. After the briefing, Jeetum-Ze will hand you a concoction called Hist Sap. Open your inventory and drink the thing. After drinking the Hist Sap, you will be transported to the Water's Edge settlement, where you are tasked with killing each and every goblin in the vicinity.

When the outside area of the settlement is clear of goblins, enter each house and kill the goblins inside. When every goblin in the settlement has been dealt with, you will be transported back to Modryn Oreyn's house in Chorrol. Speak to Oreyn, and tell him what you've learned. Oreyn asks that you return to the Water's Edge settlement and speak to the residents there to make sure that everything is alright.

Arriving at the settlement, it seems that the every sheep and settler has dropped dead. It appears that, while in a Hist Sap-induced stupor, the Blackwood Company slaughtered the entire settlement, mistaking them for goblins! Speak to Marcel Amelion before returning to Chorrol, and then speak to Modryn Oreyn to complete the quest.