Vindicator Kaalan at the Sun's Reach Armory wants you to speak to Ayren Cloudbreaker and fly over the Dawnblade reinforcement fleet. Use the Flaming Oil to set the ship sails on fire as you fly and once you land, slay 6 Dawnblade Reservists.
We're making a push to solidify our control of Sun's Reach by capturing the harbor next. Unfortunately a fleet of Dawnblade reservists is on its way to reinforce Kael's forces there.
Take this oil and secure a dragonhawk from Ayren Cloudbreaker. You should be able to fly within reach of the ships' sails; once you're close enough, set them on fire.
Land in one of the ships and attack the reservists. With their ship sails on fire they won't be able to mount much of a defense.
Also, you get: 4 40
Have you accomplished your task, <name>?
Well done, <name>. It should be a long time before the harbor receives any reinforcements.
Upon completion of this quest you will gain: