There should be a quest site labelled "Camp" - when I did this quest it was just outside the first gate, right about where the initial quest location for this area was - somewhere on the map.  Go there with your hero and the quest will continue.  Be aware that continuing this quest will have you participate in one of the harder quest encounters that I have had in the game (though not nearly as bad as the Dark Sorcerer).

From the looks of your screenshot, it appears that the "Camp" quest site may have spawned inside the second gate, in which case you will not be able to continue unless you can cast "Lower Land" in a wildlands area.