Finally
Tried for two hours yesterday to force this encounter, gave up and then reloaded the save today only to get it to appear on the first try. So if you really want the axe you should be prepared to spend quite a bit of time depending on your luck. Though in the process of trying to force this encounter you'll likely complete Dark Forest, Twisted Forest, Forest Clearing, and the large Werewolves versus Ogres(if you sided with the werewolves) fight as well.
The last one really demonstrates the superiority of werewolves over the Dalish as allies, when I did the Forest Clearing though I forgot to try and pickpocket the Werewolf Alpha, also in my pursuit of Nugbane has anyone who plays a rogue with pickpocket tried it on the Werewolf representative after feeding him a nug? Mictlantecuhtli 17:12, January 24, 2010 (UTC)