At the end of the chain, you will get a quest called "A Hero's Burden" where you have to kill a lich. Firstly, it's important that you don't kill that lich too quickly. At a certain point in that fight, an Oracle and a Frenzyheart will fight alongside the lich. If you want to gain rep with the Oracles, you will have to kill the wolvar without touching the gorlock, and then finish off the lich. If you kill the lich too quickly, the two other NPC's won't activate and you'll need to wait for him to respawn. After that fight, you can pick up a quest from the survivor which will allow you to officially choose which faction you'll be in good standing with.
EDIT: Nevermind, turns out i didn't notice the item he gave me in my bags.
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