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The Elder Scrolls IV: Oblivion Hints
How can I find Theranis now?
1 of 12: NOTE: If you got into the jail by being arrested, you'll have to somehow open the cell door to continue (or serve your time and then get back in another way).
2 of 12: Larthjar mentioned that the Pale Lady took an Argonian most recently, and he was bleeding a lot at the time.
3 of 12: So follow the blood trail.
4 of 12: It leads from one of the cells to a stone wall that positively screams "secret door!"
5 of 12: Click on the strange candle to the right of the wall to open the secret door.
6 of 12: Follow the passage along until you find a door to the Castle Skingrad Wine Cellar.
7 of 12: Continue following the passage until you reach another secret door, this one with an obvious turn handle just to the left of it.
8 of 12: Explore the wine cellar until you find a room chock full of wine bottles to steal.
9 of 12: Notice that the blood stains you were following lead into this room and end at the rightmost of the three giant casks that are against the north wall.
10 of 12: To the left of that third giant cask is another "strange candle" that you can use to open a secret door in the center giant cask.
11 of 12: A short ways past that, you'll meet and defeat (hopefully) the Pale Lady.
12 of 12: Take her keys and then look around to find poor Theranis dead on the floor.