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The information about this NPC, creature, item, object, outfit or location is only relevant during a certain event or quest, e.g. only during Christmas.
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Formorgar Glacier, Plains of Havoc, Forbidden Lands, Dwacatra, Ramoa, Hero Cave, Drefia, Hellgate, Tarpit Tomb, Magician Quarter/Restricted Area during the The Lightbearer event.
The flame will extinguish after 2 hours, but luckily this can be prevented by using a Magical Torch on it to reset its expiration time.It looks similar to a Fire Basin but with sparkles.