I'm surprised you guys didn't chase the sea dragon. It'll still be there when and if you do decide to hunt it down, of course. I'll give everybody 25xp each for surviving the encounter though. That puts you at 737, getting pretty close to level 2.
At any rate, one thing happens of note between the sessions, and can be resolved just fine here, on the forum. "You" in the following refers to whoever opens the door, it doesn't really matter.
As you're getting set up in your new inn accommodations, there's a knock on the door. A half-elf in unassuming commoner's garb presses a sealed envelope into your hands. "Bors sends his regards," he says as he departs, disappearing into the crowd.
The envelope contains a coded writ with the seal of the Royal Guard, and a note:
"I'm glad you've chosen to work for me, and have decided to provide some incentive for doing the best work possible. Consider this a teaser, you can expect more of the same if you do good work for me. Take it to the royal armory on the Ducal Palace grounds, give it to the quartermaster. It's good for one piece of equipment of your choice."
That's one total, not one for each character. Decide who gets it (So far Droogh and Anakha are the only characters with no magic gear) and then pick a level 5 magic item from any of the three Player's Handbooks (Stuff from other sources will need approval).
Also, since we're getting into some political intrigue I think it'd be a good idea to dole out some more world exposition, to give you a better idea of what all is going on in the world. Xerath's destruction of the First Kingdom was only about 300 years ago. While magic has allowed the human kingdoms that grew up in its place to thrive technologically, it's still what would be considered a dark age. Civilization exists in bubbles scattered around the world, and outside those bubbles anything goes. The world is, for the most part, still reeling from the collapse of the First Kingdom.
By the way, all of this only applies to humans and the races that live among humans. The elves and dwarves are still carrying on mostly as they always have.
Now then, the actual political part. There are three human civilizations that have come up in the game (Aside from the first kingdom, which doesn't count): The southern kingdom, Alettia, and Ashura. You know what the southern kingdom is. Alettia is on the mainland just northwest of the southern kingdom. Compared to the southern kingdom it's very advanced and a little eccentric. Modeling themselves after the first kingdom, Alettians pursue science and magical technology with religious fervor. Eschewing the medieval stylings of the southern kingdom, Alettians don't wear much armor (Usually a breastplate is it), and use very light weapons and see fencing as a superior art to more "barbaric" forms of combat. Mahtan's new rapier is of Alettian make. Currently the Alettians wouldn't win a war with the Southern Kingdom, but that may change soon. Firearms are beginning to see practical use in Alettia and experimental flying machines are starting to show some promise. Tensions are just starting to build accordingly, some southerners have suggested a preemptive strike against the foppish weirdos to the northwest before they turn their esoteric devices on neighboring kingdoms.
The other civilization that's come up is Ashura. It's literally on the opposite side of the world, which is part of the reason Bors is worried. Nashurpal has traveled who knows how far to come here, what's he up to? Since it's so far away, you don't know much about it. Surrounded on three sides by tall mountain ranges and perpetually in a rain shadow, Ashura is the driest place in the world. Ashurans are dark-skinned, disconcertingly tall, and wear their hair and beards in extremely tight curls. Nashurpal is probably the only Ashuran most of the people in Southport have ever seen, and will ever see.