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This clue is misleading in a number of ways. Firstly, the treasure is located in Hordafylke to the north, and it's not east of the village of Alrekstad, it's actually on the large island to the west.
The treasure can be found just southwest of the synchronization point there. Make your way down the very steep cliff face to reach the bottom. You'll see a huge tunnel behind you, so head to the end to find the treasure. Loot it to receive the Snakebite Scheme (Sail) for your longship.
☕ It's all good ❤️