Balthas simply wants you to find Jonny. If your Karma or town Reputation is high enough, Balthas will tell his dog Laddie to help you find Jonny.
With the help of Laddie (and IN > 10), you can have a very interesting conversation about pre-War times and aliens.
Laddie will point you to the town well. Interact with it to remove the boards, then find some rope. There's some in Farrel's garden, and Jo can sell some. In the well, you can find a fair amount of coins that can be taken for -1 Karma each, as well as a BB gun with the name "Jonny" scratched into it. Take it to Balthas, and watch the grown man fall to his knees and cry.
Now let's find Jonny, boy!
You might deduce that finding the BB gun doesn't end the quest, because Laddie is still following you. Help Jo with his ghost problems, and head to the northwest. Discover the ghost farm, and find a way to get little Jonny out of the farm.
- Jonny's BB gun
Behind the scenes
- If you pick up one of the coin bags in the well, your character will say "This one, this one right here. This was my dream, my wish. And it didn't come true. So I'm taking it back. I'm taking them all back.", which is a quote from "Mouth", a character from the movies "The Goonies".