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That's right, you can take it to the Temple just east of Beregost and talk to the head priest there (exactly like what you did when you claim the bounty for Bassilus), I'm not sure it'll work if you don't have Coran in your party, since he's the guy who informs you about the wyvern bounty in the first place.
Subsequently, you can sell excess heads at Feldepost's Inn in Beregost (if I remember correctly).
Gd Luck!
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