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This flock of sheep was kept by accomplished potioneer Zygmunt Budge, in the island of Hermetray, in the 1500s. These sheep, along with the rats that infested his house, were the only company Budge had on the deserted island.
After developing his own version of the Shrinking Solution, Budge accidentally spilt a small ammount on the grass outside his house. It proved so powerful that it caused the entire flock of sheep to shrink to lambs the size of wooly mice (Budge went on to use the shrunken lambs as ear-warmers for the chilly winters at Hermetray).