Good idea on using the fan to carry the sheep. I had something like that in the beginning but took it out so I wouldn't be tempted to smack the sheep with the fan. But it is a relaxation game, so if it helps one to relax, then I'd better add that back in.
I drew the sheep in VR using OpenBrush and then edited them in Blender. The OpenBrush concepting helps to give things a quirky organic feel.
Fearing performance issues from having too many sheep, rather than using skeletal/skinned animation, I just separated them into their separate parts (head, legs, body) as plain old meshes and then just coded the walking and idle animations.