Sheep, Goats, almost easy....
Try Cats!
Seriously,
If I knew I had enough battery, I'd be using a Packet style transponder with Slotted Aloha, ie timeslots... Each sheep can repeat the nearby sheep's location, acting as a repeater... At round-up time if interrogated. Otherwise I'd just use a simple tracker.
Odds are you will need at least a watt, and a quarter or half wave antenna wrapped around the collar. Sheep are not very tall, so to get coverage, your receive or interrogator antenna needs to be high up.
Do you have a friend with a private airplane? That would make life easy...
Now for the bad news, wet, tall, grass adsorbs 2.4 Ghz...
if you can go with VHF or UHF, there are tiny modules on Ebay that are the two watt core used in Baofeng radios, with select-able power output, a data input, audio input, and programmable frequency.. I'll see if I can find the Auction, they were 18$ a unit. They can reach the 173 Mhz that is used in some regions of Europe for data bursts, or UHF PMR frequencies. The downside is they are power hogs in receive.
In most nations, you can have a watt at UHF, provided its a burst of no more then 7-15 seconds...
Too baaaad this is so pricey:
http://www.findmespot.com/en/index.php?cid=103Steve