One sheep seems to have fled Herne entirely.
'Ever tracked down an animal before? I've heard them Ranger folk are mighty good at it, but I don't know much. You ought to check the pen -- before it fled, the last thing that sheep did was eat at the trough.
'Take care, stranger. There're wolves outside Herne... and I've heard tell of worse things lurking beyond. Just thinking about it is enough to make my skin crawl.'
The last thing the missing sheep did before fleeing was eat from the trough outside Hulfryn's house.
You should check the area near it for tracks.
You have noticed faint hoof-prints near the trough outside Hulfryn's house.
You should examine them.
The hoof-print trail leads north-west out of Herne.
You should follow it.
The hoof-print trail you'd been following ended abruptly at a pool of blood.
You should examine the blood.
A trail of blood splatters continues north.
You should follow it.
You've unfortunately found Hulfryn's last sheep.
You should examine its corpse.
You have defeated the wight that killed Hulfryn's sheep.
You should return to Herne and tell him.