Protected by Sheep Island and a shallow reef, the bay of Larry Bane is one of the most sheltered locations along the north coast and this fact help facilitate the schooners coming into Stackaboy to load with limestone. An interesting event happened here on 22nd October 1906 when the steam-powered trawler 'City of Bristol' on its way back to Fleetwood from the Icelandic fishing grounds, it rounded Sheep Island in heavy fog and hit the reef between the Island and Larrybane - it later slipped off and settled on the sandy bottom in 20 metres of water - local stories record that the Captain mistook Sheep Island for Bull Point on Rathlin Island.

The ship was built in 1903, was 35 metre long and weighed in at 220 tons. The name of the island is said to come from an old practice of taking sheep out there in the summer months where it could sustain a set number, this led to a saying that the island could feed ten but starve twelve. The island is also good for the collection of dulse, an edible and still popular traditional food which is rich in iron and minerals, good fishing is another feature around the island especially for mackerel. Access is only possible from the back of the island where it slopes down low enough to be able to climb up, though it is still a difficult challenge.