Icelandic Monster - the Kelpie looks like a large sheep covered in seaweed.
The main thing is not to get between the kelpie and the sea otherwise it will drag you into the sea.
See also: http://www.pbase.com/image/155185534
The book in the lower right corner is titled Bildudalur Chronicles.
The Bildalian Chronicles blends reality and fiction, print narrative, video instalments and illustration to bring to life “one man’s journey to Bildalia in search of sea monsters and paranormal phenomena.”
Reference: http://grapevine.is/Art/ReadArticle/Life-Imitates-Art