Lord Woolsley seems to be a Ram that has been possessed by a sprite of wisdom.
1. One-Eyed Jimmy talks about how his family have been using the wisdom from ram to help his family.
2. Never fights back only helps Jimmy and runs "endless it is murderer"
3. Solas talks about how people turn Sprites into demons by denying them there purpose.
4. Cole likes it when you help Lord Woolsley get home.
It make sense that killing its ram form and denying it from sharing its wisdom with One-Eyed Jimmy that it would be twisted into a rage demon.
The quest can be bugged (PC) and not obtainable. Lord Woolsley could already be spawned and killed prior to talking to One-Eyed Jimmy in Redcliffe Village. Either the fact that it's already spawned or that it's been killed prior to talking to One-Eyed Jimmy causes the quest giver to not talk to you when you reach Redcliffe Village.