I liked the art and the core mechanic where you must attempt to manually shoot your dragon's fire in a safe direction to prevent damage to the valley, though in the game I was not entirely sure what the down sides to burning the sheep were.
I think this game could see the most improvement with maybe even a bit stronger attraction towards the sheep, some animation on the dragon, a sound effect when the you take damage ( I sometimes didn't notice )
Good entry :)
btw the trees looked very good and the sheep were cute