New test realm patch notes.

[Icebird]

Yes, I do think of it as an AOE damage spell, because one of the biggest problems with a priest is a lack of any effective AOE damage -- something very annoying when bugs pop out of silithids, for example.  Regarding the "group heal" aspect of it, it sounds marginal, because parties aren't usually confined to a space within 10 yards of the priest.  So, yeah, in theory it might be mana efficient to use it, but chances are, it's going to miss several members of the party.  I certainly wouldn't count on it to heal someone in an emergency, and I certainly don't think it's worth wasting the extra points in the already weak Holy Tree to get it.  Priests already have a dazzling array of healing spells at their disposal.  What they need is a modest aoe damage spell, which is what Holy Nova was originally all about.
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Out of curiosity , what is the range of Prayer of Healing?

Chris