Reclaim returns % of mana cost = to % of hp the pet has when reclaimed. In the case of flaming sword of xuzl, it returns 700 mana unless you manage to get your sword damaged without killing it, which is technically possible because I've tested it and it has more than 1 hp (a 60 shm meleeing flaming sword with his epic was not killing it due to its high regen).
And yes, using a reclaim clicky (I recommend the torch one for RP value) is the only way to make flaming sword of xuzl worthwhile. I use it on any raid target where AoE, damage shield, and riposte chances won't kill it unexpectedly, which pretty much means giants like vindi/statue/AoW/KT. It's a low agro way to start a fight where you would normally be waiting for tank agro to build and you can then immediately med or harvest after casting it. During the fight, you can cash it in for 700 mana at will if you need to, whether because the target flips and you expect it to die to a riposte or you need the mana. On a typical vindi fight, my sword does about 500-700 dmg before I reclaim it, which is not just free damage, I gain mana that I would not have had the chance to regen otherwise had I not used the sword, so it nets me mana. I should also note that its usefulness is predicated on raising your conjuration skill, because that's something most wizards don't really have a need for and without it, you'll be fizzling far too much to benefit.
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