Abstract: A grouting composition comprised of (a) 84-95 % by weight of granular water-swellable sodium-based bentonite, (b) 1-8 % by weight of finely divided salt-water hydratable sepiolite, and (c) 4-8% by weight of a clay stabilizer. The grout composition which contains no organic polymeric substances is mixed with fresh water to provide a pumpable, rehydratable, and easily applied grouting slurry. The slurry admixture will form a solid seal with low hydraulic conductivity and high structural stability. The grouting composition is useful for sealing the annular space around a well casing and plugging abandoned wells in practically all types of formations. A preferred grouting compostion comprises 88-90% by weight of granular sodium bentonite, 6-7% by weight of sepiolite, and 4-5% by weight of granular ammonium sulfate.