Dixie,
It means: The spot for drilling is 535 feet From South Line and 655 feet From West Line of Section 11. The Planned Bottom Hole Location (i.e., where the end of the horizontal part of the well is) will be 380 feet From West Line and 380 feet From North Line of Section 11. Hope this helps.
Dixie, Henry gave an excellent answer. Just to add, the spot for drilling is also known as the "surface location" and sometimes abbreviated "SL". Attached is an example well plat that illustrates a surface and bottom hole location.