In theory, you can convert it into a fixed gear bike, but it would be a rather nice one indeed.
In short, the main two problems I can see are: 1) The ‘drop-outs’ are indeed horizontal ones rear-facing which is what you want for a singlespeed/fixed gear, however, they are not real track-ends and only designed so that one can move the rear-wheel as close to the seat tube as possible for aerodynamic reasons, not to tension a chain, so you would have to check whether you have at least 1/2 inch movement; in the worst case, you would have to play around with a few chainring/sprocket combinations. 2) Most fixed gear rear hubs are spaced for 120mm, but there should be some around for 130mm.
Sven