Forfar slumped to another disappointing league defeat as Peterhead moved five points clear of them and into the play-off places.
A goal in either half gave the visitors all three points, with the Loons never really looking like they were going to take anything from the game, something a bitterly disappointed manager Dick Campbell admitted afterwards.
A killer instinct in front of goal and an ability to convert chances were the differences between the sides as Forfar enjoyed bouts of possession and pressure but did nothing with them.
They started brightly and Peterhead keeper Graeme Smith was lucky to escape with just a yellow card after bringing down Scott Martin outside his box. Bryan Hodge then got in a shot but it was straight at the keeper and proved to be one of only two chances all night.
Peterhead showed Forfar how it should be done with their first real chance in the 37th minute.
Rory McAllister left defender Iain Campbell trailing with a brilliant spin before hitting the bye-line and crossing for former Loon Jordan Brown to volley home from six yards.
Right on half-time ex-Dundee striker Leighton McIntosh clipped the outside of the post with a piledriver as Peterhead again caught Forfar out.
McAllister looked dangerous throughout the second half and he forced Rab Douglas to dive full length to save and turn his shot past the post.
Then, as Forfar pressed and pinned them back, Peterhead again hit on the break, McIntosh sending another great shot just inches past.
The game turned in the space of seconds in the 85th minute. Nathan Blockley cleared a Chris Templeman header off the line after three Forfar corners in succession. Then Peterhead broke upfield and substitute Jamie Stevenson drilled home a lovely finish from just outside the box.
Forfar boss Campbell admitted his side looked tired and are not firing on all cylinders.
“The game was reasonably tight, although they were always a goal threat,” he said.
“You wouldn’t deny Peterhead the right to win the game. I thought they deserved the victory. I am really disappointed after Saturday because we thought we had turned the corner. We looked awfully heavy-legged.”