A disappointing game came to life in the 28th minute. Martin Bavidge controlled a cross from the left wing and turned to shoot low into the bottom left corner of the net.
Apart from the goal, chances were few and far between with the closest to another goal coming from Peterhead defender Craig Tully who sent a swerving shot past the right-hand post.
The home side could have scored again virtually from their restart but Scott Michie put Bavidge's perfect cross over the bar.
The game came to life in the 78th minute when Peterhead scored their second goal.
Allan Youngson sent over a corner from the right and Tully rose unchallenged to head into the net from the edge of the six-yard box.
The visitor's response was to attack from the kick off and Frankie Carroll headed in a minute later.
The goal inspired the visitors to go on the attack and they were rewarded with a penalty kick in the final minute after Mark Perry tripped Carroll.
Ross Clark saw his initial kick saved by home keeper Paul Mathers who was then adjudged to have moved off his line.
The referee ordered the kick to be retaken and Steven Reilly scored sparking frantic scenes at the end of the game as furious Peterhead players surrounded the officials.