Brechin City extended their unbeaten league run to 10 matches with a 2-0 win over leaders Stranraer at Stair Park.
Craig Wighton, on loan from Dundee, scored both goals for Ray McKinnon's side, who remain in fourth place but are only five points off the top with a game in hand.
Forfar are up to second place following a 1-0 victory over Stenhousemuir at Station Park thanks to a 77th-minute goal from Danny Denholm.
Morton are third after being held 1-1 by Ayr United at Somerset Park. On-loan Motherwell defender Morgyn Neill gave Ayr the lead but Peter MacDonald equalised just after the break.
Dunfermline hit back to draw 2-2 with Airdrieonians at East End Park. Jim Lister and new signing Bryan Gilfillan twice had the Diamonds in front but Ross Millen (penalty) and Michael Moffat earned the Pars a point.
Peterhead came from behind to beat bottom club Stirling Albion 2-1 at Balmoor with second-half goals from Rory McAllister (penalty) and Jamie Stevenson after Craig Wedderburn had given the Binos an interval lead.
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