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A police spokeswoman said she could not confirm if it was only one person police were looking for, but said "there is nothing at this stage to suggest there is any risk to the public".
Forensic investigators could be seen yesterday coming and going in and out of the house at Drury Lane.
When the Otago Daily Times reporter arrived, an investigator was examining the letter box. Local resident Ramu McCallum said a police car had been posted outside the house all night.
The police spokeswoman said the wounded man, contrary to earlier reports heard by neighbours, had not been shot.
When asked if a firearm was used at all, she simply said investigations were still under way.
A vehicle believed to be involved was seized by police last night in Mataura and police were calling on anyone who may have seen the vehicle about the time of the incident to contact them. It is a 1994 Toyota Etoile, registration CHK625. Heavily armed police officers cordoned off both sides of Drury Lane between Haywood St and Bay Rd, preventing bystanders and residents from entering.
St John said a person was injured in the incident and rushed to Invercargill Hospital in critical condition.
A Drury Lane resident, said he was about to leave for work when he saw the police cars converging on the scene, the first ones not using sirens.
"An ambulance showed up and it was there for five to 10 minutes."
• Invercargill police (03) 211-0400; Crimestoppers 0800555-111.
- Giordano Stolley