Masked men fired gun shots closed to a residential area in Derry a video circulating online shows.
The show of strength happened in the city's Bogside area.
It's believed this occurred sometime on Friday night (April 8) in the Durrow Park area where officers conducted a search.
Read more: Two men taken to hospital after being stabbed
It's understood a number of items have been seized and taken away for forensic examination.
Derry City and Strabane Superintendent Clive Beatty said the incident was a "brazen and dangerous act that was carried out under the cover of darkness".
He added: "The sight of armed and masked men on the streets of this city is unacceptable. This was an appalling display of contempt by those responsible towards the community. There is no justification for this.
"The public can be assured we will continue to work with communities and our partners in the Paramilitary Crime Task Force to disrupt those involved in such criminal activity and reduce the harm they cause in our communities."
Meanwhile, Paramilitary Crime Task Force Detective Chief Inspector Kelly said: "An investigation is under way into this incident, and we're appealing for anyone with information to contact us. In particular, we want to hear from anyone who witnessed the incident."
Read more: PSNI launch attempted murder probe after petrol bomb 'thrown' at officer
Read more: Watch: Shop workers threatened with a knife during North Belfast robbery
To get the latest breaking news straight to your inbox, sign up to our free newsletter.
