Meteor: Error: ENOENT when trying to access an image using node-gd

I can't understand why I'm getting this "Error: ENOENT" error. Here is my Meteor server method:

  createImage: function(coords) {
    console.log('createImage')
    console.log(coords.area)
    console.log(coords.x)
    console.log(coords.y)
    console.log(coords.x2)
    console.log(coords.y2)
    console.log(coords.w)
    console.log(coords.h)

    var gd = Meteor.npmRequire('node-gd');
    var path = Meteor.npmRequire('path');
    var fs = Meteor.npmRequire('fs');

    var source = 'forrest.png';
    var target = 'compimages';


     if (path.exists(target)) fs.unlink(target);

        gd.openPng(source, function(png, path) {
                              if(png) {
                                 console.log(png)
                                 console.log(path)
                              }
                           }
        );

    }

Here is the output I get from it on the terminal:

=> Meteor server restarted
I20140827-15:30:18.451(-7)? createImage
I20140827-15:30:18.455(-7)? 27888
I20140827-15:30:18.456(-7)? 242 
I20140827-15:30:18.459(-7)? 164
I20140827-15:30:18.459(-7)? 410
I20140827-15:30:18.459(-7)? 330
I20140827-15:30:18.459(-7)? 168
I20140827-15:30:18.460(-7)? 166
W20140827-15:30:18.527(-7)? (STDERR) path.exists is now called `fs.exists`.
I20140827-15:30:18.547(-7)? { [Error: ENOENT, open 'forrest.png'] errno: 34, code: 'ENOENT', path: 'forrest.png' }
I20140827-15:30:18.548(-7)? undefined

These are the directories within ~/myapp/server/

me@ubuntu:~/myapp/server$ ls
compimages  forrest.png  privateimages  server.js  user-setup.js

I want to access forrest.png and use node-gd to cut a section of it out based on the coords passed in.

As far as I understand it this error means that there is a directory missing. The png file I'm trying to access is in the same directory as the .js file calling it (they are both in ~/myapp/server/ so to me it doesn't look like that's the problem. The only thing I can see is that the path is undefined. I've got that installed though:

me@ubuntu:~/myapp/packages/npm/npm/node_modules$ ls
node-gd  path

Can anyone see what's going on with this? I'm using Meteor 0.9.0